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HomeMy WebLinkAboutFoothold Presentation and letter Community Affordable Housing Advisory Board Attn: Tanya Andreasen, Community Housing Program Manager Delivered by email: ​tandreasen@bozeman.net November 2, 2020 Dear Members of the Community Affordable Housing Advisory Board: We are pleased to submit this letter as a followup to Foothold’s application grant application to the Community Housing Fund to support ADU design services. As a startup company based here in Bozeman that is dedicated to addressing the shortage of affordable and accessible housing, we are greatly appreciative of the opportunity to pursue this funding opportunity. Bozeman’s Community Housing Action Plan clearly defines a strategy to support more ADUs as, “​make[ing] pre-engineered ADU designs available for free​” (CHAP, 2020). The City and the MSU Architecture Department made a solid start to creating designs, but without paying attention to end cost the resulting plans were too expensive. The City has many options it could pursue to create more viable ADU designs, including an open bid process, calling for donations, or working more with MSU students, but these options are cumbersome and inefficient ways to achieve viable designs. Individuals looking to build ADUs are routinely faced with design, engineering, and permitting costs of $20-30k. Foothold, together with the expertise of Thruline Partners, is offering to produce up to four plans for the City at a total cost of $40k - a very efficient use of funding. Traditionally constructed ADUs are also prohibitively expensive to build, with the low end of per-square-foot costs ranging from $250-300. Foothold’s structures will be significantly cheaper, while being built to extremely high standards for durability, livability, and energy efficiency. Relating to concerns about Foothold’s position as a startup business, we ask the CAHAB Board to consider that on October 30, Foothold Housing Solutions LLC filed for incorporation with Montana’s Secretary of State Office, as well as submitted an application for a Federal EIN Number. It is an honor to be considered for Bozeman’s Community Housing Fund. Foothold sees the funding of this ADU design project as the first step on a path towards a successful partnership in addressing housing shortage in our community. It is also a timely opportunity for CAHAB to demonstrate action on their commitment to supporting innovative approaches, and to create real housing solutions in our community. Thank you, Sam Atkins, Co-Founder sam@buildfoothold.com Foothold Housing Solutions | PO Box 1388 Bozeman, MT 59771 | buildfoothold.com ADU Design Services www.buildfoothold.com hello@buildfoothold.com Funding Request Presented to Bozeman’s Community Affordable Housing Advisory Board October 14, 2020 The Ask Foothold seeks $40,000 to create a set of 3-4 pre-engineered Accessory Dwelling Unit (ADU) plans that are functional and affordable for Bozeman homeowners. Thruline Partners (Lotus Grenier, AIA) will work with Foothold will create plans that meet the existing code requirements in the City. These plans will streamline the ADU process, and directly support the Community Housing Action Plan’s strategy to incentivise more ADU construction. In the Community Housing Action Plan Proposed Actions, Page 16: ●“Explore removing special use permit requirement for a detached ADU in R-1 zone to allow by-right. ●The city has taken steps to decrease the cost of ADUs, educate the community about these cost reductions and explore opportunities for additional reductions (i.e. permitting, impact fees, parking regulations). ●Make pre-engineered ADU designs available for free – only a building permit needed to construct. ●Deed-restricted units that receive an incentive/public break to build to ensure community benefit – e.g., require long term rental, resident/employee occupancy.” Building on previous work MSU project resulted in plans that were too expensive for homeowners to build. Budget and regulations are the significant hurdles for potential ADU owners. Family Promise, a local non-profit, is using an ADU as transitional housing, and add more ADUs to their stock. Reducing barriers Pre-approved plans will make it faster, cheaper and easier for homeowners to build ADUs. A selection of 3 to 4 designs will allow for placement in a variety of lots. Designing for prefabrication is an instrumental part of keeping overall costs low. Our Plan ●Identify a selection of lots with interested homeowners ●Pre-design and