HomeMy WebLinkAboutR04-Economic Development Agency
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. m:vEIDPMENl' IZPARDII!lNl' OP 'l.'lme
CITlC OP DN BI!:RNJ\RDDI)
REQUEST !OR <D<<MISSION/I'Y'lmr'TT. llC'l'l:CB
F.I:an: RENNEIH J. HnlDERSON
Executive Director
SUbject: __~ ICH!l ...........nv_
lOR JmlltlDCl'ORBD JU,Iti.uG
Date: March 1, 1991
SyDopsis of Prerious OcIlIlIi.ssiOD/Oouncil/Oc:IIIIIittee ~on:
NONE.
Reo ._.-_.~ Motion:
(~mity Development n-f_ion)
'.lm\T 'l.'lm CXIIMtlNITY m:vEIDPMENl' <D<<MISSION JUo~N.JVj5 ENl'ERPRISE ICH!l DIDl'l'IVES lOR
INFILL M>>ltJI2lCl'URE JJ:>USIm P1n7ECl'S cx:m'OIlMDG m VARIOtlS BlJIIDDG STAKlMUlS SET
FOR1![ IN 'l.'lm STAFF REroRr
KfHlE'1!I ~ --1t:ive Di.rector
Devel~L L
Contact Person:
Blane:
5065: 5081
Project Area:
Ward(s) :
1 t:hrooah 7
~in;J Data Attached:
PUNDIN:; RD;2OlREMENrS:
staff RePort
Amo\mt: $
N/A
Source:
anget Authority:
Oc:IIIIIissiOD/Oouncil Notes:
. RJH:lab:4261
AqeD4a Itsn No:
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IEVEIDHIENT IEPARDIENT
STAFF RDukJ:
EnterDrise Zone I1lcer1tives for Manufactured Housi~
On December 27, 1990, staff provided a verlla1 report to the Redevelcpnent camni.t-
tee relative to the concept dealin; with the introduction of manufactured housin;
to be develc:pld am plaoed in vacant lots throughout the City. Discussion was
raise:i with respect to the stability am durability of manufactured housin; as
previously '"'""T"red to stick b.1ilt housin;. 'lhe question of affordability was
also discusse:i as it related to bath types of housin; oonstruction. staff has
informed the Camnittee of the pr~ subnitted by Focal Deve1~tt Corporation
iu-~in; the devel~lL of manufactured hous:ln;r. Included in the ~"1osal was a
request for waiver of all tW.ldin; fees associated with the p..~ develcpnent.
DJrin; the month of January, 1991, Deve1"'lAlll::lltt Department staff visited Goldenwest
Manufacturin; plant in the City of Moreno Valley for the p.npose of reviewirq the
entire process for production of manufactured housin;, similar to that ~~ to
the City. staff indicated to the Camnittee that the overall concept o.n:.l:t,uUy
be:ln;r utilized for the oonstruction of this type of hous:ln;r is similar, am to
same degree, better than that use:i in traditional stick-b.1ilt hous:ln;r. 'lhe
concept involves the developnent of housin; in an off-site manufacturin; facility
for installation aOOjor assembly. Fach house carries a label certifY:ln;r that it
is constJ:ucted in canpliance with the Federal Manufactured Hane construction
Safety Stamards. A canpliance label fran the U.S. Department of HOlISin; am
urban Deve10pnent (HUD) attests to the fact that the hanes have been tested arxl.
inspected to canply with str:ln;rent uniform federal stamards. 'lhe HUD code is
uniquely designed for canpatibility with the factoJ:y production process without
sacrific:ln;r any stamards of excellence. Heat:ln;r, plumbin;, air oorxlitionin;,
thermal arxl. electrical systems, alon; with structural design, fire resistance arxl.
energy efficiency awear equal to or superior to stick-built.
Staff also contacted various financial institutions, such as Life Savin;s Bank, to
determine if manufactured housin; was equal to or less than traditional housin; in
value, includin; resale value. Mr. Jerry Tin'p:l1'le, Chief I.endi.n;1 Officer for Life
Savin;s Bank, indicated that manufactured hous:ln;r is very durable am can stan:i
the test of time in relation to resale values for hanebuyers. He stated that
manufactured hous:ln;r is an excellent solution for the first-time hanebuyer. Staff
also contacted the San Bernardino Board of Realtors to determine the current
climate with respect to manufactured housin; fill in; the need for affordable
housin; ani resale values of same. 'lhe Board's representatives also agreed that
manufactured housin; is ideal for first-time hanebuyers !ran an affordability
stanipoint. 'lhey also stated that resale values of manufactured housin; are very
c:omparable to stick b.1ilt hanes. It wuld seem that the JOOSt difficult part of
deal:ln;r with manufactured housin; is the traditional mind set that manufactured
housin; is a 1I1Obilehane. Based upon the interview noted above, such a perception
is incorrect.
KJH: lab: 4261
CDlMISSION MEm'IN3
Meetinq Date: 03/11/91
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DEYEI.Ol'MENT m:l'ARDmNl' 8'mFF ~.
Entelprise Zone Incentives for
Manufactured JJousinq
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A typical three (3) bedroan, bIo (2) bathroan house c:onsistinq of 1,307 square
feet of livinq space with an attached bIo (2) car garage inclusive of all
amenities, ccu:petinq throughcAIt, central forced air heatinq am ooolinq, oven am
ran:JE!, dishwasher, gazbage disposal, drapes am miniblims, landsoapinq in the
front yard am a five (5) foot fence in the back yard can be sold at a price
between $70,000 am $73,000, incl1.ldirxJ the lam costs at $13,000. '!his sales
price also includes sales nnmmi """i.ons. '!he above referenced sales would realize
a profit margin of about fifteen percent (15%).
In addition, HUD st:an:3ards require that manufactured ha.1sinq meet the
same st:an:3ards for win! resistenoe in high win! areas as that of stick-built
hares. As sudl, the interior walls of these hares are traditional sheet rock
with 2 x 4's every sixteen (16) :inches am, in many cases, 2 X 6's are used for
the interior wall structure.
staff believes that this type of ha.1sinq can easily CXIIplement the Infill Housinq
Program for low am m.Xlerate :incane families throughout the City. Based upon
this assessment am am the fact that this type of ha.1sin;J meets City
affordability st:an:3ards, I am rec:x:amnerxtin that EnteIprise Zone Will incentives
be approved.
e I reconnnend adoption of the form notion.
~~, Executive Director
Deve10puent Department
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KJH: lab: 4261
CXl!MISSION MEE'1'JlI;
Meetinq Date: 03/11/91