Phase 2 construction underway on rental homes.

Some questions were posed to the Open Space Association this week, regarding the current lack of builders for Phase 2. Tom Phillips, a member of the board, provided the following answers.

1. What was the original intent behind the plans to mix SHA and market-rate housing at HP?

That’s a long story.  I have attached a copy of the history of HOPE VI that is the best summary of the philosophy behind the original intent.

2. What was the original target ratio of SHA to market-rate housing for HP, and what was the rational for that ratio?

1600 units has always been the limit to the number of units.  At one time, 716 of those units were going to be income-eligible, or some form of subsidized housing.  Now the number is 676.  That breaks down as follows: 350 Public housing units, 250 Work Force units (near market rate), 75 Low-income senior units. The balance is market rate units.  160 are market rate senior units (BridgePark) and the rest are for sale units.

There are 250 for-sale units already built.  There will be another 550 built on the site..  It is possible that some of them will be market rate rentals as a future “condo” building may be a rental for a few years. 

3. Had the planners envisioned any contingencies in the event that the target ratio could not be achieved?

We have no intent to change it.  The market has slowed the sale of some of the for-sale lots but they are all for-sale lots. We expect to see all for sale homes started next Spring. 

4. Given that the target ratio may not be met because of lack of builder interest, the HP original intent (#1) is likely imperiled, potentially having a negative impact on our home prices. What avenue does the HOA have to redress the situation?

We expect that the market will come back and we will sell the land to for-sale builders.  We do not plan on changing the ratio.