IDEAS TO ACTION: Strategies For Building Missing Middle Housing Locally

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1 IDEAS TO ACTION: Strategies For Building Missing Middle Housing Locally Mark Wyckoff, FAICP, Moderator & Presenter Jim Tischler, AICP, MSHDA Sharon Woods, LandUse/USA Daniel Parolek, AIA, Opticos Design, Inc. Opticos Design, Inc.

2 Agenda Five Missing Middle Design Competition winning designs and illustrating the opportunities they present for Michigan communities Mark (15 minutes) Relationship between changing demographics and growing demand for Missing Middle products as reflected by recent TMAs Sharon (15 minutes) Local zoning barriers and solutions to building Missing Middle Housing Mark (20 minutes) Communities need to think and act like a developer Jim (15 minutes) Color commentary throughout & during Q & A Dan (10 minutes) Audience questions & answers on getting Missing Middle Housing built (15 minutes)

3 What is Missing Middle? Missing Middle was coined by Daniel Parolek of Opticos Design, Inc. in 2010 to define a range of multi unit or clustered housing types compatible in scale with single family homes that help meet the growing demand for walkable urban living. Good article: Missing Middle Housing, Responding to the Demand for Walkable Urban Living by Daniel Parolek; available at

4 The Missing Middle Lower Missing Middle Upper Missing Middle Opticos Design, Inc.

5 Duplexes

6 Mansion Apartment Buildings

7 Courtyard Apartments

8 Townhouses Townhouses

9 Rowhouses

10 Live-Work

11 Live-Work Flexhouse

12 Mixed-Use Buildings

13 Defining Characteristics of Missing Middle Housing from Parolek A walkable context. Medium density but lower perceived densities. Small footprint and blended densities. Smaller, well designed units.

14 Why Missing Middle? Mismatch between current housing stock and shifting demographics combined with growing demand for walkable urban living PLUS need to adaptively reuse buildings or land adjacent to existing single family housing, especially along major urban streets, or on the back side of those blocks. Well designed, simple Missing Middle housing types achieve medium density yields and provide high quality, marketable options between the scales of single family homes and mid rise flats for walkable urban living. They are designed to meet the specific needs of shifting demographics and the new market demand and are a key component to a diverse neighborhood. They are classified as missing because very few of these housing types have been built since the early 1940 s due to regulatory constraints, the shift to auto dependent patterns of development, and the incentivization of single family home ownership.

15 Purpose: Raise Awareness of Missing Middle Housing

16 Competition Sponsors AIA Michigan Michigan State Housing Development Authority (MSHDA) (prize $) Michigan State University Land Policy Institute (MSU LPI) Michigan Chapter of the Congress for the New Urbanism (MiCNU) Michigan Municipal League (MML) Michigan Association of Planning (MAP) Michigan Historic Preservation Network (MHPN) Habitat for Humanity of Michigan Community Economic Development Association of Michigan (CEDAM)

17 Judges Doug Farr Architect, Urban Planner & Author, Farr Associates Chicago (Could not attend) Dan Parolek Architect & founder of Missing Middle movement, Opticos Design, Berkeley, CA (Could not attend) Mark Nickita Architect & Urbanist, Archive Design Studio, Detroit & Toronto Luke Forrest Program Manager & Planner, MML Amanda Harrel Seyburn Project Designer, Urban Designer, Sedgewick & Ferweda Architects, Flint Jim Tischler Director of Community Development, MSHDA Mark Wyckoff Professor, Senior Associate Director, MSU LPI Dennis King, Public Policy Director, AIA Michigan, served as the Competition Adviser and Facilitator

18 1 st Place Award Niko Tiula of Tiula Architects LLC, El Paso TX & Helsinki, FN $10,000 Jury noted this was an outstanding overall design solution, with excellent flexibility and scalability, and adaptable to almost any existing community environment a very marketable solution

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21 2 nd Place Award Mark Farlow, Amy Chesterton, & Corrisa Leveille; Hamilton Anderson Assoc., Detroit $5,000 Jury noted the comprehensive and well done presentation demonstrating a thorough understanding of the challenge

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24 3 rd Place Award, Jennifer Settle, Brian Settle, Chicago, IL $2,000 Jury noted sensitive design of courtyard concept particularly that project could be viable as phased implementation

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27 4 th Place Award, Brandon Clear Berrien Springs, MI (now DC) $1,000 Jury noted the well executed bungalow court concept

