In an effort to revitalize an inner city neighborhood in Hutchinson, Kansas, Interfaith Housing Services has been wanting to build new homes on vacant lots there. Unfortunately, the group discovered that building new homes in already established residential areas was limited because new houses built in older neighborhoods typically will not appraise at a value equal to their cost of construction. That, in turn, typically makes it difficult or impossible to get mortgages and insurance.

According to Ron Fisher, director of operations for Interfaith, the group has discovered another alternative – modular factory-constructed homes. He said the group is excited about this type of housing because of its lower cost, which they feel will reduce the gap between the construction cost and appraisal value. The plan, he said, is to build three modular homes as a test to see how close they can get to closing the gap.

Hutch News  tells MHProNews  that the group has applied for a $190,000 grant from the Kansas Housing Resources Corp. to partially fund three modular homes to be placed on three vacant lots in the area as a test. If the test build proves that cost-efficient homes can be built, Interfaith will apply for a larger grant to help build up to 30 more housing units near Lincoln Elementary and the Elmdale Community Center. There are a number of other vacant lots in that neighborhood that Interfaith would then try to acquire for construction of single-family modular homes.

Champion Homes, Troy, Michigan, is the builder that Interfaith has been working with and discussing various modular plans.  Champion builds modular homes in sections in its factory and then assembles the sections on a foundation at the destination. “The intriguing thing,” Fisher said, “is that a modular home brings a lot of quality, but because it’s built off-site, it’s far more cost-effective.”

Casey Tillman, Hutchinson’s new housing program coordinator, said the owners of one lot have said they will donate it to the Land Bank, which will in turn hold the lot for Interfaith until it is ready to start building. “We’re very supportive of Interfaith’s program,” Tillman said.

In a similar revitalization project, Champion Homes was chosen to build 36 modular homes in Detroit’s Penrose neighborhood in 2013. This was a historic neighborhood that had been plagued by blight and crime for decades.

In addition to building homes in that area, Champion built the Penrose Art House, a community center dedicated to those who live in the neighborhood. The Art House regularly hosts community meetings, events and art classes. ##

(Photo Credit: Champion Homes)

 

Article Submitted by Sandra Lane to – Daily Business News- MHProNews.