Evansville’s first shipping container homes being prepared for sale – Inside INdiana Business

Nov 03, 2024

One month after the ribbon cutting for Evansville’s first shipping container homes, the single-family residences are being primed for the real estate market. A ceremony to observe the completion of the two homes was held in September at 1108 Cody St.

The Community Action Program of Evansville and the Evansville Department of Metropolitan Development worked together on the initiative as part of a long-range feasibility study to determine whether this type of affordable housing will work in the city. A local real estate firm is currently assessing the values of the 640 sq. ft. homes.

“We have a 36-month window,” said Gary Roan, CAPE’s CEO. “We could lease with an option to purchase, but we’re thinking that it would be more feasible for us to sell them now as opposed to leasing them for a period of time and then hoping the buyers would be able to finance them before the end of the 36 months.”

DMD Executive Director Kolbi Jackson told Inside INdiana Business that two grants from the city of Evansville funded the project. The first grant of $293,271.84 was from the HOME Investment Partnerships Program through the U.S. Department of Housing and Urban Development. The second grant of $200,000 was from the local Affordable Housing Trust Fund. The lots were donated, according to Roan.

“[These shipping container homes are] an opportunity for [low and moderate income] individuals to start generational wealth,” he said. “Affordable housing, whether it’s rental or homeownership, is important.”

About the homes

Erin Fleming, CAPE’s CFO, said the idea to bring shipping container homes to Evansville originated several years ago, but the pandemic delayed the project. Once the affordable housing initiative got underway at the end of 2022, material price and availability became an issue.

“They had to look at all the inflation,” said Fleming. “All the materials were harder to get hold of. There were a lot of delays in putting [the project] together and getting it finalized for those reasons. And at the same time, we had some time constraints to get the job done to be in line with the funding course, so we moved forward with it.”

Buying used shipping containers was not an option because the structures may have previously stored hazardous or contaminated material. To meet criteria for residential use, the shipping containers from San Francisco had to be purchased brand new.

“They came in on semi flatbed trucks, and they were lifted by a crane, and they had to be just perfect because of the pipes and the wiring that was already in place along with the foundation. So they had to be laid just right and then bolted down,” Roan said.

Each home has a two-bedroom, one-bathroom layout, and the spaces are fully furnished, according to Roan.

“We thought it would be difficult for someone to come in and envision how to furnish them. So we’re providing the furnishing, TV and additional amenities. And we did professional landscaping with an irrigation system as well,” he said.

Other amenities include energy-efficient appliances—washer, dryer, dishwasher, refrigerator and microwave—a porch, a small yard and solar panels donated by Morton Solar and Electric.

“The way we set these up is so that the homeowner could expand the systems themselves. And we made it easy for them to do that,” said Brad Morton, president of Morton Solar and Electric. “They can buy their own solar panels and take them up on the roof and install the racking on the roof, install the solar panels, and then just plug them into the solar panels that are already up there.”

Durable, cost-effective and eco-friendly

Jackson said one of the benefits of bringing shipping container homes to Evansville is the durabilty of the structures.

“These types of homes tend to be durable and weather resistant, which enables them to be purchased at a lower cost compared to traditional building materials used for the stick builds. So this makes the container homes a good choice for those with a tight budget,” she said.

Using energy-efficient appliances in the small residences provides cost-effective perks for the future homebuyers.

“Part of this homeownership is not just about the mortgage payment. We’re looking at what the owner’s going to have to pay on a monthly basis as well. By being energy efficient, that’s going to help them save money in the long run and have more disposable income,” said Fleming.

The layout and design of the shipping container homes also provides functionality as well as sustainability.

“When you look at the furnishings we put in there and how the space was utilized, you can see that there’s not much lacking in function or appearance,” said Fleming. “Even though it sounds like a small, square footprint, it’s also a very small carbon footprint at the same time.”

Pricing and future projects

The total cost of the Cody St. project is still being finalized as invoices come in for calculation. Determining the sale prices of the shipping container homes is also a work in progress.

“The challenge is finding comps in the area, being a project of this nature,” said Roan. “It has to be affordable for individuals, a family of three. It’s based on 80% of the area median income, which is considered low and moderate income.”

Eligible homebuyers will receive downpayment assistance and other types of support from CAPE.

“We’re a certified counseling agency, and we work with first time homebuyers. There are programs out there—state, federal programs—that prospective buyers may be eligible for. So we would assist them in trying to identify all the down payment assistance resources that they would qualify for,” Roan said.

A final analysis of this first shipping container homes project in Evansville will determine whether similar housing initiatives will be developed in the future.

“This is the trial run for us. So when we get all the costs in, we’re going to look back to see how we could have made this more efficient and if it’s something we want to look into further. We have vacant lots that we’ve acquired, and we’re contemplating container homes and/or looking at modular homes as well,” said Roan.