As numerous Michigan communities are experiencing slowed or negative growth, combined with dramatic drops in real estate values, many affiliates are exploring the option of acquiring and rehabilitating existing homes as an alternative to new construction.
To help decide if rehabs are right for your affiliate and community, consider the following questions:
- Does your community have numerous vacant or foreclosed homes?
- Does your community have neighborhoods that may benefit from improvements to the existing housing stock?
- Are structurally sound homes being donated or offered to your affiliate at minimal cost?
- Is your affiliate interested in producing housing with historic character?
Some characteristics of rehab projects include:
- Every project is unique
- Potential reduced construction costs
- Typically longer project length
- Properties built before 1978 likely contain lead and/or asbestos
- Challenge of rehabilitation to equivalent new home standards
There are many opportunities and benefits possible with home rehabs. There are also numerous challenges that are not present with new construction. Taking on a home rehab will require different skill sets and resources from your affiliate, subcontractors, and volunteers. However, if your affiliate is up to the challenge the rewards can be numerous.