We (my Husband) built a very nice living environment for them - we call it our Coop 'DeVille'.
We first started with sinking pavers into the ground (burying them on their side). Then, we placed pavers flat on top. This deters rodents and pests (and Butter) from digging under it. It also helps give a nice sturdy flat surface to begin the foundation framing.
Framing.
Nest boxes.
Oh sure, Butter. We get you a dog house for Christmas and you want nothing to do with it,
but as soon as we build a chicken coop you're all over it!
Chickens loving their new home!
Just FYI, I found our free Coop plans on this site: http://www.backyardchickens.com/atype/2/Coops