None of us are unaware of the housing crisis that exists in the United States. The lower-income groups lack a home at a comfortable rent. Most of them have to pay exorbitant home rent, which results in massive evictions explains Maxwell Drever. And this situation needs a remedy. One of the best ways to resolve this is by developing affordable workforce housing units.
And today, this initiative proves beneficial because several hotels have been lying inactive for a while. Maxwell Drever says that it is an after-effect of the pandemic. Due to the COVID-19 outbreak, the hotels have been recording lesser occupancies and reduced revenues. According to market experts, it might take about two to three years for the hotel industry to revive back. And until that time, it makes sense that the hotel owners repurpose their properties into affordable apartments so that lower- and middle-income group people can reside.
An important example
Today, Madison city has taken on the initiative to convert hotels into affordable workforce housing units to resolve the problem of homelessness in the city. Currently, the city is all set to make use of $2.5 million to convert a hotel into an affordable housing unit with the American Rescue Plan Act fund that the city received at the time of the pandemic.
However, a requirement of $5 million might get sanctioned by the federal Housing and Urban Development department. Today, the city is waiting for specific guidelines concerning utilizing HUD funds. However, once the cash gets sanctioned, the city plans to buy a hotel and transform it into affordable housing.
The best practices for this transformation
Today, the conversion of a hotel into an affordable housing unit has been taking place worldwide. But such a crucial project can’t commence without counting on any best practices. Some of the crucial ones that gets suggested by Maxwell Drever are:
Consider the needs of people
The developers and investors need to realize the needs of the people. The individuals who belong to the lower and middle earning bracket want a house that they can afford. Hence, all they need are basic amenities as opposed to high-end living. Hence, the developers must get the home planning done effectively so that it caters to the mindset of the people who will reside in it.
Prioritize on the location
It is necessary for investors and developers to opt-in for those hotels that are located close to the workplace of the workforce. In such a situation, the affordable workforce housing units will be of better use for the people for which it gets made. However, an easier commute will help the workforce to reach their workplace faster and not spend an excess amount on transportation. Since they already have to pay an excessive amount of rent, they are press for money. If they have to pay extra for their commute, it will add to their adversity.
These are a few of the best practices that the developers and investors need to implement for converting hotels to affordable apartments.