Accessory Homes by Brian S. Allen, BSCM: Accessory Homes: innovative, affordable home builder

ID

344

OrgName

Accessory Homes by Brian S. Allen, BSCM

PhysicalAddress

4909 Davenport St. Omaha, NE 68132

MailingAddress

Website

www.accessoryhomes.com - pending

SocialMediaAccounts

@accessoryhomes - pending

Name

Brian S. Allen

Title

Owner / Project Manager

EmailAddress

brianstanleyallen@gmail.com

Phone

+1 (531) 203-9100

Team

Yes

TeamExplanation

Contract services for PT (1/2 time) administration, PT (1/2 time) accounting, and PT (1/4 time) branding/marketing services are pending. Consultants have been and will continue to be engaged.

OrganizationalChart

Brian Allen, Owner/Project Manager

OtherCompletedProjects

The new company is led by Brian Allen who earned a BS in Construction Management at the University of Nebraska at Kearney in 2004. Afterwards, Allen earned #1 national rankings in customer satisfaction surveys two years in a row while in Southern California at Pulte Homes, the nation's second largest home builder. In 2015, Allen co-founded a successful small business (Approach Climbing Gym) in Omaha still in operation today. Over the past 3-years Allen has also been a project consultant for the re-development of phase-4 at River's Edge in Council Bluffs, IA for the architectural design and operational components of the proposed adventure and observation tower that would connect to the Bob Kerrey Bridge via a tree-top walk. Opening the state's first commercial climbing gym is similar to this proposal in that the development of affordable housing (specifically ADU's) is still a new and innovative concept for the Omaha metro area and it takes extra effort for awareness and sustainable operations for these small start-ups. The experience in starting a small business that benefits the community, working for a national home builder, an education in Construction Management coupled with past experiences in the local non-profit sector (Film Streams' re-opening of the Dundee Theater), other community events and being a homeowner himself, positions Brian Allen very well to succeed in the goals of this plan.

ProposalTitle

Accessory Homes: innovative, affordable home builder

TotalBudget

2344418.0

LB1024GrantFundingRequest

2344418.0

ProposalType

Combination of capital project and service/program

BriefProposalSummary

In an effort to bring transformational opportunities to homeowners, this proposal seeks to maximize properties for the benefit of the homeowner through the use of rent to own and accessory dwelling unit options. This proposal entails the plan for the development of four (4)-vacant urban lots in North Omaha (built as two-family homes) in Qualified Census Tracts #60 and #11 to include affordable homes with accessory dwelling units (ADU). The dwellings will be offered as affordable rental units and/or rent-to-own properties. This unique approach will offer affordable rental rates for up to four (4)-years to a qualified candidate (application and transparent selection process required) for the opportunity to purchase the property when the lease contract is expired. This grant will enable Accessory Homes to design, build affordable housing with rental units in single family residential neighborhoods, and sell the properties at a lower rate to enable the renter to become a homeowner with an opportunity for passive income on their property. Land acquisition would be complete in 2023 followed by design and construction. The first two properties would be available for rent in January 2024 and the next two properties would be available for rent in January 2025. At the end of 2027, the homeowners (if the rent-to-own option was enacted) would purchase their homes and take ownership in 2028 at a drastically reduced current market sale price (the cost of construction plus a five percent (5%) builder fee and an even further reduction in the sale price by utilizing all previous rental fees as a form of pre-paid credit).

Timeline

Company creation: Jan. ‘23 Initial design and reviews: Jan. ‘23 Branding and marketing implementation plan: March ‘23 Architectural Design: March ’23 (*or after the selection of grant recipients) RFP: (foundation plans, utility plans, install, subcontractors, etc): May ‘23 Application (for rent-to-own) opens: July - Aug ‘23 Application review (w/ Advisory committee) begins: Sep ‘23 Application selection: October ‘23 Home complete: Nov ‘23 Rental agreement (two properties) begin: Jan ’24 Travel and Training: Feb ‘24 Architectural Design: March ’24 RFP: (foundation plans, utility plans, install, subcontractors, etc): May ‘24 Application (for rent-to-own) opens: July - Aug ‘24 Application review (w/ Advisory committee) begins: Sep ‘24 Application selection: October ‘24 Home complete: Nov ‘24 Rental agreement (two properties) begin: Jan ’25 Travel and Training: Feb ‘25 Other property / land acquisition search begins: March ‘25 Community outreach / awareness events: April – May ‘25 Potential home sale (to rent-to-own applicants): Jan ‘28

