Statement of Need
What single parents need is safe, affordable housing that empowers them to pull themselves out of poverty. They also need a way to join together to help one another with basic parenting tasks to lessen the burden of raising children alone. Along with safe housing, they need a way to reduce time away from their children by having everything they need within a short distance.
Future Mixed Use Project Description
Explanation of the Problem
It is human nature to act like the people around us. We see evidence of this in infants, toddlers, children, young adults, and adults. That is why many career coaches and motivational speakers advise their clients to change who they hang out with as a first step. They tell them to start doing what they see successful people do. The philosophy is, by imitating successful people, they too will become successful.
Yet, families in low income housing often do not have the opportunity to be around successful individuals, let alone spend any time with them. What people know and what they do is often a result of how they were raised. Women on welfare spend so much time convincing support agencies of what they cannot do and why they need support, that their children pick up on that message. Over time, the children learn to point out what they cannot do rather than what they can. This is a key element that creates generation after generation of welfare recipients from the same family.
Traditional public housing encourages this behavior to continue. Housing vouchers, on the other hand, provide a way for families to live in closer proximity to more successful people by giving them more choices of housing. The study in the Journal of Marriage and Family found that vouchers tend to increase rent burden and difficulty paying rent or utilities. That may be because the families using vouchers are trying to “keep up with the Joneses”. Meaning that they spend more on luxury items than they would have otherwise.
Yet, families in low income housing often do not have the opportunity to be around successful individuals, let alone spend any time with them. What people know and what they do is often a result of how they were raised. Women on welfare spend so much time convincing support agencies of what they cannot do and why they need support, that their children pick up on that message. Over time, the children learn to point out what they cannot do rather than what they can. This is a key element that creates generation after generation of welfare recipients from the same family.
Traditional public housing encourages this behavior to continue. Housing vouchers, on the other hand, provide a way for families to live in closer proximity to more successful people by giving them more choices of housing. The study in the Journal of Marriage and Family found that vouchers tend to increase rent burden and difficulty paying rent or utilities. That may be because the families using vouchers are trying to “keep up with the Joneses”. Meaning that they spend more on luxury items than they would have otherwise.
Solution
Providing tenants with a financial coach or accountability partner may help reduce over-spending. In addition, A mixed use complex provides close access to many of the things families need to feel empowered and less stressed by the demands that are put upon them each day. Developing a village-like atmosphere to encourage cooperation among families helps provide a supporting community which insures higher success rates.
Lower units are to be used by lower income families at a highly reduced rent for 3-5 years while they work on improving their situation. Upper units are to be sold individually as condominiums. This, combined with rent from the commercial units helps fund the reduced rent from the low income units. Selling some of the units also increases the likelihood that part of the community will be occupied by more financially stable families or individuals, thus creating an opportunity for the lower income families to align themselves with the more financially stable families; helping them learn how to improve their situation through the example of others. Finally, condos can be purchased by the low-income families once they become more self-sufficient. This provides them the opportunity to remain in the community. Giving their children stability and providing them the continued support of the other village residents.
Lower units are to be used by lower income families at a highly reduced rent for 3-5 years while they work on improving their situation. Upper units are to be sold individually as condominiums. This, combined with rent from the commercial units helps fund the reduced rent from the low income units. Selling some of the units also increases the likelihood that part of the community will be occupied by more financially stable families or individuals, thus creating an opportunity for the lower income families to align themselves with the more financially stable families; helping them learn how to improve their situation through the example of others. Finally, condos can be purchased by the low-income families once they become more self-sufficient. This provides them the opportunity to remain in the community. Giving their children stability and providing them the continued support of the other village residents.
Statement of Objectives
The complex should:
- Provide affordable, safe housing.
- Encourage cooperation among families.
- Provide easy access to various businesses for the single parent families that reduces the number of hours each week spent running from one business to another to meet their family’s needs.
- Provide easy access to public transportation and/or carpool groups.
