PROJECT EXAMPLE #2
The long-term ongoing project involves turning existing older single-family houses into contemporary, healthy, income-restricted, affordable entry-level for-sale family “home ownership opportunities.”
Creating Scattered Site Affordable For- Sale Single Family Houses in the Denver Metro Area.
JJK Places is serving as Owner’s Rep/Project Manager supervising the complete gut rehab of multiple existing houses. Many of the homes are being completely abated for their asbestos in the existing interior walls. House rehabs are including completely new kitchens, bathes, interior walls installed, and exterior front yard drought resistant xeriscaping.
Each rehabbed house produced will be sold at a 70% AMI (Area Medium Income) level.
Targeted house sales prices will be approximately $240,000 (for two-bedroom houses) and $265,000 (three-bedroom houses). The current market rate sales prices for similar rehabbed fix ‘n flips being sold nearby are approximately $310,000 (two-bedroom house) and $350,000 (three-bedroom).
Status and Timing:
Currently, the projects are undergoing renovation and rehab; they will be marketed for sale when completed. More such homes will be similarly acquired and rehabbed in 2020 and going forward.
Targeted house re-sale prices are approximately $240,000 (for two-bedroom houses) to about $265,000 (for three-bedroom houses). Market rate similar rehabbed fix ‘n flips nearby are selling for approximately $320,000+ (for two-bedroom houses) and $350,000+ (for three-bedroom houses). The price point of these affordable houses will help families escape housing insecurity and put them in a homeownership position.
The acquired houses are part of a “community land trust” model, whereby the ownership of the land is legally separated from the ownership of the physical house. A nonprofit community land trust entity will then remain long-term steward of the land, and the homeowner will have a long-term ground lease when they purchase a house (typically 99-years long, with an additional 99-year renewal period). This model helps make the sale house immediately less expensive since the cost of land has been eliminated from the house’s purchase price.
The rehab process is eliminating asbestos containing materials (ACM) in many houses thereby making them healthier houses in which to live. Many houses require a complete gut rehab down to their interior wood framing studs because all existing drywall contains ACM. Old linoleum flooring tiles and/or mastic containing ACMs also are being properly removed and disposed of by state certified abatement companies. Additionally, all homes are being tested, and if necessary, treated for lead paint and radon.
The rehab of each house is intentionally installing new healthy building materials, including low VCP products (flooring, paints, etc). No carpet is being installed in any homes due to the high formaldehyde content in most carpets. Energy efficient insulation, windows, water heaters, and appliances are replacing older less efficient ones.
Lastly, at many houses exterior front lawns are being replaced with low maintenance, low water usage xeriscaping.
The below photos are samples of the type of rehab work that houses are currently undergoing:
SAMPLE PROJECT #1
50+/- Affordable For-Sale Residential Condos, and approximately 15-20,000 sq ft of commercial space targeted for community-serving uses in a unique mixed-use project incorporating new construction and renovation of existing industrial space.
SAMPLE PROJECT #3
JJK Places is serving as Owner’s Rep/Project Manager of a unique four (4) house development project in Aurora this is an affordable housing “demonstration” project. It is utilizing both “Solar Decathlon” modular houses and a steel modular “cargo container” …