Construction Today - October 2009 - (Page 154)
Residential | AFFIRMED HOUSING GROUP Valued Affirmations M AFFIRMED HOUSING GROUP IS BRINGING MORE AFFORDABLE HOUSING TO CALIFORNIA. BY BRIAN SALGADO any developers might rail against the negative effects the recession has had on the construction industry. However, the climate has cleared the way for companies with business models based in affordable housing projects, such as Affirmed Housing Group of San Diego. According to President and CEO James Silverwood, the recession hit the construction market at a key time for Affirmed Housing. For a few years leading up to the economic crash in late 2008, Affirmed Housing had been struggling to cover the ever-increasing pricing in the competitive California construction market. With the recession now taking its toll on almost every industry in the United States, the demand for affordable housing throughout Southern California has skyrocketed, and the government has stepped in to help fund these developments. Many sectors within the construction industry have seen a plunge in the amount of work available, which has created a valuable buyers’ market for developers with money to spend. Silverwood says there has been a 10 to 20 percent decrease in construction costs within the last 18 to 24 months. “That’s been welcomed because it has helped us in some cases alleviate a gap in our financing model,” Silverwood explains. “General contractors are now much more responsive as far as meeting deadlines, and the quality of the work has become better. “Low-income tax credits have been significantly impacted by the financial downturn with the current recession,” he adds. “We’ve looked at financing models that are innovative or other sources of financing to fill these gaps. In our business, we look to other state programs or federal funds that might be available, and we line up innovative ways to access funds from local cities or counties.” Housing developing its largest project to date the »In San Diego, Affirmedhave 229isunits and retail space when it opens in–2010.23-story Ten Fifty B, which will New Direction Although the company has developed affordable housing for at least 15 years, its origins are based in single-family homes. Silverwood says he was building subdivisions in San Diego and Riverside counties throughout the 1980s before transitioning to the multifamily residential sector. Today, the company has been involved with more than $500 million in developments since switching to for-rent affordable projects. Affirmed Housing has worked with several California municipalities and nonprofit housing development organizations to identify infill sites for affordable, work www.affirmedhousing.com force and senior housing projects, uti• Headquarters: San Diego lizing funding sources such as low• Employees: 10 income housing tax credits and tax• Product: Affordable housing exempt housing revenue bonds. developments “We work with cities and counties to assist in meeting their affordable housing goals,” Silverwood says. “Traditionally, our primary product would have been a two-story garden unit, but the last four years we’ve built –James Silverwood, president and CEO Affirmed Housing Group “General contractors are now much more responsive as far as meeting deadlines, and the quality of the work has become better.” CONSTRUCTION-TODAY.COM OCTOBER 2009
Table of Contents for the Digital Edition of Construction Today - October 2009
Construction Today - October 2009
Regional Spotlight: Southwest
Ledcor Construction Hawaii LLC
C.H. GUERNSEY & Co.
First Gulf Development Corp.: Meadowvale Corporate Centre
Jacobsen Construction: Workers Compensation Fund Headquarters
Novak Construction Co.
Affordable Concepts Inc.
HBD Construction Inc.: Edwardsville Crossing
Ledcor Construction: Napa, Calif.
Mared Mechanical Contractors Corp.
Myers & Chapman Inc.
Summit Contractors Group Inc.
Wilcox Construction Inc.
Special Focus: Mergers & Acquisitions
Hensel Phelps: Phoenix Sky Harbor Intl. Airport Sky Train
Circle Construction LLC
Electrical Contractors Inc.
Everett, Wash., Department of Public Works
Imco General Construction Inc.: Arlington WWTP
New Prince Concrete Construction
R.N. Rouse & Co. Inc.
Stanek Constructors Inc.
Fort Lewis: New Barracks, Army Growth Complex and Support Battalion
Torcon Inc.: Brookhaven National Laboratory’s National Synchrotron Light Source II
Bovis Lend Lease: FBI Denver HQ
Stuart Olson: University of Lethbridge Markin Hall
Bird Construction Co.: Shearwater Helicopter Base
Carbon Constructors Inc.
Consultants & Builders Inc.
Emerick Construction Co.: Rock Creek Middle School
Broadmoor/Boh Brothers Construction Co.: U.S. Coast Guard Integrated Support Command
Cahill Contractors Inc.: The Oakland Museum of California Phase 1
Flintco Inc.: Germantown Women & Children’s Pavilion
Gamma Construction Co.
Kreizenbeck Constructors: BSU Student Union
Pizzagalli Construction Co.: FAHC Radiation Oncology
Robins & Morton: Lincoln Hospital
Steele & Freeman Inc.
Tenderloin Neighborhood Development Corp. (TNDC)
W.G. Yates & Sons Construction: Armed Forces Retirement Village
BBL Construction Services LLC: The Glen at Sugar Hill Apartments
Chelsea Investment Corp.
Affirmed Housing Group
Westland Construction Inc.: Bridges at Citifront
Product Showcase: Plumbing Equipment
Hunzinger Construction Co.: Johnson Controls Headquarters
B.L. Harbert International LLC: S.O.F. 5th Special Forces Battalion Operations Complex
Duke Construction: Monarch Beverage Co. Headquarters
Irish Construction Co.
TMU LLC (Triune)
Last Look: Consultants & Builders Inc.
Construction Today - October 2009