We started off the day with at Brays Crossing off of Gulf Freeway. Brays Crossing was a really interesting project. The project is single room occupancy apartment for low income transitional tenants. The units are fully furnished and lease for $415 and $475 for the two different types of units. The units come with all bills paid except for phone. The property has 149 units and is 50% leased after only being open for 2 months. This project was constructed by New Hope Housing, Inc. who specializes in providing low income housing for the city of Houston. We were met at the property by Joy Horak, the Executive Director, and Nicole Cassier, the Director of Development. They gave us an in depth look of their non-profit and how they help the tenants of their communities. Some of the things the community provides to their tenants are the low income housing, counseling services, and financial assistance. We were told that they have not had to kick someone out of one their communities for nonpayment of rent yet, that shows their commitment to helping their residents. Some of the requirements for tenants to live on their properties are that the person can not make over $22,350 per year and have to pass a light criminal background check. The shortest lease term is 6 months and from their they go month to month with the average stay about 15 months. The goal of the communities is to help the working poor with supportive housing. The properties and projects are have 0 debt and are built with a combination state and city funds. The particular breakdown for Brays Crossing 41% government funding, 29% tax credits, 24% from foundations, 4% from corporations, and 1% from churches and donors. They are apart of the Community Housing Development Organization (CHDO) which is a organization designed to help struggling communities, one of the requirements of CHDO is that 1/3 of the board has to be from the surrounding community. Our second visit of the day was the Canal Street Apartments, also another property low income development of New Hope Housing, Inc. This property has a lot of the same features as Brays Crossing great courtyard, new exterior to help change the identity of the property, and a central entrance to limit access of the property from people who do not need to be there. Overall these were both great properties with a great concept. The total cost for the Bray’s Crossing development was 11.3 million and the total cost of the Canal Street Apartments was 6.1 million.Joy informed us that their next property will be sustainable housing and LEED certified. Joy and Nicole were nice enough to treat us to lunch.The reason why this project really interested me is because low income housing is something I am very interested in. I started my real estate career as a property manager of a low income housing development. I believe that this type of housing is very needed and a key element to growth of a city. The structure in which New Hope develops and manages their properties combined with the support needed to help people get on their feet. This is an area of development that I will definitely continue to explore and support throughout my career in real estate.
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