The city of Rochester is setting out to have modular homes built on city-owned lots, as part of an effort to create new affordable housing options.
The pilot program would offer nine vacant lots in the northeast section of the city for placing modular single-family houses.
Modular homes are built off-site then transported to the chosen plot and assembled. They can cost somewhat less than traditional “stick-built” houses, and represent a fast but still quality option to build new housing. The city estimates the houses would sell for about $170,000.
No city tax incentives or financial support is included in the project.
“We’re selling them the land,” said Councilmember Michael Patterson. “We’re not giving anything away other than the lot.”
The city owns 2,375 vacant lots across the city, concentrated in some of the city’s poorest neighborhoods, including Group 14621, Lyell-Otis, and Bull’s Head.
The lots chosen for the pilot program include three on High Street, three on Wilder Street, two on Davis Street, and one on Lewis Street.
Mayor Malik Evans said the pilot is a way to test the waters on whether modular houses are a feasible option for the city.
“This is about innovation, problem solving, and pushing boundaries to prepare Rochester for the future of housing by exploring all possibilities,” Evans said.
Rising construction costs – up an estimated 25% to 40% since 2016 -- has made it necessary for the city to pursue other options for housing development.
“The increase in development costs required the city of Rochester and its development partners to identify significant subsidy sources to construct affordable single-family homes for low-and moderate-income families,” the request for proposals reads. “This has also led the city to explore other non-traditional forms of housing production that do not require subsidies, including manufactured housing, modular housing, and other similar types of homes that promise a lower production cost.”
Proposals for the project are due by July 9.
An estimated $1.5 billion has been or is expected to be spent developing or rehabbing affordable housing between 2022 and 2026. Included in that is $19.1 million invested by the city.
But all that expense has created a total of 3,096 housing units.
“Rochester’s housing issues are complex and have been festering for decades,” Evans said. “Innovation and change takes hard work.”
The modular houses are expected to be sold to buyers making between 80% and 120% of the area median income, which is between $83,120 and $124,680 for a family of four in the Rochester metropolitan area, according to the federal Department of Housing and Urban Development.
