C.H.I.C. Development Corp

Community Development Loan Needed for Building Affordable and Attainable Homes in Delray Beach

Needs Summary

We are seeking a line of credit to construct three new single-family affordable housing units in Delray Beach using an innovative and sustainable approach that employs steel containers as the exterior material.

Loan

$495,000 (line of credit)

March 31, 2020

Details of Need

C.H.I.C. Development Corp. is currently building single family homes utilizing steel containers as the exterior material. This will significantly reduce the cost of construction and enable the savings to be passed along to end users through lower purchase prices. We are acquiring properties through donations and/or purchases in low- to moderate-income (LMI) census tracts and are supported through partnerships with municipalities, nonprofit organizations and other owners of vacant lots. Land may include non-conforming lots with irregular shapes and/or smaller than normal square footage. A line of credit in the amount of $495,000 will be used to build three homes simultaneously and will cover the total project cost.

Our partners include a local non-profit community revitalization and development organization, a builder specializing in energy efficiency and environmental-friendly building, and a nonprofit specializing in training and employing veterans. In addition to a line of credit, we are also currently seeking financial support in the form of grants and/or funding for Paragon Florida, Inc. a local CDFI nonprofit, who will provide the constructing financing for additional homes to be built.

Community Impact

The majority of individuals in our community are cost burdened, which means they are spending over 50% of their income on housing. This number is even higher in the LMI census tracts. Building these homes addresses this need directly by lowering the cost of construction and passing along the savings to LMI home buyers in the form of lower home prices.

The average household will consist of 4 people, and going forward, we will be able to build 10 homes per year. As such, we will be serving 40 LMI individuals over the course of 12 months - counties to include Monroe, Miami-Dade, Broward, Palm Beach, Martin and St. Lucie.

An additional community benefit of this initiative is the increase in housing stock. Municipalities will thus benefit from an increase in property taxes by having homes on previously vacant lots. Our program also brings an economic benefit to the community by utilizing local labor, many of whom are veterans being trained in "green building" methodologies.