Making affordable housing attainable through modern project management

The attractive design of this family-oriented apartment community makes it appear to bean “upscale” condominium complex. It was completed in less than eight months, a month ahead of schedule and $300,000 under budget.

To the everyday observer, Deer Meadow, a Bloomfield, Connecticut, family-oriented apartment community, appears to be an “upscale” condominium complex. In reality, it is an affordable housing project, one that shows how Modem Project Management (MPM) can assist in realizing the social objectives of local government.

Governor Lowell Weicker's desire to provide quality, affordable housing in the State of Connecticut helped make this project a reality. Funding was provided through the state's Department of Housing under Connecticut's Private Rental Investment Mortgage and Equity Program (“PRIME”) and from Connecticut Housing Finance Authority (CHFA).

Developer Marc S. Levine's goal was to create an attractive living environment and to offer units at both market rates and at lower rentals, affordable to families whose incomes did not exceed 60 percent of the area's median. Mr. Levine's dream is more remarkable when you realize this was around 1990, a time when new construction was at an all-time low in Connecticut and when attaining funding for new projects was next to impossible! Nevertheless, he successfully accomplished land acquisition, financing, and planning and zoning approvals.

It was at this point that Enterprise Builders came on board as construction manager/general contractor. We had to quickly pick up the ball and provide value engineering, conceptual estimating, budgets, breakdowns of trades and a guarantee of price for the project in an intense period of just a few weeks. In addition to budget information, we had to submit our Affirmative Action Program to CHFA for review. Our contract included a Minority Hiring Agreement and Affirmative Action Goal, requiring that we sign minority subcontractors for at least 20 percent of the total construction contract. All this information had to be submitted and CHFA's strict requirements met before approval was given for us to proceed with the construction phase of the project.

The scope of our phase of the project involved construction of a low-density housing development consisting of five buildings on a 13.5-acre rural site. It would contain 48 two- and three-bedroom, garden-style apartments ranging in size from 1,000 to 1,300 square feet. The plans called for children's play areas, ample parking and attractive landscaping.

The project team consisted of the owner/developer, the design architect from Texas, a local architect as project administrator, an on-site representative from CHFA, engineers and Enterprise Builders as construction manager/general contractor.

With so many people, agencies and distances involved, there was a larger margin for errors, confusion and for getting off schedule. The team established clear lines of communication and defined roles:

• To construct the project within the budget of $3.75 million.
• To stay on or ahead of schedule.
• To perform as a team in the best interests of the project,
• To anticipate the needs of the project and identify potential problems before they occurred.
• To end with a satisfied client.

The project team agreed that the schedule must be rigorously adhered to in order for each of the five buildings to be ready for tenants to move in by the predetermined dates. We all felt the pressure of completing the project on time so that the developer could take advantage of tax credit incentives available to him. Added to this, CHFA made it clear that there would be no change orders on this project!

With clear understanding by all parties of the task ahead, ground was broken in February 1992, approximately one month later than originally planned.

Mike McNaboe of Enterprise Builders headed up the project team for the construction phase. An experienced project manager, Mike knew that planning and predicting time durations were crucial. He conceptualized how the buildings would be sequenced to maximize trade coordination. He then generated a CPM schedule which could be updated on an as-needed basis to reflect any changes. The scheduling data from the first building was dissected to search for additional ways to save time through optimizing the construction sequence and resource allocation.

The words of a tenant who just moved in said it all—“I live in a palace!”

Marc S. Levine, Developer

What is really required for a project such as Deer Meadow to be successful is a team effort, not only in terms of design and construction, but also from the financial establishments and municipalities that enable the permit and development process to go smoothly.

We were able to put together an excellent financing package, the key elements of which were the favorable second mortgage from the Department of Housing and the equity proceeds that came from the sale of low income housing tax credits.

It's exciting to see the result, which is a beautiful project, integrated economically and racially-economically in that it combines market rate units with tax credit assisted units. The apartment complex is full and operating on a virtually trouble-free basis.

What we are able to do with a complex like this is to scatter affordable housing into the suburbs instead of concentrating them in the cities with all the ensuing problems.

Projects such as Deer Meadow allow families of modest means to raise their children in safe and attractive surroundings.

Among the services a government or community can provide, affordable housing is every bit as necessary as good schools, fire and police protection, public transportation, and other basic services. Deer Meadow is an important development because of the need it serves and because of the example it sets.

Commissioner Henry S. Scherer, Jr., Connecticut Department of Housing

We all know that decent housing is central to a decent quality of life. Among all the services a government or community can provide, a stock of affordable housing is every bit as necessary as good schools, fire and police protection, public transportation, and other basic services.

Deer Meadow is an important development because of the need it serves and because of the example it sets. It is an outstanding example of the private/public partnership working to benefit the community. The quality of this housing proves that by working together we can meet the affordable housing needs of rural and suburban communities.