entitlements research (4wks) ●Schematic Design and Pre-Approval Permitting (6-8wks) ●Design Development and Construction Documents (8-10wks) Our target cost is $120,000 for a 600 SF structure. Serve households making 80-120% of AMI Add much needed rental stock (under 120% of AMI) Budget In other cities https://www.sanjoseinside.com/news/first-granny-flat-design-approved-under-san-joses-fledgling-adu-master-plan/ https://durkan.seattle.gov/2020/09/seattle-unveils-pre-approved-plans-for-backyard-cottages-which-lowers-fees-and-permitting-time/ Innovative Solution for Long-Term Change A set of free, readily available, and approved Accessory Dwelling Plans that can be built at a lower cost is exactly the type of innovative project that the City of Bozeman can and should support. Budget Proposal Design services for affordable Accessory Dwelling Units (ADUs) Foothold hannah@buildfoothold.com October 1, 2020 The purpose of this project is to create a set of pre-engineered Accessory Dwelling Units (ADU) plans that meet the needs of Bozeman homeowners. Full funding from the Bozeman City Community Housing Fund will allow Foothold and Thruline Partners to design between three and four ADUs that are affordable and functional. This project directly addresses the City's own strategy to create such plans, as listed on page 16 of Bozeman's "Community Housing Action Plan". Total Cost Foothold In-kind Contribution Thruline In-kind Contribution Total Need Pre-Design and Research 1,370 345 1,025 Schematic Design and Permiting 10,900 3,070 7,830 Design Development 13,080 3,270 9,810 Manufacturing Design 11,750 4,000 7,750 Engineering Review 9,500 9,500 Admin and General Expenses 4,000 4,000 Total Project Budget 50,600 Total Amount Requested $39,915 THRULINE PARTNERS   DESIGN TO BUILD        September 30, 2020 Foothold Housing Solutions PO Box 1388 Bozeman MT 59771 (406) 451-4139 hannah@buildfoothold.com (720) 771-1857 sam@buildfoothold.com   PROJECT PROPOSAL FOR ARCHITECTURAL SERVICES  Foothold Housing Prefab ADUs for the City of Bozeman  Thank you for the opportunity to work with you on the Foothold Housing Prefab ADU, created as a solution to the affordable housing challenges in Bozeman, MT. This project aims to design three to four pre-approved ADUs that can be efficiently deployed with minimal variation for infill development within the City of Bozeman. The ADUs will be manufactured off-site by Foothold Housing Solutions as high-performance, high-quality, net-zero buildings. The form and layout of the ADUs will be driven by the existing constraints and design goals of the City and the efficiency, replicability, and affordability of construction. This proposal is for Complete Architectural Services to design and develop the Foothold Housing Solutions ADU product and support the process of the City of Bozeman Permitting pre-approval for the ADUs. Work will be charged at the Thruline Partners Mission Driven Design Rates, which is a 25% reduction of typical design rates. Receipt of payment is contingent on available funding for Foothold Housing Solutions, as agreed to in the Partnership Agreement between Thruline Partners and Foothold Housing Solutions. I look forward to discussing this proposal with you. PHASE 1: Pre-Design (PD) and Entitlement Research Phase 1 Design Services will be billed as a fixed fee of $1,370 + expenses. Scope of work:   THRULINE PARTNERS || 212 S. WALLACE ST #301 BOZEMAN MT 59715 || (406) 282-4411   www.thrulinepartners.com    1  THRULINE PARTNERS   DESIGN TO BUILD        ●Verify applicable planning, building, and zoning codes for the City of Bozeman. Understand by right development for ADUs and development opportunities with variances, special use permitting, or pre-approved agreements with the City. Investigate options for maintaining affordability over time. ●Research precedents for ADU development and off-site manufacturing ●Develop a research and entitlement document that outlines the legal and code constraints and assumptions for the ADU Development Strategy. ●Three client meetings to discuss progress of findings and final outcomes. ●Email and phone communication with clients and City officials as necessary throughout the process. Schedule: Work will commence within 2 weeks of receipt of a signed proposal and project retainer and will take approximately 4 weeks to complete. The process may be extended depending on the availability of the client or responsiveness of Authorities Having Jurisdiction. Phase One will be considered complete when the most viable City pre-approval strategy