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More Hotels are Getting Converted to Affordable Workforce Housing – Maxwell Drever Shares His Views

The sudden pandemic outbreak has been ruthless on the world! The losses haven’t been only in terms of deaths and an increasing number of contaminations, but it also caused the global economy to face a tremendous setback says Maxwell Drever. And one of the sectors that got hit very hard is the hotel industry. It’s primarily because of low hotel occupancies that had resulted in reduced sales. The outcome was less or no profit, because of which most hotel owners thought of shutting down their operations for a while. According to the latest reports and studies, it will take almost three years for the hotel industry to revive back to what it was. Meanwhile, hotel owners often toy with the question about putting their properties to good use. The concept of affordable workforce housing seemed not only viable but also relevant.

Leveraging the scope for increasing asset value

Maxwell Drever says that as the world progresses for the next normal, there is a huge demand for low-cost housing. The reason being the property value is rising at a fast pace. Hence, the medium-income group is always searching for low-cost housing units, whether in the long or short term. Also, the medium-earning groups with their wage falling between 60% and 120% of the AMI aren’t ample for rent disbursement.

It’s essential to realize that the workforce segment forms a vital part of society. Hence, many programs get designed by the government to address the lack of housing affordability. Today, the federal governments are taking steps to help the situation by offering territories and funds to enhance access to low-cost housing units. Additionally, various private-sector agencies today have introduced resources and plans for developing residential units.

The process of the hotel conversion

Even though the pandemic has maximized the demand, multiple society sections have made the gap between supply and demand normal. Also, repurposing the old hotels to low-cost housing units is now a popular trend.

Simply put, this process starts by choosing the concerned hotel that is fit for the conversion. In addition to this, there is a correct assessment of the governmental strategies for the hotel owners to get the benefits. That aside, it is necessary to focus on the local building codes to ensure that project gets implement seamlessly.

It is also essential to have a detailed assessment of the government programs to understand the policy’s benefits. If the landlords and the hotel owners wish to possess a benefit, they need to address the scope from the commercial perspective. And it’s an excellent scope for those who want to get the profit in the long-term.

Hence, Maxwell Drever says that legal, technical, and financial aspects require correct comprehension. A correctly designed project that studies and addresses all aspects of government policies and the market situation will bring in wonders. Furthermore, low-cost housing requires ample initiatives for fast implementation. Last but not least, it is also essential for the people to work, keeping in mind the actual scenario. To enhance the work scopes generated from the affordable housing projects.

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