For years, affordable housing has been a hot-button topic throughout the United States. It is essential in large cities like NYC and L.A. However, virtually every place with a high population density is struggling to address this increasingly common issue.

Fortunately, federal governmental groups in 2021 have taken a proactive approach to the affordable housing crisis. These entities are looking to curb the current problem while also addressing future generations of growth.

What is Considered to Be Affordable?

According to the federal government, housing is “affordable” if it costs 30% of a resident’s monthly income or less. This guideline takes both rent and utilities into account. Most affordable housing is purpose-built for low-income families who earn 60% or less of the area median income (AMI).

Affordable Housing Credit Improvement Act of 2021

April 2021 saw the introduction of two substantial bills into Congress that, if passed, will “…promote equitable development and further fair housing by investing $2.5 billion in fair housing enforcement and requiring grantees of federal funds to consult with local fair housing agencies when applying for investments,”

On April 15, 2021, a group of bipartisan members of the 117th Congress (2021-22) cosponsored the Affordable Housing Credit Improvement Act of 2021 (S. 1136/H.R. 2573) to amend the Internal Revenue Code of 1986 in reformation [ES1] of the Low Income Housing Tax Credit.

The bill would provide a 50% increase in the 9% Housing Credit authority, which would spur the construction of affordable housing, provisions to help preserve existing affordable housing units, and additional administrative tools for agencies, among other needed changes to the program.”

HUD Allocates $700M to National Housing Trust Fund

Another notable introduction to 2021 affordable housing legislation came with The U.S. Department of Housing and Urban Development (HUD) allocation of nearly $700 million to the national Housing Trust Fund (HTF). The historic increase by almost double over the 2020 allocation of $326.5 million would produce more affordable homes for extremely low-income households.

Benefits of These Policies: Demand for New Construction

Perhaps the most obvious impact of new government policies on affordable housing will spur new construction. In response, developers will be able to bid for contracts to build new housing. They must decide how many units to build at each location. However, all this new development will be subject to local zoning guidelines, which can be restrictive, especially in major cities.

To complete these projects, developers and contractors will need access to quality building supplies. Without them, project lead times can become protracted, resulting in lost revenue and other severe financial consequences.

Although most zoning regulations will still exist, these new government policies will positively impact the construction industry. General contractors, major developers, and everyone in between are sure to see new opportunities to participate in lucrative projects. These entities will also have the chance to impact the lives of thousands of people positively.

The Future of Affordable Housing

As you can see, new government policies will rely on some tried-and-true methods for creating affordable housing. These practices encourage new property construction reserved for low-income tenants.

For decades, EFY Sales, LLC, has been a staple in New York Metro region. We have supplied general contractors and developers with high-quality bathroom and kitchen cabinetry for affordable and market rate housing projects. We also offer custom casework, specialty items, and bathroom accessories.

Our team believes the exciting legislative developments in 2021 alone could spur significant growth in the New York construction industry. We look forward to providing clients with top-quality products and doing our part to help change the affordable housing landscape.

Sources:

Affordable Housing Credit Improvement Act of 2021

National Low Income Housing Coalition (HLIHC)

https://www.ncsha.org/resource/affordable-housing-credit-improvement-act-of-2021-cosponsorship-list-by-state/

https://www.novoco.com/notes-from-novogradac/hud-announces-nearly-700-million-2021-housing-trust-fund-allocations-more-double-2020-amount

https://www.nhlp.org/resources/lihtc-admissions-rents-grievance-procedures/

https://www.nationalreview.com/2021/08/more-affordable-housing-yes-in-my-backyard/

https://www.congress.gov/bill/117th-congress/senate-bill/1614/text?r=18&s=4

As a general contractor, you have a lot on your plate. Between meeting with clients, coordinating subcontractors, and overseeing the entire construction process, it can be tough to find time to focus on the details when it comes to sourcing the items you need. That’s where EFY Sales comes in. We’re here to help make your life easier by handling the logistics of providing kitchen and bathroom cabinetry, custom casework, accessories, and more for your multi-residential and affordable housing projects. Here are five specific ways we make life easier for general contractors working on these projects.

