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HOMELESS TO HEALTHY: A RESIDENT SUCCESS STORY
CREDIT & UNDERWRITING WITH ED STONE, CONT.
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Mr. Bivins stated that he felt subhuman in the beginning, but was a model prisoner. While in prison, he attended Northern MI University and graduated as a certified paralegal. He became a legal writer for the State of Michigan and assisted other inmates, along with Attorney Staff in Lansing, to litigate their cases and hopefully gain freedom. Mr. Bivins also worked as a dietitian clerk and wrote plays in drama workshops. He even starred in a play based on his life, Which Way is Out , which was a success in prison. After serving 10 years in prison, Mr. Bivins became a vegetarian, focusing on his health. Running six hours a day and one hour of weight training helped himstay focused on becoming a productive citizen in society. He did not want to be the same person he was when he entered prison. Mr. Bivins was released in 2017 on parole for five years. His only strategy was to succeed. Failure was not an option, says Mr. Bivins. To stay in compliance with his parole, he chose to reside at Operation Get Down. While he had thier support, he did not want to parole with family. Mr. Bivins stated that he wanted to walk
from prison and was ecstatic when he received a phone call from a Nursing Services Organization (NSO) case manager, informing him that they had an apartment for him at The Clay Apartments in Detroit. It’s at this community that Mr. Bivins has maintained a steady source of income. He also receives mental health services to help him remain stable in his new walk of freedom. Mr. Bivins states he appreciates the staff and has many plans for his future. What was once difficult to discuss because of pain and disappointments became a message of positivity as he is currently writing a book of his life story to share with the younger generations. “Living at The Clay Apartments has been refreshing, to finally be in your own space, relaxing and unwinding from that difficult journey”, says Tylass. Since 1990, MHT Housing, Inc. has developed and operated over 50 affordable housing communities. They are active supporters of the communities in which their properties are located, and are continuously striving to make a difference.
decelerating, for better risks; those buyers can expect increases of 2% – 10%. For challenged occupancies, rate hikes are forecasted at 15% or more, which represents a continuing decline in increases over recent renewal cycles. especially • General liability predictions eased modestly: +5% to +12.5% (from +7.5% to +15%). • Auto rate forecasts similarly dropped slightly: +5% to +15% (from +8% to +15%). • Casualty (UMBRELLA) excess liability predictions are now +15% to +30% or more for high hazard risks and flat to +15% for low/ moderate hazard. • Workers’ compensation is one of the lines now looking at a mix of small decreases and increases: -2% to +4%. We were also warned that with limited insurance carrier capacity, carriers are writing, in specific areas, higher deductible minimums. This is forcing named insureds to try to get deductible buy-down policies to meet requirements. CREA is reviewing its guidelines and meeting with investors to determine if we can offer some relief in this area. The process to analyze your own portfolio is always a challenging endeavor. Feel free to let us know if you have any questions about the data and analysis that we have provided above.
By: Lakesha Smith, Community Manager at Clay Apartments
• General Contractor Agreements: » Review of GC agreements was noted as being more important than ever. » Development teams should confirm that the building loan agreement matches the General Contractor’s contractual terms, be cautious not to allow too many allowances (eliminating them altogether can drive up bids), to remain nimble and flexible when doing things like allocating deposits, specifying materials, and producing backup plans. Insurance Summary In a recent 2022 insurance market summary, a global losses exceeding $100 billion in four of the past five years was predicted. “Property underwriters will continue to exercise ongoing restraint in offering up additional supply to the market.” This combination of increased losses and limited supply is apparent with the premium increases we are seeing across CREA’s portfolio. Nationally, we have witnessed increases of 26% since 2019 and exceeding 35% within the southeast. In conversation with CREA’s insurance consultant, it seems there may be some stabilization on the horizon. While insurance costs are still increasing, premiums are escalating at a decreasing rate. The hope is that insurance rates will start to level off by year-end. Some of the following estimates for the year that may be used to compare to specific renewals were offered: • Property rate increases are
have been delayed over the past two years. This is primarily caused by labor and material shortages. » Specifically regarding labor, it’s been estimated that 30-50 thousand unfilled construction jobs exist in the U.S. Other labor shortages exist in key areas of the transportation sector, such as shipping & ports, and manufacturing facilities. » Material shortages have been equally experienced. Some materials that are on 6+ month waitlists include windows, appliances, electrical switchgears, metals, cabinets, and fiber-cement siding. Note : CREA has attempted to account for market volatility during its preclosing underwriting process by adding a 90- day cushion into each development’s forecasts as well as requiring bid-logs from each General Contractor to ensure that the final construction budget has been substantiated with qualified bids from each key subcontractor (resulting 70-80% of the total budget being qualified).
Mr. Tylass Bivins moved into the Clay Apartments in October 2020, after being homeless for four years. Mr. Bivins described a beautiful childhood on Sturdivant Street in Detroit, where his neighbors loved him. “I would take out their trash or walk their dogs, so the neighbors loved me!” Mr. Bivins and his father grew to be best friends. His dad introduced him to several famous Motown music stars, horseback riding at the age of 10, and golf at 13 where he enjoyed playing with his dad and his friends. While playing golf with one of his dads’ friends, he learned a valuable lesson to “Never judge a book by its cover.” However, at the age of 16, Mr. Bivins lost his best friend with the passing of his father. Experiencing the sudden loss, he felt confused and quickly gave up and stopped caring. Mr. Bivins started drinking, smoking and hanging around others who supported his poor decisions. These behaviors landed him in and out of jail. On July 1, 1978, Mr. Bivins was sentenced to 42 years in prison, a day he’ll always remember. He was just 22 at the time and had a one-year-old daughter. Entering the “Adult World” via Jackson Prison, Mr. Bivins was afraid, but knew what he had to do to get out.
• Increasing Input Costs:
» This rise can be partially linked to the labor and material shortages. Other materials that have seen a rapid increase in price recently include lumber, paint, aluminum, steel, and gypsum products. » Increased prices and shortages have only been further intensified by the conflict in Ukraine. Various sources have noted that Russia provides 10% of the worlds copper and 30% of Europe’s oil and gas. It is anticipated that a prolonged conflict mixed with government sanctions will only further drive-up input prices.
his journey alone, and not have anyone hold his hand. He needed to stay focused and adjust to a world that he didn’t know. became employed three days after being released Mr. Bivins
Clay Apartments via The Detroit News
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