Composite Building Structures, Ltd.
Stronger, Safer, Longer Lasting, cost effective support framing for homes and buildings
The Humanitarian Alliance
Plan for Sustainable / Affordable Housing
Meeting Community Needs
Safer, stronger faster-built lower-cost affordable/sustainable housing. Investing $317,925,000 to build $100,000~$250,000 appraised value homes with a total value of $400,000,000 land, infrastructure and all community amenities will create over $1,000,000,000 in taxable assets and over 3,000 long-term jobs. All is made possible by integrating components to a lower cost building system and by using that system to build walls and roofs in a factory and installing them on-site to speed time for construction at lower cost. Workers will be trained and employed. This plan makes possible $350~$550 monthly payments with NO down payment. Seven million homes are needed. Aggressive plans are required. Materials used are first quality with economies of scale that make affordable/sustainable home communities possible by combining available services. Projects integrate all government incentive programs. Demonstration homes surpass all code requirements. Planned community locations are ready to develop. In the first project Centex builds & CBS buys down hard construction costs creating down payments for residents that are eventually forgiven. The Construction Technology Center continues and provides sustainable prosperity. This plan is then repeated in other locations
Composite Building Structures, Ltd. (CBS) was established by a group of engineers with the idea to help the housing shortage in Florida and in America by creating a low cost support framing system that was resistant to hurricanes, fires, and termites. CBS combined the framing with other energy efficient products to create finished perimeter walls and roofs used to construct energy efficient homes and buildings. Partnering with large builders, CBS formed a team to build better homes, build them faster, and to build them at a lower prices.
CBS required a $317,925,000 loan to build infrastructure and a Construction Technology Center in order to develop the first self contained housing community with 2,400 homes, and to start planning a second 2,000 home community nearby. All homes are available to low and middle income families. CBS will donate the entire communities built by CBS and its team to the Florida Housing Authority and to the home owners of the community through their community association. Funds are primarily used to purchase land and build homes. The funds will also build the infrastructure required by the community and by the Construction Technology Center. The community will include all the amenities and facilities found in the up-scale surrounding communities but also integrate a state-of-the-art day-care center, community bus service, walk-in health clinic, dentist office, fire department, and large chain grocery store. Space will be available for churches and an assisted living center. Cradle-to-grave needs will be identified and served.
The importance of the Construction Technology Center is to first build out the affordable/sustainable community and then continue the production, sales, and development of specialty products and materials into systems that will be sold, on the open market, after the community is built. The Construction Technology Center thereby continues to provide living-wage jobs to people living in the community and the surrounding area. This is the reason for the affordable/sustainable designation. Examples of Construction Technology Center products are hurricane resistant exterior fireproof sheeting (similar to plywood), doors, windows, insulation, and kitchen/bath units. The production of these products requires plants that are separate from the assembly plant. The products are combined providing semi-complete or complete exterior support walls. The completed walls, incorporating the sheets, windows, insulation, and doors are the main products used in building the communities and erected on-site as a subcontract service to the builder, Centex (the 3rd largest building
company in America). Centex has formed a working relationship with CBS to put this plan into action.
The importance of a project of this magnitude is that it will create a desirable area of homes for low-income families that would normally never be built for or available to these families. This is possible because panel construction saves building costs and cuts 70% of the time required for standard construction. CBS’s panels are lower cost and already contain the doors and windows when delivered. A bigger and better home can be provided faster and for less money. The residents can afford the payments because they will be employed at the campus. They will be employed because they will be trained in skills that can be immediately applied by the training center at the Construction Technology Center. Monthly payment targets of $350, $400, $500, & $550 are projected in our community for homes with appraised values of $100,000, $135,000, 175,000, & $250,000. There will be no down payment from the homebuyer.
At present, the American housing shortage is between 5 and 7 million homes for families with incomes in the $20,000~$35,000 range. Our goal is to be able to offer this opportunity to any state and its low income families (see page 24). Under our plan these families can have the amenities, safety, and security that all Americans should have, and are entitled to, living in affordable housing.
The products that CBS has developed, under normal circumstances, would be sold to homeowners buying homes with prices homes ranging upwards of $1 million. CBS’s engineers have developed and integrated products that can be mass produced with the same quality and integrity needed to build the expensive homes but at a price that enables home ownership for low-income families.
Through our initial research and development, the help of the United States Government, help from the U.S. Government of the State Governments, and help from the Cities involved; we will receive and apply all the grants, subsidies, and assistance currently available from Government programs.
CBS coordinates and applies these programs as additional buy-downs for homes in the community combined with private humanitarian grant funds. We will apply for and receive government support to complete all functions needed to build these types of homes, to obtain all the necessary building codes, and required inspections on a fast-track basis.
At present CBS has brought together core patents, engineering test reports, and certified code approvals to build in the hurricane, black mold, and termite areas of Florida, the most stringent building code in America. These reports show that all the materials have passed and superseded all of the code requirements.
Field trials and inspections confirmed the validity of CBS’s approach to homebuilding. CBS permitted and built 14 demonstration homes in the area. Homes types ranged from Habitat for Humanity, military housing, and standard homes, to $3 million luxury homes.
CBS has registered its intent to acquire 706 acres (with 475 acres usable), within the city limits, permitted for 425 acres residential, and 50 acres commercial that lies between the Construction Technology Center and the city of Fort Myers. The land is within 20 minutes of the Construction Technology Center on the East and Fort Myers/Cape Coral on the West. The property has been permitted and is already improved with roads, water, electricity, lakes, and trees. It is ready for final development. A second 440 acre property is under negotiation for 2,000 homes and is located in Estero Florida.
As Centex completes construction of the 4,400 homes in the communities, CBS will arrange down payment buy-down of the construction hard cost bill of materials, without administration profit; apply available subsidies and appropriate discounts on the homes as qualified under humanitarian purposes so that the homes can be sold for a price that enables the low monthly payments and so that participation of commercially available financing can be arranged through Freddie Mac and Fanny Mae and administered through local mortgage companies.
There will be restrictions on the resale of the properties and the down payments will be donated and passed to the homeowner only after a fixed period of trouble-free living in the community and participation in community affairs.
