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	<title>Arizona HOA &#8211; HOA ALLIANCE</title>
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	<title>Arizona HOA &#8211; HOA ALLIANCE</title>
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		<title>Phoenix homebuilders will scramble to find water</title>
		<link>https://www.hoaalliance.org/phoenix-homebuilders-will-scramble-to-find-water/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Thu, 08 Jun 2023 13:19:09 +0000</pubDate>
				<category><![CDATA[Arizona HOA]]></category>
		<category><![CDATA[US News]]></category>
		<category><![CDATA[Arizona]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=324966</guid>

					<description><![CDATA[Homebuilding around Phoenix just got trickier. Arizona will not approve new housing construction on the fast-growing edges of the nation’s fifth-largest city where groundwater is now in short supply thanks to years of overuse and a multi-decade drought. A state projection shows that over the next 100 years, demand in metro Phoenix for almost 4.9 million acre-feet of groundwater would be unmet without further action. An acre-foot of water is roughly enough for two to three U.S. households per year. Despite the move, the Gov. Katie Hobbs said “nobody who has water is going to lose their water.” Under a 1980 state law aimed at protecting the state’s aquifers, Phoenix, Tucson and other Arizona cities have restrictions on how much groundwater they can pump. But in rural areas, there are few limitations on its use. Groundwater has long been pumped by farmers and rural residents in Arizona with little oversight. Hobbs and other state officials recently vowed to take more steps to protect the state’s groundwater supplies. In rapidly growing Phoenix suburbs such as Queen Creek and Buckeye, developers have relied on unallocated groundwater to show that they had adequate water supplies for the next 100 years, which Arizona requires for building permits in some areas. “Developers rely on groundwater because it has been frankly, cheaper and easier for them, and they have been able to move through the process much more quickly,” said Nicole Klobas, chief counsel for the Arizona Department of Water Resources. Under the new restrictions, that won’t be possible. “It closes off that path,” said Kathryn Sorenson, director of research at the Kyl Center for Water Policy at Arizona State University. Because the rule largely affects cities and towns outside Phoenix and larger cities in the metro area, Sorenson said developers would likely “weigh whether they want to continue to buy relatively cheap land … and incur the cost of developing a whole new water supply versus purchase land that is probably more expensive without the boundaries of a designated city.” Officials said new water limits would not affect existing homeowners who already have assured water supplies. And Hobbs added that there are 80,000 unbuilt homes that will be able to move forward because they already have assured water supply certificates within the Phoenix Active Management Area, a designation used for regulating groundwater. Years of drought in the West worsened by climate change have ratcheted up pressure among Western states to use less water. Much of the focus has stayed on the dwindling Colorado River, a main water source for Arizona and six other Western states. Over the past two years, Arizona’s supply from the 1,450-mile powerhouse of the West has been cut twice. Phoenix relies on imported Colorado River water and also uses water from the in-state Salt and Verde rivers. A small amount of the city’s water supply comes from groundwater and recycled wastewater. The drought has made groundwater — held in underground aquifers that can take many years to be replenished — even more vital. Source: OC Register]]></description>
		
		
		
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		<title>Habitat for Humanity just unveiled its first-ever 3D-printed home</title>
		<link>https://www.hoaalliance.org/habitat-for-humanity-just-unveiled-its-first-ever-3d-printed-home/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Mon, 14 Mar 2022 19:10:22 +0000</pubDate>
				<category><![CDATA[Arizona HOA]]></category>
		<category><![CDATA[Homeowners]]></category>
		<category><![CDATA[US News]]></category>
		<category><![CDATA[HOA Alliance]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=85972</guid>

