Factory-built "Housing Built in Alabama for Alabama Citizens" (cont.)

Those are the words of Sherry Norris, Executive Director of the Alabama Manufactured Housing Association (AMHA), commenting on the new modular apartments rising in downtown Montgomery, Alabama.  As we reported in the Daily Industry Business News Blog on May 27, the two city blocks where dilapidated housing once stood are not far from the governor's mansion.

MHMSM has learned from sources involved that Heritage View Apartments is a collaborative project of a handful of entities.  This modular venture is a first for several of them.

Heritage View Modular Apartments
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Southern Energy Homes (SE Homes, NASDAQ:SEHI) of Addison, Alabama, a subsidiary of Clayton Homes, is constructing the 66 modules for the apartments.  Michael Wade, Director of Manufacturing for Cavalier Homes, a subsidiary of SE Homes, and Project Manager for this project, said, "There are two city blocks designated for this project, and there will be 11 three-story modular apartment buildings, and each building will have five dwelling units for a total of 55 apartments.  Two of them are three-bedroom apartments, and three of them are two-bedroom apartments.  This is the Addison plant’s first multi-story modular project."

SE Homes has been in business since 1982, and has been building modular homes since the late 1980’s.  Even though their primary focus remains in the manufactured housing market, "in the last two years, modular construction has grown tremendously percentage wise," Wade added.

A modular unit is set in place.
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Wade said," Construction of the modules will take about three and a half weeks.  We should have 70 percent of the boxes [modules] set by the end of June."  He anticipates the units will be ready for occupancy in the fall.

The contractor for the apartments, Empire Construction, of Knoxville, Tennessee, laid the foundation, and will build the staircases, balconies, porch attachments, sidewalks, parking lots, and complete the landscaping.

Heritage View is a tax credit project under the auspices of the Alabama Housing Finance Authority, which allows investors to receive credits against income tax if they invest in specific projects in low income areas.

This encourages private capital to invest in distressed neighborhoods, and National Equity Fund, Inc. (NEF) of Chicago is a leading national syndicator of low-income housing tax credits.

Three-story modular apartment building
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The Tax Reform Act of 1986 led to its founding in 1987.  Since then, NEF has collaborated with over 700 entities, nonprofit and for profit, on 2025 projects that resulted in 121,725 homes with an investment of $8.8 billion, all across the country.

Summit Housing Partners, LLC, of Montgomery will manage the property.  Summit is the 9^th largest affordable housing owner with 11,109 affordable units, comprising 72 housing developments in the Southeastern U.S. and the West.

Alan Harmon is the project engineer from Multi-Family Business Development for Clayton Building Solutions of Maryville, Tennessee, and has been involved with modular homes since 1994.  His focus is on modular building for dormitories, apartments, town homes and other commercial applications of modular construction.

One of 11 modular apartment buildings to be completed by Fall
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Steve German (pronounced with a hard "G"), Project Manager for TCU Consulting Services in Montgomery, Alabama, is under contract to the Alabama Housing Finance Authority.  He monitors the project to make sure the developer is adhering to specifications.  This is German's first modular project.

German says, "Currently I go to the job site about once a week, which is more than I am supposed to.  But the way this project is moving, I'll probably be there more than I'm required to because so much can happen in a short period of time.  They were able to construct one building of 12 modules in one day, which is pretty interesting."

German said there will be a clubhouse for the residents, and there will be green space, so it's more like a neighborhood they are constructing, similar to other Summit housing projects.  This project is valued at $6.2 million.  Four of the eleven buildings have been set as of June 9.

MHMSM.com will keep reporting on this significant modular development, so check back soon.

Photos courtesy of the Alabama Manufactured Housing Association  # #

Matthew J. Silver
Industry in Focus Reporter, MHMSM.com
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