Builders Patch Digest #2

Want to stay updated on what's happening in the U.S. housing market?

Twice a month, we send curated news about affordable housing, multifamily housing, and proptech to you. Have any suggestions, questions, or feedback? Drop us a line at [email protected]

In today's news...

?? Equibuild: A Strategic Blueprint on Affordable Housing Development for Local Governments

?? by Aaron Laramore ? May 29, 2024

Currently, communities are stuck with LIHTC as the primary source of capital to address affordable housing production. It is a top-down, national, one-size-fits-all financing tool that only builds one type of housing product. In this article, seasoned community development finance professional Aaaron Laramore elaborates on his Equibuild Strategy, which offers a comprehensive blueprint for local governments to address the housing crisis, by focusing on equitable investment financing, affordability by design, and income inclusivity to create sustainable, mixed-income housing solutions.

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?? To Win Over NIMBYs, Build Workforce Housing That Resonates

?? Multi-Housing News ? May 29, 2024

An architect, a developer, and a pro-housing advocate come together to talk about tried and tested strategies to overcome opposition to workforce housing developments.

• Meet Face to Face: Engage directly with community members to address concerns like traffic and infrastructure with empirical data, personalized interactions, and community outreach efforts.?
• Personalize Residents: Describe the residents who will live there in the future in relatable terms, to counteract stereotypes and fears, showing how the new housing will benefit the community.
• Avoid Cookie-Cutter Solutions: Customize the design of housing projects to reflect the local architectural style and address specific community preferences, ensuring developments fit seamlessly into existing neighborhoods.
• Support State Land Use Reform: Advocates like California YIMBY emphasize state-level legislation to override local opposition to multifamily housing. This includes zoning reforms and other regulatory changes to facilitate housing growth and reduce infrastructure costs associated with urban sprawl.
• Consider a Lighter Touch: Light Touch Density (LTD) involves modestly increasing housing density by allowing duplexes, triplexes, and townhouses on single-family parcels. This approach is naturally affordable, helps revitalize areas, and maintains neighborhood character without relying on public subsidies.
• Offer a pared-down project: Simplifying design and construction through modular methods can reduce costs and rents. Projects like Greystar Ltd. utilize uniform design and modular construction to provide affordable workforce housing efficiently, ensuring predictability in rent increases and sustainability in construction practices.

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?? Top Developers Challenged by Headwinds

?? Affordable Housing Finance ? May 24, 2024

Development activity has taken a hit and even the top developers in the country are not immune. In 2023, the developers listed in the AHF Top 50 Developers list initiated construction on 364 projects encompassing 41,535 affordable housing units, reflecting an 8% drop from the previous year. Development costs surged by 21.5%, averaging $402,115 per unit while operating costs rose by 12.2% to $7,232 per unit annually. The industry faced significant financial challenges, delaying 75 projects. Top concerns for 2024 include insurance costs and the reduction of local and state resources.?

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