ERC Communities today announced that they are breaking ground on their Zephyrhills location to begin development of a single family manufactured rental home community. This community will answer the affordable housing crisis by offering families 25%-35% reduction in rental costs in a safe, sustainable environment, inside a brand new 3 bed / 2 bath 1,300+ square foot house they can call home.
According to a recent Fortune article, “The housing shortage has forced many potential buyers to move into rental properties as they look for their next home (and often find themselves on the wrong side of a bidding war). That option, however, is becoming increasingly expensive…For the National Index (of rental prices) to move by double digits takes incredible rent growth everywhere, and that’s exactly what occurred.”
The innovative approach of Florida-based ERC Communities’ approach is to bring years of development and housing experts together. “ERC Chairman and CEO Gerald Ellenburg had a bit of an ‘aha moment’ when ERC found the most promising parcel was zoned for manufactured housing,” he stated to Business Insider Florida. “We are providing the most cost effective, viable solution by offering single family homes, build-to-rent communities that have incredible benefits to both the investors and residents,” said Ellenburg.
Inflation is hitting families hard and housing insecurity is one of the leading causes of stress. ABC News reports, Jaimie Ross, the head of Florida’s Housing Coalition, he calls the shortage of affordable rentals an ‘epidemic.’ “Working families are falling into homelessness,” Ross said.
ERC Communities plans an initial development of 216 units in Zephyrhills, Florida, a surging Tampa suburb, and plans to spread its manufactured home communities throughout Florida and then a variety of other states, targeting a critical mass of 5,000+ rental units with aggregate rental revenues in excess of $100 million. The company is funding this development plan with Regulation A, Regulation D, and private investor equity combined with conventional construction debt financing. And it is quite proud that their developments have qualified for prestigious federal agency permanent mortgage financing with Freddie Mac and Fannie, provided through Walker & Dunlop, one of the nation’s largest mortgage bankers.