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30 Honorable Mention Sang Oh Choo, d studio Architecture PC, NY Jury noted the innovative stacked modular concept

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33 Who Wants to Live in Missing Middle Housing? From a Strategic Placemaking standpoint, we want to target talented workers because we know many like Missing Middle Housing types; and talented workers are mobile and can live where they want So, who are the Target Households? Younger Singles & Couples? Empty Nesters & Retirees? What are their Housing Preferences? Rental Lofts/Apartments? For Sale Lofts/Apartments? For Sale Townhouses/Rowhouses? For Sale Live Work Units? Demographic trends give us a general idea But, Target Market Analysis can help us find out with more precision, and it is not the same in every market.

34 I.1.E American Community Preference Survey Public preferences: 47% prefer to live in a city or a suburban neighborhood with a mix of houses, shops, and businesses. 88% say neighborhood is a bigger consideration than house size, and Public schools, sidewalks, or places to take walks are top community characteristics wanted. Belden, Russonello & Stewart, LLC. The 2011 Community Preference Survey: What Americans are looking for when deciding where to live, commissioned by the National Association of Realtors, March, 2011.

35 I.1.E. 35 wikimedia MML By the Numbers 88% of Millennials want to live in traditional neighborhoods, downtowns, and urban core places 72% of households will be without children by 2025 Historicmonroe.org National Association of Realtors Survey

36 36 Michigan s Divergence Households MI US Empty Nesters/ Retirees 53% 46% Families 29% 30% Younger Singles/Couples 18% 24%

37 I.1.E. TMA Approach to Residential Market Analysis Measures market potential, not market demand. Studies done in other U.S. cities have proved accurate if not too conservative and opened up new markets that were previously unmet. Their analyses follow the place type transect.

38 Market Knowledge Market Demand Sharon M. Woods, CRE Counselor of Real Estate

39 Target Market Analysis Guidelines 1. MIGRATION and MOVERSHIP RATES Intercepting households who are on the move (versus residents already established in the market and not moving) 2. LIFESTYLE CLUSTERS and TARGET MARKETS Identifying their lifestyle preferences, particularly for housing formats in urban places. 3. DOWNTOWNS, URBAN DISTRICTS, CORRIDORS Street Grid + Compact + Sense of Place + Downtown District Follows the place types of the Urban Transect. 4. HISTORIC PRESERVATION and ADAPTIVE REUSE Reuse of existing infrastructure, and particularly vacant hotels, theaters, schools, churches, city halls, warehouses, etc.

40 Target Market Analysis Guidelines 5. UNIT FORMATS and AMENITIES with examples to guide the planning process (not just prices, rents, and square foot ranges) 6. DETACHED HOUSES Rehabs of existing houses; subdividing mansion style houses into duplexes and triplexes; conversion of owner occupied to renteroccupied; new builds of cottages with shared courtyards; new builds of accessory dwelling units. 7. ATTACHED UNITS Duplexes, triplexes, fourplexes, townhouses, other multi plexes, row houses, townhouses, condominiums, mid rises, flats and lofts.

41 41 Lifestyles: Generational Shifts

42 Urban v. Rural Mosaic URBAN RURAL Mosaic USA Segmentation

43 Urban v. Rural Mosaic RURAL URBAN

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46 Southwest Detroit Study Area

47 Primary Target Markets

48 Diversity of Building Formats

49 18 Cities in Michigan

50 The City of Detroit

51 The City of Flint

52 Local Zoning Barriers & Solutions Back to Mark (20 min)

53 Some of the Barriers 1. Communities have limited Master Plans, outdated Zoning Ordinances and cumbersome processes that prevent quality development and result in missed opportunities. 2. They do so by under regulation and by overregulation. 3. They don t accommodate new development that the community often wants and needs. 4. They unwittingly get the kind of development that prevents the community from being globally competitive for talent, and quality jobs.

