Hurricane Maria devastated Puerto Rico in September 2017, causing an estimated $91.6 billion in damages. Ravaged by the storm, the island is still being rebuilt. Looking to bring an innovative solution to citizens, SG Blocks (NASDAQ:SGBX) has teamed up with the community development financial institution Capital Plus Financial (CPF) to provide affordable housing to low and moderate income households. CPF is a unit of Crossroads Systems (OTCPK:CRSS). SG Box specializes in transforming code engineered shipping containers into functional structures that exceed most building code requirements.
SG Blocks customers have included Starbucks, Marriott, Taco Bell, Aman, Equinox and several branches of the U.S. military.
The plan is to initially develop a 50-unit project in Puerto Rico, employing local workers to finsish and install the container homes. CPF intends to provide 50-year mortgages to Puerto Ricans, making the house payment on par with a car payment and affordable to most people. Sustainable and resilient, the structures are designed to last 80-plus years, while providing additional benefits to homes constantly exposed to natural disasters. "Our product is targeted to giving families a safe haven that is stronger, longer lasting and more affordable than the alternatives in the market today," said Paul Galvin, SG Blocks Chairman and Chief Executive Officer, in a statement on the new agreement today.
CPF hopes that its initiatives will provide potential buyers that are often ostracized from the market due to lack of credit history with the opportunity to be a home owner. Management says that the synergies between the two companies were immediately recognized to create a scaleable solution catering to a grossly underserved market while helping rebuild the archipelago.
Shares of SGBX are trading ahead 8.8% at $3.81 in Monday morning trading while shares of CRSS at flat at $7.00.
