New ULI Report Presents New Vision for Infrastructure & Housing Investment

By Michael A. Spotts

On September 29, 2021 the Urban Land Institute Terwilliger Center for Housing and Curtis Infrastructure Initiative released a report on equitable investment in infrastructure and housing, informed by the 2021 ULI Shaw Symposium. The Shaw Symposium is an annual forum endowed by former ULI chairman Charles “Charlie” H. Shaw that brings together a selection of leading national experts and practitioners to address the challenges and opportunities of urban neighborhoods. The 2021 virtual event focused on the nexus of infrastructure, housing, and equity.

As the United States begins to emerge from a tumultuous year, Congress debates a series of infrastructure packages, and communities increasingly shift their focus to recovery, it is important to look to the future informed by the knowledge of the past. Many of the challenges facing today’s cities and neighborhoods are linked to the decisions made decades ago. These decisions include positive, transformational investments in transit, parks, and other community assets that have been critical to restoring urban vibrancy. However, they also include the disastrous legacy of redlining, segregation, and the intentional dismantling of neighborhoods—all of which have produced generational harm for minority households and Black families in particular. A new, more equitable approach to regional planning and investment is critical, not only because it is morally just, but also because it is a key aspect of economic growth and opportunity.  As such, a distinguished group of 2021 Shaw Symposium attendees elevated leading practices that have informed this summary report, which includes high-level recommendations and a framework to assist local communities in designing and implementing infrastructure investments.

The ten key takeaways from the summary report include:

  • Prior models of planning, financing, building, and maintaining the core components of our communities had fundamental flaws;

  • There is a need for repair in our built environment, focusing both on the physical elements as well as restorative equity;

  • The status quo model of housing and infrastructure investment must evolve to meet new challenges;

  • The concept of infrastructure is evolving and full spectrum housing opportunities are a necessary component of a modern infrastructure strategy;

  • The different elements of the built environment should be viewed as interconnected systems;

  • Adaptation and resilience are critical components of future systems;

  • The future of many regions and communities strongly resembles our cities of the past;

  • Suburban areas can and should become more equitable and sustainable;

  • The scale of the intervention needs to meet the scale of the challenge; and

  • The time for action is now.

Arlington’s Role in Addressing the Washington Region’s Missing Middle Housing Challenges

By Michael A. Spotts

On May 12, 2021, I had the opportunity to join Arlington’s Committee of 100 discussion on Missing Middle housing. In this post, I am sharing and expanding upon my presentation and discussing why Arlington should lead on missing middle housing from the perspectives of infrastructure expenditures/efficiency, housing need and affordability, and environmentalism (view the video of the full Committee of 100 presentation). Several graphics included were produced by the Alliance for Housing Solutions.

Comments on Supporting Housing for Older Adults and Persons with Disabilities in Arlington

Comments below submitted by Michael A. Spotts to Arlington County as part of its five-year review of the Affordable Housing Master Plan:

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Thank you for the opportunity to provide comments on expanding housing opportunities for seniors and persons with disabilities (Objectives 2.4 & 2.5). Households that are in one or both of these groups are not a monolith and have a wide range of preferences in terms of housing and neighborhood types, as well as a wide range of needs in terms of home, health and community supports. In my research (which has included a study on senior housing needs in Montgomery County and housing for seniors and persons with disabilities as part of the Howard County, MD overall housing plan), I’ve found that there is a strong preference for “aging-in-place,” and/or living in the most integrated living environment as possible (in the context of non-senior households with disabilities). However, what actually constitutes those circumstances can vary significantly. For some, it means modifications to their existing homes. For others it means being able to move/downsize but stay in their current neighborhood. For still others, it may mean living in a purpose-specific community (such as an age-restricted or supportive housing community) that’s still within the context of the community in which they’ve lived most of their lives. At a high level, the County can better meet objectives 2.4 and 2.5 by expanding housing choice and affordability more broadly and providing a range of supports and tools. Specific example of how this can be accomplished (some of which is current policy in Arlington) include:

  • Ensuring rental assistance is available for all households in need.

  • Providing property tax deferrals (which are preferable to abatements) to existing, low-income homeowners.

