Urban Planning Partners engages community to develop housing solutions in Oakland
By Annelise Osterberg, Housing Policy Intern
Across California cities are in desperate need of new policy solutions to address the housing crisis. Urban Planning Partners (UPP) is excited to be expanding its housing policy expertise through several Metropolitan Transportation Commission (MTC) funded projects that are helping the City of Oakland update its housing policies, practices, and programs. Meredith Rupp, Associate Planner, is leading the two projects for which we are conducting community and analytics research, making actionable recommendations, and implementing solutions to expand the development of Accessory Dwelling Units (ADUs) and increase the use of cost-saving innovative construction methods. The projects are designed to expand the availability of affordable housing, reduce displacement risks, and help stabilize diverse Oakland neighborhoods.
Comparison of parcels in zoning districts that allow single-family dwellings to parcels in these zones that are developed with single-family homes and are not located on narrow roads, on dead-end streets, or a high fire severity area. Parcels that were removed are unable to build a Category Two ADU.
How Can We Build More ADUs?
UPP is working in collaboration with MTC on the ADU Initiative to identify and address barriers to ADU construction, sometimes referred to as in-law units or backyard cottages. We are combining stakeholder engagement and data analysis to understand barriers that are preventing Oakland homeowners from constructing ADUs. UPP has already received over 650 responses on a citywide survey for homeowners, engaged community members at farmers markets and BART stations, and held numerous focus groups and interviews with stakeholders. Other research efforts include:
Geospatial analysis to identify where ADUs are being built and where they could be built given the current regulatory landscape;
Analysis of U.S. Census data to assess potential demand for ADUs among Oakland homeowners; and
Comparison of Redfin sales listings and City permit data to assess the prevalence of unpermitted ADUs.
Upon completion of our research, engagement, and analytics processes, UPP will present policy recommendations to the City of Oakland’s Mayor’s Office for increasing ADU production and reducing institutional barriers to ADU construction. UPP will also help implement the identified policy solutions and raise awareness among Oakland homeowners of new ADU programs and resources.
One thing we have learned so far is that the average detached ADU (i.e., new construction) in the Bay Area costs between $120,000 and $600,000 to build, but ADU financing is uncommon and largely unchartered by institutional lenders. Most large lenders do not allow future rental income from the ADU to be considered towards the home value. ADU financing is a large barrier that needs to be a part of the solutions the UPP team identifies and implements. In addition to financing, the permitting process is one of the biggest barriers’ homeowners face. Many reported confusion about how to start the process and frustration over receiving conflicting information. Part of our policy and process solutions will need to address these frustrations with clear and consistent information and exploring the possibility of providing more upfront guidance to homeowners.
“Cities throughout California need to think creatively to address the housing crisis and support long-time culturally and economically diverse residents. It is great working with the City of Oakland and MTC to dig into these important questions and we hope Oakland’s solutions can serve as a model for other jurisdictions in the region.”
A top priority for UPP, MTC, and the City of Oakland is to address inequity in ADU development. We are researching barriers that may be unique to low- and moderate-income homeowners, and identifying policy solutions that will ensure all Oakland homeowners can build and benefit from ADUs. Currently, ADUs are disproportionately owned by wealthier and whiter households, (one ADU builder reported that 92 percent of his clients did not apply for any financing to build their ADU). By applying an equity lens to the project, UPP hopes ADU policies, procedures, and practices will reduce, rather than compound, racial disparities and economic inequality in Oakland neighborhoods.
A top priority for UPP, MTC, and the City of Oakland is to address inequity in ADU development. We are researching barriers that may be unique to low- and moderate-income homeowners, and identifying policy solutions that will ensure all Oakland homeowners can build and benefit from ADUs. Currently, ADUs are disproportionately owned by wealthier and whiter households, (one ADU builder reported that 92 percent of his clients did not apply for any financing to build their ADU). By applying an equity lens to the project, UPP hopes ADU policies, procedures, and practices will reduce, rather than compound, racial disparities and economic inequality in Oakland neighborhoods.
A modular housing factory in the Bay Area. Source: Urban Planning Partners, 2019.
Is the Future of Housing Construction Already Here?
We are also working on the Construction Innovation project with MTC to understand the barriers to widespread use of cost-saving, innovative construction methods. UPP wants to answer the question: If innovative construction practices and construction materials, including factory-built housing, 3-D printing, container architecture, tiny homes, mass timber, are cost-effective, why aren’t more developers and builders using them? The goal of the project is to make housing production easier and cheaper by expanding the use of new construction techniques that can lower construction costs and streamline development. One particular objective is to ensure that developers of all sizes and scales can use and benefit from these new forms of construction technology.
As part of this project, UPP distributed a survey for development professionals, held multiple focus groups with industry leaders who use both innovative and traditional construction methods, and visited innovative housing construction factories. After completing stakeholder engagement, UPP will work to identify a set of policy solutions to improve the City’s planning and building processes and make the City more innovation friendly.
Making Sense of New State Housing Policies
UPP is developing a robust set of interactive resources on recent State housing policy changes. This includes a database of all housing bills passed or proposed in the last three years as well as detailed written overviews of key pieces of legislation. This database enables us to advise our clients on how housing legislation could affect their projects. As contract planners, we understand the permitting requirements and legal obligations we have to process housing development applications and advise the cities we work with on the interpretation of Density Bonus Law, Fair Housing Act compliance, and other legal matters. For housing developer clients, we navigate entitlements processes and utilize legislation to help projects get more quickly and cost effectively.
At UPP we know the housing policy landscape is rapidly changing in California, and we are committed to being at the forefront of policy changes to address the housing crisis. The UPP team is excited to contribute to these major efforts with MTC to identify issues and implement solutions to the housing crisis in Oakland, the greater Bay Area, and beyond.