Constructing Housing for The Homeless
According to the Department of Housing and Urban Development, on any given day, there are close to 600,000 people who are homeless in the United States. The number of homeless people who are unsheltered has been rising since 2016, and now exceeds 226,000. This is especially true in urban areas.
Sheltering the homeless has always been a challenge. Recently, New York City started relocating 8,500 homeless people 60+ vacant hotels they had been using as temporary shelter due to the pandemic. Similarly, in Boise, Idaho, Mayor Lauren McLean has created a 19-citizen taskforce to build a new homeless shelter on State Street.
The need for more homeless shelters is not in doubt. If cities and communities do not put the time, effort, and money into solving the problem, especially with inflation, the situation is likely to get far worse – fast.
Many cities – as well as smaller communities – are starting to create permanent housing for the homeless. A hotel previously used by the City of Austin, Texas as a COVID-19 isolation center is set to open in August as the second bridge shelter for people experiencing homelessness in the state’s capital. Many homeless people now live nearby in tents.
In Anchorage, Alaska Mayor Dave Bronson is proposing a large new facility, costing $15 million, that would “accommodate up to 450 people, and whose development would be informed by what’s worked (and what hasn’t) in markets like Reno, Nev., and San Francisco.” Phoenix, as well, has recently awarded $8 million two local organizations – Central Arizona Shelter Services (CASS) and Community Bridges – to open homeless shelters in west and northwest Phoenix.
AEC FIRMS GET INVOLVED IN SHELTER PROJECTS
The homeless crisis in indeed an opportunity for the Architecture, Engineering and Construction (AEC) sectors. A new facility in Austin, Texas, is a prime example. The Community First! Village Micro House, designed by McKinney York Architects, is a non-towable tiny house designed specifically to aid the homeless population.
Earlier this week, California Gov. Gavin Newsom visited LifeMoves Mountain View, a modular housing community that opened on May 27 in Mountain View, California, and, as part of California’s HomeKey program, provides temporary housing and resources for up to 124 homeless people.
Closer to home, The Continuum of Care serves New Hanover, Pender, and Brunswick County, North Carolina. New Hanover County has a higher population of homeless people because of the many services it provides.
“Services are based in New Hanover County in the city of Wilmington, N.C. So, people will come here to take advantage of the services here,” Director Judy Herring said.
Last year, the City of Wilmington, NC, invested $7 million to support affordable housing and human services in partnership with local non-profits. New Hanover County spends $63 million annually for its social service programs, with another $1 million directed to local non-profits that support homeless initiatives.
In 2020, the pandemic provided resources, such as rental assistance and stimulus checks. Now, with most of these resources no longer available, many homeless people are struggling to find somewhere safe to live. “This has been the hardest time to realistically move people into some sort of permanent housing. And unless something changes quickly, I see our list growing and not a lot of permanent housing solutions coming online for the population that we serve,” Herring said.
Whether in Wilmington, NC, across the Southeastern U.S., or across the nation, the need for affordable housing – especially for the homeless – is greater than ever before. If you’re thinking of constructing low-income or homeless housing, give us a call. We’d welcome quoting you on a commercial construction loan that meets your needs.
Learn more about our loan process here.
