We spend a lot of time working with the Incremental Development Alliance training folks to be small developers. One of our many goals is to help build community wealth through infill housing at a scale compatible with traditional neighborhoods, also known as Missing Middle Housing. This is housing that fits within a single-family neighborhood, but with more units than a single family home. This might be a home with an accessory dwelling unit, a duplex, fourplex, maybe even a six or eight plex.
I had the chance to listen to the Strong Towns podcast about a failed mixed use redevelopment attempt via a 203k loan with Ian Rasmussen. Listening to the story, I felt Ian’s pain. I’ve made a few previous warning comments regarding 203k loans to folks in the Small Builder/Developer Facebook Group. I’m going to take this opportunity to share as much as I can regarding this loan product so folks can make as educated a decision as possible regarding funding source for mixed-use projects.