for ADU development is determined. The clients will receive the research and entitlement document that outlines the legal and code constraints and assumptions for the ADU Development Strategy at the conclusion of Phase One. PHASE 2: Schematic Design (SD) and Pre-Approval Permitting Phase 2 Design Services will be billed as a fixed fee of $10,900 + expenses. Scope of work: ●Schematic design of ADU models including plans, elevations, sections and renderings. Design will be driven by City design constraints and Foothold’s manufacturing and replicability considerations. ●Iteration of ADU design to determine the most flexible and most efficient solutions within the above constraints. ●Engagement with the City of Bozeman through the Planning Permitting process with the goal to vet the ADU product for City pre-approval.   THRULINE PARTNERS || 212 S. WALLACE ST #301 BOZEMAN MT 59715 || (406) 282-4411   www.thrulinepartners.com    2  THRULINE PARTNERS   DESIGN TO BUILD        ●Six client, and/or City meetings to discuss progress of the design and final outcomes. ●Email and phone communication with clients and City officials as necessary throughout the process. Schedule: Work will commence upon completion of Phase One. Schematic design will take approximately 6-8 weeks to complete. Permitting will begin after SD is complete, though engagement with the City prior to submitting Permitting documents is anticipated as the goal of pre-approval will likely change the typical process. Building Permitting is included in the Phase Two fee, but will take place at the end of the Construction Document process according to the strategy developed with the City. Both the Schematic Design and Permitting processes may be extended depending on the availability of the client or responsiveness of Authorities Having Jurisdiction. Phase Two will be complete when the Schematic Design is agreed on and we have Planning Department approval of the ADU. The client will receive SD Drawings including plans, elevations, sections, and renderings of the ADU design and either have a Planning Department Permit in hand or be confident about the Planning Department approval of the project at the conclusion of Phase Two. PHASE 3: Design Development (DD) and Construction Documents (CD) Phase 3 Design Services will be billed as a fixed fee of $13,080 + expenses. Scope of work: ●Design Development of the approved ADUs schematic designs for constructability, energy performance, manufacturing production, and engineering. ●Work with structural, mechanical, electrical, energy, and contractor consultants to vet the design for code and fabrication requirements, and performance goals. ●Construction Documents needed for manufacturing and for City of Bozeman Building Permitting. These may include plans, elevations, sections, schedules, details, and MEP and Structural drawings, and a   THRULINE PARTNERS || 212 S. WALLACE ST #301 BOZEMAN MT 59715 || (406) 282-4411   www.thrulinepartners.com    3  THRULINE PARTNERS   DESIGN TO BUILD        Project Manual. The CDs may not be the same drawings for both Foothold and the City, depending on City requirements and what is needed for Foothold manufacturing. ●Engagement with the City of Bozeman through the Building Permitting process with the goal to vet the ADUs for City pre-approval. ●Eight client, consultant, and/or City meetings to discuss progress of the design and final outcomes. ●Email and phone communication with clients, consultants, and City officials as necessary throughout the process. Schedule: Work will commence upon completion of Phase Two and will take approximately 8-10 weeks to complete. Building Permitting will begin after CDs are complete. The Building Permitting Design Services Fee is included in the Phase Two Fee, but the process will take place during this Phase Three according to the strategy developed with the City. Both the DD and CD processes may be extended depending on the availability of the client, consultants, or the responsiveness of Authorities Having Jurisdiction. Phase Three will be complete when the CDs are complete and we have a Building Department Permit for the ADUs. At the conclusion of Phase Three the client will receive Construction Documents for Foothold Manufacturing and City of Bozeman Building Permitting and either have a Building Permit in hand or be confident about the Building Department approval of the project. The fixed fees are based on estimated time to complete the scope of work based on the following Mission Driven hourly rates: Principle & Architectural