PercentageCompletedByJuly2025

1.0

FundingGoals

Fundamental Change (i.e., a proposal that will continue to elevate North or South Omaha's presence and perception within the region, significantly improving the lives of area residents through physical development) Long-Lasting Economic Growth (i.e., a proposal that will foster gainful employment opportunities and financial investment in the area, leading to the creation of generational wealth and widespread economic vitality in North and South Omaha) Transformational (i.e., a proposal that will help energize, recharge, or spur significant and favorable advancements in North or South Omaha's function or appearance)

Community Needs

Multimodal Transportation (i.e., enable connectivity through driving, biking, taking transit, walking, and rolling) Other Infrastructure (i.e., develop or improve broadband, business districts, roadways, sewer, etc.) Policy (i.e., develop or improve context-sensitive education, finance, health, training, zoning, etc.) Quality of Life (i.e., create or enhance natural spaces, mixed uses, parks, safety, etc.) Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)

OtherExplanation

ProposalDescriptionAndNeedsAlignment

This project would enable future homeowners and inspire others to maximize their properties by bringing four (4) unique, affordable homes with accessory dwelling units to North Omaha. The proposal enables a start-up business to help lay potential framework in shaping future policy by being an example of what is possible with urban infill lots through affordable housing and accessory dwelling units. This proposal increases long-term livability by providing the option for additional revenue through rentals, utilizing it for aging in place or providing affordable housing for other family members. This grant enables the home builder to sell the home well below market rate five (5)-years from the time of this grant’s reception by selling the property at the cost of construction + 5% and less the total amount of rental monies received through the rent-to-own option). The aim is for the homeowner to see no change from their monthly rental dues the previous 3-4 years as a renter and the new mortgage payment as a homeowner (while renting the second 1-bedroom dwelling unit at an affordable rate). The proposal further enables Accessory Homes to help grow the Omaha affordable and accessory homes market, which would in turn, increase sustainable community, multimodal transportation, other relevant infrastructure, and appropriate policy to combat the lack of affordable housing in Omaha. Sustainable community: The proposal and this grant’s funding creates a one-of-a-kind rent-to-own opportunity for homebuyers that comes with an additional dwelling for a new revenue stream (passive income) or a family member(s) to live on the property. The creation of affordable housing with single-family homes accompanied by detached ADU’s located in single-family residential neighborhoods helps achieve further livability for new or next-level homeowners. This plan invests in affordable rental rates, potential homeownership, and sustainability for families in the Qualified Census Tracts in North Omaha. Multimodal transportation: The selected properties are located near pedestrian oriented transit lines, which enables connectivity through biking, public transit, or walking. Accessory Homes plans for growth will occur in and around all major public transit lines in urban neighborhoods, but it starts with the award of this grant to spark the proposed affordable housing developments. Other infrastructure: The subject properties are located in a residential neighborhood that supports the growth of major corridors including 30th Street and 24th Street business districts and align with the vision of the Urban Core Housing Plan and the Transportation Master Plan. Quality of Life: By incorporating a mixed-use of a residential urban property, homeowners’ lives are enhanced by not only creating affordable housing, but also creates an affordable living option for the homeowner through familial communal living or additional income through the affordable rental of the ADU. This is an opportunity for homeowners to build generational wealth for their family, in addition to the ability to stay in their neighborhood which will improve their quality of life. Policy: This grant provides funding for the development of four (4)-residential properties built as two-family homes on each parcel of land. The more homeowners in Omaha that have awareness and access to these development options increases affordable living. During the development and eventual completion of these four (4)-properties, Accessory Homes aims to provide further information to policy makers and government officials that may help inform or shape future policy to help ease the constraints of constructing accessory units in a variety of residential neighborhoods.

