Thousand Cottage Placement Program™
A Unique 50 State Experiment for Lowering the Cost of the American Dream
Modern Day Management of Data and Systems Yielding Unprecedented Change in Housing Creation
What is 1CPP ?
It is a first ever attempt to bring manufacturing economies of scale, duplication and a new digital era to the process of creating attractive, super-efficient, high-quality homes that are affordable for everyone. The program’s goal is to place 20 homes in each state for a total of 1,000 cottages. This initial effort is a beta-test for something much larger.
Who Are We Contacting ?
We are reaching out to contacts in all fifty states as the shortage of affordable housing knows no boundaries. Since the economic recession the demand for housing has increased significantly and it is expected that moving forward cutbacks will exacerbate the problem. In each state there are public and private agencies whose mission is to get more affordable housing stock in place, create jobs associated with building and to maximize the limited funds that are available for these purposes. 1CPP can hit a home run for each of these causes. We are also contacting manufacturers and suppliers to win their support for 1CPP this year as a precursor to something much larger.
What’s the Timing ?
Like everything we do at AmeriSus we are rolling out the program now with the goal of having most homes in place by year-end which means aligning the program with agencies, organizations, developers and builders that have property or access to property that can be used or approved for use in the short-term. Recognize that the shell of one of our cottage homes can be secure and weather-tight in a few days and completely finished in a few weeks. Building multiple units at once brings efficiencies that only make the construction process faster and less costly.
What’s the Concept Behind 1CCP ?
Great things are made in volume where the tasks of design, material procurement and assembly are all focused on mass-production. 1CCP is bringing sameness and duplication of process to building affordable homes. No firm has ever attempted this on a national basis. Whether one looks at trucks or phones all the Ford-150 pickups and all iPhones are built nearly the same but affordable housing is done piecemeal everywhere. 1CCP as a beta-test is expected to bring down the cost of construction by 20-30%. It is entirely feasible that following this first effort that a larger, fully grown program with regional operation centers could cut housing costs in half.
Are there Other Beneficial Aspects ?
There are many additional features that come about as a result of building AmeriSus cottage homes. All of our homes embody exceptional energy efficiency using 50% of the energy of a new Energy Star home. Most all of the materials, systems and products that go into our homes are Made in the U.S.A. which translates into American jobs. AmeriSus homes use a variety of technologic advances that reduce the amount of materials and labor used with some of the systems being the most sustainable available. Our homes are not modular so that each one gets built from the ground up at the job site. That purposeful approach creates a better quality house and more creates local jobs and training for a new approach to construction.
What About Funding ?
We are working with major national financial groups that want to be a part of what will be the new way to build and finance housing. The projects we help create bring superior financial opportunities to lenders and owners compared to that which they are accustomed to with traditional construction financing yielding improved returns with less risk or aggravation. Also our approach simply eliminates all the difficulty, delay, uncertainty and risk associated with LIHTC approaches proving that BFC (Better, Faster, Cheaper) is a methodology the delivers a superior ROI.
What About Approvals ?
We appreciate how the building process can be slowed down by bureaucracy. That’s why we are reaching out to parties that work in this environment every day with the goal of working together to identify opportunities where the number of impediments to a fast-track approach can be minimized. The 1CCP goal is only 20 homes in each state. Many cities have hundreds of homes being built at any one time. Finding property where zoning allows what we are building (by-right) should not be that difficult.
The Digital Era is Removing the Hassle & Delay
It has been happening for years and everyone benefits. Rapid, in the cloud, digital processing is making most everything we do easier and less expensive. Whether it is hailing a ride with Uber, getting an overnight room from Airbnb, or buying a new spring outfit from Amazon in each case the result is BFC (better, faster, cheaper).
Elimination of the Middle-Man
We are watching nearly every aspect of business take a massive step forward because as a result of being able to manage data as never before. Where in the past a big box retailer may have replaced a shop we can now get all of the selection, product knowledge, convenience and price savings at a click of a button from an in-the-cloud provider that’s constantly improving the process. The local taxi dispatcher is gone. The hotel clerk waiting for your arrival is gone. The back & mortar store and staff are all disappearing along with the associated costs and often aggravation that is encountered.
