Cost-saving Construction Opportunities and the HOME Program: Making the Most of HOME Funds (HUD-1503-CPD, December 1994)

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High costs associated with new housing construction or rehabilitation are a major obstacle to expanding the supply of affordable housing.

This guide discusses some cost-saving technologies and techniques to aid projects receiving HOME funding in reducing construction costs.

Such measures help to maximize the impact of each dollar of HOME funding; keeping unit costs lower also reduces the amount of locally required matching funds and helps to ensure compliance with maximum per-unit subsidies.

This guide focuses on the design and construction of selected features around the home.

Its approaches involve using less expensive substitute materials, simplifying overall construction and design, and addressing land planning and development issues.

The specific aspects of building construction discussed include foundations, framing, electrical installations, plumbing, finishes and trim, energy and water service, sewage disposal, land planning and density, and site development.

Of course, not all of the cost-saving technologies discussed in this model will be appropriate for every project.

In order to encourage participating jurisdiction housing specialists and local contracting firms using HOME funds to understand which methods may be most cost-effective for a particular project, this guide, in addition to discussing the basic characteristics of available alternatives in these different areas of construction, also provides a chart of cost-saving opportunities indicating whether these alternatives may be suitable for single- or multi-family construction, new construction and/or rehabilitation.

Finally, the guide contains a list of resources that can provide further information on cost-saving construction techniques.