VisioningWorkshopFindingsAlignment

This proposal aligns with the findings of the LB1024 Visioning Workshop because it utilizes and showcases alternative methods of affordable housing and livability. Most notably the use of accessory dwelling units (ADU) within the development of 4-residential urban lots located in North Omaha. This approach and plan will allow a future homeowner to maximize their residential property. The plan is to acquire five (5)-parcels of land to design and construct four (4)-single family homes and accompanying accessory units for rent as affordable housing. Three (3)-parcels in Census Tract 60 will be re-platted as two (2) parcels and only require variance requests (no re-zoning). One parcel in Tract 60 requires no variances and no zoning changes. The fourth parcel in Census Tract 11 requires only variances (no re-zoning). Upon the completion of construction, further intent is to market the rental properties as a rent-to-own opportunity for qualifying individuals. A transparent application process would ensue. Qualifications would include such requirements as current residential zip code, an application proposal submitted to the home builder who would share with an advisory committee for selection of the winning recipient of the property. The goal is to help a first-time or next-level homeowner achieve the dream of home ownership and generating passive income while removing typical barriers that prevent this process from happening. After five (5)-years of receiving this grant, the sale of the home will be offered by the builder at an extremely affordable level for the former renter (cost of construction + 5% less the total rental monies collected from the start of the rent-to-own agreement). Thus, this proposal (just as the workshop finding suggest) helps improve not only the quality of life for homeowners and their community, but also helps address the lack of affordable housing and encourages further economic development and connectivity in North Omaha by utilizing alternative methods of affordable housing development. Further strengths, weaknesses, opportunities and threats (SWOT) identified in North Omaha that this proposal supports and helps take steps to alleviate include the following: vacant parcels and availability of land; leveraging current residents into additional economic activities by helping to provide more insight into financial literacy and access; lack of quality entry-level and next level housing; vacant land on and near major corridors (24th and 30th St.). The plan helps celebrate the cultural and character strengths of the community and neighborhoods by aiming to help would be homeowners, not taking advantage of them. In other words, it embraces development without displacement. The proposal takes a step in furthering the awareness, accessibility, and affordability of homeownership for multi-generations of families to come. The results of the visioning workshop support this proposal and the execution of this plan can help be one of those change makers for the betterment of the community. The plan aims to inspire fundamental change for existing and first-time homeowners in making a transformational decision to help create a more long-term affordable way of living in their own neighborhood.

PrioritiesAlignment

The goals of this proposal are well aligned and in synch with the top three (3)-goals of LB1024 because the plan provides unique affordable housing opportunities (rent-to-own properties and residential accessory dwelling units) while helping to further spark the long-term economic stability of North Omaha. Fundamental change begins with awareness, accessibility, and a one-of-a-kind (or four-of-a-kind rather) opportunity. The plan will work within current zoning codes to design and construct the four (4)-subject properties with little to no variance requests or special use permits required. Those variance requests that are required, will demonstrate a compelling and practical reasoning for the request. None of the four (4)-properties require the request of re-zoning. This proposal also aims to help discover (and share results) more of what impedes the development of further accessory dwellings units (ADU) on all urban, transit, and pedestrian oriented residential neighborhoods. These insights could help shape future policy that will allow for more affordable housing-specifically through the design, construction and ownership of ADU’s on an owner’s residential plat of land. Similar research and action have already been made by the City of Omaha with the creation of new Transit Oriented Development (TOD) areas from downtown to the Westroads Mall along and near the Dodge Street ORBT transit line. While the cost and risk associated with adding an additional dwelling on one’s property may seem daunting, with the right collaborative approaches and policies in place, the concept can be transformational for long term multi-generational livability. Long-term economic growth will follow when these investments are made and a ripple effect of affordable projects such as the development of vacant lots and the addition of a second dwelling are completed within the North Omaha neighborhoods. Action spurs curiosity and this proposal’s actions will be there to help spur further activity in the surrounding neighborhoods of the subject properties, as outlined by LB1024. North Omaha (and South Omaha) are diverse, entrepreneurial, and proud communities. Developing residential lots with the addition of accessory dwellings units (ADUs) helps homeowners to lower their monthly cost of living and provides a renter an affordable living rate. It’s a development tool that fits within the cultural context of all Qualified Census Tracts of North and South Omaha. Citizens don’t know what they don’t know, so with this proposal it is the aim of Accessory Homes to help bring further awareness (alongside other locally owned mission driven organizations) of the opportunities that exist and to be the leading builder to get them there, step by step. There will be many questions from their initial curiosities to analyzation of their property and what current zoning allows or what variances may be required to proceed. By focusing exclusively on the construction of affordable housing and ADU’s, Accessory Homes will be known as the expert in Omaha when it comes to developing new or existing properties for this purpose. It’s not about building more units faster or simply defaulting to more townhouses and duplexes or medium to high-density apartments. Rather, it’s about building smarter and calculated while leveraging a homeowner to maximize their personal property assets and overall long term-livability through affordable home building. By receiving this grant priorities for LB1024 can be achieved through the planning and execution of this proposal.

