RESPONDING TO CHANGING HOUSEHOLDS: REGULATORY CHALLENGES FOR MICRO-UNITS AND ACCESSORY DWELLING UNITS

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RESPONDING TO CHANGING HOUSEHOLDS: REGULATORY CHALLENGES FOR MICRO-UNITS AND ACCESSORY DWELLING UNITS ROCKY MOUNTAIN LAND USE INSTITUTE ANNUAL CONFERENCE MARCH 14, 2014 John Infranca Assistant Professor, Suffolk University Law School Research Affiliate, Furman Center for Real Estate & Urban Policy

Project Background Furman Center for Real Estate & Urban Policy What Works Collaborative Study Cities Austin Denver New York Seattle Washington, D.C.

Share of U.S. Households Consisting of One Person Living Alone 1940-2010 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 1940 1950 1960 1970 1980 1990 2000 2010

One-person households and high rent burdens One-person household as share of all households Austin Denver New York Seattle Washington, D.C. 2011 (ACS one-year) 34.5% 40.8% 32.6% 40.9% 45.2% Percentage of renters who spend more than 30% of their income on rent 2000 (Census) 2011 (ACS one-year) Austin Denver New York Seattle Washington, D.C. 41.7% 38.6% 40.7% 39.5% 35.2% 50.9% 49.2% 54.5% 48.7% 49.3%

Percentage of Residents over 65 years of age, by city and decade 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 1970 1980 1990 2000 2010

Studio and one-bedroom units and single person households, by city Studio and one-bedroom units Single persons living alone 1,300,360 997,699 95,837109,422 79,72795,985 107,194115,822 121,357 120,902 Austin Denver New York Seattle Washington, D.C.

Studio and one-bedroom units and select household types, by city 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Unrelated adults sharing Couple with no children Single person living alone Studio and one-bedroom units Austin Denver New York Seattle Washington, D.C.

The Answer(s)?

Claimed Goals and Potential Benefits Respond to changing household size and demographics Provide affordable housing Attract/retain young professionals Reduce sprawl Mitigate environmental impact of development Allow seniors to age in place

Micro-unit Development San Francisco Boston Vancouver Washington, D.C. Cleveland Providence, RI Worcester, MA

Accessory Dwelling Unit Development California Ministerial review process Santa Cruz 40-50 permits annually Technical assistance, loans, wage subsidy Waives development fees if affordable Requires owner-occupancy Vancouver, BC Laneway Housing 800 permits issued since 2009 500 built

Santa Cruz, California ADU Manual

Portland, Oregon: ADUs on the rise (Source: Portland Bureau of Planning and Sustainability)

New York City Micro-units adapt NYC 55 modular units; 250-370 square feet ADUs Estimated 114,000 illegal units built between 1990 and 2000

adapt NYC Micro-unit

adapt NYC Micro-unit

adapt NYC Micro-unit

Seattle Micro-units apodments, units as small as 120 square feet Approximately fifty buildings, up to 64 units ADUs Approximately 50 applications annually Annual report by Planning & Development

apodments in Seattle apodments on 12th Avenue and East John Street, Seattle Gina Biber / The Capitol Hill Times

apodments in Seattle

Austin Micro-units Capital Studios - affordable development downtown AIA event on micro-units and affordable housing ADUs Alley Flats Initiative YardHomes Austin Ground lease model; some prefabrication

Austin Alley Flat

Austin Alley Flat

Austin Alley Flat

Regulatory Research Regulatory issues in areas including: State and Local Policy Zoning Building code Occupancy regulations Parking regulation Approval process

Regulatory Challenges Both micro-units and ADUs: Minimum unit size Off-street parking requirements Lot coverage, setbacks, related regulations Financing ADUs: Minimum lot size Capping ADU size based on percentage of main unit Owner occupancy requirement Review process Design requirements

Parking Drives up development costs Financing issues for micro-units Conflict with other regulations Austin impervious surface cap Creative solutions Seattle allows tandem parking and waives requirement if not feasible or parking study indicated adequate on-street capacity

Future Research Questions Affordability/Land Prices Neighborhood effects Transit and car share usage Demographics Parking Energy consumption Financing ADU appraisal Effect of owner-occupancy requirement

Thank You John Infranca Assistant Professor of Law, Suffolk University Law School Research Affiliate, Furman Center for Real Estate and Urban Policy jinfranca@suffolk.edu