New Habitat
A homebuilding organization moves into condos.
When Habitat for Humanity makes the news, the accompanying pictures are often the same: a bunch of volunteers–usually college-age–hammering away at 2x4s on the jobsite for a single-family house. “Most of the [Habitat] world does single-family, detached breadbox houses, and in the urban areas, they do townhouses,” says Karen K. Cleveland, executive director of Habitat for Humanity of Northern Virginia.
In Washington, D.C., those news reports are about to get a fresh look. That’s because Habitat, an Americus, Ga.-based organization dedicated to providing simple, decent, and affordable shelter, is going condo. Although the nonprofit has built condos in Oakland, Calif., and San Francisco, a 12-unit property in Fairfax will be the first in the Washington area. The Northern Virginia chapter is working on zoning for a nine-unit development on a plot of land adjacent to the 12-unit property, and Cleveland says the properties will be affordable to people making between 20 percent and 60 percent of area median income.
Why the sudden switch to multifamily? Land costs have risen so high in some areas that developments must be high-density housing to make them viable. “The opportunity for Habitat to control land that would support stand-alone, single-family homes [in Northern Virginia] is virtually impossible,” says Conrad Egan, president and CEO of the National Housing Conference. “They have to go to a denser form of development, and that has been townhouses. Now they’re branching out into multifamily structures.”
Cleveland acknowledges this reality. “Land is becoming so expensive,” she says. “We have no choice.”
–Les Shaver
Sell Off?
Even big buyers are selling properties these days. Equity Residential in Chicago recently announced that it is exploring the sale of its Lexford Division. The division has 299 properties (with 27,390 apartment units) in 10 states and a property management business in Columbus, Ohio.
–Les Shaver
Shop ‘Til You Drop
Talk about being able to advertise that your new condo property is “close to shopping.” General Growth Properties is developing a 215-unit condominium community attached to Natick Mall in Natick, Mass. The new development accents a 550,000-square-foot addition to the mall with Nordstrom and Neiman Marcus department stores. The residential portion is expected to open in time for the 2007 holiday season. Residents are lining up fast, with 250 reservations on file. The perfect move-in gift: a DVD of the ’90s comedy “Mall Rats.”
–Rachel Z. Azoff
New Opportunities
Many housing authorities have seen their federal funding decline over the last few years–but one decided to do something about it. In an effort to increase revenue and diversify its portfolio, the Lucas Metropolitan Housing Authority in Toledo, Ohio, bought the Westridge Apartments in Sylvania Township, Ohio, according to Lawrence Gaster, the agency’s executive director.
–Les Shaver
L.A. Story
Downtown Los Angeles’ revitalization efforts have a long way to go, but the city isn’t giving up anytime soon. Approximately 9,400 apartments and condos are scheduled for development in 2006 and 2007, with another 10,181 units to be built between 2008 and 2015, according to the Los Angeles Times. The revitalization is expected to cost about $12.2 billion (including both residential and commercial construction).
–Rachel Z. Azoff
Rehab Ahead
After receiving more than 1,800 housing violations, the sprawling Lawndale Restoration and Douglas Lawndale complexes–totaling 104 buildings in Chicago–were in need of a change. After the housing violations, HUD instituted foreclosure proceedings against the former owners of the properties and sold the buildings to the city for $10 each. The city’s housing authority then transferred the properties to 23 developers who will redevelop them into more than 1,100 units of affordable housing.
–Les Shaver
Affordable Fix
Brace yourself: The Big Apple just might get more affordable. The city announced a $7.5 billion initiative to build and preserve 165,000 units of affordable housing by 2013. As the largest municipal housing plan in the nation’s history, the program will provide homes for 500,000 New Yorkers.
–Rachel Z. Azoff