Multiplex Temp-to-Perm Structures An Alternative Approach to FEMA

Multiplex Temp-to-Perm Structures An Alternative Approach to FEMA Disaster Housing Prepared by Jorge Quintero & the Long Term Community Recovery Continuity Team for FEMA Planning Section, Mississippi TRO October 10, 2006 NOTE: To view the animated slides, select Slide Show, then View Show DRAFT UNDER REVIEW 1

Concept n Factory built modular housing designed to transform from emergency housing for multiple families, to single family permanent housing. 2

Concept TEMPORARY UNIT B TEMPORARY UNIT A - ENTRY A ENTRY B - 2 BR 1 BA 580 SF 3 BR 1 BA 675 SF Modules are transported and installed similar to a double-wide manufactured or modular homes but unit floor plans are arranged to facilitate conversion to single-family home after temporary use period. These could be designed as 3 single story units or as two-story stacked units.

Converts to Single Family Permanent Single Family Home 3 BR 2 BA 1255 SF Add Porch 192 SF Porches are added after the temporary use period. Units are then reconfigured to produce permanent single family homes. 4

Final Finishes Added Later n n n Temporary units would initially provide high quality, energy efficient dwellings with compact living spaces but limited finishes. The units would accommodate a range of permanent exterior and interior finishes at the end of the temporary use period. Exterior materials such as Hardie Plank, stucco or brick, high-pitched roofs, and amenities such as front porches and trim elements appropriate to the local architectural style would be added after the temporary use period. These final finishes could be provided by manufacturers in a variety of styles as pre-cut, pre-approved kit packages to facilitate conversion of temporary units to permanent use. 5

Short-Term Benefits n n n n n Reduces the life cycle cost of disaster housing. Leverages residual value of temporary units to obtain host sites with infrastructure in place Reduces infrastructure and land cost per unit Addresses the needs of families of different size and persons with disabilities. Secures local community support for the placement of temporary housing Incorporates a mechanism to assure conversion to permanent housing Produced, transported and installed in a timely manner Improves quality and durability of temporary housing Engages the private and non-profit sectors in the delivery of the temporary housing 6

Long-Term Benefits n n n Leverages temporary housing resources to address permanent affordable housing needs promoting long-term community recovery Does not rely on extensive reconfiguration or additions to convert to permanent, conventional housing Does not establish an entitlement to permanent housing 7

Reduces The Life Cycle Cost of Disaster Housing n n n n Greater residual value (Value after temporary use period) Reduced disposition costs Higher building standards Energy efficient Reusable Provides the minimal level of finishes during the temporary use period but capable of upgrading for permanent use by others Potential to recoup a portion of the disaster housing costs upon permanent financing of the converted single family unit. 8

Leverages Residual Value of Temporary Units To Obtain Host Sites With Infrastructure In Place Obtaining host sites with existing infrastructure (roads, water, sewer and electric) to temporarily house renters is a major challenge. • Offering property owners the right to keep and reuse the temporary units for permanent single family housing creates an incentive for the property owners to make their improved property available as host sites for temporary housing. 9

Reduces Infrastructure and Land Cost per Unit For host sites where infrastructure must be newly installed, the cost of infrastructure can equal or exceed the cost of the temporary structure. n n Using a single utility connection for multiple attached units can reduce per unit infrastructure cost by one half to two-thirds. Attached units achieve a higher density, reducing per unit land infrastructure costs. 10

Addresses The Needs of Different Sized Households and Persons with Disabilities Current FEMA emergency housing products range in size from 256 SF for a 1 br/1 ba travel trailer, 374 SF for a 2 br/1 ba Park Model and 840 SF for a 3 br/1 ba Mobile home for an average of 490 SF. n n n The proposed multiplex structures offer one, two, and three bedroom units at 365 SF, 588 SF and 660 SF respectively, increasing the size of the two smallest FEMA products but decreasing the size of the largest product, resulting in an average of 539 SF per unit. Combining one, two or three bedroom units into a single multiplex structure allows larger families to be co-located. Adaptable kitchens and baths on a portion of the units accommodate persons with disabilities 11

Secures Local Community Support For The Placement of Temporary Housing Local government approval for host sites for disaster housing is often vehemently opposed by local communities. n n Addresses community concern that emergency housing may become permanent by providing an exit strategy for the conversion of the disaster housing to quality, permanent housing Can be used in new subdivisions or on infill lots. Scattered infill development minimizes the need to concentrate low-income disaster victims into large group sites. Quality permanent housing can contribute to community redevelopment objectives. 12

Incorporates a Mechanism to Assure Conversion to Permanent Housing n A transitional housing overlay zoning district should be adopted by the local government that sets forth the rules and conditions under which temp-to-perm housing can be developed, such as: n n where the temporary housing can be located, the maximum period of temporary use and the minimum building standards that must be met. Temporary units must be converted and finished to approved permanent standards within a specified timeframe or else removed. Any structures not converted or removed as required would become the property of the local jurisdiction to dispose of as it sees fit. 13