Now Apply that to Housing
Nobody will argue with the fact that there is a huge national shortage of affordable housing. We continue to build homes one at a time or in small groups at a time each with a cadre of participants and dozens of middle-men and third party players that are not all that concerned with the owner’s agenda. The process is disjointed with an abundance of waste, mismanagement and duplication. Take procurement as just one aspect of building and it is a unique adventure which each new home. What is less expensive; buying 12 windows for an affordable home or doing a deal for 12,000 windows? Take that thought, wrap it up with a digital operational approach and apply it to walls, doors, cabinets and sinks and BFC takes on a meaning never experienced before. It has been estimated that 1CPP in its expanded form can reduce the cost of housing by 50%. What a way to start off 2017.
1,000 Cottage Placement Program
We have begun to work with affordable housing experts in each state to gain their interest and support for the placement of 20 cottage homes as a part of 1CPP. As a first step it will create local jobs, produce affordable housing and set the stage for a new way of building. If 20 homes per city can work across the nation then multiples of that can only produce unprecedented BFC everywhere.
A Few Words About Affordable Housing
We can’t think of a word so misunderstood and misused. With most of the population feeling not so good about their financial position it only makes sense that reducing the biggest expense one encounters each month just might be a pathway to a more stable, productive and enjoyable future. That’s why we started AmeriSus years ago to help people in all situations get out of the rut they might be in. Go buy a car and if you get it for less; that’s a good deal. Buy a new coat on sale; that’s equally fantastic! Get a colonoscopy for half-price; now you are taking about a game changer. Up until now success has been measured by how expensive your house is. It is time to end that way of thinking. Whether you live alone (more and more people do), have a boatload of kids (they cost a bundle), get by on minimum wage (so many people do) or seem to be cruising along happy as a clam we think your life could be better in an affordable home.
Join the Program
If you are involved in the creation of housing or jobs in your state, then you need to help 1CPP. You know your state. You know where our beta test could work. And you also know that success breeds more success. We want to place our cottages where they will be visible and where people will see local construction people doing BFC. Our homes get built in a few weeks so that real results can be a near-term thing rather than some long drawn-out bureaucratic mess. 20 homes and 50 jobs now could mean a few hundred homes and a few hundred jobs sooner than later. We are even getting Vet’s involved.
“Show Me the Money”
Everyone cracks a smile hearing that phrase from the movie Jerry Maguire. We are working with private investment entities to make this happen. Housing finance is experiencing massive change and we are leading the charge for BFC in that area.
What Kind of Housing ?
For starters it is going to be more affordable than anything ever built. 1CPP homes will be super energy efficient stand-alone detached structures that embody a mix of high quality materials and features. We believe that a part of the American Dream is living in a detached home with a porch, yard and some privacy and one can throw in the white picket fence. Energy efficient, quality materials, high in value, using leading edge technology, efficient construction techniques and unique financing.
What Kind of Affordability ?
We are driving costs down for every aspect of home construction making 1CPP cottage homes the best buy in town that can help people of all backgrounds and financial situations. Our Home Eco Lease Program even allows a couple earning minimum wage to live in a brand new eco-cottage while spending less than 30% of their income on housing. That’s good, no?
What About Density ?
Yes there is a trade-off backing away from mid-rise and high-rise construction in order to build one and two level cottages at ground level. For starters, unlike traditional multi-family 1CPP homes get built in weeks not years. Secondly, building up requires all types of extra items that increases a builder’s cost which correlates to occupancy cost. Third, most fires occur in multi-family structures and more often than not a fire in only one unit impacts families in adjacent units. 1CPP homes are the best deal for fire safety. Fourth, let’s talk preference. Some people love apartment life but most people desire a stand-alone home where there’s no noisy neighbor on the other side of the wall, where you can let the dog out onto grass or even flop out onto a backyard lounge chair. Fifth, since most people desire a real home there are more people moving in and out of multi-family which creates somewhat of a transient neighborhood where you might never know the couple down the hall. 1CPP housing brings a high level of stability to the neighborhood. Done right 1CPP homes get be laid out at 8-12 per acre.
What’s the Concept Behind 1CCP ?
