Potter’s Lane has all the hallmarks of an upscale condominium community: contemporary architecture, a carefully crafted exterior blend of wood and steel, large light-admitting windows, a rooftop deck, and a Zen-like courtyard garden.
There’s a key difference, though: the 15 studio units, each 480 square feet, will be built from single-use steel shipping containers instead of concrete and wood. So will a manager’s unit and a community room slated to open in the unincorporated Midway City area of Central Orange County in March.
Potter’s Lane is taking shape with homeless veterans in mind, billed as the first supportive housing development of its kind in California, according to Donna Gallup, chief executive of American Family Housing, which keeps its headquarters just down the road from the development.
The nonprofit group views it as a potential to become a blueprint for similar efforts across Orange County farther afield.
It’s not the first experience with residential real estate for AFH, which owns 53 properties in Orange and Los Angeles counties, ranging from condos and single-family homes to a 26-unit building. Potter’s Lane is AFH’s only property to exclusively serve homeless veterans—a group that has the organization bringing a sense of urgency to the task.
It also has a ready supplier for the basic building blocks of the project. The shipping containers—also referred to as “modified steel structures”—used to build Potter’s Lane are manufactured by Los Angeles-based GrowthPoint Structures, which provided some of the materials either at cost or as a donation.
The need is so great for housing that we wanted to come up with a model that was inexpensive, could be built very quickly and, also important, easy to replicate,” she explained. “GrowthPoint Structures has built schools using these modified steel structures. When we saw that, we thought, ‘Can this be done with housing?’ And the answer is, yes.”
The structures—similar to mobile homes—are approved by the state of California. Their interiors and other features—kitchens, bathrooms, windows, insulation and flooring—are built off-site while the main structure is being manufactured.
“Everything comes together very quickly, unlike in traditional … builds where everything needs to be completed from the ground up,” Gallup said.
It will take approximately three months to complete the entire complex.
SVA Architects, based in Santa Ana, designed the exterior of the complex at cost.
The Potter’s Land site is in an unincorporated area of Orange County adjacent to the AFH headquarters. The area is largely industrial, and AFH has worked closely with the businesses in the area to secure their support.
Orange County Supervisor Andrew Do also has been a staunch and vocal supporter of the project, Gallup said.
There were 447 homeless veterans in Orange County as of August, according to Orange County’s Coalition to End Homelessness annual report.
“But the actual number is far higher than that,” said Gallup. “In fact, veteran homelessness has been increasing in Orange County.”
“Many of our young vets come back from overseas service suffering from [post-traumatic stress disorder], depression or anxiety,” she said. “It may be difficult for them to find work, or they may have developed an addiction. These vets are at greater risk for homelessness than those with a support system.”
Henry Pritchett, a retired real estate developer and volunteer with AFH, has played an integral role in planning Potter’s Lane. He spent three years working on the development of a different housing program for homeless veterans that didn’t come to fruition. It didn’t go to waste, though—the days he spent getting to know veterans at VA facilities in Seal Beach and Compton helped him understand what homeless and displaced veterans need to achieve a self-sustaining way of life.
“Vets do better when they are surrounded by other vets, because they are trained to support each other in units,” he explained. “If one vet falls off the ladder, the others will do what they need to (to) pull him back up. If one gets out of line, they will kick his butt back into it.”
Residents of the adults-only Potter’s Lane will adhere to a lease and pay up to 30% of their income toward rent.
Potter’s Lane has no restrictions, as long as the tenant is following the terms of the lease and engaging in appropriate behavior.
“These vets are adults—if they want to have a glass or wine or own a dog, that’s fine,” Gallup said. “We want them to be able to enjoy themselves and live life.”
“Vulnerability Index”
AFH is currently in the process of selecting the 15 veterans who will live at Potter’s Lane when it opens in July, using a screening program called the Vulnerability Index (VI). The VI is a nationwide standard that ranks people based on how long they’ve been homeless, the condition of their overall physical and mental health, and other factors. The higher the VI, the higher the risk.
“Those veterans that are highest risk are the ones who will be selected first for Potter’s Lane,” Gallup said. “Potter’s Lane provides veterans with more than a roof over their heads.”
The complex will be the centerpiece of a structured support system administered by AFH, which will be able to bring intensive case management, therapeutic counseling and crisis intervention to bear as needed. There also will be classes on building and maintaining good credit, budgeting and employment counseling, all at the Potter’s Lane location.
“We have a nurse on staff, which is an important component of the project,” Gallup said. “Many homeless—especially the veterans—have neglected their physical and mental health. Helping them address issues they haven’t dealt with is very important.”
Business Backers
Gallup said that the entire Potter’s Lane project will cost $3.6 million. AB 639, the 2013 Veteran Housing and Homeless Prevention bond, will cover 41.4% of the total cost. AFH launched its capital campaign in November to help cover the gap. Other funding sources include loans, unrestricted grants, and support from companies, including Pacific Premier Bank, Home Depot and Coopersburg, Penn.-based Lutron Electronics, which has a training center in Irvine.
Pacific Premier Bank First Vice President Sherri Scott said the bank has committed to waiving the fees on AFH’s $2.9 million construction financing loan, an amount totaling $29,000.
“The Potter’s Lane project aligns with our Community Reinvestment Act program,” she said. “The CRA program focuses on supporting economic development and affordable housing opportunities that benefit low and moderate-income communities in the areas served by the bank.”
Pacific Premier also is a member institution of the Federal Home Loan Bank of San Francisco, which provides community banks with access to low-cost funding on qualifying projects. Scott said Pacific Premier will apply for an Affordable Housing Program grant subsidy on behalf of AFH and the Potter’s Lane Project.
Gallup said her organization will accept in-kind donations, as well as financial contributions. “Supporters can underwrite the fitness court or the furnishings—they can sponsor the art installation in the courtyard,” she said. “However people want to help, we are happy to accept it.”
Scale
The design approval from the state means that AFH can take the Potter’s Lane concept to other sites, which brings the potential to cut significant amounts of time off future developments and get more veterans off the streets.
The next one could be close by.
“AFH owns a property in Stanton (with) almost the exact same size lot,” Gallup said. “We are going to approach Stanton once this first project is done. We’ll go from area to area, working with local communities.”
She stressed the importance of community and business support.
“It is many people and groups coming together to organize this,” she said. “Businesses, individuals, community groups, local government. People in Orange County are overwhelmed by the homeless problem and don’t know what to do about it. When you give people a way to help, they are eager to do so.”
