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FIVE YEAR SUPPORTIVE HOUSING PLAN <br /> FINAL REPOR7 <br /> Table 3: Development and Operating Costs <br /> Annual <br /> Development Operating <br /> Development Type # Units CostlUnit Cost/Unit <br /> Heritage Grove New 17 $94,823 $3,493 i <br /> Heritage Fields I New 18 $115,328 $3,893 �' <br /> Heritage Fields III New 14 $102,075 $3,996 <br /> Macon Apartments Rehab 24 $41,792 $5,028 <br /> Elmwood Apartments Rehab 8 $128,853 $3,200 <br /> Harbor Place New 8 $177,500 $3,919 <br /> 91 <br /> Barriers to Develoament of and Access to Housinq <br /> Two sets of barriers exist that can impede progress toward providing sufficient housing <br /> and services to end chronic homelessness. The first set of barriers affects developers, <br /> and the second set affects potential tenants. <br /> Factors Affecting Developers. Two factors can inhibit developers in their attempts to <br /> develo ermanent su ortive housin : <br /> P P PP 9 <br /> • High construction costs. The costs of building and rehabilitating property are <br /> climbing. They escalated by about 10-15% in 2004, according to local <br /> developers, and are expected to continue outpacing inflation in 2005. The <br /> average per-unit development costs are $114,683 for new construction and <br /> $63,557 for rehabilitation. <br /> • Need for long-term rental subsidies. In order to make it feasible to develop <br /> housing, every unit must produce sufficient rental income to absorb annual <br /> PAGE 23 <br />