Quidachay Hackahouse 2020 FINANCE University of Utah OUR GOALS To include minority communities that are highly underrepresented in the ADU sector Increase ADU units along the West side of Salt Lake City alleviating the issue of affordable housing ID: 908258
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Slide1
Ian Harris / Katie Larsen / Bennett Quidachay Hack-a-house 2020 - FINANCE / University of Utah
Slide2OUR GOALSTo include minority communities that are highly underrepresented in the ADU sector.
Increase ADU units along the West side of Salt Lake City, alleviating the issue of affordable housing.
Slide3Racial Disparities in Salt Lake City
Red -
White
Orange -
Hispanic
Blue, Green -
Other
WEST SIDE
EAST SIDE
Slide4Wealth and Income
Slide5ADU Disparity4 ADUs on West side
29
ADUs on East side.
(Salt Lake City ADU Annual Report, 2019)
Slide6THE PLAN
1.
Partner
2.
Construct
3.
Rent
4.
Transfer
Slide71. Partner
Partner with homeowners in the Salt Lake City
Westside
to build an ADU
Develop a contract agreement
with homeowner to utilize a
portion
of their property as an ADU
In Salt Lake City, you can reasonably develop an ADU on
any property
as long as it is zoned for housing
Slide82. Construct
Work with prospective partners to construct an ADU on homeowner’s property.
Bank for financing
Architect
ADU Builder
Homeowner
Cost of ADU: $
120-200k
Slide9Once constructed, ADU West
can start the renting process.
We rent out the property for
5-10 years
depending on costs and rent at an affordable rate until the the ADU is paid off with interest
We rent out with the intention of providing
affordable housing
for
low-income
individuals
3.
Rent
Slide104. Transfer
Once unit is paid off with interest,
control of the ADU is
transferred to homeowner.
Owner can…
rent out ADU as affordable housing (LIHTC)
house family members
sell the property with increased value
Slide11Intended Outcomes
Slide12THANK YOU!
Slide13APPENDIXRETURNING OUR INVESTMENT:Family makes
50k/year
, 30% of income monthly is
1250 = 15,000/yr. 15k x
7 = 105k. 15k x 8 = 120k.
Family makes
60k/year
, 30% of income monthly is 1500, ADU will then be rented out at 1500,
1500 x 12 = 18,000/yr. 18k x
6yrs = 108k, 18k x
7yrs = 125k, 18k x
8.5yrs = 150k.Costs of ADUs range, so will the time to pay return investment on loan
We strive for a return on investment in 5-10 years
Slide14Sourceshttps://www.sltrib.com/news/2019/09/01/salt-lake-city-sees/
http://www.slcdocs.com/Planning/Reports/2019/adus_annual_report_2019.pdf
https://www.census.gov/quickfacts/saltlakecitycityutah
https://sfrichmondreview.com/2019/07/25/accessory-dwelling-unit-program-offers-incentives/#:~:text=The%20ADU%20Incentives%20program%20provides,providing%20financial%20benefits%20to%20homeowners
https://prosperitynow.org/resources/hispanic-white-racial-wealth-gap-infographic-2019
https://www.point2homes.com/US/Neighborhood/UT/Salt-Lake-County/Salt-Lake-City-Demographics.html