41 YEARS OF OPERATION

History• CRHDC is a state-wide non-profit housing

development corporation formed in 1971 to provide safe and affordable housing to migrant and seasonal farm workers in Colorado.

• It evolved from one-county operation to multi-county, multi-faceted operation representing far more than migrant housing.

• After 36 years as Colorado Rural Housing Development Corporation, Expansion into urban markets required a name change and new branding to fully capture the essence of its operation and expand its funding opportunities. New name-Community Resources and Housing Development Corporation(CRHDC)

What We Do CRHDC serves low-moderate income individuals through 6 lines of business:

• Counseling- Education in homeownership, financial management, and post-purchase issues.

• Lending- Created affiliate corporation, Colorado Housing Enterprises, LLC to serve as lending arm of CRHDC. CHE provides first mortgage lending, down payment and closing cost assistances and small business lending

• Real Estate Services-created affiliate corporation, Pathways Realty, LLC to provide purchase and sales services to clients

What We Do • Property Management-provide

property management for CRHDC rental portfolio and other non-profit organizations

• Technical Assistance-provide technical assistance to nonprofits and local government in development and sponsorship of farm worker housing in Colorado and western region states

• Development- New Construction-build single family, multi-family, and senior housing state-wide

o Manage NSP-II Program-acquisition, rehab, and sale of foreclosed properties in urban and rural census tracts

Rural Housing Development

• Self Help • Contractor Built

Housing Development Continued

• Developed Self-Housing for past 38 years in partnership with USDA-Rural Development

• Assisted over 1700 families and individuals to build their homes in rural communities throughout Colorado

• Great program for working families willing to exchange labor for cost savings and achieve the “American Dream of Homeownership”

Challenges with Self-Help

• Some potential participants cannot meet the labor requirement due to medical or physical condition

• Others have jobs that require more than 40 hours per week and do not have the flexibility to participate in the Self-Help Program

• USDA-502 Direct Funding is shrinking due to Federal Budget reductions and funding at times is not available for several months

Self-Help Housing Challenges, continued

• Inclement weather in Colorado can impact construction and create delays

• With the reduction in RD staff at all levels, timely processing of loans becomes difficult

What other housing options are available for individuals and families

not able to take advantage of the Self-Help Program?

CRHDC researched other housing products to offer borrowers not able to participate in Self-Help

Factory Built Housing• Product selected was the Modular Unit

o Built to the same building codes and design standards as site-built homes.

o Can be produced with high-quality at lower costs per square foot than other construction methods

o Shortened on-site construction time lines

o Energy efficient and decreased construction waste

o Full product customization

o Eligible for financing from RD 502 Direct, 502 Guarantee, and private lenders

Factory Built Homes• Modular house selected over

manufactured house for two reasons:

• USDA-RD will only finance new manufactured homes once; modular homes are treated similar to stick built and can be financed whether new or existing

• Modular homes meet Universal Building Codes and can be built in new and existing sub-divisions

Factory Built Homes• CRHDC’s movement into factory

built homes required a support group to assist with the intricacies of this product

• As a member of Neighbor Works America, CRHDC became a member of Next Step which offers the support and expertise to members of the network to successfully offer this alternate home product

About Next Step• National Organization with a national initiative to

assist and train nonprofits in providing sustainable homeownership through factory build housing.

• Next Step System for doing business consists of three primary components:

o Building and training a national network of nonprofits to increase nationwide access to affordable factory built housing;

o Ensuring that high quality, ENERGY STAR factory built homes are available at wholesale pricing to our Members;

o Advancing the use of factory built housing as an asset-building strategy for low- to moderate-income Americans.

Next Step Continued

• With technical support from Next Step, CRHDC became licensed in Colorado to purchase factory built homes at wholesale cost and sell to eligible low-moderate income families in Colorado

• Next Step introduced CRHDC to one of the several Clayton Manufactured Home Factories in Albuquerque, New Mexico’ Karsten Homes

• Next Step Homes have energy-efficient features and carry the Energy Star label

Energy-Efficient Features

Features • Effective insulation

• High-performance windows

• Tight construction and ducts

• Efficient heating and cooling equipment

• Efficient products

• Third-party verification.

Benefits • Added confidence.

• Lower ownership cost.

• Better performance.

• Smart investment.

• Environmental protection

• Next Step Homes -have a HERS rating between 70 and 75

• 25 to 30% more efficient than standard site built homes

• 10 to 15% more energy efficient than many ENERGY STAR homes.

Energy-Efficient Features

Gaining Partner Support

• CRHDC invited RD county staff to tour the Karsten Homes factory in Albuquerque, New Mexico

• Demonstration and tour of the factory and the quality and energy features of the

• RD staff support the product and allow CRHDC to offer the product to 502 Direct and Guarantee borrowers

Costs• Stick Built vs. Modular similar in cost after

factoring land, foundation, setup, and adding a garage

• Variable cost for modular include land cost, tap fees, foundation plan, and building permit fees

• Savings realized on construction financing and shorter period to build unit

Financing• CRHDC also sought other loan products that

finance modular units

• Accessibility to other financing options provides borrowers the ability to purchase and finance their homes timely without having to wait for availability of 502 Direct Loans

Advantages of Factory Built

• Product offers option for families or individuals not able to participate in Self-Help due to medical or physical impairments

• Individuals working long hours without flexibility to participate in Self-Help

• Individuals not willing to commit the labor required in the Self Help Program

Advantages of Factory Built

• House can be built and delivered to the site in less than 30 days

• Construction financing minimized

• Features include quality and energy efficient construction

• Energy- efficiency helps to ensure lower operating costs

The Final Product