DEVELOPMENT ANALYSIS AND ORGANIZATIONAL CAPACITY
With over 50 years of combined development experience, Summit Management Group (SMG), Summit Housing Group (SHG), Highlands Property Management (HPM), and Summit Construction Group (SCG) key principals and staff have developed internal processes giving all companies the capacity, resources, and knowledge to navigate the development process and help mitigate the inherent risk associated with developments. Prior to submitting the Housing Tax Credit (HTC) application, SHG, HPM, and SCG will complete an analysis of all key development fundamentals. The development fundamentals we analyze are as follows:
As with any development, a thorough market analysis is crucial to ensure an HTC award from a state tax credit agency and, more importantly, assure that the development will have a better opportunity for long term financial success. Outside of the internal market analysis, SHG and HPM will engage a third-party market analyst with comprehensive knowledge and historical data for each city and state in which we consider development. After we receive the market analysis, we include its findings in the format below:
• Total HTC/market rate units needed
• % capture rate
• % saturation rate
• % vacancy rate of all units
• % vacancy rate of subsidized units
• % vacancy rate of comparable properties
Even though these statistics will be altered slightly when a new market study is completed, they typically illustrate the need for housing specific income levels and populations.
Zoning and setback
SHG and SCG, along with our design team, conduct considerable research into the zoning regulations, and requirements. The process includes site analysis of how the zoning codes, building setback requirements, natural site elements, and site drainage conditions may affect the building design, size, and location. The process is fluid during the preliminary period of design, and governing agencies must be consulted. After feedback or suggested changes by the governing agencies, the site layout becomes more defined.
Parking and site requirements
SHG, SCG, and the design team research the parking and services requirements of the governing agencies and codes to define the required number of stalls, trash enclosures, sidewalks, and pavement for each site design.
Detention and drainage
SHG, SCG, and the design team research and analyze the natural topography and drainage of each site. They work with municipal agencies and local civil engineers to determine suitable water collection and drainage systems.
Existing structure analysis
If existing structures are located on the proposed development sites, SHG, SCG, and the design team assess the existing structures to determine viability of reuse or demolition. After the above items are analyzed, a conceptual design of the building and the site are created to submit with the tax credit application and to the governing agencies for review.
Design and construction budgeting
SHG, SCG, and the design team utilize the information gathered from analyzing all site characteristics to create the best and most efficient design for the development. SHG will make recommendations on the unit mix that will create the most efficient use of the overall square footage of the site and reach the biggest market need. Once this unit mix is agreed upon, SHG will work with the Architect and SCG to refine the design required for the HTC application. If awarded, we will work with the Architect and SCG to complete a 100% set of construction documents that will then be utilized to solicit construction pricing from subcontractors. SCG will utilize the expertise of CDK Enterprises to aid in the procurement of subcontractor bids and will oversee the bidding process. Throughout the various design phases, the project considers the effects and costs of building situation, building form, materials, and site design to ensure the development success and durability.
Local impact and development fees
SHG and the design team will research whether this redevelopment would require the payment of Impact and Development fees. Typically, the governing agencies require a payment for building permit review fees and require the development to upgrade the water and sewer lines to meet the municipal water and sewer capacity requirements. SHG will work with the civil engineer and the governing agencies to confirm all capacity requirements and cost for all development fees.
Years Of Experience
Properties across the Western USA
Properties across the Western USA
Local development processes
SHG and the design team then work with the governing agencies to confirm the proper entitlement processes required by the governing agencies. These processes can vary, at times they are minimal due to the project being a redevelopment of an existing building, and other times they are quite extensive.
SHG’s experience with state tax credit agencies and HTC development as a whole allows us to properly schedule the development period. Additionally, our relationships with equity partners and lenders will help expedite the financial portion of the development process.
Once the project partnership deal has closed, the Construction Phase commences. The development team remains involved throughout the entire Construction Phase. SCG and SHG will monitor construction progress and construction draws, and will interface with the subcontractors, the architect, the lender and the equity provider to ensure that funding occurs as needed and to keep the construction on schedule. During the Construction Phase, we will hold weekly phone calls to discuss the construction progress. Those calls will include SHG, SCG, the architect and any other design professionals that might be required. These calls are an open forum for all field observations, requests for information, change order reviews, value engineering, material selections, trouble-shooting, and interaction with all respective disciplines to achieve maximum efficiency during construction.
SHG and SCG will utilize these calls as a tool to further enhance the construction process and achieve scheduled milestones. During the Construction Phase, SHG welcomes representatives from state tax credit agencies to be involved in these calls. We believe in an open line of communication between all parties is the best way to ensure a successful development.
In addition to the weekly calls with the design team and SHG, SCG will have weekly meetings on site with subcontractors. These meetings will be utilized to ensure that subcontractors have the resources, materials, etc. to maintain the schedule and budget. There will also be a pre-construction meeting with each subcontractor prior to the subcontractor starting their work. This meeting is to confirm scope, materials, schedule and any other concerns a subcontractor may have prior to starting work.
We rely on years of combined development and construction experience in the Western and Central US and a highly skilled team of employees and subcontractors to deliver the best quality product in a timely manner.