The Construction Technology Center, however, will remain a separate private entity and will not be a part of the donation to the State, to the local city authority, or to the homeowners. It will continue to provide jobs and training for the workers from the community as it supplies local area builders with construction products.
CBS plans to continue other humanitarian projects in the US and in other areas of the world provided that lenders see the value of this approach to answering a critical need and are willing to work to create other humanitarian projects, under conditions similar to these, in areas that are continually threatened by hurricane, tornado, flooding, termites, and other disasters.
Building stronger-safer-lower cost affordable/sustainable homes quickly creates the ability to develop a unique community environment with features unavailable to any other low-income or affordable-housing area by using special building materials combining them for efficiency, integrating them into pre-fabricated walls and roofs, and erecting them on-site. Homeowners will be able to own more home for monthly payments that are within their ability to pay.
These self-contained “Terrarium Communities” (TC’s) will be close to a “Construction Technology Center” (CTC). The CTC is an area dedicated to building wall panels and erecting them throughout the community and to the area at large creating the ability for campus and the community to grow together and support each other.
Businesses supplying unique products used in home building will locate at the Construction Technology Center and integrate their companies with the CTC. Their components will flow into the wall panels creating economies in construction not available when combining products from a variety of independent and scattered makers. Putting all the components in one center cuts waste and creates the best cost/performance available in home building.
After the community is built, products from the Campus will continue to be sold to builders outside the community providing a solid base of living-wage employment for the workers and sustainable prosperity for the community.
The community and the campus are centered in areas of high underemployment adjacent to those sections of the country experiencing continuous high levels of new home starts. This continuous building in the surrounding area provides the basis for sustainable prosperity and 3,000 permanent jobs created as CBS builds the campus and community. Residents of the community and from the local area are trained to be productive workers with needed skills matched to the jobs required.
Each community is a mixture of single-family homes and multi-family homes with different looks. There is also a mixture of low-income, affordable-level, mid-level, and a few moderately expensive homes. There is a coordination of special buy downs, incentives, subsidies, rebates, and financing to make the homes affordable/sustainable to those families that could never have otherwise owned their own home.
All home exterior walls, roofs, joists, and sheeting (the supporting “dried-in” shell) will be made in the factories at the CTC by the same people who will be living in those homes. The panels will be taken to the community, erected on-site by CBS. All of the finishing work will be done by Centex tradesmen. Appliances and window treatments will be provided. Owners will have the option of painting their own interior with paint provided and creating their own grounds plan with plants provided.
Since all the facilities, services, homes, and shops are integrated into the community design, they are convenient to the jobs, shops, and services. The architecture and landscaping is coordinated. The homeowner’s association maintains the landscaping and exterior painting. The communities become desired places to live and work reversing the prevalent image of low-income “projects” and the stigma of “affordable housing.”
Little Building Synergism – Widely separated independent building material suppliers each develop their own businesses without integrating their products into a “system.” This causes a layering multiple profit margins on the finished home and time delays as the parts are integrated by the builder. The result has been that even expensive homes are still not capable of withstanding hurricane winds and have difficulty getting wind damage insurance in the State of Florida. This has caused the State of Florida to write a new building code (effective 3/1/2002) to force builders to construct better and stronger (and more expensive) buildings throughout the State.
Loss of Private Insurance Underwriting - Even with the new more stringent codes, most independent insurance companies have stopped writing wind damage insurance and have withdrawn wind damage insurance on their existing customers. The new codes are still not strong enough to mitigate the damage that would be caused by a hurricane similar to hurricane Andrew, in the opinion of the insurance companies. The State of Florida has a potential $100 billion dollar wind damage liability in their wind damage insurance pool. Another hurricane like Andrew would bankrupt the pool.
Need to Regain Private Insurance Underwriting – The State wants to get private insurance companies to again underwrite wind damage liability and to also underwrite all new construction in the State. CBS’s unique framing system has been approved by private insurance companies for underwriting by them. Wood and concrete block, built under the new State building code, have not been approved by the private insurance companies.
Similar Problems Exist in Other States – Florida, because of its location, has multiple and extreme problems. Other States deal with one or more problems such as termite damage, tornado destruction, black mold, earthquakes, forest fires, lightening strikes, rodents, and etcetera. Factory built panel walls made with CBS’s combined materials will mitigate any combination of these problems. Because the materials are assembled in a factory, delivered, and erected as a pre-built wall; theft, waste, and clean-up are eliminated. Because the individual components have no scrap value like copper piping would have, demolition theft is eliminated.
Infrastructure Position – Automated Builder Magazine reports that 40% of all new homes in America in 2001 were built from factory assembled wall panels. This is a growing trend because the panels are more highly crafted, more accurate, save more than 70% of the construction labor, and shorten the time to complete each home. Most of the panel plants supply wood or metal studs and plywood exterior sheets and rough openings for the doors and windows. CBS has a more complete vision about how to deliver walls as a system; the services needed, and has evolved a plan with Centex to develop details of the working relationship.
Need for Panelization – There is no panel factory in SW Florida and no panel factories in the Caribbean or equatorial areas of the world, yet there is a great need for panelization and the saving panelization creates in all these locations. Panelization has not been developed in SW Florida and the other locations because concrete block is too heavy and brittle to make into 40 foot wall sections, deliver, and hoist into place in one piece. Concrete and concrete block has been the framing material of choice, up to now, in equatorial locations due to potential aggressive termite infestation.
Need for energy efficient insulation – Concrete and concrete block have very poor insulation values and absorb and retain moisture. An 8-inch cast concrete wall has an insulation value of R-0.64. Concrete 8 inch hollow block has an insulation value of R-1.1. These walls, add 1inch interior fiberglass insulation at R-3.3. The total R-value of concrete and concrete block increases to only R-4.9 and R-4.4 respectively. CBS’s panels are termite proof, water proof, and have an insulation value of up to R-40 enabling energy savings and low utility consumption. (R-11 is the typical fiberglass insulation in a 4 inch wall used in snow areas. R-19 is typical fiberglass insulation in a 6 inch wall used in Canada). Superior energy efficiency is achievable.