For Deer Meadow, the Connecticut Housing Finance Authority provided the first mortgage, the Department of Housing provided the second mortgage and the development received nearly one million dollars in federal low income housing tax credits. But as we all know, housing does not get developed without the commitment of the local government, the developer and so many dedicated parties.

The Department of Housing does not have powers of initiation. Regardless of what needs assessments indicate, we must rely on proposals from nonprofits and developers like Marc Levine.

In the current economy, some have questioned the need for affordable housing. In some areas there are high vacancy rates for rental units. But as the Brookings Institute has said, “There is no housing shortage. There is, however, a shortage of affordable housing.” And the vacancy rates do not reflect an abundance of affordable units, but rather the fact that many in our society simply cannot afford private market rents without some form of subsidy.

Some of the impediments to affordable housing production are the misconceptions that surround our product. I am confident that if we could gather the opponents together and bring them to Deer Meadow, their opposition would be defused by the weight of the evidence before their eyes. This project transformed a vacant parcel of land into much-needed housing.

Government has a responsibility to make sure that our citizens are stakeholders in our society. For low-income families, it means providing a chance to become stakeholders. Making sure that our citizens have that essential stake in their society by creating affordable housing is both a challenge and an opportunity. As I see these beautiful apartments, I believe that we have accepted the challenge and that we are seizing the opportunity.

I submit that to continue to do so is as imperative to our future as to our society. As John Kennedy said in his inaugural address, “If a free society cannot help the many who are poor, it cannot save the few who are rich.”

Connecticut's affordable housing is a good product, and as everyone can see, it is housing that belongs in any backyard.

Everyone involved in the project lived by the CPM schedule. We tied it into all of the subcontractors' contract agreements. Mike McNaboe distributed updates regularly to team members, subcontractors and foremen. Goals were agreed on. Progress was checked and compared to the original CPM schedule at all meetings. Each day, feedback was solicited from the tradespersons on ways to improve the construction schedule for their particular craft. We utilized checklists accumulated from lessons learned in past experiences to make sure that routine items were not overlooked. We have found if we keep a list of successful steps to follow, then success becomes routine. It also frees the mind to solve potential new problems or to find improvements to the established routine.

Given the economic climate at the time of construction, there was an element of risk involved in selecting subcontractors who were financially stable and who would be around to complete the project. Using the construction management approach on this project made it possible for us to draw from a prequalified list of quality subcontractors and minority firms and still realize the advantages of competitive bidding. Additionally, we required all major subcontractors to provide payment and performance bonds as protection against failure to perform or failure to pay their labor or material suppliers. Where bonds were not requested, our financial department would follow up on second- and third-tier subs to ensure they were being paid.

At the start of construction, we encountered problems due to the condition of the site, which was surrounded by wetlands. Much of the material was unsuitable for structural bearing. Special engineering was required and the layout of the project had to be modified to make the site stable and structurally sound. We rushed stone in and placed it under the footings of some of the buildings. Cost savings through value engineering helped to create a contingency to pay for this unforeseen condition.

Constructing the project adjacent to protected wetlands had raised concerns from local environmentalists. An environmental site assessment had been made by the developer, who promised to take special precautions not to disturb the wetlands area and its wildlife. Our contract actually required us to construct birdhouses and place them in trees in protected areas to encourage the nesting of certain types of birds.

Another challenge of scope management was creating an attractive exterior appearance for affordable housing. Mike McNaboe researched a variety of materials and alternatives, examined them for cost, delivery, constructability and quality and sent them to the architect, The Steinberg Collaborative of Dallas, Texas. The design incorporates building materials which provide a pleasing environment for renters: vinyl siding, larger trim and Palladium windows. The result was an attractive exterior in a color scheme characteristic of New England. Reduced cost also had to be balanced against maintainability and workability. A number of options were rejected because the long-term costs were not worth the savings.

Quality starts at the foundation of a building. Mike McNaboe and on-site superintendent John Woodward achieved a high caliber of workmanship on this project by continual follow-up and consistently demanding a quality finished product. They carefully tracked the relationships of the physical components to ensure everything would fit perfectly. They knew from past experience the importance of visualizing how the space would be used to anticipate the owner's needs. They also had to take into account elements that were outside our scope of work (special utilities, telephone, cable TV) and to make sure nothing would be dysfunctional to the end user. Their object was always to anticipate and identify potential problems before they occurred.

John Woodward, project superintendent, was responsible for coordinating subcontractors, work crews and ensuring that materials and equipment were delivered on time and in the right sequence. Good subcontracts can anticipate what the following trade will need. When subcontractors move their crews from an area, they can leave it in such a way that it is easier for the next subcontractor to perform the next activity. Delays from work having to be undone, stored materials and equipment having to be moved, etc., can be avoided, greatly assisting in accelerating the schedule. Clear communication from John facilitated people working together and the project kept moving. Work had to be performed just once and correctly!