54 Problem 1 (a): Limited Master Plans Most Master Plans are old or outdated Not based on contemporary analysis of demographic changes or informed by recent market trends Focus primarily on land use and infrastructure and Fail to consider urban form and value of amenities (parks, trails, entertainment venues, well equipped public spaces, good transit, etc.) Have no section on Placemaking or housing types (especially Missing Middle) Have no section on priorities for public investments Have no clear guidance on Plan Implementation

55 Problem 1 (b): Outdated Zoning Ordinances Most Zoning Ordinances are older and more outdated than Master Plans Most still have a strong Euclidean influence (stacking of uses) Few pay attention to Form and don t permit MM housing Most cater to cars and not people, and require excessive parking Most limit density and mixed use in locations where they should be the highest Most permit by right, suburban development forms in downtowns and along key corridors which kill walkability and the ability to densify Most require by special use permit or other special approval, contemporary development forms that add interest to urban places Most make it difficult to build downtown and easy to build at the periphery of town Most are not sensitive to the time it takes to get through development review and approval

56 Problem 1 (c): Cumbersome Processes That Prevent Quality Development Review procedures that take a long time, are a disincentive for that type of development ever taking place Review procedures that require a lot of public review are a disincentive for that type of development ever taking place Review procedures that use sequential, instead of parallel review procedures take much longer review times

57 Problem 2 (a): Under Regulation Regulations in Downtowns and key commercial corridors that allow suburban style development with parking in front as a use by right Regulations in Downtowns and key commercial corridors that allow one story buildings (instead of requiring 2 3 stories) Regulations that permit adult uses, pawn shops, liquor stores and party stores downtown as by right uses

58 Problem 2 (b): Over Regulation Regulations Downtown that require on site parking Regulations Downtown that require PUDs for mixed use buildings Regulations Downtown that prohibit on sidewalk dining, street performers, bicycle parking, angle parking, or sandwich signs Regulations that do not permit missing middle housing, by only permitting single family homes, duplexes and garden apartments

59 Problem 3: Result is Low Quality Development or No Development Communities accept any development that comes along Buildings with long economic lives, a lot of character and adaptable to many different uses are replaced with comparatively cheap buildings with short economic lives and little adaptability to other uses A vacant lot in a downtown full of 2 4 story buildings gets a one story building A key corridor or node gets a cement block or steel siding dollar store or a fast food restaurant with parking in the front An historic building with character gets torn down for one of the above

60 Problem 4: Communities Aren t Globally Attractive to Talented Workers Talented workers have skills that are in high demand. Many can live anywhere they want. They will not choose your city or village unless it is a high quality place with a lot of amenities. Jobs increasingly locate where there are an abundance of talented workers. Strategic Placemaking is essential.

61 Every Community Wants to Keep its Youth, But Communities are Driving them Away Todays Millennials want quality places to live, with lots of amenities and things to do FIRST. They go to quality places and then look for jobs. People in many other age cohorts also want these things, and when they are present, everyone benefits and talent starts to aggregate, attracting new businesses and jobs. The high quality Place has to come first!

62 Placemaking to Create Quality Places is Essential Placemaking is the process of creating quality places where people want to live, work, play, shop, learn and visit. There need to be several of these in each region. Each community has be an authentic place, that builds on its unique assets, and it must understand its role within the region. Creating quality places is a constant process of Placemaking, that focuses on public spaces and the interface of private spaces with public spaces (building facades, setbacks, height and parking especially).

63 What Developers Want All Developers Predictability Clear community vision for the area they are interested in Clear development regulations Development by right with few special approval procedures Reasonable Time Frames for Review and Approval Best Developers Evidence of Master Plans with broad stakeholder engagement and support Evidence the Planning Commission and Council are on the same page Evidence the community supports quality development Evidence the community will get approvals right, but in a reasonable time A real partnership

64 What Communities Must Ensure Quality new development in conformance with Plans and Regulations Minimize negative impacts on adjoining property Concerns of disadvantaged persons are adequately considered Both of the above require BEFOREHAND: Engaged citizenry and businesses with basic knowledge of planning and zoning Broad stakeholder involvement in creation and updating of Plans and Regulations Well trained and coordinated staff, planning commission and council

65 Where to Target Centers: the Downtown Key Nodes: major transit stops; transportation junctions Key Corridors: linking important destinations (such as anchor institutions)

66 Five Essential Principles 1. Community must put people ahead of cars downtown, at key nodes and along key corridors human scale design a. Community must be walkable (complete and safe sidewalk system) b. Community must be bikeable (complete and safe bicycle system; slow, with parking) 2. Increase residential density downtown, at key nodes and along key corridors 3. Must allow mixed uses Downtown, at key nodes and along key corridors a. Retail and personal service on first floor, second and third floor residential; office on second floor if building is 4+ stories b. No on site parking requirement c. Encourage mixed income units 4. Put Building Form over Use when it comes to regulation outside of Single Family Res. a. Allow no one story buildings downtowns or at key nodes and probably not along key corridors b. No parking in front of buildings 5. If over 5,000 population, must have fixed route transit from downtown to key locations, unless everything is compact

