Post by cott on Jul 26, 2024 16:13:08 GMT
We were planning to apply for credits for a rehab on a 64-unit property comprised of a 32-unit property in Sulphur, OK and a 32-unit property in Lone Grove, OK, both USDA family properties. Since 32 of the 64 units are one-bedrooms, it did not have enough square footage to stay under the max price per square foot. So, we wound up not submitting the application. We also planned to apply for credits for rehab on a 48-unit USDA senior property in Chickasha, but since 44 of the 48 units are one-bedroom, we again found we could not keep the square foot cost under the QAP maximum. We were successful in getting an award for a 46-unit USDA family property in Chickasha (River Bend Villas) since only 4 units are one-bedroom.
We are hoping maybe OFHA would consider using a formula that considers the unit types. As far as construction goes a 1-bedroom unit does not cost much less than a 2 or a 3; there is simply not as much square footage to spread out the cost with properties having large numbers of one-bedroom units. Of course, no matter the unit mix you have, you will have the same cost on exteriors and site work. A lot of the existing ageing USDA portfolio we are looking to preserve, especially senior housing, contain a lot of 1-bedroom units. Usually making up about 85% of the total units.
We have completed an analysis of several properties we have rehabbed or in the process of rehabbing in Texas, Oklahoma, and Missouri over the years of 2021 through 2024.
See the table below for average cost
Year All properties cost per SF Family properties cost per SF Senior properties cost per SF SF cost difference for SR property
2021 $179.85 $170.35 $193.86 $23.51
2022 $225.53 $204.94 $256.41 $51.47
2023 $243.30 $253.72 $239.14 ($14.57)
2024 $235.08 $206.16 $249.54 $43.38
As noted above, 3 out of the last 4 years the cost per SF for senior properties has exceeded the cost for family properties by $23.51 to 51.47 per SF due to the higher number of one-bedroom units, which lowers the SF. The table also shows the average cost of all properties exceeding your limit of $230 per SF shown in the QAP.
The average cost per SF for each year includes the data of 7-11 properties in all properties column. There is a total of 36 properties that make up the sample size.
We are asking for consideration that the 2025 will increase the level for maximum SF cost and would make allowance for senior properties or properties with many one-bedroom units.
Thank you,
We are hoping maybe OFHA would consider using a formula that considers the unit types. As far as construction goes a 1-bedroom unit does not cost much less than a 2 or a 3; there is simply not as much square footage to spread out the cost with properties having large numbers of one-bedroom units. Of course, no matter the unit mix you have, you will have the same cost on exteriors and site work. A lot of the existing ageing USDA portfolio we are looking to preserve, especially senior housing, contain a lot of 1-bedroom units. Usually making up about 85% of the total units.
We have completed an analysis of several properties we have rehabbed or in the process of rehabbing in Texas, Oklahoma, and Missouri over the years of 2021 through 2024.
See the table below for average cost
Year All properties cost per SF Family properties cost per SF Senior properties cost per SF SF cost difference for SR property
2021 $179.85 $170.35 $193.86 $23.51
2022 $225.53 $204.94 $256.41 $51.47
2023 $243.30 $253.72 $239.14 ($14.57)
2024 $235.08 $206.16 $249.54 $43.38
As noted above, 3 out of the last 4 years the cost per SF for senior properties has exceeded the cost for family properties by $23.51 to 51.47 per SF due to the higher number of one-bedroom units, which lowers the SF. The table also shows the average cost of all properties exceeding your limit of $230 per SF shown in the QAP.
The average cost per SF for each year includes the data of 7-11 properties in all properties column. There is a total of 36 properties that make up the sample size.
We are asking for consideration that the 2025 will increase the level for maximum SF cost and would make allowance for senior properties or properties with many one-bedroom units.
Thank you,