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Housing Policy --- Section 4-1

CONSTRUCTION COSTS
Policy Statement
Project developers must ensure that all efforts are made to ensure that construction costs are minimized and appropriate for the proposed type of construction.

Policy
Project developers must ensure that all efforts are made to ensure that construction costs are minimized and appropriate for the proposed type of construction.

Policy Statement
Projects must adhere to the following guidelines to help ensure that construction costs are minimized and appropriately budgeted:

1. The design must be efficient and appropriate for the proposed housing use and unit sizes should be consistent with the goal of providing affordable housing, as well as relevant city and state design guidelines. Proposals that exceed minimum requirements, such as minimum unit size, amenities, etc., must justify these exceedances and how they are reasonable in terms of the overall cost of the project.
2. Costs must be estimated at each stage of project development as indicated in Design Review Policy.
3. Costs must fall within an acceptable range that is defined by the costs of similar recent projects. DND will use recent and historical cost data in making this determination.

Cost profiles will be provided for common project types:
Homeownership: 1) 1-4 family new construction; 2) 1-4 family rehab; 3) large- or scattered-site new construction; and 4) adaptive reuse.
Rental: 1) SRO; 2) assisted living; 3) small unit rehab; 4) small unit new construction; 5) large unit rehab; and 6) large unit new construction.
Projects that do not fall within the above typology will be compared against a set of like projects.

4. Environmental and site costs: see Environmental and Site Cost Policy.
5. Construction cost contingency: see Contingency Policy.
6. Competitive bidding is required of all projects: see Bidding Policy.

4-1 (11/02)

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