Market Need – Many other areas of the United States still do not have panel plants although their use is growing. The CTC integrates all the components and supplies completed walls containing windows, doors, electric raceways, insulation, inside and outside sheets and erects them on-site. This saves time, money, and creates a finished home at a lower cost with improved features compared to conventional homes built on-site.
Advanced Materials Utilized – The composite framing is combined with an advanced exterior sheet for the exterior sheeting. The sheets are similar cost to plywood, structurally strong, waterproof, mold proof, and are fireproof without generating any smoke. These higher performance walls can be made to be competitive with wood for use in locations where the forces of Nature are not as severe as in Florida and the equatorial regions of the world. All of the materials in the panel walls carry a “Green” ecologically friendly designation.
Builder Need – Areas of the country experiencing high growth also have skilled labor shortages. These areas also have clusters of low-income laborers without much hope to improve their lot in life. Builders strive to build more homes each year, at the lowest possible cost, and to build those homes faster than their competition. Full panelization fulfills those needs. Panel factories and panel erection crews provide higher paying jobs, job stability, full indoor working weeks, fewer weather delays, and performance based opportunities for advancement.
Community Needs to Address Causes – Communities, as they grow, require a constant inflow of people with a variety of employable skills as well as laborers. When the labor segment can not earn enough money to pay for their basic needs, even with both spouses working, the community they are living in becomes distressed. Government’s answer has been to provide affordable housing, welfare assistance, training, and other social programs. All of these solutions treat the symptoms but not the cause. The cause is that there are not enough high paying jobs and not enough job opportunities for people to grow into higher paying jobs.
Factories need trained workers – The vocational/technical schools and Community Colleges work with factories to train the needed skills that will be valuable to the factories. Growing companies provide opportunities for sustainable prosperity for the community and advancement possibilities for the workforce. Promotions in manufacturing plants increase incomes, but also provide visible examples of improvements in life that are both possible and achievable to stand out as role models to youth in the community.
Low Income Worker Need - When both parents must work long hours to make ends meet, the family suffers, there is not enough time for them to keep up their properties, and they become heavily dependant on community services. A living wage and opportunity for advancement is clearly needed. Chances to achieve and fulfill individual potentials are needed. Examples of individual success must surface visibly in those communities to provide youth with strong role models and to reinforce the belief that their individual hopes and aspirations are actually achievable. Government programs cannot fulfill these needs. Industry can fulfill these needs. When the affordable/sustainable community is built out, the industry stays on.
Leaders become Mentors in the Community – The affordable/sustainable plans and programs have been supported by National Football League professional players. These players have grown out of “projects,” and earned their education through athletics. These men have given up their time to be spokesmen for these affordable/sustainable communities in the cities where they grew up. They have expressed a keen desire to help improve the conditions and opportunities they experienced growing up. They have willingly contributed their time to become part of a force that can positively affect the lives of all the residents in an affordable/sustainable community.
Why a Composite Framing System is Needed
Stronger than steel
Lighter than wood
High insulation values
No electronic interference
Termite and rodent proof
No mildew mold, or rot
Will not deteriorate
Will not burn
350 MPH hurricane resistance
Screw joints 8x stronger than nails
No interior load bearing walls
Studs on 24” not 16”centers
No headers in 6 foot spans
Seismic & Tornado protection
No exterior house wrap (with R-40)
No inside moisture barrier (R-40)
Built-in electric wire channels
Walls erected on site
Home dried-in in one day
No material loss
No site cleanup
SBCCI code approvals
No expansion/contraction creaking
100% rebound after flex
Easy to paint, glue, tape, & caulk
Green building product
Strategy – Create a business campus with sufficient size and production levels to achieve economies of scale. Supply sub contract materials to the housing industry - (2 million new home starts each year with 164,000 starts in Florida). Base sales on lower cost and faster building speed. Implement 3,000+ new jobs at each Construction Technology Center. Train the workers needed in a facility on the Construction Technology Center. Locate the Construction Technology Center and Community adjacent to a local airport with at least a 5,000 foot runway to permit military transport of kit homes and disaster housing to needed locations.
Help Depressed Areas – By locating the campus in economically disadvantaged areas, the companies there will become dependent on the local populations for their employee base and the State government incentive programs available in those areas will help the companies to be even more competitive in the industry and better able to provide low income affordable/sustainable housing. By involving the local community colleges and vocational technical schools, specifically designed curricula will turn out students with employable skills that can be immediately applied within the community at good wage levels.
Hire from the Area – By hiring from the community and promoting from within, employees are motivated work a little more, train on their own time, or study a little harder because they will be directly rewarded for their efforts and their promotions will be visible in the community. This is simply a small scale application of the exact process that is successful for creating prosperity in large cities because performance is rewarded. This system does not leave groups of the population out of loop, isolate them, or abandon them without hope. Instead, it enables and rewards those that work to improve their potential and provides the resources and training to accomplish it.
Community Features – Commercially built community enclaves popping up around the country support themes such as Retirement, Old Age, Young Professionals, Golf Clubs, Yacht Clubs, Affordable Housing, Gated security, etc. Communities with these enclaves grow haphazardly with stores, services, and facilities built as the tax base expands. There is not a great deal of family community planning because each builder is focused on getting the profit from only the niche market segment for which they are building.
Self-Supporting environment – The “Terrarium Communities” we are building are self-contained with 2,400 homes of varying styles and values, stores, and services on a park like acreage. By designing the buildings and services for complete family support, they eliminate divisive enclaves and create a truly integrated community where all people, young and old, will want to live together with services for their needs accessible and close by.
Services built-in by the Developer – The master plan provides for water shed, retention ponds, self-contained potable and irrigation water, streets, curbs, gutters, lamplights and other facilities such as bus services run by the community providing service to the Construction Technology Center, to area hospitals, and to shopping areas. Tract housing will be replaced with mixed affordable/sustainable housing in several price ranges so people can move up as their conditions improve.