EconomicImpact

With the building of eight (8)-affordable units on four (4)-residential properties, job creation, (both temporary and permanent) is achieved by the use of construction laborers, designers, suppliers, administrative services, accounting services, marketing services, and property management services (ie: lawn, snow, repairs). Eventually, the future homeowners of these properties will be able to rent their ADU, making these properties an opportunity for additional revenue (i.e., job creation and further affordability for the future homeowners). The success of this proposal will inspire and encourage other surrounding homeowners and builders to start utilizing this concept which creates further economic stimulation and passive job creation in the area.

EconomicImpactPermanentJobsCreated

10

EconomicImpactTemporaryJobsCreated

100

EconomicImpactWageLevels

$19/hr - $50/hr

EconomicImpactAlignProposedJobs

This concept is new to Omaha and will inspire others to do the same thing. Not just other contractors, but other home builders and current homeowners within qualifying lots.

CommunityBenefit

This project will benefit the community by increasing livability among current and would-be homeowners in urban neighborhoods of North Omaha. By utilizing funds provided by LB1024 and using Nebraska’s Municipal Density and Missing Middle Housing Act (LB866) as a guide, this proposal selected five (5)-total vacant lots in Qualified Census Tracts 60 and 11 to design and build eight (8)-affordable dwellings on four (4)-lots.

CommunityBenefitSustainability

All properties are included in the boundaries of Qualified Census Tracts and the North Omaha Neighborhood Alliance. The plan also aligns with the mission of ONE Omaha, a local nonprofit aiming to empower people where they live through education, training, and engagement to develop thriving neighborhoods. This proposal and eventual completion of the home building concepts will not only be able to be replicated with other vacant lots by a home builder such as Accessory Homes or others, but will more importantly act as a catalyst for other single-family dwelling homeowners to construct (with any builder or on their own) an accessory dwelling unit (ADU) on their property if zoning allows. A spark to creating a more affordable way to live while maximizing a parcel and homeowners full potential. Thus, enabling a happier and healthier quality of life for surrounding communities.

BestPracticesInnovation

As noted in the 2021 Affordable Housing Report (City of Omaha), the construction of an Accessory Dwelling Unit (ADU) is not a brand-new concept as there are hundreds of existing non-conforming “Two-family” properties (or secondary units) located in residential neighborhoods regardless of their current zoning codes. What is new for the state of Nebraska, thanks in part to Senators Wayne (13), Hunt (8), Hansen (26) and Vargas (7), are the policies recently set forth with the passage of LB866 (approved by the Governor on August 17, 2020) to make it more accessible and equitable for the creation of middle housing (including accessory dwelling units). Similarly, the City of Omaha’s implementation for new zoning subdistricts of the Transit Oriented Development (TOD) Implementation Strategy for the Dodge Street corridor eases the barriers to design and build ADU’s in residential neighborhoods. What makes this even further unique is it allows for a more streamlined process and ability to construct affordable middle housing in areas where current zoning code regulations do not allow (by right) for the construction of an ADU. Following the completion of this proposals’ build-out and requirements of this grant proposal, Accessory Homes will have gained invaluable experience and be in a better position to help develop further vacant lots into affordable two-family housing in North (and South) Omaha. This proposal also presents the opportunity for a new start-up home building company to launch: a small business specializing in the development of accessory dwelling units (ADUs) for the betterment of the homeowner and in turn the benefit of the community. Accessory Homes aims to be Omaha’s ADU expert…from the first inquiry that may lead to the eventual completion of the new dwelling, Accessory Homes will be with the homeowner every step of the way. The first step begins with the reception of this grant.

OutcomeMeasurement

Percentage of new homeownership creation, percentage of new passive income for North Omaha residents (through ADU concepts), percentage of occupancy and rental rates of secondary units, and annual percentage of new building permits for the purpose of constructing new ADUs in residential neighborhoods.

OutcomeMeasurementHow

Accessory Homes is dedicated to keeping and tracking relevant and informed data regarding the topics outlined above. Mostly, data will be measured by Brian Allen, findings of the City of Omaha's annual affordable housing report, HUD's income limits documentation system, and other industry reports (local and national).

OutcomeMeasurementCoinvestment

Yes, because this model is replicable and has the potential to be scaled while also encouraging other homeowners to seek the same opportunities with other family members, lenders, or investors.

Partnerships

Yes

PartnershipsOrgs

The first and most important partnering organization for this proposal is the Omaha Municipal Land Bank for the acquisition and development of the proposed properties. Partnering with a local lender to ensure the accessibility of the renter who will possibly purchase the home through the rent-to-own option.

