Since January 2021, several bills have been presented in the legislative assembly to convert underused commercial buildings and hotels into buildings and apartments explains Maxwell Drever. Such conversions will help cater to the workforce’s housing needs and low-income families.
Today, several low-income families have faced enormous challenges because of the sudden pandemic outbreak. Territorial availability, private-sector involvement, and affordability limitations have been there. Now since Congress’s session is over, it seems that the Housing Our Neighbors with Dignity Act, is a method of financing that doesn’t overrule the construction code and local zoning requirements.
The pandemic made the hotel industry take a beating! Maxwell Drever says that investors have a habit of rewarding distressed assets even when they don’t get used to their intended objective. And based on a new survey, the investors and developers are planning to use the distressed properties for better and lucrative use. Hence, the conversion of the broken and distressed hotels into affordable workforce housing is something that most investors support because it has a purpose and can get profit in the days to come.
Adding a system to the conversion evaluation process
Converting a distressed and broken hotel into a low-cost housing unit requires essential planning and the correct know-how. But much before the conversion takes place. It is essential to evaluate the property to check whether it is apt for conversion. Here are some tactics that will help with the conversion assessment process.
- Check the property history – If investors and developers are eyeing a broken. Old or distressed property for converting it into affordable workforce housing, it is necessary to get a background check. For instance, is the property shrouded by any controversy? Are there legal issues that the hotel owner didn’t mention? It’s essential to ensure that the property is free from any such problems. Because it will get use to providing housing for the needy. And once the project gets accomplishe it will be disappointing to ask the residents to vacate the place. Because of some unknown controversy or legal issue associated with the property.
- Check the robustness of the property –It is essential to ensure that the hotel you have chosen is structurally sound. That means there are no cracks and weaknesses with the foundation. And should it get convert to a low-cost housing unit for the workforce and low-income families, it shouldn’t collapse suddenly.
- Check if there is a need for any repairs –Maxwell Drever says it’s essential to opt-in for a property inspection. The needs of low-income families are highly separate from the ones who stay in lavish apartments. Hence, it’s essential to check whether certain parts of the hotel would require intensive repair. To get convert into affordable workforce housing. If the need for repair is more and it increases the construction cost to a huge extent. Then it’s best to opt-in for another property.
Investors and developers can benefit by following the above-mentioned best practices for converting a hotel into a low-cost housing unit. It will ensure that they select the right property to make the project a success.