Facilities Available for Donated Services – In discussing its plan, CBS has received offers from retired doctors, dentists, and other professionals that wanted to become a part of plan for making difference in the community. They wanted to give something back, their abilities. They offered to donate a few days of their time to provide their services and expertise to residents of the community. Hearing this, CBS offered to build the offices and clinics and provide them without cost on a matching value for service basis. Owners Participate – Houses will be semi-finished so that the owners can take pride in completing and decorating themselves. Landscaping trees, shrubs, and flowers, will be provided but will have to be planted by the homeowners. Homeowner associations will create the policies, self-police conformance, and provide grounds maintenance and exterior house upkeep to preserve the community.
Hobbies encouraged – Common car wash areas, a 10-bay car repair garage, wood working shop, and metal working shop, run by skilled tradesmen advisors with full complements of required tools will be available for residents to use instead of trying to do everything at home.
Cradle-to-Grave amenities – Day care centers, churches, community bus services, assisted living, and hospice are designed into the community. Recreation centers, baseball, soccer, football fields, play grounds, walking paths, and family areas are a part of the design. Built into the design are commercial strip malls with a major grocery store anchor, walk-in clinics, dentist offices, and support services required by a community. The living areas could even be gated to control access and egress.
Affordable/sustainable Home Acquisition – The CTC will provide the materials and build homes in the community. These homes are built according to higher standards than existing building codes in Florida in order to provide safety, security, longevity, and highest resale value for the community. But most importantly, to provide a structure that can be privately insured against wind damage. Land for the project will be deeded to the homeowner after a fixed number of years of trouble-free occupation and meeting conditions the association sets up and monitors.
Down Payments Held In Trust – The house lot and common area land ownership will be held in trust and also used as part of the down payment equity in the home until the occupants fulfill their requirements whereupon the lot and common area ownership is deeded over or turned over to them. This is modeled on the Officer Next Door and the Teacher Next Door programs existing at HUD.
Down Payments Deeded Over Based on Performance – The money used to finance the down payments will become the asset of the homeowner provided that the homeowner has maintained standards set by the association. Included in these standards may be such requirements as being drug free, crime free, participating in community activities, good work attendance, good school attendance for the children, and whatever else may be legal, non-discriminatory, and deemed appropriate by CBS and the association.
Achievable Payments – The homeowner only has to qualify for house payments. Interest rate subsidies will be offered by the state government for affordable/sustainable housing; lower utility rates will be offered by the utilities for energy efficient homes; lower insurance rates will be offered by participating insurance companies for wind damage resistant, mold resistant construction; no poisonous chemicals will be sprayed because the homes will be termite and rodent proof. Reducing these costs and applying buy downs and all available government programs will enable monthly mortgage payments of $350 to $550.
Coalition & Team Members – Large builders, material suppliers, State Government, Federal Government, and professional athletes have endorsed the Construction Technology Center, the Terrarium Community Concept, and the new stronger-safer-better construction.
Phase 1 – $160,000,000 loan to acquire the land, get permitting, set up the buildings, bring in the roads, run the utilities, and ramp-up the 100 acre Construction Technology Center, relocate the businesses, open the credit union, set-up the shared office functions, design the curricula, move in the schools, tie the system together, option the community land, land design the layout and facilities for the Terrarium Community. This will take approximately 9 months.
•Phase 2 – $157,965,000 loan immediately after phase 1 or receiving the Phase 2 loan to permit and build the 706 acre community infrastructure, roads, utilities, internet access, communication towers, homes, facilities, and commercial buildings. This will take approximately 16 months.
How the Money is to be Used - Phase 1 puts the infrastructure in place that enables low-cost high-quality homes to be built and the acquisition of the community infrastructure. Phase 2 builds out the community. CBS will buy the land and install all the improvements. CBS’s team (including the 3rd largest builder in the country) will construct all the residential and commercial buildings using the walls and products from the BET. All of the products are sold to the builder and the builder maintains its normal construction profitability.
Construction a Priority with Builders – Economies of scale produce lower cost homes. No profit is given up or compromised to create affordable/sustainable housing, so short cuts and cutting corners will not be required to break even. Because of the need for affordable/sustainable housing, families waiting for these homes, and maintaining normal profitability, building will occur at record pace.
Creating the Down Payment – CBS will rebate about 33% of the selling price as a private buy-down to the home buyer (in trust) for use in the down payment. In addition, CBS will donate the land to the homeowner also for use in the down payment (value about 13% of the selling price). CBS will help to arrange State incentives for the homeowner amounting to about 10% of value of the home and land. By this method, the homeowner will have up to 56% of the home’s appraised value applied as a down payment. This will give the lending institution a 44% loan to appraised value ratio.
Loan to Value Ratio Can be Financed – That ratio will enable the homeowner to borrow commercially, in the open market, at good rates and get a monthly payment, cheaper than rent, which fits the budget and builds equity. Again, existing companies will be able to service the loan applications and secure mortgages maintaining their normal profitability without needing any special qualifications or non-standard plans from the lenders. Both Freddie Mac and Fanny Mae are being apprised of this plan and its wide reaching effects across the country.
Past Conditions – Without the CBS plan, a $20,000 income could only buy a $50,000 home and a $35,000 income could buy a $75,000 home. Neither of which is much of a home. Such homes have been shown to need substantial repairs and upkeep creating further demands on the few available dollars low income families need to subsist. Under the CBS plan, a $20,000 wage earner will be able to buy a home with an appraised value of $100,000 built with superior materials; the $35,000 wage earner will be able to afford a $150,000 CBS home with the same amount of monthly payment that they would spend for a home of half the appraised value.
Construction Technology Center Completion – At the end of phase 1, the campus will be able to provide over 20,000 home exterior walls and roofs each year to the surrounding area. In Florida, this accounts for about 12% market penetration. The panels for those higher cost homes will be at a lower cost and have a superior quality than can be achieved with the existing site-built construction methods in Florida. CBS has designs that make composite walls competitive with standard wood construction. These affordable/sustainable communities can then be located throughout the country, wherever a need exists.
Affordable/sustainable Community Completion – At the end of phase 2, the community will be built up and occupied with people who have been trained and are working at the Construction Technology Center. Students will be enrolled in the training facilities and many of them will be receiving their training because the training is being paid for by businesses on the campus. Training will be directly related to needed job skills. There will be a growing number of service providers and independent businessmen supporting the needs of the campus and the community because there is prosperity in the area and money to spend on ancillary services.
