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41 YEARS OF OPERATION
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History• CRHDC is a state-wide non-profit housing
development corporation formed in 1971 to provide safe and affordable housing to migrant and seasonal farm workers in Colorado.
• It evolved from one-county operation to multi-county, multi-faceted operation representing far more than migrant housing.
• After 36 years as Colorado Rural Housing Development Corporation, Expansion into urban markets required a name change and new branding to fully capture the essence of its operation and expand its funding opportunities. New name-Community Resources and Housing Development Corporation(CRHDC)
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What We Do CRHDC serves low-moderate income individuals through 6 lines of business:
• Counseling- Education in homeownership, financial management, and post-purchase issues.
• Lending- Created affiliate corporation, Colorado Housing Enterprises, LLC to serve as lending arm of CRHDC. CHE provides first mortgage lending, down payment and closing cost assistances and small business lending
• Real Estate Services-created affiliate corporation, Pathways Realty, LLC to provide purchase and sales services to clients
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What We Do • Property Management-provide
property management for CRHDC rental portfolio and other non-profit organizations
• Technical Assistance-provide technical assistance to nonprofits and local government in development and sponsorship of farm worker housing in Colorado and western region states
• Development- New Construction-build single family, multi-family, and senior housing state-wide
o Manage NSP-II Program-acquisition, rehab, and sale of foreclosed properties in urban and rural census tracts
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Rural Housing Development
• Self Help • Contractor Built
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Housing Development Continued
• Developed Self-Housing for past 38 years in partnership with USDA-Rural Development
• Assisted over 1700 families and individuals to build their homes in rural communities throughout Colorado
• Great program for working families willing to exchange labor for cost savings and achieve the “American Dream of Homeownership”
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Challenges with Self-Help
• Some potential participants cannot meet the labor requirement due to medical or physical condition
• Others have jobs that require more than 40 hours per week and do not have the flexibility to participate in the Self-Help Program
• USDA-502 Direct Funding is shrinking due to Federal Budget reductions and funding at times is not available for several months
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Self-Help Housing Challenges, continued
• Inclement weather in Colorado can impact construction and create delays
• With the reduction in RD staff at all levels, timely processing of loans becomes difficult
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What other housing options are available for individuals and families
not able to take advantage of the Self-Help Program?
CRHDC researched other housing products to offer borrowers not able to participate in Self-Help
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Factory Built Housing• Product selected was the Modular Unit
o Built to the same building codes and design standards as site-built homes.
o Can be produced with high-quality at lower costs per square foot than other construction methods
o Shortened on-site construction time lines
o Energy efficient and decreased construction waste
o Full product customization
o Eligible for financing from RD 502 Direct, 502 Guarantee, and private lenders
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Factory Built Homes• Modular house selected over
manufactured house for two reasons:
• USDA-RD will only finance new manufactured homes once; modular homes are treated similar to stick built and can be financed whether new or existing
• Modular homes meet Universal Building Codes and can be built in new and existing sub-divisions
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Factory Built Homes• CRHDC’s movement into factory
built homes required a support group to assist with the intricacies of this product
• As a member of Neighbor Works America, CRHDC became a member of Next Step which offers the support and expertise to members of the network to successfully offer this alternate home product
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About Next Step• National Organization with a national initiative to
assist and train nonprofits in providing sustainable homeownership through factory build housing.
• Next Step System for doing business consists of three primary components:
o Building and training a national network of nonprofits to increase nationwide access to affordable factory built housing;
o Ensuring that high quality, ENERGY STAR factory built homes are available at wholesale pricing to our Members;
o Advancing the use of factory built housing as an asset-building strategy for low- to moderate-income Americans.
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Next Step Continued
• With technical support from Next Step, CRHDC became licensed in Colorado to purchase factory built homes at wholesale cost and sell to eligible low-moderate income families in Colorado
• Next Step introduced CRHDC to one of the several Clayton Manufactured Home Factories in Albuquerque, New Mexico’ Karsten Homes
• Next Step Homes have energy-efficient features and carry the Energy Star label
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Energy-Efficient Features
Features • Effective insulation
• High-performance windows
• Tight construction and ducts
• Efficient heating and cooling equipment
• Efficient products
• Third-party verification.
Benefits • Added confidence.
• Lower ownership cost.
• Better performance.
• Smart investment.
• Environmental protection
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• Next Step Homes -have a HERS rating between 70 and 75
• 25 to 30% more efficient than standard site built homes
• 10 to 15% more energy efficient than many ENERGY STAR homes.
Energy-Efficient Features
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Gaining Partner Support
• CRHDC invited RD county staff to tour the Karsten Homes factory in Albuquerque, New Mexico
• Demonstration and tour of the factory and the quality and energy features of the
• RD staff support the product and allow CRHDC to offer the product to 502 Direct and Guarantee borrowers
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Costs• Stick Built vs. Modular similar in cost after
factoring land, foundation, setup, and adding a garage
• Variable cost for modular include land cost, tap fees, foundation plan, and building permit fees
• Savings realized on construction financing and shorter period to build unit
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Financing• CRHDC also sought other loan products that
finance modular units
• Accessibility to other financing options provides borrowers the ability to purchase and finance their homes timely without having to wait for availability of 502 Direct Loans
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Advantages of Factory Built
• Product offers option for families or individuals not able to participate in Self-Help due to medical or physical impairments
• Individuals working long hours without flexibility to participate in Self-Help
• Individuals not willing to commit the labor required in the Self Help Program
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Advantages of Factory Built
• House can be built and delivered to the site in less than 30 days
• Construction financing minimized
• Features include quality and energy efficient construction
• Energy- efficiency helps to ensure lower operating costs
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The Final Product