Rebuilding the Gulf Coast

On August 28, 2005, Hurricane Katrina slammed into the Gulf Coast region of the United States. The storm devastated the entire area, killing 1,570 people and dramatically impacting the lives of thousands more throughout the region and across the country. In the wake of the storm, adequate shelter continues to be most important need for area residents and those hoping to someday return. In an area with such a rich architectural and cultural history, simply building homes isn’t enough. Residents, builders and developers want new architecture to reflect the historical significance of the region. Fortunately, Palm Harbor was already involved in several projects designing homes for New Orleans when Katrina hit.

Palm Harbor VP of Product Design and Development, Tony Lucas, explains. “Before Katrina, we were asked to put together plans for New Orleans’ Garden District to emulate pre-existing homes. In studying the area, I found a predominance of Acadian (Cajun), Creole and French Creole architecture. I began developing floor plans and elevations that would blend well with existing architecture by featuring these styles.”

Perfectly Positioned to Help

The timing of the storm put Palm Harbor Homes in a unique position. The pre-Katrina New Orleans projects provided a head start toward delivering homes that excite residents and builders. And though the team didn’t know it at the time, it also provided an opportunity to study the landscape prior to Katrina.

Palm Harbor Sales Manager Charlie Hill recalls the months following the storm. “We spent a lot of time talking to builders and homebuyers in the region after the storm hit. These discussions provided a strong understanding of expectations regarding floor plan size, layout, architectural style, specs and price. We were able to mesh our own experience with the expectations of builders and homebuyers. The result is a unique product offering that addresses the specific wants and needs of the region.”

Mississippi Recovery Expo

Palm Harbor showcased two of the designs, “The Magnolia” and “The Azalea,” at Mississippi Governor Hailey Barbour’s Recovery Expo in Biloxi. This free, convention-style event welcomed the general public to enjoy a wide range of information, demonstrations and exhibits regarding every aspect of the rebuilding and renewal effort in Mississippi. Outside the convention center, Palm Harbor set the two new homes in a landscaped “neighborhood” featuring more than 20 manufactured, modular and steel-framed homes.

“The Magnolia” is a mid-size 3 bedroom, 2 bath home set on stilts. The traditional center isle home’s design allows gentle coastal breezes to flow through its living areas. It also includes full porches front and rear. “The Azalea” is a “shotgun-style” home well suited for bayou or city infill lots. It includes a full front porch. Both homes include high-end features such as name brand appliances and ceramic tile. As a result, they are well suited to serve temporarily during rebuild and long-term as a guest cottage. These homes also serve well as permanent housing, as they include quality features and designs typically seen only in custom site built homes.

Response to the homes has been overwhelmingly positive. Palm Harbor President of Manufacturing Woody Bell recalls the first customers to tour “The Azalea.”

“The first couple to tour the home actually approached us the day before the show started. They had lost their home to Katrina and had nothing left but a concrete slab. To make a long story short, they were so impressed with “The Azalea,” they wanted to buy the home on the spot. This is the kind of response these new designs generate.”

According to Steve Reyenga, Palm Harbor VP of Marketing, most other companies have been showing their usual fare. Palm Harbor offers homes that bring back the historical landscape of the Gulf Coast. Our designs excite builders and residents. As a result, we’re putting more houses on the ground.”

To date, Palm Harbor has worked with about a dozen builders in the area and currently has deposits and/or orders from eight more. As demand continues to rise, Palm Harbor is positioned to fill orders with limited wait time. Four Palm Harbor building centers build the new plans, providing the ability to deliver homes quickly throughout the region.

By using existing Discovery Custom Home products to develop these new homes, Palm Harbor kept development times short and prices relatively low. But in an area so completely devastated, having the right product is just one part of the equation.

Manufactured Housing: The Practical Solution

Using traditional construction methods, builders in the region simply can’t hire enough labor to get the job done. As a result, many homeowners face rebuilding times of a year or more. Palm Harbor’s solution to the labor shortage is simple: Build the homes off-site and truck them in. With manufactured housing, builders have minimal work on-site. They can hire smaller crews and put more houses on the ground in far less time than building the entire house at the job site. Many in the area see manufactured housing as an important part of the solution to the area’s housing shortage problem.

According to a recent article in the Wall Street Journal, state and local officials hope thousands of manufactured homes will be placed in the region over the next few years. As a timely, affordable option, manufactured housing is sure to play a large part in the rebuilding efforts.

Of course, preparing the area for rebuilding has taken some time. Just removing the debris from the storm proved to be an enormous task. But progress is being made.

Mr. Reyenga assesses the situation. “We’re finally starting to see some momentum in the rebuilding effort. Building permits are being issued. We’ve been able to see permanent modular homes actually being built. With the Go Zone initiative moving forward, business is returning to the region. Palm Harbor has a tremendous opportunity to help in the rebuilding effort.”

The Gulf Opportunity (“GO”) Zone initiative seeks to lure businesses back to the region by offering sizable tax incentives. As business continues to increase in the area, people are returning in large numbers. In fact, the six coastal counties that make up the Mississippi Gulf Coast are at 98% of their pre-Katrina population as of July 25, 2006. A high percentage of residents are still in temporary housing.

Habitat for Humanity and the Archdiocese of New Orleans

Palm Harbor Homes continues to work with a number of charitable organizations in the region, including Habitat for Humanity International and the Archdiocese of New Orleans. Palm Harbor’s building process is a welcomed change for these organizations.

Howard Broughton, Palm Harbor VP of Sales, explains. “Habitat for Humanity has built 250 homes in the region since Katrina hit. Their volunteer base is tired and they need a new process. Manufactured housing presents an excellent opportunity for Habitat to build more homes and help more people, even with a shrinking and tired volunteer base.”

Habitat’s Operation Home Delivery project is a huge national program to help provide new homes to Gulf Coast families. Palm Harbor is participating in the Operation Home Delivery program through Habitat affiliates in several counties, building homes for economically disadvantaged families who lost everything in the storm and the floods that followed. Current plans call for the first Palm Harbor homes to be built in the fall of 2006.

A number of Palm Harbor homes have also been placed in New Orleans through humanitarian programs run by the local Archdiocese. In fact, through this program, Palm Harbor is the only manufactured housing company to have five consecutive houses set-up in New Orleans. The Archdiocese has expressed overwhelming satisfaction with the quality and ease of building Palm Harbor homes.

The Future

As the rebuilding effort continues, Palm Harbor Homes will continue to seek new opportunities to deliver high quality affordable homes to Gulf Coast residents. Whether through charitable organizations, federally funded programs or local builders looking to offer the best homes at the best price, our homes continue to provide a high quality, affordable lifestyle for area residents to rebuild their lives and their heritage.

Tags: affordable, charitable organization, Gulf Coast, Hurricane Katrina, manufactured home, modular home, Our Development Projects, quality, rebuild, recovery, volunteer