Infrastructure Turned Over – CBS will turn over to the local city management of the roads, water, utilities, and commercial rental properties. The state will get taxes on 2,400 families in each community and from the approximately 3,000 workers newly employed at the BET. The balance of the assets built into the community only will be turned over to the homeowners association. CBS will not keep any of the moneys earmarked for humanitarian purposes except for the land, buildings, machinery, and infrastructure of the CTC that continues on as a viable business entity supplying the needs of construction growth, rebuilding, and retrofitting.
Through the ages, and around the world, governments have been concerned with providing some kind of care for their under privileged populations in their efforts to reduce poverty.
Charles Dickens – A Christmas Carol – The Spirit of Christmas Present 1
CBS’s humanitarian program provides affordable/sustainable housing; weaves in education, training, and self-improvement opportunities for a disadvantaged population by bringing its own set of needs and employment requirements to areas others have abandoned.
For years, taking care of people in their times of need, resulted in a variety of projects such as low income housing projects, food subsidies, skill training programs, and a host of other welfare based programs. Similar plans evolved in most every country with needs far outstripping supplies. These programs had varying degrees of success and seemed to be the best ideas at the time for experiments put into effect by caring people applying their best intentions to eliminate ignorance and want.
The results were that some of these programs did not always achieve their intended results. Housing projects created “projects” with their inerasable stigma. People graduated training schemes with little or no hope of meaningful employment. Colonies of “low income” areas grew up great distances from the available work. Welfare systems provided better for people to not work and have children than area jobs could provide for them with the wages for their work.
Such neighborhoods fostered crime. Residents knew about their crime problems and the identity of the offenders, but couldn’t get remedy until the problems escalated to critical proportions. Businesses fled “core areas” and further isolated the community. Policing methods sometimes contained and concentrated crime in those neighborhoods. Citizens were encouraged to “pull themselves up by their bootstraps,” an impossible task without a living wage, meaningful work, convenient transportation, and local successful role models.
These programs were well intentioned but discontinuous attempts to eliminate problems without regard for the supporting environment. CBS’s co-dependent community concept is a continuous supporting environment that provides meaningful work with a living wage that provides opportunities for advancement within the community to help lift people out of their conditions.
Few of these former social programs had the benefit of a complete vertical integration between business and community. Few could create a viable community with provision from cradle to grave care within the community where residents “desired to live” as opposed to “had to live.” Most programs were add-on attempts to make life a little better in areas where businesses had fled. These attempts are not complete enough to achieve continuous and lasting results. Solid profitable business creates prosperous communities. Business is the dog that wags a tail of prosperity. Poverty is one result of not sharing business prosperity with the community.
George Bernard Shaw – Major Barbara – Act III2.
Co-dependence between company and community creates a self-sufficient symbiotic community. Meaningful long lasting employment is achieved for all members of the community when training programs graduate people that can be immediately employed in the local industry or who start small businesses of services and products needed by the local industry. CBS’s program achieves this and eliminates ignorance, want, and the “crime of poverty” by first providing a large and growing need for employment and then filling the needs of the community with affordable/sustainable housing and a system that works and perpetuates itself.
Without the Construction Technology Center the affordable/sustainable housing and self-sufficient community would not spring up. Without the CTC Terrarium Community concept, what is needed would be left to governments to attempt to provide with more programs addressing the effects. No programs would address the causes of the problems in a way that perpetually sustains the solutions. CBS’s plan does sustain the solution.
The federal government created the Partnership for Advancing Technology in Housing (PATH) to integrate new housing technologies into the housing and construction industry. This public/private initiative was designed to mitigate some of the impacts of federal spending cutbacks. It is suppose to improve the quality, affordability, durability, and energy efficiency of new and existing homes; strengthen the technology infrastructure of the United States; and help create the next generation of American housing. So far it has been a noble project that has not produced wide ranging results.
The PATH partnership aims were to develop approaches, innovative housing components, designs, and production methods that would reduce by 50 percent the time needed to move quality technologies to market. They projected that new technologies would make it possible to produce housing that is affordable/sustainable and attractive.
Affordability - reduce the monthly cost of new housing by 20 percent or more.
•Energy-efficiency and environmental protection - cut the environmental impact and energy use of new housing by 50 percent or more and reduce energy use in at least 15 million existing homes by 30 percent or more.
•Durability - improve durability and reduce maintenance costs by 50 percent.
•Disaster resistance and safety - reduce by at least 10 percent the risk of loss of life, injury, and property destruction from natural hazards and decrease by at least 20 percent residential construction work illnesses and injuries.
PATH identified that projects and materials must address at least one of the following seven areas of interest:
CBS’s products from the Construction Technology Center meet every one of these criteria. Up to now, no other company or plan has been able to integrate, combine, and deliver the effects of these 7 interests. CBS can. Up to now, attempts to improve according to the PATH concept have not improved the conditions of the populace needing affordable/sustainable housing. CBS will. The 7 PATH areas of interest are not unique to America. They are the logical requirements in every country of the world. The only difference between countries is their level of industrialization and available building materials and methods. CBS’s CTC affordable/sustainable community is an exportable concept that will better conditions wherever the plan is put into action.
Offset Program – CBS is also about to make an impact in foreign countries that buy American products. The US Government has a requirement to supply infrastructure and homes in other countries as a result of those countries buying American products. Under this program, when a foreign country buys an aircraft from the United States, the US government offsets the potential loss of jobs in the country buying American goods by “offset programs.”
Offset programs are long-term programs that provide economic development, infrastructure, housing, and other humanitarian projects for the buying country. For example, the offset programs in Poland are set to run for 10 years after Poland purchases American goods. 10 years is the same length of time for offset programs existing in South American and other countries.
Up to now, the main offset program was to set-up maintenance shops to service the American equipment that was sold. There is a real need to provide infrastructure through homebuilding that provides long term sustainable jobs in every country. The fastest and most humanitarian offset program would be to replicate the CBS CTC and Terrarium Community for the countries that have bought American goods. American ingenuity and advanced products could improve homes and home ownership throughout the world.
There is not enough affordable housing and low income housing. Government struggles to get more built, communities fight to keep it out of their area because of the perception that affordable housing will blight their community, increase crime, and lower their property values.