Great things are made in volume where the tasks of design, material procurement and assembly are all focused on mass production. 1CCP is bringing sameness and duplication of process to building affordable homes. No firm has ever attempted this on a national basis. All the Ford-150 pickups are similar and all iPhones are similar but affordable housing is done piecemeal everywhere. 1CCP as a beta-test is expected to bring down the cost of construction by 20-30%. It is entirely feasible that following this first effort that a larger, fully grown program with regional operation centers could cut housing costs in half. With everyone expecting difficult times ahead for housing ICCP looks like a winner.
Does Anyone Take a Hit on This Approach ?
Not really. Our suppliers expect this to be a profitable new market that will grow significantly after the beta-test. Involved builders will be able to build more in less time which extrapolates into more profit for less work. The parties bringing land into the mix will have a way to develop property with something that most communities and regulators desire rather than becoming involved in a heated approval process. Involved lenders will enjoy a new and different way to be compensated that provides better returns than traditional mortgage financing with less risk. And then there’s the towns where 1CPP homes get built. Our homes address the SOCO market which is Single OR Couple Occupied segment which requires less infrastructure and city services than any other type of housing.
What Might this Beta-Test Become ?
One thousand cottages in place in a year is a sizable task but whittling it down state by state it is only 20 homes hear and 20 homes there. The beta-program is intended to test all the systems and data management so that any next step is just more of the same. AmeriSus believes that the beta program will reduce the cost of housing by 20-30%. The next step is expensive because to establishes regions with operations centers and a significant expansion in staff. That said, the anticipated expansion volume will reduce costs further so that with the added organization and facilities the net end result will be housing that cost half of the norm.
Creating New Housing is an Overly Complex Process
We know all about that. Our sister company Transactionable Property Solutions has been developing distressed and impaired brownfield sites for years. Land is everyone’s key issue followed by $. For 1CPP we are reaching out to housing experts that deal with the developers, builders, land owners, agencies and even communities in their state that are players in creating housing. Amongst that mix we expect that there are a few parties with sites that could accommodate a cottage project and where the opportunity to do such in an easier less costly manner is of interest.
Spread the Word
In most states thousands of housing units go up each year. More often than not, these days, those units take the form of multi-family mid-rise projects that take longer to get approved, longer to get financed and longer to get built. That’s if the local neighborhood doesn’t give you a fight. AN AmeriSus Eco-Cottage by itself, in clusters or as an entire cottage neighborhood is a low-profile approach to housing where the homes can be completed in just weeks. The typical ROI on an cottage neighborhood is superior to that of a mid-rise apartment project and even traditional single-family neighborhoods. Spread the word amongst the people you deal with to see how a place or places for 20 cottages can be found.
What’s In It For Me?
Anyone who is in the housing business for more than a paycheck gets some satisfaction out of helping deserving people into housing they can afford. That’s what AmeriSus is all about. Some say we create eco-homes but really we create households with significantly improved financials. So, for starters, with your help, 1CPP can get 20 families into fantastic housing in your state. But there is much more. No firm in recent times has attempted to bring about a national solution to the housing problem. Eichler proved that volume and replication worked on the West Coast and Levitt did the same in the East. The team at AmeriSus wants to build upon those success stories from the 1960’s by adding data management and systems capabilities that will cut the cost of home construction in half. Today builders can save 30% building an AmeriSus home. 1CPP will test in 2017 how much further we can reduce costs. We expect our permanent program in 2018 will reduce costs by half. You can be a part of making that happen.
We’ve Split the Country into Five Regions
For the 1CPP Beta we are tackling the the country as five continental regions with Alaska and Hawaii being treated separately. As homes get put in place we will be evaluating what logistic approaches work best in an effort to lock into dedicated regional operations centers for moving forward with a larger permanent business focused on continuous cost reduction.
Teams Working Each Region
Amerisus homes and cottages get built at the job site using local labor. Our process is focused on reducing waste in both materials and labor. Continuing along that line of thinking 1CPP is being rolled out in five regions simultaneously. 1,000 cottages this year is a challenge. Describing it as 20 in each state seems much more manageable.
Get Your State Involved as a Beta Participant
Call us today to learn more about how your community can be a part of this program. Everyone welcome. Town official, developer, planner, builder or land owner. Great projects start with great ideas. Bring us an idea and we will work with you to make it happen.
Call us at 267 564-5724 or email at 1CPP@AmeriSus.com