PROPERTY MANAGEMENT
SINGLE ROOM OCCUPANCY(SRO)
PROPERTY MANAGEMENT
SINGLE ROOM OCCUPANCY(SRO)
The Central Valley faces a severe housing shortage. Merced County in particular faces a significant housing shortage, especially affordable units, driven by high demand and insufficient supply, leading to high costs. Though the City of Merced is seeing new developments and some success in reducing homelessness, while smaller towns struggle more; statewide efforts and local initiatives like permitting modernization aim to increase housing stock, but affordability remains a major challenge for low-income residents.
Key Aspects of the Shortage
1. Affordability Crisis: Like much of California, Merced County struggles with a deficit of homes affordable to low-income families, with many renters paying over half their income on housing.
2. Uneven Development: While the City of Merced has new housing projects underway (including 500 affordable units planned), smaller nearby towns like Gustine and Dos Palos lag significantly in new development, notes Merced Focus reporter Alma Viegas.
3. High Demand: Economic growth and an influx of people seeking more affordable Central Valley living drive demand, while insufficient new construction leaves a gap.
4. Homelessness Impact: The shortage worsens homelessness, though recent local counts show some promising reductions in the unsheltered population, with more dedicated housing units expected.
1. A source of funds for development (acquisition/rehabilitation).
2. A source of the rent payments.
3. A source of funds for supportive services.
In the traditional model, the government underwrites all three components; but in the private/public partnership model, private investment funds the acquisition and rehabilitation of the development.
The key benefits of using private investment for acquisition and rehabilitation means that the project is acquired and delivered outside of government funding. This model frees the government of the regulatory complexity of traditional affordable housing projects and allows it to simply fund the supportive services and the rent with housing vouchers. Hence housing can be delivered faster and less expensively while yielding more units to accommodate the needy population we serve.
In the private-public partnership model of residential property conversions, the private investor acquires the property using private monies instead of through government funding. This private capital is also used to buy land and construct affordable housing projects, buy and rehab/convert existing building units into studio /efficiency apartments or single room occupancy. In bypassing the process of securing government funding for acquisition and rehabilitation, the private partner can avoid the often-significant delays involved with securing government funding. Instead of the typical 6 to 12 months financing contingency in a purchase agreement, the parties are motivated to complete the purchase quickly, often in as little as 10-25 days.
The four primary elements of a supportive housing project are:
1. Project Design and Administration:
The process of planning and leading the supportive housing project, including key decisions about physical structure, team members and funding
2. Property and Housing Management:
The ongoing operation of supportive housing and connection to private market landlords.
3. Supportive Services:
The package of support services available to help tenants use stable housing as a platform for individual health, recovery and personal growth.
4. Community:
The relationship to and role of housing in the larger context in which it operates.