The contra model that has proven to be successful is Habitat for Humanity which depends on donations to buy materials, donated labor, and building materials discounted or supplied at cost.
While the results have been important to individual communities and to the grateful recipient families, the basic requirement for donations, free labor, and supply of subsidized materials without profits in the equations keeps the program from growing exponentially. While it is noble application of all good intentions, it does not fit the model for sustainable growth. Profits and profitable businesses accelerated the industrial revolution. Habitat for Humanity provides a much needed but a relatively small response related to the total 5~7 million homes needed in America.
The path to affordable/sustainable humanitarian housing is to build model communities and, at the same time, provide living wage jobs by making cost effective (lower cost) and needed building products to the construction industry in areas of fastest growth in the United States.
The areas of concentration are the areas of fastest population growth in the United States that account for 55% of all new housing starts are Florida, California, Texas, Georgia, North Carolina, Arizona, Colorado, Illinois, Michigan, and Ohio. These are the areas where panelized house shells are needed, and where the construction industry requires workers. These are areas where people want to live because of the environment or because of jobs.
Our “Terrarium Communities” in these areas, fill these needs for affordable/sustainable housing, living-wages, and advancement opportunity for people while our communities become a source of pride for the people living in them. The communities do not blight the neighborhood, and the hope of the residents for a better life is restored. Improvement becomes achievable and within their grasp.
The National Association of Home Builders (NAHB) estimates that for every $50 increase in the cost of 1,000 board feet of framing lumber, the sales price of a typical new home increases by $1,000, thereby eliminating 378,000 people from homeownership and significantly impacting industry profit margins.
As part of the strategy for dealing with volatile lumber prices and sometimes unpredictable supply, the NAHB contacted over one thousand of the nation’s largest builders urging them to seek out cost effective alternatives to wood framed houses. The plan has been in effect for some time, but has not yet produced significantly measurable results in achieving new home construction under their guidelines.
Shifting to alternative materials such as steel framing has been a challenging undertaking largely because of technical difficulties and engineering requirements. CBS’s engineering team working in conjunction with the third largest builder in America has come up with the cost effective alternatives, advanced materials with cost performance benefits, and developed unique delivery methods that have been well accepted by the major builders.
To make homes truly affordable/sustainable, monthly payments must be reduced and the income required to make those payments must conform to the Fannie Mae and Ginny Mae guidelines. This can be done with the program of subsidies outlined above and by creating a substantially sized credit union at the Construction Technology Center for use by the 3,000 new workers. The credit union provides a basis for participating banks and eliminates the covert redlining practices.
The credit union will also extend, with CBS’s businesses and Fannie May’s assistance a program of housing perquisites for first time buyers that live outside the affordable/sustainable community but who work at the Construction Technology Center. These programs will conform to current business practices as reported by the Society for Human Resource Management.
In areas of rapid growth, there is also rapid acceleration of home prices. The “perks” available from businesses at the CTC to workers living outside the affordable/sustainable community may be in the forms of: forgivable loans forgiven over a fixed number of years, housing grants, moving expenses, and discounts. Restrictions on who can receive such perks may be such things as: Income below a certain level, first home buyers or buyers, who have not owned a home for several years, workers with a set length of acceptable work history, using the money only for down payments, closing costs, or interest rate pay down.
By combining and administering the available buy downs, government programs, and available incentives, affordable payments for a well-built quality home are within the reach of low income families for the first time.
An example of the effect of these subsidies is:
Current Conditions (8.5% 30 Year Conventional P&I Mortgage if credit worthy)
Home Down Amount Monthly Income
Cost Payment Financed Payment Required
50,000 5,000 45,000 346.02 14,880
67,500 6,500 61,000 469.04 19,920
87,500 8,750 78,750 627.45 27,000
100,000 10,000 90,000 692.03 29,400
135,000 13,500 121,500 934.25 40,200
175,000 17,500 157,500 1,211.0652,200
New Plan with subsidies(6.5% 30 Year Subsidized Special Plan P&I Mortgage)*
Home Down Amount Monthly Income
Cost Payment Financed Payment Required
100,000 56,000 (0 from buyer) 44,000 278.11 11,820
135,000 75,600 (0 from buyer) 59,400 375.46 16,200
175,000 98,000 (0 from buyer) 77,000 486.71 21,000
*Based on Fannie Mae guidelines for top and bottom ratio of 28% top debt ratio (house payment/gross monthly income and bottom debt ratio) and 36% of gross monthly income against total household debt plus house payment).
With these subsidies, all the workers living in the community will be able to qualify for home ownership as will a significant percent of low income families.
Our concept is simple:
Create an industrial infrastructure with a sufficient scale to enable low cost production to produce products and systems competitive in the location
•Combine industries that provide the majority of products used in housing in one Construction Technology Center for synergistic cooperation incorporating superior materials that create structures built to a higher standard
•Provide votec and community college training for the workers matched to the needs of the businesses.
•Implement cost saving construction methods to minimize building costs and speed up the building process.
•Involve major builders in the team that are committed to the projects because their profit margins are maintained.
•Involve the government in the projects by administering applying their existing programs.
•Create buy-down incentives for affordable/sustainable housing in the Terrarium Communities through a humanitarian use of funds
•Design and build the community of single, multi-family, and commercial buildings, in multiple price ranges, to support a mixed age and mixed ethnic population at various levels of income.
•Contract services and products from the local community’s evolving small businesses to support and encourage their formation
•Drive the model to success, refine it, and repeat the process in the next area. The tactics are straightforward and are well developed:
100-acres for the Construction Technology Center industries have been identified. The manufacturing companies have agreed to locate on the Campus. Cooperation and synergy between these companies creates a manufacturing capability of over 20,000 homes each year. There are several types of homes being made:
kit homes, disaster relief homes, nesting component homes for rebuilding war-torn areas, low income homes, affordable/sustainable homes, starter homes, mid-high level homes, and high-level homes
oCreate job opportunities require hiring of a totally new workforce of approximately 3,000 employees on the Campus with several hundred additional opportunities for support services and small independent businesses.
oTrain and educate the workforce with necessary and needed skills that are immediately applied at the Campus
Make and install wall panels, (1,750 employees)
oDeliver panels and operate cranes (370 employees)
oMake & install roof trusses and joists (150 employees)
oProvide exterior sheets for walls, roofs, and floors (350 employees)
oWork glass into windows, and build doors (125 employees)
oMake and install insulation (85 employees)
oDesign and build decks and porch enclosures (225 employees) (3,055 total)
Enlist the support of local Community Colleges to supply the teacher base to conduct classes at the training and education building, built on the Construction Technology Center.
oUse local vocational technical schools to help prepare young workers for employment at the Campus by supplying curricula matched to Campus needs.