					<description><![CDATA[While 3D printing has been around since the 1980s, its use in home building is relatively new — and it offers up exciting opportunities to combat homelessness and other housing inequity around the world. It’s a potential solution that&#160;Habitat for Humanity&#160;is exploring with its latest venture: a home in&#160;Williamsburg, Virginia, nearly entirely made from 3D printing, or additive manufacturing. Not only does that&#160;sound&#160;cool, but it potentially opens up new ways for Habitat to serve its mission of providing housing for low-income and disabled residents. “While this is the first 3D-printed owner-occupied Habitat home in the nation, every Habitat home constructed, renovated or repaired is special because we partner with families with low-to-moderate incomes, veterans, seniors and people with disabilities,” Janet V. Green, CEO of Habitat for Humanity Peninsula &#38; Greater Williamsburg, explains to&#160;House Beautiful. She adds that printing using 3D technology offers a way to bridge the&#160;affordable housing gap, as Habitat for Humanity is always searching for “solutions to build more efficient homes.” To bring this project to life, Habitat for Humanity partnered with&#160;Alquist, a 3D printing home construction company. And while this may be the first 3D-printed home created by Habitat for Humanity, it is not the last; the organization already has plans underway for another, set for completion in Tempe, Arizona, next month. As for the actual process behind 3D-printing a home, Alquist — like others experimenting in this field — uses concrete, a medium that can cut building costs by up to 15% per square foot. Concrete is also able to retain temperature better than many other materials, meaning that heating and cooling costs for this abode will be below average, a huge benefit for low-income residents. And in the instance of natural disasters such as tornadoes and hurricanes, having a concrete home is ideal, as it is resistant to damage. The final product of this home will boast three bedrooms and two full bathrooms in total, across 1,200 square feet. Plus, it’s EarthCraft certified, meaning it minimizes environmental impacts and will not cost as much to maintain. Once the construction of this dwelling is complete, it will be sold to a local resident named April, whose income is less than 80% of the median income in her area. Thanks to Habitat for Humanity’s homebuyer program, April’s monthly mortgage payments will cost no more than 30% of her income — and that includes both her homeowner’s insurance and real estate taxes. Shared from HouseBeautiful.com]]></description>
		
		
		
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		<title>Capitalizing On The Apartment Mania In Phoenix!</title>
		<link>https://www.hoaalliance.org/capitalizing-on-the-apartment-mania-in-phoenix/</link>
					<comments>https://www.hoaalliance.org/capitalizing-on-the-apartment-mania-in-phoenix/#respond</comments>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Fri, 13 Nov 2020 01:48:53 +0000</pubDate>
				<category><![CDATA[Arizona HOA]]></category>
		<category><![CDATA[Condos]]></category>
		<category><![CDATA[US News]]></category>
		<category><![CDATA[Income Property]]></category>
		<category><![CDATA[Phoenix]]></category>
		<category><![CDATA[PRoperty Values]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=11524</guid>

