When announced in the fall of 2016, the Osceola Building Incentive Program showed great promise. Unfortunately, with materials and equipment costs skyrocketing through the pandemic, new development has slowed, even shutting down many planned projects. New homeowners and developers needed a solution for building that would not only suit the homeowners’ and developers’ budgets, but also help stabilize the costs associated to building in a volatile economy.
“Homeowners and builders we talk to are wary of cost fluctuations and the risks associated with final financing after a build is complete,” said Bill Trickey, CCDC Executive Director. “We needed to find builders and financing partners that made post-pandemic development more stable.”
When consulting with the CCDC on a potential development, Osceola native Jason Flaherty from Long Creek Design Build, LLC and his associate, Heath Pomeroy from Cogent Financial (soon to be US Mortgage of Iowa) provided some new ideas that not only made their development plans fit with the building incentive program, but also showed a unique structured financing solution that made sense.
“As a developer, I understand financing for land and materials for a development is costly.” said Flaherty. “When factoring in customer build changes or even cost of material changes, the final purchase price is often far from where they started. That’s a challenge.”
Fluctuations like this, amplified by pandemic material shortages and rising material costs, made individual home development and subsequent financing difficult.
“Our ‘One Time Construction Financing’ solution is to help homeowners find a plan for their dream home and finance it all before the first hammer swings,” said Pomeroy. “Once the plan and the financing are set, the homeowner and developer are locked on a path without deviation.”
The One Time Close Construction Financing option offers builders and homeowners the ability to develop with confidence, eliminating the need for the buyer to qualify a second time for financing at the completion of the build.
“From stick- or site-built homes to custom modular homes, the financing is all the same,” Trickey said of the proposed program. “By factoring in these lot savings and increasing peace of mind, Osceola is really looking like the place to build.”
Since the launch of the Building Incentive Program, a handful of homes have been qualified and built throughout the city. The CCDC and community leaders continue to look at solutions to complement the incentive and make building around the area easier and more affordable for every level of homeowner. The innovative One-Time Construction Financing as well as home options from custom modular to site-built continue to increase interest in the program.
If you’re a builder or homeowner looking for an affordable entry-point into a competitive housing market, or you would like more information on the Building Incentive Program and accompanying financing programs, contact Bill Trickey at the Clarke County Development Corporation 115 E Washington St, Osceola, IA 50213 or email: [email protected] or phone: 641-342-2944.
This article was first published on https://clarkecountylife.com.