•Low building costs
Erecting house frames and drying-in homes introduces a complete service and panelization in SW Florida for the first time. This complete service can be applied throughout the United States and used throughout the world.
oThe window of opportunity is open. 40% of all US homes are now built using panels for cost savings, better quality, and faster finishing, but those systems are not complete and installed.
oRaw materials used in the CBS panels are termite proof, rodent proof, mold and mildew resistant, and are certified to withstand 350 miles per hour hurricane and tornado winds. Because of these properties, panelization is possible for the first time in areas where concrete block has been the material of choice.
The 3rd largest builder in America, Centex, has joined us in this effort and optioned to take fixed percentages of production from the Construction Technology Center for their projects and first rights to use the product in other areas of the country where they build. Centex will first build the Affordable/Sustainable community and its infrastructure in every location where this plan goes into effect.
•State Government Involvement
Our team is pursuing 15 separate Florida State Government incentive programs available to us for new employment, locating in zones of high under-employment, and for training workers. The Governor of the State is solidly behind these efforts and is supporting our programs.
•Federal Government Involvement
We have, in-place, a program; paid by the US government, to the nuclear scientists in Russia that diverts their weapons work to R&D deliverables that we specify. The Russians are building a sister production facility and have insisted on the rights to duplicate our manufacturing model, to license the products, and to sell affordable/sustainable homes throughout Russia in order to supply a much needed infrastructure that is now greatly lacking.
oThe total amount of funding for residential R&D in the U.S. is approximately $359 million annually. About 85% of this funding is spent by the private sector, 8% is spent by government agencies, and 7% by universities and nonprofit organizations. Research conducted by construction material and product manufacturers represents the largest share of the private sector investigations.
oBecause of lower Russian salaries, our award of $3.4 million from the US government for use in Russian research and development amounts to an equivalent of $42 million if spent on the same amount of time in the United States. That equivalent spending represents 12% of the total US R&D budget or 14% of the total US R&D budget spent by the private sector. All the grant money is being allocated to further develop and implement this plan.
•Create buy-down incentives for affordable/sustainable housing
Our team formed a coalition of companies to make on-going suggestions to the State that would help mitigate the wind damage underwriting liability and other liabilities. Those recommendations were well received, and will probably be put into effect in the next legislative session. Among the suggestions were incentives for home buyers of affordable/sustainable housing that would subsidize their taxes, insurance, and utility costs. Plans for administering the incentives were also laid out. The suggestions that the coalition made should be thoroughly implemented to become a viable adjunct to the affordable/sustainable program.
•Construct the community to support the industry
Industry, their workers, the city, and the community work together in harmony to influence the size, design, and services that the Terrarium Community wants, builds, and maintains.
•Contract services and products from the community’s small businesses
The companies on the Construction Technology Center utilize outsource services and products first from the local community, then from outside the community, then from outside the state, then from the international markets. This gives priority to and supports independent local businesses.
•Move to International Markets
The Federal government has housing programs falling under the Department of Defense (DOD) and HUD. Our team has begun dialog for supplying products to both Government departments and has completed disaster relief housing in the Dominican Republic. In the Dominican Republic 13 soldiers, unskilled in construction, from the U.S. National Guard of Missouri built a our kit house in 1-day with no prior experience from a single set of plans. We are working with the groups responsible for rebuilding Bosnia and Afghanistan.
oIn international markets, our products are needed in every tropical and sub-tropical area where hurricanes and termites are a problem. Upcoming programs are being discussed in the Caribbean and equatorial countries as well as in other areas.
•Repeat the process in other areas.
Florida, California, Texas, Georgia, North Carolina, Arizona, Colorado, Illinois, Michigan, and Ohio. These states represent 55% of all new homes built in America.
Our Vision is to first provide a stable manufacturing and living environment with management from the private sector and with full participation from residents of the community, working together, to create a desirable affordable/sustainable community.
Our Purpose is to be able to provide a home for everyone who can afford one, to assure that our employees can afford them, and to provide opportunities for our employees to advance themselves.
Our Method is to accelerate and improve upon the Habitat for Humanity model by using the prosperity created by a profitable sustainable industrial base operating on industry standard profit margins. Without the industry in the Construction Technology Center creating the product, the community would not be affordable or sustainable. Without jobs and the Terrarium Community, the under-employed low-skilled population cannot self-sustain themselves.
Our Tactics are to partner with State and Federal Government, large builders, raw material suppliers, community colleges, vocational schools, large insurance companies, utilities, and local businessmen to put us in the forefront creating not only affordable/sustainable housing but also desirable living areas. These activities also require a 501[C](3) not-for-profit entity to administer funds emanating from State and Federal Government programs for disbursement to participants in these projects.
The result will be the creation of a significant asset base, significant new taxable income, and a model to point out with pride to other states needing the same economic boost in areas where a under-employed under-skilled population can live and work close by, earn a living wage, and have opportunities to advance themselves.
1. Charles Dickens– (written December 1843) - A Christmas Carol – the second of the three Spirits. Final minutes with the Ghost of Christmas Present ‘Look here.’ From the foldings of its robe, it brought two children; wretched, abject, frightful, hideous, miserable. They knelt down at its feet, and clung upon the outside of its garment.
‘Oh, Man! Look here. Look, look, down here1’ exclaimed the Ghost.
