Request for Funding to Support Low-Income, Multi-family Unit Construction.

(2013-2014)

Informative Abstract

As a non-profit homeless shelter provider we at Front Steps Inc. do our best not only to provide shelter to those who need it, but also to assist in the reintegration of homeless people into society. In an effort to combat the rising number of homeless families we have designed a new project that specifically targets those that are in need and caring for young children. In an effort to keep costs low we plan to do whatever labor we can with the help of volunteers. Even though we would like to do all the work ourselves some steps of the construction process will require professionals and skilled crews with the proper equipment and training. In addition to the cost associated with contracting out work, we also need to acquire the materials necessary for the building. In order to cover these costs we are asking for a grant in the amount of $112,500. We will continue to seek further discounts on materials as well as labor; any money we save this way will be applied to the cost of maintaining and managing the property.

TABLE OF CONTENTS

PAGE

INFORMATIVE ABSTRACT...iii

INTRODUCTION.......1 Overview......1 Background......................1 Statement of Problem...............1 Need.....2 Scope............2

PROPOSED PLAN......2 Methods........2 Budget..............3 Personnel..4

CONCLUSION....4

REFERENCES........5

INTRODUCTION
Overview
In recent times the national homeless population has begun to decrease however the number of homeless families is rising, seven percent in the last year alone (Fessler, 2010). A factor in this situation is the destruction of viable housing for low income families. Approximately 200,000 rental properties are demolished annually (NCH, 2009); these properties would not only provide affordable shelter but allow those with limited options a chance to create a home. I am proposing the construction of a three unit multifamily building to supply shelter to families with small children who are unable to otherwise find a home. These units will help to get families off the streets and give children a stable living environment to help them to develop into productive members of society. Once constructed the building will require minimal staff to continue running and occupants will be charged a rental fee of thirty percent of their income to help cover any costs. Long term benefits of these units are reduced homelessness, reduced risk of children growing up to be homeless, reduced crime rates, reduced city costs, and stronger communities.

Background
Front Steps Inc. has been successful in implementing a similar project in Austin, Texas. Through that project we were able to provide thirty-six housing units for those who were chronically homeless. Over eighty percent of the Austin residents have lived with us for at least 25 months, and those who have been able to acquire or keep employment have been contributing thirty percent of their earnings to rent (Front Steps, 2013). These accomplishments have allowed for the expansion of the project to include mentors for our residents. With the progress in Austin we have decided to create additional units in other problematic cities.

Statement of Problem
Having a larger homeless population causes more crime in cities, raising costs for police patrols as well as jail costs. Even just shelter related crimes such as loitering, trespassing, or squatting require a police response costing departments both time and money. In San Francisco prosecuting citations for these types of crimes has cost $5.7 million dollars in taxpayer money over the past two years, a portion of the cost stemming from the $92.18 it costs to have someone in jail for a day (SFBG, 2006). These costs are a burden to both the state and the taxpayers and could be lessened with more available low income housing. Homelessness is also detrimental to both the physical health and mental health of children. Children without homes are at higher risk for many types of illness such as ear infections, asthma, and stomach problems (Doorways for Women and Families, 2012). Due to their financial situations, these problems are likely to be solved with an emergency room visit. Trips to the hospital result in an unpaid bills that stresses the economy. The effects living on the street

has on childrens metal health also has a negative effect on the economy. Kids in this situation are twice as likely to repeat grades, or have learning disabilities, and are also four times as likely to experience developmental delays (Doorways for Women and Families, 2012). These conditions raise schooling costs and make it more difficult for children to graduate and become successful members of society. The construction of a local low income home will begin to diminish these issues locally, but without funding we cannot succeed in this endeavor. With your aid we will be able make a difference in the community and help to keep children from living on our streets.

Need
With the majority of our monetary assets tied up in our other projects we will be requiring aid in the amount of $112,500 for startup funds; in order to meet the requirement of matching the awarded amount we are contributing $50,000 of our own funds as well as approximately $64,000 in volunteer services. Once the units are completed and filled the building will be able to maintain its own costs and possibly bring in enough money to allow for expansion is services like our Austin project.

Scope
The following plan includes: 1. Project progression. 2. Estimated costs of project. 3. Personnel.

PROPOSED PLAN
Methods
Once funding is acquired the first step will be to acquire the land parcel. The parcel we have chosen to purchase is a 0.15 acre lot with the necessary dimensions to allow for our building and landscaping layout. We will be buying the lot from local real estate agent James Hoialmen for $30,625. Once we have received ownership of the land we have arranged for an office trailer to be delivered to the site as well as a Honey Bucket portable toilet. The office will be used to congregate in the morning for coffee and to delegate daily tasks. It will also serve as storage for tools, paperwork, and other belongings to keep them out of the weather. Different stages of construction will be handled by different workers. Any tasks we are able to assign to volunteers we will, all other steps of construction will be handled by professionals. Further information can be found in both Table 2 and the personnel section.