Lightning-Fast Responsiveness
One of the biggest challenges general contractors face is meeting and coordinating deliveries. You’ve got deadlines of your own, and you don’t have time to waste on logistical delays and un-returned phone calls. Over the years, we’ve perfected our process so we can respond to our clients with lightning-fast agility while meeting the most aggressive delivery schedules. We’re here when you call, and we go above and beyond to make sure your delivery arrives when you need it.

Working in the Background
At EFY, we pride ourselves on handling the details, so you don’t have to think about them. Whatever your buy requires, you can leave it with us, and we’ll get it done for you. No fretting and micromanaging, worrying about whether or when the supplies will arrive. You’re free to focus on the big picture knowing we’ve got this part covered.

Finding the Right Items for the Build
Got a challenging project? Need cabinets or countertops with unconventional dimensions or hard-to-find appliances? No problem. With our expansive network of suppliers and years of experience sourcing products, we can quickly find the items you don’t have the time to track down–even items that seem next-to-impossible to locate.

Working within Your Budget
Budget constraints are no match for us. With our years of experience in affordable housing, we’re experts at value engineering, finding cost-effective solutions that still meet your high standards. Whether it’s sourcing less expensive materials or recommending alternate products that will save you money without sacrificing quality, we know how to find solutions that others miss.

Reliable Project Management
At EFY, we’re more than just a supplier–think of us as part of your team. As needed, we can provide effective project management to coordinate the process from purchase through delivery, including CAD shop drawings, field measuring, logistics management and inventory control. We also have extensive experience with all project management software and billing solutions, so there’s no learning curve or slowdown in the process–we can jump right in seamlessly and get it done.

You’ve got a tough job as a general contractor; you’ve got a lot of moving parts that need to fit right into place. At EFY Sales, our goal is to make our part of your building project as easy and stress-free as possible. We’re committed to helping you get the job done so your clients are satisfied, as well. For assistance on sourcing Divisions 8, 10, 11 and 12 products for your next build, contact us today.

When vetting potential cabinet suppliers for multi-family development or other construction projects, you may hear them refer to their “preferred vendors.” In most cases, it’s spun as a positive selling point, referring to themselves as “an authorized manufacturer representative for XYZ Products, one of the most reputable brands in the industry” or promising the best deals on top-line products from these vendors. While this rhetoric may sound convincing initially, it doesn’t always work in your favor. Here are several reasons why you should be cautious of cabinet suppliers who only offer or promote products from their favored vendors.

Having Preferred Vendors Limits Your Selection.
While the supplier likes to tout the quality of their preferred product lines, by only offering one or a handful of brands, your supplier is essentially forcing you to choose from a small subset of the market, limiting your ability to compare quality and price across different options. For example, if you’re looking for a specific type of hardware that the “preferred vendor” doesn’t make, or if you’re trying to find cabinetry to fit into unique dimensions, you may be forced to choose something that doesn’t meet your needs or budget as closely as an option from a different vendor.

It May Limit the Quality Level of Your Cabinets.
Fewer vendors mean less competition, sacrificing quality to get your cabinets at the price point you want. Quality always comes down to price in the end. Suppose your supplier is using a favored vendor exclusively. In that case, they’re likely cutting costs somewhere along the line to offer their clients more affordable prices–and quite often, that amounts to reduced quality or quality control.

It Doesn’t Necessarily Mean Lower Prices.
While many suppliers claim that they can offer you better prices by teaming up with their preferred vendors, the reality is that this isn’t always the case. Because of the way these manufacturers charge for their products and your supplier’s markup, you may end up paying just as much or even more for high-end cabinets from a favored vendor as you would from another supplier.

It Presents a Conflict of Interest.
While cabinet suppliers will claim they are advocating for you as the customer, those with preferred vendors aren’t necessarily working for your best interests but rather the interests of the vendor. If they have formed a “preferred” relationship with certain brands, the supplier is getting something in return, potentially commissions, kickbacks, or lower costs (which they may or may not pass on to you). In other words, they’re recommending those brands because it benefits them, not you–which means you’re not always getting the best product for your needs.

At EFY Sales, we’re proud to be a “vendor-neutral” supplier of cabinetry, casework, and accessories for construction projects. Because we don’t have “preferred” relationships with any of our suppliers, you can be confident that we’re always working on your behalf (NOT the vendor’s) to get you the right product at the best price. Contact us today to discuss your product needs.