Issue 92
Aug 22, 2006
Hi !
Solving the Housing Shortage "Our manufacturing council, a monthly meeting of plant managers, told us that we needed more houses in the town. Most of our housing stock was built in the 60's and we were only building four or five houses per year," Norene told me on my tour of York. Norene worked with the four banks in town, the lumber yards, concrete plant and builders to see what they could do to increase the housing stock. They collectively decided to try to build some upper end spec homes, setting up an LLC to invest in the project. "Each bank contributed $25,000 and we got contractors and others who were interested in seeing growth in York to each contribute $10,000. We got seventeen people at that level, so we ended up with a total of $270,000 in capital. We hired the high school trades instructor to act as the construction manager and he has built 3 houses for us." They've sold one for $240,000 and the other for $197,000. At the time of my visit, the third one was listed for sale at $178,000. They also planned to build two more houses in 2006. The goal of this Spec Home LLC is to run it for five years as a for profit organization, dispersing the capital and profits back to the investors. It is a great model that your town might look at if you're lacking housing options. The model can also be adapted to meet other community needs. We've seen similar partnerships for amenities like grocery stores and parks. Look around your town, what do you need? You can get what you need if you pull together to get it done!
Last fall I spent some time in York, Nebraska. While I was there Norene Fitzgerald, Executive Director of the York County Development Corporation told me how they handled their housing shortage.
The Blog Log
Visit my weblog to see where I've been and what I learned along the way. This week I blogged on generosity in the heartland, the amazing action in Wimbledon, ND, and a gem in PA as well as several other topics. www.boomtowninstitute.com
Hot Topics
This month's Hot Topics - Targeting the Logistics Industry in Economic Development focuses on connections to the global market. Check it out at www.boomtowninstitute.com
Visit the Boomtown Institute website at www.boomtowninstitute.com
Keep up with Jack as he tours the country on his blog!
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