For HOA, affordable does not mean poor quality. Development consultants are required to retain builders whose affordable product quality is as high as comparable for-profit developments. One of HOA’s development consultant partners, Options for Homes, has used the same builder, Deltera, for all but one of its developments. Deltera is one of the largest and most successful builders in Canada. The buildings that Deltera has built for Options for Homes are indistinguishable from the rest of Deltera’s developments. For this reason, homes in HOA-supported developments enjoy excellent market resale values.
Including an established, reputable builder early in the development and on a financially at-risk basis is very important. By doing so, affordability is improved because the project design itself is created from day one to be as affordable as possible. Also, the development consultant and HOA can be confident that the cost estimates and project proformas used to justify the project feasibility will be as accurate as possible, since faulty estimates that lead to the subsequent cancellation of the development would cause the builder to also lose their portion of the working capital invested.
