Bernards Builders are working hard on Imagine Village II. They have paid off more than 70% of the subcontractors who will be working on our building. This is great news is it means we will not be subject to price increases for those trades. We are watching the cost of lumber carefully as it has been very volatile over the last year and a half.
In terms of work on the site, Bernards is currently working on our building foundation. That includes excavating for the continuous footing and then adding the reinforcement prior to pouring the cement. They are also digging and then forming for the elevator pits. This will be followed by excavating a trench to lay the conduit to bring the electrical and plumbing utilities to the building followed closely by the start of work on the east trash room. This progress is important as it is better to pour concrete before it gets too hot which we know is coming with our summer months.
Sun Commons has been very lucky in terms of being able to get materials when they needed them and not being impacted by the supply chain issues that have hit so many other projects. What we have run into recently is labor issues. For the first time in our project, we were not able to get construction workers in the plaster trade when we needed them which caused a slip in our completion schedule. Bernards believes that their subcontractor will be able to make up the time and will have them work Saturdays to catch up if required. This is something we will continue to watch over the next few months.
Sun Commons had our first accessibility inspection by the Los Angeles Housing Department. They had a few suggestions which our architects and accessibility consultants are working through. This has been an area that has held up some projects from being able to occupy the finished buildings by as much as 4 or 5 months. That is the primary reason why we are constantly checking in with our experts. The lease up of the units to qualified low-income residents determines when the tax credits that provide about 46% of the overall project funding will be earned. This is a very critical issue for Abbey Road and one we watch closely!
We will be sending out the lease up requirements in the next month in the hopes that some of your clients will find more affordable housing options at Sun Commons!
These two developments are in their predevelopment phase. During this time, we entitle the projects and then apply for all of the financing needed to build the buildings. So far both projects have HHH funding through the City of LA and The Rigby looks like it will be awarded funding from the Los Angeles County Development Authority. We have huge funding applications due in late June for State financing through the Department of Housing & Community Development. We are moving these projects forward and expect to be breaking ground on The Rigby toward the end of next year followed 6-10 months later by The Main.
Abbey Road is continuing to look for our next two to three projects as well.