Produced, transported and installed in a timely manner n n Can be transported on their own wheeled chassis for quick installation, similar to existing FEMA products. Can be installed initially on temporary foundations and later moved onto permanent foundations. When placed on a lot where the home was completely destroyed, FEMA mitigation programs could be used to fund raised foundations. As an alternative, the component sections of the multiplex units could be panelized as SIPS’s (Structurally Insulated Panels) or FRP’s (Fiberglass Reinforced Panels) then transported to an assembly plant close to the impact area for assembly. 14

Improved Durability of Temporary Housing n n Built to the IBC (International Building Code), the same as site-built homes Can exceed energy efficiency and structural strength of site built homes Exterior and interior walls would be clad with durable steel, aluminum, cementitious board or vinyl. Any wear and tear on the units can be addressed during final finishing. 15

Engages Private And Non-Profit Sectors in The Delivery of The Temporary Housing n n n Private sector builders, non-profits like Habitat for Humanity, Redevelopment Agencies and Public Housing Authorities can participate in the provision of temporary housing by: providing sites for the temp-to-perm structures converting and finishing the units to create new affordable homeownership opportunities converting a portion of the units to scattered-site permanent housing with supportive services 16

Leverages Temporary Housing Resources to Address Permanent Housing Needs Current programs for disaster housing do not promote the development of permanent housing. n n n Multiplex modular disaster housing offer several benefits: n adds to the supply of permanent housing, n reuse of temporary structures reduces pressure on limited local material availability n offsite production reduces reliance on limited local contractors within the impacted area Addressing permanent housing needs promotes long term community recovery Leverages FEMA investment in temp-to-perm units to expand affordable homeownership options The investment value of the basic structure can serve as collateral for additional loans to finish the permanent housing unit Can be integrated with affordable homeownership programs, such as HUD HOME and Section 203 (k). 17

Does not rely on extensive additions or reconfiguration to convert to permanent, conventional housing Other proposals for reusable disaster housing that rely on small, individual temporary structures are not always easily reconfigured or expanded to create permanent housing because of their very small room sizes. Compact, stand-alone temporary units have raised concerns on the part of some local officials that they may never be expanded, and would therefore be incompatible with community standards. n Multiplex temp-to-perm units are designed from the beginning to be converted to full-sized single family homes and do not require expansion, only finishing. 18

Does not establish an entitlement to permanent housing A program that automatically provides direct, new permanent housing to disaster victims, particularly those who were not previously homeowners, ultimately could have the effect of encouraging disaster victims to forgo alternative, more cost effective means of housing assistance, such as rental payment assistance, in anticipation of receiving permanent single family homes after the temporary use period. This could place an unacceptable burden on FEMA’s financial resources. n Because the multiplex disaster housing strategy provides housing to more than one family within a structure, no entitlement to permanent housing is automatically established. 19

Summary – Phase 1 n n n Manufacture and install attached two or three compact temporary units on lots that can accommodate a permanent single family home. Lots are scattered throughout the community or developed as a group site with infrastructure designed to support permanent single family development. Where lots are already improved with utilities, the multiplex temporary structures would be provided to individual property owners, public housing authorities, redevelopment agencies or organizations such as Habitat for Humanity in exchange for a commitment to host the temporary units on their property for a prescribed period. 20

Summary – Phase 1 (Cont. ) n n On single family lots where the home was totally destroyed, the owners of that lot could be housed in one of the multiplex units. If the home is only damaged, a one-bedroom module could be provided and repurposed after the temporary use period. Where land with existing infrastructure is not available, FEMA could provide infrastructure under a transitional neighborhood approach where infrastructure is laid out in such a way to be reusable for permanent housing. The residual value of the temporary units and infrastructure in that case would be deducted from the any lease payment paid to the property owner and/or for a negotiated payment to FEMA. 21

Phase 1 Schematic 22

Summary – Phase 2 n n n After the temporary use period, the property owner or participating organization would combine the temporary units and complete the interior and exteriors to create permanent single family homes. Front porches of various styles would be attached as an amenity and to provide architectural diversity along the street. If the temporary structure was provided with a flat roof initially, a full-pitched roof would be added at this time. 23

Phase 2 Schematic 24

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Alternate Schematic B 26

Alternate Schematic C 27

Triplex Schematic 28

Engaging Private Sector Builders through a Request for Proposals Process n n n When the need for temporary housing will persist for many months, FEMA could consider issuing RFP’s to developers for the turn key development of transitional neighborhoods where the developer is responsible for all aspects of construction, including land, infrastructure and housing. Under this scenario, FEMA would make a forward commitment to the developer to lease the temporary units for a fixed cost and prescribed period. The developer would use the forward commitment to obtain financing for the first phase of development, then after the prescribed lease period, would convert the temporary units into permanent homes. 29

Engaging Private Sector Builders through an RFP (Cont. ) n This would be considered Direct Assistance under the Stafford Act’s Section 408 (b), so that the rent during the temporary use period need not be based on HUD Fair Market Rents, as is the case with Section 408 (a) Financial Assistance and is expected to be higher as is the case with Direct Assistance currently. However, the efficiencies of private sector competition and the residual value of the temporary units and infrastructure left behind for the developer could still result in lower costs to FEMA. 30

Conclusion n The Multiplex Temp-to-Perm Housing Concept represents a innovative solution to disaster housing that could help secure local community support for the placement of temporary housing and leverage the government’s investment in temporary housing to address permanent housing and long term community recovery needs. 31