PartnershipsMOU

Displacement

No

DisplacementExplanation

PhysicalLocation

Three (3)-proposed vacant lots (3183 Grand Ave., 3721 Fowler Ave., 3717 Fowler Ave.) are located within Census Tract 60 and one (1)-vacant lot (2814 Hamilton St.) is located in Census Tract 11. The vacant properties are for sale by the Omaha Municipal Land Bank and located within Zone-A of the Central City Urban Development boundaries. The proposed properties are near the north 30th St. corridor with three (3)-lots located in the Monmouth Park Neighborhood within the boundaries (Florence Blvd to 42 St. and Ames St. to Craig St.) of the Miller Park-Minne Lusa Community Association. The fourth property is also located near theses areas, but just to the south on Hamilton St. in the Highlander Neighborhood Association (boundaries include Dodge St. to the south, 50th St. on the west, Young St. on the north and Abbott/Riverfront Drive on the east). Other adjacent roadways, destinations and landmarks include: Metropolitan Community College Fort Omaha Campus, Sorenson Parkway, Highway 75, Abbott Drive, Eppley Airport, Downtown, 24th St. corridor, Terrence “Bud” Crawford Street, Skinner Magnet Middle School, North High Magnet School, 30th St. corridor, OPS’ Teacher Administration Center, Highlander development, Walnut Hill neighborhood, and Creighton University.

QualifiedCensusTract

Within one or more QCTs

AdditionalLocationDocuments

No, this site is not a brownfield site.

PropertyZoning

Yes

ConnectedToUtilities

ConnectedToUtilitiesConnected

Yes

ConnectedToUtilitiesUpgradesNeeded

Yes

DesignEstimatingBidding

Yes

DesignEstimatingBiddingPackageDeveloped

Yes

DesignEstimatingBiddingCostsDetermined

GeneralContractor

Yes

GeneralContractorPublicCompetitiveBid

No

GeneralContractorPublicCompetitiveBidWhyNot

Owner / Project Manager is the General Contractor.

RequestRationale

The requested funds will be used solely for the acquisition and development of the outlined four (4)-lots. Please see the attached documents for specifics.

GrantFundsUsage

Specifically, the grant funds will be used for organizational costs, personnel costs operational costs, supplies and equipment, permits, contractual services and the cost of designing and constructing affordable housing. This grant funding allows Accessory Homes to rent and sell at an affordable rate, far below market rates.

ProposalFinancialSustainability

Yes

ProposalFinancialSustainabilityOperations

With the development, rental, and sale of the outlined properties, Accessory Homes will be positioned for further economic development in the surrounding communities. After the five (5) year mark, Accessory Homes will have a financial ability and the experience available to perform the same model (as outlined above) while working with similar communities for similar objectives.

FundingSources

This grant would be the sole funding source. Differing from other grant and funding sources, this specific funding allows Accessory Homes to provide one-of-a-kind rent-to-own and ADU opportunities to these communities with rental and selling rates that are affordable and accessible for potential homeowners in these areas.

FundingSourcesPendingDecisions

FundingSourcesCannotContinue

The Omaha Economic Recovery Act funding is pivotal and necessary for the outlined timeline and plan. While Accessory Homes is committed to bringing affordable homes and ADU's to Omaha, it would not be completed in this timeline, nor be able to provide sub affordable rental rates and the unique affordable homeowner opportunities described within.

Scalability

Yes.

ScalabilityComponents

Instead of designing and constructing all four (4)-properties at the same time out of the gates as a big builder might, Accessory Homes will break the project down into smaller components on a smaller scale. Half of the homes will be built and rented within the first year. The second round of homes will be built afterwards in year two, but done so by using the lessons learned, data collected, notes taken from the first round of the home design, construction, marketing, advisory committee feedback, and the potential signing of a rent-to-own applicant. Future production of similar concepts could be produced at a faster production rate with further investment and other potential grant funding, but this will be more closely analyzed after the initial development and data collection.

FinancialCommitment

Without this grant funding, Accessory Homes will be unable to provide affordable rental rates and reduced home sale pricing to the residents of North Omaha due to the inherent cost of home building and starting a new local business to do it. The financial commitment of Accessory Homes requires the full-time attention and commitment of the Owner / Project Manager (Brian Allen).

ARPAComplianceAcknowledgment

1.0

ARPAReportingMonitoringProcessAck

1.0

LB1024FundingSourcesAck

1.0

PublicInformation

1.0

FileUploads

Pro Forma Proposal Budget/Sources and Uses