Design $82 Project Management $72 Drafting $60 Clerical & Administrative $50   THRULINE PARTNERS || 212 S. WALLACE ST #301 BOZEMAN MT 59715 || (406) 282-4411   www.thrulinepartners.com    4  THRULINE PARTNERS   DESIGN TO BUILD        A retainer of $500 is due at the beginning of the project. Design service fees do not include city entitlement and permit fees, or consultant fees. Expenses may include travel, mileage, parking, printing/copying fees, courier services, and mailing. Please indicate your acceptance of this proposal below with your signatures below. Hannah Van Wetter - Foothold Housing Solutions, Client Date Sam Atkins - Foothold Housing Solutions, Client Date Lotus Grenier, RA - Principal / Owner Date   THRULINE PARTNERS || 212 S. WALLACE ST #301 BOZEMAN MT 59715 || (406) 282-4411   www.thrulinepartners.com    5  September 27, 2020 To whom it may concern, I own a 6500 SF lot in the Northeast Neighborhood at the intersection of Black Avenue and Peach Street. The sole dwelling is a 1936 "shotgun" house measuring some 570 SF and with a studio layout. My lot is located equidistant between downtown, the cannery district, the Misco Mill district, and Midtown. With all of my daily needs within walking distance, I seldom drive. I believe in infill, and desire to add at least one additional dwelling unit to my lot (if only to assuage my guilt invoked by my own role in the gentrification of the Northeast Neighborhood and participation in driving up housing costs across the city through my own purchase). I've retained an architect due to the peculiar geometry of my lot (37' wide and 175' long) on the expectation that the geometry of a typical "off the shelf" ADU blueprint would not meet city code requirements. At the time, there was no “off the shelf” option available for me to even consider. In addition to the input of my architect, I've received the assistance of a local land use expert in an attempt to determine the setback required on the Peach Street side of my lot. The Euclidean Form and Intensity standards indicate 5', the form-based Block Frontage requirements indicate 10', and the Planning Department indicates 15' (but cannot provide a code reference). I recently completed a Concept Review. The planner's report indicated that my lot is too narrow for any development without a variance or deviation (which I expected). Being within the NCOD, the planner recommended seeking a deviation (which has a lower "burden of proof"). It is my understanding that the NCOD deviation can also be used for an ADU. Due to the peculiar circumstances of my lot being platted only 37' wide (well before the advent of zoning in Bozeman), the only path forward in order to construct an ADU on my 6500 SF R3 lot is to apply to the City for a variance (in addition to my development application and Certificate of Appropriateness application). The variance application requires $2000 in application fees, review by the City Commission, and at least two months. Of the issues rising to the level of the City Commission's consideration, whether or not my desired ADU can receive a 36" exception hardly seems to rise to the level of their consideration. If I pass off of these hurdles, I will then be positioned to see a building to construct the ADU—which, in an ideal world, is where the challenge would begin. At that point, I expect to spend $20,000 in application and design fees. Mark Egge (406) 548-4488 FOOTHOLD HOUSING SOLUTIONS LLC 220103025298 Order Information Entity Type:LLC Entity State:MONTANA Order Type:SILVER Date Ordered:Oct 30, 2020 1:59 pm Operating Agreement:✔ Banking Resolution:✔ EIN Included:✔ Regagent:✔Expedited:✔ Fedex:✔ Charge Total:$239.00 Ordernum:220103025298 Contact Information Contact Name:SAM ATKINS Billing Name:SAM ATKINS Phone:(406) 404-6503 Street1:608 S 7TH AVE City:BOZEMAN State:MT Zip:59715 Company Information Company Name:FOOTHOLD HOUSING SOLUTIONS LLC Purpose:To create high quality, sustainable, and affordable housing. Street1:PO BOX 1388 City:BOZEMAN State:MT Zip:59771 Agent Information Agent ID:289 Agent Name:LEGALINC REGISTERED AGENTS, INC. Street1:1215 24TH STREET WEST Street2:SUITE 125 City:BILLINGS State:MT Zip:59102 EIN Information Name:SAMUEL ATKINS Street 1:608 S 7TH AVE City:BOZEMAN State:MT Zip:59715 Classification:TWO OR MORE OWNERS Activity:MANUFACTURING Members Information First Name:SAM Last Name:ATKINS Street1:608 S 7TH AVE City:BOZEMAN State:MT Zip:59715 Ownership:50% First Name:HANNAH Last Name:VAN WETTER Street1:1121 HOLLY DR City:BOZEMAN State:MT Zip:59715 Ownership:50%