‘Tiny house’ project is finished in Hot Springs

HOT SPRINGS — Local nonprofit Immigration Arkansas has completed a “tiny house” home construction project, with certificates of occupancy issued for the three Cypress Street units on Feb. 19, potentially paving the way for more affordable housing in Hot Springs.

“The first project we did ourselves as a prototype, to show the city and the community what it is that we would like to do in the future,” said Jacquelynn Cadena, president of the nonprofit.

The 600-square-foot units were financed “out-of-pocket,” Cadena said, as a potential model for affordable housing development in Hot Springs.

The completion of the project comes at a time when other municipalities, including Little Rock, are turning to tiny home construction to address housing affordability challenges in urban communities.

“Our goal is to be able to help not only the local immigrant community, but we found a need for affordable housing. So, we are shifting our focus from not only helping immigrants who have the same issues, but also working with very low-income families that are having problems finding housing in Hot Springs,” she said.

Cadena said she partnered with her building business, Cadena Inc., which has been building the houses on behalf of Immigration Arkansas.

“They’re a licensed homebuilder. And we did build some houses for investors. We made 18 houses on Chelle Street here in Hot Springs. So, that’s kind of what sparked our interest to do more affordable housing, as those 18 houses were done in two years and they sold before we even built them.”

The nonprofit has sought lower-cost vacant land through city and state auctions. “I purchased most of the property … because those properties are sitting there abandoned, and they’re also in impoverished neighborhoods. And the price is very nominal, for us to be able to buy them so that we can afford to put an affordable home on them. So, at the moment I have around 25 available,” she said.

The architectural plans for the tiny houses were developed by Designs by Linda.

The U.S. Department of Housing and Urban Development’s Fair Market Rent Documentation System publishes estimates for the city of Hot Springs. In fiscal year 2024, the fair market rent for an efficiency unit is $767. The 2024 rate for a one-bedroom unit is $775, while for a two-bedroom unit fair market rent is $1,007. The rate for an efficiency unit has risen 18.7% since FY 2023, while for a one-bedroom the FMR rose 15.1% with a 14.5% increase for a two-bedroom.

Cadena put the tiny house project in the context of ongoing shortfalls in the local housing stock. Based on figures provided by the Hot Springs Housing Authority, “there is a shortage of 75 efficiency apartments, 748 one-bedroom apartments, 405 two-bedroom apartments, and 170 three-bedroom apartments in Hot Springs today,” she said.

“There’s just a huge need to provide affordable housing. So, that’s the project that we are focusing on,” Cadena said.