With construction completed we will be accepting and reviewing applications for residence. Families already homeless and with children under five years of age will be given first priority, followed by homeless families with children under eight, then families losing their homes with children under five, and lastly families losing their home with children under eight years of age. Exceptions may be made at the discretion of our committee. Budget (Table 1)

Expenditure Building Land Parcel Fencing Landscaping Office Trailer Rental Unforeseen Costs, Maintenance, and Management

Cost $165,462.46 $32,000.00 $5,000.00 $3,000.00 $1,500.00 $18,037.54

Total:

$225,000.00

Itemized Building Costs (Table 2)

*Volunteer Savings

Item Name Excavation Foundation, Piers, Flatwork Rough Hardware Rough Carpentry Insulation Exterior Finish Exterior Trim Doors

Material -5,747.00 561.00 18,583.00 3,480.00 10,695.00 670.00 1,698.00

Labor 1,739.00 5,891.00 576.00 17,878.00 1,550.00 4,063.00 688.00 929.00

Equipment 707.00 1,438.00 141.00 --743.00 168.00 --

Total 2,446.00 13,076.00 1,278.00 36,461.00 5,030.00 15,501.00 1,526.00 2,627.00

Windows Finish Hardware Garage Door Roofing, Flashing, Fascia Finish Carpentry Interior Wall Finish Painting Wiring Lighting Fixtures Flooring Carpeting Bath Accessories Shower & Tub Enclosure Countertops Cabinets Built In Appliances Plumbing Rough-in and Connection Plumbing Fixtures Heating and Cooling Systems Unit Heating and Cooling Fireplace and Chimney Subtotal Direct Job Costs Final Cleanup Insurance Permits & Utilities Plans & Specs Subtotal Indirect Job Costs

2,925.00 283.00 -7,770.00 1,031.00 4,950.00 2,957.00 3,003.00 2,251.00 2,212.00 4,401.00 1,090.00 696.00 2,105.00 6,920.00 3,367.00 3,160.00 6,419.00 7,234.00 --$104,208.00 -6,604.00 4,009.00 943.00 $11,556.00 29,481.00 -$11,497.54 $145,245.00 -$11,497.54

1,296.00 155.00 -4,247.00 3,385.00 4,982.00 4,500.00 3,695.00 462.00 2,046.00 1,023.00 438.00 380.00 1,150.00 1,418.00 306.00 5,001.00 1,325.00 10,851.00 --$79,974.00 943.00 ---$943.00

----------------465.00 ----$3,662.00 ------

4,221.00 438.00 -12,017.00 4,416.00 9,932.00 7,457.00 6,698.00 2,713.00 4,258.00 5,424.00 1,528.00 1,076.00 3,255.00 8,338.00 3,673.00 8,626.00 7,744.00 18,085.00 --$187,844.00 943.00 6,604.00 4,009.00 943.00 $12,499.00 29,481.00 -$11,497.54 $229,824.00 -$64,361.54

Contractor Markup (39% off) Subtotal Cost Volunteer Savings

-$80,917.00 -$51,953.00

-$3,662.00 -$911.00

Total Cost

$133,747.46

$28,964.00

$2,751.00

$165,462.46

Personnel
On site we will have a general contractor in charge of finding, hiring, and leading any necessary sub-contractors as well as our volunteer group. We have already found a general contractor willing to take the position and work at a discounted rate. Our volunteer team consists of twenty people with varying availability. Only four of the team work or have worked in the construction field but most have the basic tools necessary and are competent enough to be useful on site. Most labor will be handled by our volunteer crew however the excavation, the foundation and flatwork, the wiring, the lighting, the plumbing, and the HVAC will be contracted out.

CONCLUSION
Although three units will only make a small dent in the homeless population they will make all the difference to the families who live there. If this project is a successful we will be able to continue to expand our services in this area, helping more families get off the street and into a home. With a greater presence in the area we would be able to grant more assistance to those who need help getting back to work, which would not only help their self-esteem and quality of life but increase our funds as well. Within the next few years of this project I expect to see fewer families on the street and a stronger local economy.

References

Fessler, P. (2010, June 17). Homeless numbers dip, but more families suffer. Retrieved from http://www.npr.org/templates/story/story.php?storyId=127907040

National Coalition for the Homeless. (2009, July). Why are people homeless?. Retrieved from http://www.nationalhomeless.org/factsheets/why.html

Front Steps. (2013). Housing. Retrieved from http://www.frontsteps.org/what-we-do/housing

San Francisco Bay Guardian. (2006, September 5). The cost of harassing the homeless. Retrieved from http://www.sfbg.com/2006/09/05/cost-harassing-homeless

Doorways for Women and Families. (2012). Impact of homelessness on children. Retrieved from http://www.doorwaysva.org/children-youth/impact-of-homelessness-on-children/

Additional Links

Target Grant: Supportive Housing Program (SHP) https://www.onecpd.info/shp/shp-eligibilityrequirements/ Building Cost Calculation Tool: http://building-cost.net/