Possibly the greatest satisfaction for the project team was helping make affordable housing available to families who would not otherwise have the opportunity to live in such pleasant surroundings.

Michael McNaboe, Project Manager, Enterprise Builders, Inc.

Each project superintendent has his own individual style of keeping a project on track. There are, however, some common traits that occur with successful superintendents like John Woodward:

• A seasoned, working knowledge of construction details accumulated over the years from a variety of construction projects.
• An attitude of approaching each project as an unique opportunity to become better educated in the intricacies of the subtrades. The best superintendents ask, listen and discuss rather than tell and yell!
• The ability to plan overall objectives to achieve specific milestones along the way and organize them into short-term goals for each trade.
• The ability to effectively communicate and discuss the plan in weekl_y coordination meetings. To set assertive goals and work out objections and objectives so that the goals can be met.
• The habit of walking around daily to follow up personally on the accomplishment of tasks, goals and schedules. Effective follow-up puts a supervisor in control.
• The ability to regularly review achievements and identify new problems at weekly meetings, which is a result of planning, organizing, communicating and controlling— in that order. If a superintendent finds himself yelling a lot, you can bet he skipped one of these four steps.

Job site safety was a prime concern of the project team. They established and implemented basic safety guidelines:

• Weekly safety meetings would be held to identify potential problems.
• It was agreed never to sacrifice safety for production.
• The project manager was to walk the site weekly and follow upon his findings with the superintendent and subcontractors.
• The superintendent was to hold regular safety meetings with all foremen.
• The project manager and superintendent were to set good examples of safety for the workers.

Deer Meadow was successfully completed in October 1992, over one month ahead of schedule and almost $300,000 under budget.

Many times I've been asked why Deer Meadow was so successful. We strive for teamwork on all our projects, but this was something special! Maybe we had an exceptional group of mature, responsible people who could set aside their own egos and put the project first. It was a pleasure to work with the owner, architects, engineers and agencies, who at all times maintained an attitude of fairness, cooperation and partnership.

From conception through completion, it takes many people, agencies and professions to complete a project such as Deer Meadow. The State of Connecticut, developer Marc S. Levine, Enterprise Builders, the architects, the engineers, the various agencies, all had a role and the opportunity to be the leader for a portion of the project.

As evidence of the successful precedent set by the Deer Meadow project, we recently completed Country Place, another affordable housing project in Connecticut for the same developer and with the same project team. This project was valued at $8.75 million and set on a 50-acre site. We were able to draw on our experience at Deer Meadow to attain a smooth and successful completion on this larger project. Clear and complete communication and follow-up every step of the way is what makes a job run smoothly. A lot of effort goes into making a job look easy to the outside observer.

Another achievement was that Enterprise Builders and the team on the Deer Meadow project were honored as “Project Team of the Year from the Southern New England PMI Chapter, 1992/93.

Possibly the greatest satisfaction experienced by the team was the positive sociological impact we felt in helping make affordable housing available to families who would not otherwise have the opportunity to live in such pleasant surroundings. The words of a tenant who had just moved into a new apartment said it all—“I live in a palace!”

Enterprise Builders, Inc.

Enterprise Builders, Inc. is a merit shop general contractor and construction management firm located in Simsbury, Connecticut. Incorporated in 1984, Enterprise Builders is primarily involved in commercial, industrial and institutional projects with construction values ranging from one to twenty million dollars. The firm has access to fifty million dollars in overall bonding capacity and is experienced and qualified to respond to competitively bid projects as well as negotiated and design/build contracts for private and public sector clients throughout New England.

Enterprise Builders' philosophy is that only through the team approach of owner, architect and builder can a project be successfully completed. The firm is committed to leadership in the field and to establishing a reputation of excellence, integrity, service and value in the marketplace.

In addition to a steady workload for prestigious clients, Enterprise Builders has received such project awards as “Excellence in Construction” from Associated Builders & Contractors, “Project Team of the Year” from the Southern New England PMI Chapter, and several safety awards. In 1989, the firm made the “Inc. 500” list of fastest growing companies in America, and in 1991 was one of four companies in Connecticut to receive the “Blue Chip Initiative” award for resourcefulness in business.

Paul Berg assumed leadership of Enterpise Builders in 1987 and since then the firm has more than tripled its sales volume. Paul's focus has been on implementing modern, efficient systems, hiring high-caliber, professional staff and the ongoing training of project managers.

Paul's background includes over 25 years in construction, much of which was spent as a project manager on multi-million dollar construction projects. Paul received his engineering degree from Rensselaer Polytechnic Institute. He is past president of Associated Builders & Contractors and a member of the Conduction Institute, the Construction Specification Institute, the Building Congress and the Project Management Institute.