- Encourage consumers living outside the complex to utilize the services in the commercial units.
Envisioned Design
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Since we are trying to create a village atmosphere, a Greek or Roman village appearance is envisioned. Cobblestone streets and views open to a domed glass roof gives one the feeling of being outside in a Greek village marketplace as shown in Figure 1.
The residential units will be open and airy to help single parents keep an eye on their children while attending to cooking and other parental duties as depicted in Figure 2. |
Figure 1 - Commercial Unit with Residential above
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Figure 2 - Residential Interior
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The exterior of the complex will resemble the Roman Colosium as depicted in Figures 3 and 4. By placing the commercial units on the bottom levels and around the outside and the residencial units in the middle, it will incorpoate a level of security for the residence that will reduce the amount of violence normally found in traditional low income housing.
Figure 3 - Exterior Cross Section where commercial units will be located.
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Figure 4 - Exterior Elevation
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Figure 5 - Restaurant Interior in Commercial Tier
A domed glass roof spanning the entire structure will provide a summer atmosphere year round, encouraging consumers to visit the restaurants and retail stores. A tiered structure along the exterior will also allow for the restaurants and other commercial properties to have an open and airy feel of being outside.
The pool and community center will be in the center of the development with the commercial and residential areas surrounding it on all sides. The pool area will have living plants, old stone patios, and picnic tables. A stone wall, walking trail, and bike path will surround the community area providing separation from the businesses and private residences.
The pool and community center will be in the center of the development with the commercial and residential areas surrounding it on all sides. The pool area will have living plants, old stone patios, and picnic tables. A stone wall, walking trail, and bike path will surround the community area providing separation from the businesses and private residences.
Figure 6 - Pool and Clubhouse with Surrounding Residential Units
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Budget
Initial estimates of the construction costs have been determined by using 2008 RSMeans data information for Salt Lake City, Utah. Table 1 breaks out various areas of the mixed use complex by square foot and cost per square foot (RSMeans, 2008). The rough initial estimate for the entire project is $47.1 million. This estimate could change depending on the number of each type of unit that is actually designed into the complex. The lowest level of the 6 story residential unit would be used for professional office space. Levels 2-4 will be used for the low income rentals. Levels 5 and 6 will be used as Condominiums that you will be able to sell in order to recoup some of the costs associated with construction.
Table 1 - Estimated Construction Budget
Table 2 contains a market summary report of condos with 1000 to 2000 square feet in the areas near your property (Multiple Listing Service, 2010). I estimate that you will be able to get 160, 1500 square feet units out of the top two floors of the residential units. That could bring in an income of between $20.8 million and $48 million. Based on comparables for commercial unit rent found at the same MLS (Multiple Listing Service) site, it is estimated that rental income for the commercial units on the first level of the residential units could bring in between $208,800 and $2.6 million per year. See Appendix A for a more detailed listing of what is currently on the market. This estimate does not include the large amount of commercial property along the perimeter since information on daycare facilities, Medical Offices, and Supermarket rent is not readily available on the MLS.
Table 2 - Market Summery Report on Condos Sold
Conclusion and Recommendations
Developing a mixed use commercial and residential complex for low income, single families will provide them with the resources they need to improve their situation in life. It will also provide them a way to increase the likelihood of their children breaking the cycle of poverty. Through watching neighbors who are financially stable, they will learn how to spend wisely and become financially stable themselves. Additionally, assigned mentors/accountability partners will help keep them on track to their financial goals.
By selling the top level residential units as condos, it will be easy to recoup some of the price of construction. Rental income of the businesses below will help offset the reduction in rent afforded to lower income families. These projections create a win-win situation for everyone involved.
By selling the top level residential units as condos, it will be easy to recoup some of the price of construction. Rental income of the businesses below will help offset the reduction in rent afforded to lower income families. These projections create a win-win situation for everyone involved.
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PO Box 663
Price UT 84501 |
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