67 Fix the Lack of Supporting Infrastructure Missing infrastructure that can support density and mix of uses Sidewalks Rapid transit Pedestrian friendly roads National Center for Biking and Walking National Center for Biking and Walking Schindler Schindler

68 Plans, Zoning, & Review Processes Must Be Adequate So if Master Plans, Zoning and Development Review Processes do not address the issues raised above, it will be very difficult to attract and retain quality development or skilled workers. What tools are available to help achieve this goal?

69 Main Street Program Will Help The Main Street Four Point Approach is a community driven, comprehensive strategy that encourages economic development through historic preservation in ways that are appropriate for today s marketplace. The four points include: Design: Enhancing the downtown s physical environment by capitalizing on its best assets including historic buildings, and creating an inviting atmosphere through attractive window displays, parking areas, building improvements, streetscapes and landscaping. Economic Restructuring: Strengthening a community s existing economic base while also expanding and diversifying it. Promotion: Marketing a downtown s unique characteristics to residents, visitors, investors and business owners. Organization: Involving all of the community's stakeholders, getting everyone working toward a common goal and driving the volunteer based Main Street program.

70 Redevelopment Ready Communities Will Help The Redevelopment Ready Communities (RRC) Program is a state wide certification program that supports communities to become development ready and competitive in today s economy. It encourages communities to adopt innovative redevelopment strategies and efficient processes which build confidence among businesses and developers. Through the RRC program, local municipalities receive assistance in establishing a solid foundation for development to occur in their communities making them more attractive for investments that create places where people want to live, work and play. Once engaged in the program, communities commit to improving their redevelopment readiness by undergoing a rigorous assessment, and then work to achieve a set of criteria laid out in the RRC Best Practices. The six RRC Best Practices are: Community Plans and Public Outreach Zoning Regulations Development Review Process Recruitment and Education Redevelopment Ready Sites Community Prosperity

71 New Placemaking Guidebook Placemaking as an Economic Development Tool Available in November through MSU Land Policy Institute

72 Next: Implementation Jim Tischler, AICP Director Community Development Michigan State Housing Development Authority (15 min)

73 MIPlace Components Policy Implementation Education & Training Placemaking Curriculum

74 Development Planning OR Planning for Development

75 Think/Act Like a Developer Understand Real Estate Development Model(s) Understand Redevelopment Complexities Market Based Diligence Be Development Ready

76 Key Real Estate Development Elements Land & Sites Market Knowledge Product Availability

77 Think/Act Like a Developer What do Communities have? Land & Sites

78 Think/Act Like a Developer What do Communities (often) NOT have? Market Knowledge Product Availability

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80 What s Your Goal? Economic Prosperity Talent Retention & Attraction Increased Property Values Increased Number of Businesses Economically Sustainable Social Ecological Health Prosperity, too

81 How is that Achieved? Transforming and Refining Built Environment Respond to Market Demand Denser, Walkable Areas Unique Businesses 1,000 Nights Efficient Use of Municipal Infrastructure

82 What are the Ingredients? Site Control or Ownership Flow Knowledgeable Investors and Developers Supportive Local & State Government Favorable Economics Efficient Delivery of Process

83 Successful Development (is the result of) Successful Pre Development (is the result of) Successful Planning

84 Steve Price of Urban Advantage

85 Steve Price of Urban Advantage

86 Steve Price of Urban Advantage

87 Steve Price of Urban Advantage

88 88 Business-Talent-Place Relationship 60 70% 30 40% Business needs Talent / Talent wants Place / Place needs Businesses

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93 Development Task line

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97 Making It Work Attitude(s) & Relationships The Basics Local Plan(s) & Processes Market Based Postioning & Disposition Project Solicitation

98 Engaging the Developer(s) Come One / Come All (PD) Open Advertisement Pre Screen Target Party and Process (DP) Pre Screen for Preferred Status Specializations? Directly Solicit

99 99 Engaging the Bankers Show them the changing demographic data Show them the market data from TMA Take them on a tour of successful local projects in your town and nearby towns Show them the long term ROI Get them to talk to successful developers of Missing Middle Housing Show them the link between housing to attract and retain talent and economic growth in the region

100 Questions & Answers 100

101 For More Information