1. Sneak Peak at CHFA Cost Study Preliminary Findings
Housing Now “Sticks and Bricks” Workshop 2016
*Source of Findings: BBC Research and Consulting Preliminary Draft Cost Study for CHFA

2. Number of LIHTC Applications and awards

3. Trends in Average Project Cost among New Construction LIHTC Applications, 2011-2016

4. Trends in Average Cost per Square Foot among New Construction LIHTC Applications, 2011-2016

5. Trends in Average Cost per Unit among New Construction LIHTC Applications, 2011-2016

6. Average distribution of new construction project cost by year, 2011-2016

7. Average Project and Hard Costs by Project Characteristics, 2015 and 2016

8. PRELIMINARY FINDINGS Development trends:
Rental Market has shifted quickly, as evidenced by the number of applications and cost trends.
Project composition is largely unchanged:
Bedroom mix varies little, with half of units one bedroom. True despite type of developer. Small shift to 3+ bedrooms in 2016.
On average, 80% of units are affordable to 40-60% AMI. 20% are deeply affordable. Fewer than one-fourth of LIHTC applications are mixed income.

9. PRELIMINARY FINDINGS Cost trends:
Rental Market has shifted quickly, as evidenced by the number of applications and cost trends.
Average project cost for proposed developments:
Hard costs are driving increases, primarily labor. Raises real labor costs and lengthens construction time.
Per sq. ft. cost of land and buildings declined slightly due to land donations and in-kind contributions

10. PRELIMINARY FINDINGS Developer recommendations for cost containment:
Clarify desired amenities and if/how CHFA is willing to relax expectations to lower costs
Be more transparent about priorities in each round (geographic preferences, target population)
Make data available to developers to enable stronger negotiating position with contractors
Provide extra points for infill projects
Help educate local governments about their role in cost containment

11. Questions?
Tasha Weaver
CHFA

12. Stack Building Units

13. Garages and carports versus structured parking

14. Limit the number of building types

15. Re-use building design

16. Re-use building design

17. Plug and play units
One Bed

18. Plug and play units
Two Bed

19. Plug and play units
Three Bed

20. Limit window types and use windows in creative ways

21. Use a mix of siding and color to reduce amount of masonry