CREJ - Multifamily Properties Quarterly - July 2015
People often overlook the importance of affordable housing renovations and the positive impact they have on individuals and families who live in the - - affected property, as well as those who live in the surrounding communities. While all affordable housing projects deal with timely delivery on a limited budget, renovation projects tend to be complex and have a unique set of challenges. Creating a Sense of Community Renovations are unique because builders are tasked with not only changing the physical look of a building, but also the atmosphere and feel. In addition to updating a property through cosmetic, structural and mechanical upgrades, property owners’ key goal is to create a desirable place to live with a strong sense of community. “One important trend we are seeing in renovation projects is the need to change not just physical appearance, but also the way the complex and the surrounding area feel to residents,” said Kari Feld, project manager at Palace Construction. “Beyond cosmetic updates, property owners want to build spaces that are safe and have a sense of community.” Village on Plum, a multifamily affordable housing project for Fort Collins Housing Authority, with completion expected in August, embraced this focus on community. The property has eight buildings with a total of 96 units and a community clubhouse. The scope of work for the project included limited cosmetic and mechanical upgrades in the units as well as an extensive site renovation. The existing clubhouse has a new addition and the swimming pool was updated. The site was re-graded to correct drainage problems and has been updated with new landscaping and amenities. “The main focus of the work at Village on Plum is creating a sense of community through exterior site renovation,” Feld said. “We will incorporate community gardens, outdoor exercise equipment and spaces for residents to congregate for events such as parties and after-school programs. Our goal for Village on Plum is to bring people together.” Accommodating Current Residents While new construction projects have to manage the concerns of existing neighbors, renovation projects must address the concerns of the individuals and families already living at the property. In order to perform the majority of the work associated with substantial renovations, residents have to be temporarily relocated. This involves creating a detailed relocation plan that includes moving families out of units, performing the work and then moving residents back into their homes. “Relocating families is difficult because people have to uproot their lives temporarily,” Feld said. “We want to make the transition as easy as possible.” Residents expect to be out of their units for a very specific period of time, making the development and execution of a detailed construction schedule essential to the success of renovation projects. When critical dates are missed, the residents are impacted the most. Work on Aztec Villa, an occupied multifamily development in Thornton with 164 multifamily affordable housing units, will start in early August. Palace Construction will partner with the Adams County Housing Authority to conduct a complete interior, exterior and site renovation in order to improve the functionality, appearance and overall energy efficiency of the property. “Renovation is different from new construction in that we will be temporarily disrupting the lives of our residents,” said Sarah Vogl, manager of development at Adams County Housing Authority. “We will be trying to minimize the disruption while maximizing the access for construction on this project.” Palace Construction is also working with Boulder Housing Partners on a major renovation project, Project Renovate. The project involves the interior, exterior and site renovation of fewer than 300 units on six different multifamily sites in Boulder. Construction is scheduled to start in October. All of the sites are occupied and will have phased vacancies. “We will temporarily relocate residents while we renovate their apartments,” said Laura Sheinbaum, senior project manager at Boulder Housing Partners. “We have worked with Palace on many occupied renovation projects and they are a tremendous partner in working with our residents. Because the sites will be occupied while we renovate, BHP and Palace will also pay great attention to resident safety and security during construction.” Finding the Right Subcontractors During the recession, the construction industry lost thousands of jobs, and most of the skilled tradesmen who left for other industries did not return when the economy recovered. Today, construction jobs are plentiful, but the number of skilled tradesmen, such as plumbers, framers and electricians, has decreased substantially. This is a critical problem for all construction, including affordable housing renovations. “Subcontractors are stretched very thin these days,” said Keith Morse, preconstruction manager and chief estimator at Palace Construction. “It’s a volatile situation and doesn’t seem to be getting better anytime soon. We’ve had many subcontractors tell us they can’t work with us because they are already taking on too much.” It is important to create strong partnerships with the subcontractor community, especially during these times. Forging relationships by working closely with subcontractors to develop realistic schedules, negotiating contracts to make sure they are paid on time and helping with the purchase of construction materials can be vital to a construction company’s success. “Taking a true team approach to construction provides the owners with top craftsmanship and value,” said Dennis Kassian, owner and principal of ADK Electric. “Working on renovation projects is challenging because there are always unforeseen conditions. Being prepared for these conditions and getting support from the construction team help make our projects successful.”