They were a boy and girl. Yellow, meager, ragged, scowling, wolfish; but prostate, too, in their humility. Where graceful youth should have filled their features out, and touched them with its freshest tints, a stale and shriveled hand, like that of age, had pinched, and twisted them, and pulled them int shreds. Where angles might have sat enthroned, devils lurked, and glared out menacing. No change, no degradation, no perversion of humanity, in any grade, through all the mysteries of wonderful creation, has monsters half so horrible and dread.
Scrooge stared back, appalled. Having them shown to him in this way, he tried to say they were fine children, but the words choked themselves, rather than be parties to a lie of such enormous magnitude.
‘Spirit! Are they yours?’ Scrooge could say no more.
‘They are Man’s,’ said the Spirit, looking down upon them. ‘And they cling to me, appealing from their fathers. This boy is Ignorance. This girl is Want. Beware them both, and all of their degree, but most of all beware this boy, for on his brow I see that written which is Doom, unless the writing be erased. Deny it!’ cried the Spirit, stretching out its hand towards the city. ‘Slander those who tell it ye! Admit it for your factious purposes, and make it worse. And bide the end!’
‘Have they no refuge or resource?’ cried Scrooge.
‘Are there no prisons?’ said the Spirit, turning on him for the last time with his own words. ‘Are there no workhouses?’
The bell struck twelve.
2. George Bernard Shaw – (Play written in 1905) - Major Barbara – Act III - Portraying England in the 1800’s.
The famous passage about poverty in England, the credo of an industrialist who created an ideal city surrounding his profitable manufacturing plant: And his creation of an ideal village where workers could earn a living wage and advance in society. The following exchange between industrialist Andrew Undershaft and his daughter Barbara, a major in the Salvation Army.
UNDERSHAFT: In your shelter, I saw poverty, misery, cold, and hunger. You gave them bread and jam and dreams of heaven. I give from 30 schillings per week to 12,000 a year.
They find their own dreams; but I look after their plumbing.
BARBARA: And their souls?
UNDERSHAFT: I save their souls, just as I saved yours.
BARBARA (revolted). You saved my soul! What do you mean?
UNDERSHAFT: I fed you and clothed you and housed you. I took care that you should have money enough to live handsomely – more than enough, so that you could be wasteful, careless, and generous. That saved your soul from the seven deadly sins!
BARBARA (bewildered): The seven deadly sins!
UNDERSHAFT: Yes, the deadly seven. (Counting on his fingers.) Food, clothing, firing, rent, taxes, respectability, and children. Nothing can lift those seven millstones from Man’s neck but money; and the spirit can not sour until the millstones are lifted. I lifted them from your spirit. I enabled Barbara to become Major Barbara; and I saved her from the crime of poverty.
BARBARA: Do you call poverty a crime?
UNDERSHFT: The worst of crimes. All the other crimes are virtues beside it: all the other dishonors are chivalry itself by comparison. Poverty blights whole cities; spreads horrible pestilences; strikes dead the very soul of all who come within sight, sound, or smell of it. What you call crime is nothing: a murder here and a theft there, a blow now and a curse then: what do they matter? They are only the accidents and illnesses of life: There are not fifty genuine professional criminals in London. But there are millions of poor people, abject people, dirty people, ill fed, ill clothed people. They poison us morally and physically: they kill the happiness of society: they force us to do away with our own liberties and to organize unnatural cruelties for fear they should rise against us and drag us down into their abyss. Only fools fear crime: We all fear poverty!
(Turning on BARBARA)
You talk of your half-starved ruffian in the East End: You accuse me of dragging his soul back to perdition. Well, bring him to me here; and I will drag his soul back again to salvation for you. Not by words and dreams, but by $800 a week, a sound house in a handsome street, and a permanent job. In three weeks he will have a fancy suit; in three months a car and a seat in the chapel; before the end of the year he will shake hands with a duchess at a Urban league meeting and join the conservative party.
BARBARA: And will he be the better for that?
UNDERSHAFT: You know he will, don’t be a hypocrite, Barbara. He will be better fed, better housed, better clothed, better behaved; and his children will be pounds heavier and bigger. That will be better than a mattress in a shelter, chopping firewood, eating bread and jam, and being forced to kneel down from time to time to thank heaven for it; knee drill, I think you call it. It is cheap work converting starving men with a Bible in one hand and a slice of bread in the other. I will undertake to convert the East End to Mohammedanism on the same terms. Try your hand on my men: their souls are hungry because their bodies are full.
BARBARA: And leave the East End to starve?
UNDERSHAFT: (his energetic tone dropping into one of bitter and brooding remembrance): I was an east ender. I moralized and starved until one day I swore that I would be a full-fed free man at all costs—that nothing should stop me except a bullet, reason, nor morals, nor the lives of other men. I said “Thou shalt starve ere I starve”; and with that word I became free and great. I was a dangerous man until I had my will: now I am a useful, beneficent, kindly person. That is the history of most self-made millionaires, I fancy. When it is the history of every Englishman we shall have an England worth living in.
Note: This play was based upon the utopian town created in England by Lord Cadbury, the famous chocolatier. Shaw changed Cadbury in the play into Undershaft and changed the chocolate factory supplying confection into an arms factory supplying munitions with the philosophy as Undershaft himself proclaims “arms to all men who offer an honest price for then, without respect of persons or principles: to aristocrat and republican, to Nihilist and Tsar, to Capitalist and Socialist, to Protestant and Catholic, to burglar and policeman, to black man, white man, and yellow man to all sorts and conditions, all nationalities, all faiths, all follies, all causes and all crimes” Shaw painted Undershaft to make a diametrically opposite industrialist’s view to his daughter’s misguided view of herself as a savior of souls through her charity work in the Salvation Army. Yet, Undershaft reveals a route out of poverty through meaningful and sustainable employment and what happens to men and women gaining self-respect therefrom.
There are forward looking projections in this plan that are based on assumptions of funding, government, and group programs that may or may not occur within the time frame, in the size, magnitude, amount, or in the exact form as conceptualized and outlined by James Antonic herein. Friday May 6, 2005
THIS DOCUMENT IS NOT AN OFFER TO SELL NOR AN OFFER TO SOLICIT THE PURCHASE OF ANY UNITS IN ANY ONE OR ALL OF THE LIMITED LIABILITY COMPANIES IN THE CBS ENTERPRISE GROUP