Monday, April 18, 2011

MODULAR FACTORIES NEED TO GET READY FOR NEXT WAVE

Within the next 20 years, 70 million people will be retired in this country.  And with that comes opportunity for the modular housing industry. 



HUD is working hard to find adequate housing for the most vulnerable of these retired people; the frail and poor.  HUD wants to expand Section 202.  If you haven't heard of this before, join the rest of us.  It is the perfect way for modular factories to make fantastic inroads into a market that they've only dabbled at in the past.

Here is how it works:
Summary:
HUD provides capital advances to finance the construction, rehabilitation or acquisition with or without rehabilitation of structures that will serve as supportive housing for very low-income elderly persons, including the frail elderly, and provides rent subsidies for the projects to help make them affordable.

Purpose:
The Section 202 program helps expand the supply of affordable housing with supportive services for the elderly. It provides very low-income elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, transportation, etc. The program is similar to Supportive Housing for Persons with Disabilities (Section 811).
Type of Assistance:
HUD provides interest-free capital advances to private, nonprofit sponsors to finance the development of supportive housing for the elderly. The capital advance does not have to be repaid as long as the project serves very low-income elderly persons for 40 years.
Project rental assistance funds are provided to cover the difference between the HUD-approved operating cost for the project and the tenants' contribution towards rent. Project rental assistance contracts are approved initially for 3 years and are renewable based on the availability of funds.
The available program funds for a fiscal year are allocated to HUD's local offices according to factors established by the Department.

Eligible Grantees:
Private nonprofit organizations can apply to develop a Section 202 project if they can, among other requirements, submit a resolution that they will provide a minimum capital investment equal to 0.5 percent of the HUD-approved capital advance, up to a maximum of $25,000 for national sponsors or $10,000 for other sponsors. Public entities are not eligible for funding under this program.
Now should be the time for factory sales reps and owners to be scouting the landscape looking for developers that are getting ready to build out these projects.  Modular factories are making headway into the commercial side of the building business, now it's time to go after public housing projects.

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