Friday, June 03, 2011

The weeHouse - Modular Housing for Kensington

NKCDC has provided the groundwork for a commissioned theoretical project that places rendered weeHouse developments on existing vacant lots within the community. Presented with the challenges facing CDCs, Alchemy Architects (designer of the weeHouse) provides real design solutions for mixed-use, single and multi-unit dwellings.

Alchemy Architects, NKCDC, and Diamond & Associates participated in a Q&A session as part of A Clean Break and Design Philadelphia on the afternoon of Saturday, October 18th, 2008. Representatives from each organization discussed their unique modular programs and successes with this chosen method of construction, particularly as an affordable and environmentally-friendly solution to land vacancy and community revitalization.



Managing the vast number of vacant parcels in our service area is a critical role of NKCDC. Along with refurbishing existing structures, NKCDC seeks to provide additional low and middle-income housing opportunities within the neighborhood. Pursuing design innovation while meeting the criteria for government subsidy for these projects is both a goal, and constant challenge.

Existing Notions About Modular Housing

In consideration of modular housing as a solution, the Philadelphia Association of Community Development Corporations lists the following as perceived challenges within the city:
• physical restrictions given Philadelphia’s narrow streets/ and site accessibility
• planning constraints between remote manufacturers and local architects/
• building codes
• real cost equivalent to stick building
• reduction of local union labor

While benefits could be seen in:
• time saving / year-round construction
• relevance to green building: efficiency, quality, waste reduction
• long-term maintenance savings due to energy efficiency
• a departure from traditional affordable housing styles

The Report (Budget PDF)

With these preconceptions in mind, the creative programming of NKCDC set the stage for a commissioned report that envisions a multi-unit weeHouse development (known as the not-so-weeHouse) on an urban infill site within this Kensington neighborhood. Completed by real estate development consultants and advisors, Diamond and Associates, the analysis compares Alchemy Architect’s projected pricing for both a ten-unit and forty-unit development to traditional stick built construction. The two sizes are intended to highlight the efficiencies of the weeHouse in quantity and how those efficiencies would be impacted by Philadelphia’s affordable housing guidelines.

Alchemy Architects presents two possible design options that consider the standards for acquiring government subsidies, including size and accessibility.

The results of the report found that in both cases, the overall cost savings of the weeHouse is estimated to be approximately 20%. The cost savings are reflected in these key areas:
• $112 vs. $180 (current comparable projects) per square foot for stick built of the basic structure which for this analysis, includes labor
• a reduction in construction contingencies and financing charges due to the compressed timeline of the efficient and predictable nature of the fabrication and installation process; this is estimated at half assuming a six month loan period vs. twelve months for stick built

In this comparison the fees associated with stick built construction come in lower than modular construction. This is attributable to the total associated architect design and supervision fees, factory costs and state sales taxes. For Alchemy, this breaks down to include factory-related engineering and construction costs and taxes on materials.

The findings of the analysis are not far from the initial knowledge of modular presented by PACDC, which begs the question of why are the advantages of modular rarely incorporated into new development?

Apples to Apples?

Aside from an acknowledged savings of 20%, doubt remains as to whether present-day affordable housing in Philadelphia can really be compared to the quality of Alchemy’s designs. In addition to the design aesthetic, cost per square foot for these units still manage to include upgrades like LED bulbs, skylights, Spray foam insulation and in-floor heating, resulting in long-term maintenance and energy cost savings. Furthermore, communities may benefit from a departure the traditional affordable housing styles, removing the associated stigmas placed on these developments.

Is there a misunderstanding as to the breadth of modular building? And is it a particularly unfair assessment considering the current building trends, which are of no cost benefit?

Realities

One of the biggest challenges to the integration of prefab and modular by CDCs and housing agencies are related to perceived union labor issues. The reduction of work completed on site may threaten union workers, although should not be a deal-breaker. The use of union labor may be guaranteed by manufacturers, many of which can be found in the eastern Pennsylvania area. Even with the installation of finished modules, union labor can be employed for laying the foundation, running all plumbing and electrical hook-ups, equipment operation, and exterior and interior ‘button up’ of the boxes. However, the initial costs savings produced by modular construction may be reduced by an increase in labor expenses though the unique design and quality of construction for affordable housing opportunities would remain.

Currently, funding will require more creative investors. The 40+ unit scenario is more likely to attract subsidies due to the increased programmatic efficiencies of Alchemy’s weeHouse as the number of units increases. In addition to funding, admittedly, there is a general lack of knowledge within the Philadelphia development community with regard to modular construction. At present, inexperience is a primary limitation to developing, building and investing in this method. Over time, and with a willingness to adopt new strategies, programs like Alchemy Architects’ weeHouse can evolve into an accepted option for innovative housing that proves beneficial in its ease and cost-efficient process.