Better Family Life Renovations

Discuss renovations and new construction in North City -- defined by the area north of Delmar Avenue.
beer city
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Better Family Life Renovations

Unread post by beer city » Tue Nov 15, 2016 11:10 pm

Better Family Life, a north side based service organization, announced one of the more ambitious renovation programs I have ever seen - rehab of 100 buildings, 200 million in development (which means either a few large projects are mixed in or there is some other social benefit program included in that number)- details on financing not made real clear, but this is part of Promise Zone that has been talked about.

If carried out this could be a huge boost for the North side - along with NGA

Would like to know more if anyone out there has the scoop

http://www.kmov.com/story/33717302/bett ... ouis-homes

http://betterfamilylife.org/2016/03/03/ ... ment-plan/


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Re: Better Family Life Renovations

Unread post by joelo » Wed Nov 16, 2016 8:38 am

That's a ton of money for 100 buildings so I'm curious where the $200 million number is coming from but that's great news. Any kind of development in north city should help that area and I personally think it'll actually reduce crime

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Re: Better Family Life Renovations

Unread post by arch city » Wed Nov 16, 2016 11:34 am

:) Thanks for posting. This is great.

BFL is a great and deeply-entrenched organization in North City.

I am sure BFL will be partnering and consulting with development firms.

It's interesting, though, that this endeavor by BFL is only a blurb on one news site.

If there was a shooting, stabbing or some kind of violence - all of the media would be running with it.

With that said, maybe there will be some grand announcement coming soon.

This is an ambitious endeavor and I wish them nothing the best.
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joelo
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Re: Better Family Life Renovations

Unread post by joelo » Wed Nov 16, 2016 11:47 am

It's an insane amount of money if you consider some of the larger developments in the central corridor cost. Hope media will pick up on it. I haven't even seen it anywhere other then KMOV

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Re: Better Family Life Renovations

Unread post by STLrainbow » Wed Nov 16, 2016 12:38 pm

I highly doubt it's $200M... my bet is on a typo and it's $20M, which would break down to $200K each for each of these apparently vacant and likely sorely in need of extensive rehab homes.


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dbInSouthCity
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Re: Better Family Life Renovations

Unread post by dbInSouthCity » Wed Nov 16, 2016 6:05 pm

Even $20m for 100 seems steep since it's rehabs. New houses would be cheaper than $200,000.

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Re: Better Family Life Renovations

Unread post by STLrainbow » Wed Nov 16, 2016 6:33 pm

^ It does... $200K would seem high even including program costs, etc. but assuming these need all new systems, etc. and not something you can just slap some paint on and lay down some carpet it would be more than $20K each for a typo erasing two zeros. Anyway, I wish the story had more detail.

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Re: Better Family Life Renovations

Unread post by MattnSTL » Thu Nov 17, 2016 12:04 pm

dbInSouthCity wrote:Even $20m for 100 seems steep since it's rehabs. New houses would be cheaper than $200,000.


$200k per renovation is not even close to out of line. That's a great price. If I could get decent sized vacant brick buildings renovated for that price and be able to turn a profit I'd be doing it all day long. Unfortunately, once all development costs are included it's often much more than that.

$200k is great for new construction also. Economies of scale if you are doing 100 units, yes, but new construction isn't cheap either.

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Re: Better Family Life Renovations

Unread post by MattnSTL » Thu Nov 17, 2016 12:23 pm

As suspected, it is $20 million- http://www.stltoday.com/business/column ... 95b54.html

Three houses under renovation right now, with gap financing from CDA. They'll have to find more sources of gap financing if they want to accelerate this plan since CDA only has a limited amount of CDBG and HOME funds to grant each year, and the funds are competetive and don't all go to one project. That said, this is a nice start, and I hope the full plan can be realized.

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dbInSouthCity
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Re: Better Family Life Renovations

Unread post by dbInSouthCity » Thu Nov 17, 2016 12:31 pm

So they'll sell these at $130,000 ...with 4% interest rate+home owners insurance + taxes thats about $825-850 a month for mortgage payment...add MSD $45, City water/trash $33= $900-920 total. what kind of income does one have to make to afford that (on top of other bills, utilites, loans ect)...$60,000?

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Re: Better Family Life Renovations

Unread post by MattnSTL » Thu Nov 17, 2016 12:45 pm

Depends on what percentage of income you want to spend on your house, and what a mortgage lender is willing to do.

Using the CDA Buyer affordability tab for their projects at $130,000 sales price, no downpayment so assume PMI, 5% interest on a 30 year mortgage, and tax-abatement, it's giving me a monthly payment of just over $900 needing $36,000 a year at 30% housing to income ratio. That does not include utilities.

I'm assuming CDBG funds is the gap financing. I'm too lazy to check the CDA site to see what they were awarded.

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Re: Better Family Life Renovations

Unread post by quincunx » Thu Nov 17, 2016 1:23 pm

Depends on how much money they throw away on transportation too.

I've known grad students who had bought houses over $100k and they made like $25k. Granted they may have rented a room or some such.

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Re: Better Family Life Renovations

Unread post by beer city » Tue Nov 29, 2016 11:40 pm

A little more on this - Nice project

http://www.kmov.com/story/33820549/imag ... ighborhood


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