					<description><![CDATA[Written By David Kotter Apartments in Phoenix are extremely popular right now and demand for them does not seem to be waning. The soaring interest in the Phoenix apartment market leaves potential investors with a few questions. Why is this happening? What are the specific areas that one should give attention to? Finally, how can you structure a deal so that you can win it and still maintain internal credit integrity?  Why is this happening?&#160; We believe there are a couple of things that are driving the craze of apartments. First, you have a net migration reality taking place right now and a perception issue. According to the report on put out by North American moving services “Where are Americans Moving?” In 2019 the top 5 inbound states were Idaho, Arizona, South Carolina, Tennessee and North Carolina. Ironically, the top three states outbound were Illinois, California and New Jersey. According to an&#160;AZ Big Media report,&#160;the primary origin of newcomers to Arizona was from California. Ex-Californians accounted for 68,516. It is a fact that Californians are coming here in droves, and other areas as well.&#160; The next item is perception. If you’re from California, you’re probably used to paying $250,000 to $500,000 per door for an apartment; insane! At some point, you’re actually paying to own the property. So, here comes the perception shift. One day you wake up and realize that you can drive five to six hours away and get the exact same deal for a half to a fourth of the price.&#160; A California client recently asked me if he was overpaying for a property in Phoenix. My response was “yes you are”. He was quiet for a minute and responded saying “David, I don’t care because it is better to get in now before prices go up”. There, my friend, you have a complete perception change. As they say, one man’s trash is another man’s treasure.&#160; What are the specific areas to focus on?&#160; Key Takeaways From 2018&#160; ●&#160;Occupancy&#160;over the 12-month period at 92.3% in 1Q 2018 to 94.3% in 4Q 2018. Overall, occupancy averaged 95.07%.&#160; ●&#160;Rental rates&#160;PSF over the 12-month period at $1.07 PSF in 1Q 2018 to $1.11 PSF in 4Q 2018. Overall, rental rates have averaged $1.09 PSF.&#160; ●&#160;Rent growth&#160;over the 12-month period at 4.6% in 1Q 2018 to 5.0% in 4Q 2018. Overall, rent growth has averaged 4.63%.&#160; ●&#160;Cap rates&#160;over the 12-month period at 6.02% in 1Q 2018 to 5.96% in 4Q 2018. Overall, cap rates averaged 5.92%.&#160; ●&#160;Sale prices&#160;per unit have increased over the 12-month period from $89,092 per unit in Q1 2018 to $126,142 per unit in Q4 2018, or a whopping 41% increase in sale price PSF. The most significant sale in 2018 was Tides Arcadia, a 20-unit Class B/C&#160;apartment that sold for $315,000 per unit. The largest property to sell was Canyon 35, a 98-unit Class B/C apartment that sold for $83,168 per unit.&#160; ●&#160;Construction stats: In 2018, 11 Class A multifamily properties constructed (530 units) were delivered between 20-100 units.&#160; So, what does this all mean for 2018?&#160; In 2018, the market saw a decrease in vacancy, which directly affected the increase in rental rates. Rental rates increased 3.74% over from 1Q to 4Q, roughly 1% per quarter. Smaller properties between 25-50 are typically more desirable for investors as the cost of maintaining the properties is lower, and management fees can encompass the payroll costs.&#160; Payroll costs, as many owners know, can be one of the more costly expenses on the balance sheet because of the demand for smaller property types, the attractiveness of a value-add investment, the trend of decreasing capitalization rates was evident by the compression seen from 1Q to 4Q. Additionally, because of the demand of owning smaller assets, sale prices reported a compound change of 9.32% over the 12-month period. With decreasing cap rates, increasing rents, and increasing sale prices, 2018 was on the train to continual growth into 2019.&#160; Key Takeaways From 2019&#160; ●&#160;Occupancy&#160;over the 12-month period at 95.5% in 1Q 2019 to 94.4% in 4Q 2019. Overall, occupancy averaged 95.5%.&#160; ●&#160;Rental rates&#160;over the 12-month period at $1.12 PSF in 1Q 2019 to $1.15 PSF in 4Q 2019. Overall, rental rates have averaged $1.14 PSF.&#160; ●&#160;Rent growth&#160;over the 12-month period at 4.8% in 1Q 2019 to 4.3% in 4Q 2019. Overall, rent growth has averaged 4.68%.&#160; ●&#160;Cap rates&#160;over the 12-month period at 5.74% in 1Q 2019 to 5.55% in 4Q 2019. Overall, cap rates averaged 5.65%.&#160; ●&#160;Sale prices&#160;per unit remained steady over the 12-month period from $129,053 per unit in Q1 2019 to $126,405 per unit in Q4 2019, with an average sale price of $116,321 per unit. The most significant sale in 2019 was Union at Roosevelt, an 80-unit Class A apartment that was built in 2017 and sold for $337,500 per unit. The largest property to sell was Vibe on Thomas, a 100-unit Class B/C apartment that sold for $84,500 per unit as a value-add investment sale.&#160; ●&#160;Construction stats: In 2019, 11 Class A multifamily properties constructed (550 units) were delivered between 20-100 units.&#160; So, what does this all mean for 2019?&#160; The market in 2018 and 2019 saw a decrease in Phoenix apartment vacancy and an increase in rental rates. Rental rates increased by 4.29% over the 2018 year. The trend of decreasing capitalization rates continued as they went from an average of 5.92% in 2018 to 5.65% in 2019, a 27-basis point decrease. The appetite for apartment sales did not diminish in 2019. Sale prices reported averaged $116,321 per unit for units between 20-100 units. With decreasing cap rates,&#160;increasing rents, and increasing sale prices, 2020 was poised for another growth year. Or so we thought…&#160; Now What … Going Forward?&#160; The Coronavirus pandemic was an unexpected “black swan” event that economists could not have predicted. Using metrics from CoStar which uses Oxford Economics, forecasting is trended based on the current economic climate in the COVID era. “Base Case” scenario is a good representation of a “V-shaped recovery” and]]></description>
		
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