  • Addressing the complexity of the existing home modification process through technical assistance, which can include but is not limited to: supporting access to Occupational Therapist in home needs assessments; subsidy/program navigation support; contractor vetting services;  and “by-right” approval of all accessibility improvements. Financial assistance is also important for lower-income households.

  • Providing incentives to increase the supply of units that meet visitability, universal design, and higher levels of ADA compliance.

  • Enhancing existing unit matching resources for persons seeking accessible units, and providing resources to renters seeking to negotiate early lease termination in order to move to an accessible unit.

  • Requiring that all neighborhood and infrastructure planning efforts proactively address accessibility issues.

  • Filling “gaps” in neighborhood infrastructure that inhibit walkability and wheelchair access for those with mobility impairments.

  • Proactively focusing on age- and disability-friendly housing types (such as cottage clusters) as part of the Missing Middle study and all other neighborhood planning efforts.

  • Exploring creative subsidized development types, such as the “intentional intergenerational” supportive living environment (example: Howard County’s plans for Patuxent Commons; https://courbanize.com/projects/patuxentcommons/information).

Comments in Response to Plan Lee Highway Community Engagement Effort

By Michael A. Spotts

On May 20, I submitted comments to Arlington County as part of its community engagement effort for the Plan Lee Highway effort. The full comment letter is available here and full text follows:

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To the Plan Lee Highway Coordinating Team:

I hope all is well. My name is Michael A. Spotts, and I am an Arlington resident; housing and community development policy research professional; and former Vice-Chair of the Affordable Housing Master Plan (AHMP) Working Group. Though I am not a current resident of a neighborhood in the Lee Highway corridor I have longstanding connections to the Lee Highway study area, as I was formerly a renter in the corridor, my extended family lives there, and as a result my family frequents its business establishments, parks, and facilities. However, as I am not a resident I will mostly reserve comments on the specifics of Neighborhood Areas and instead offer bigger picture perspectives on how future planning and development in the Lee Highway can contribute to the County’s overarching goals, particularly in the realm of housing attainability/affordability. My comments fall into three categories:

  • Lee Highway and Arlington’s broader vision for its future.

  • Perspectives on best practices for achieving the County’s and corridor’s goals.

  • Creating a more durable planning approach for Arlington’s future.

Lee Highway and Arlington’s broader vision for its future.

Put simply, Arlington will be hard-pressed to achieve its goals related to diversity, equity, and housing attainability without adopting a strong, forward-looking policy and planning framework for the Lee Highway corridor. Based on the Metropolitan Washington Council of Government’s published housing targets for meeting demand within the region, Arlington needs to considerably increase its housing production. Though Arlington cannot achieve this regional vision alone, Arlington’s actions are a prerequisite for improved housing affordability within the County. Given the County’s limited development opportunities due to land constraints, the comprehensive visioning process for Lee Highway represents a significant opportunity for thoughtful policymaking and infrastructure coordination to meet this demand. Given the relatively low density of the corridor, there will likely be some pressure to adopt less aggressive growth targets. Though the specific, appropriate density level has yet to be determined and likely varies throughout the corridor, in general the County should be ambitious and prioritize increasing the supply and diversity of housing overall. Failure to do so will further concentrate demand, driving up prices and putting additional market pressure on other higher-density corridors/planning areas such as the Rosslyn-Ballston Corridor, Columbia Pike, and the Route 1/Blue Line Corridor.

Increasing housing supply and diversity in the Lee Highway corridor is also critically important to achieving the specific goals of the Affordable Housing Master Plan, which is now under 5-year review. During that process, we identified considerable challenges related to the geographic distribution of affordable housing, with attainable housing opportunities (and Committed Affordable Units) more constrained in North Arlington and north of Lee Highway in particular. As such, the development opportunities brought on by the Plan Lee Highway process represent a critical opportunity for achieving a more balanced housing distribution. Failure to leverage this opportunity will only exacerbate a cycle in which market-rate housing becomes increasingly out-of-reach and rising land/property values reduce the reach of County affordable housing subsidies, widening discrepancies in income, wealth and opportunity (or put more bluntly, intensifying income segregation).

In developing this plan, the County will have to weigh competing priorities, each with its own set of trade-offs. Housing will not be the only priority, given other critical infrastructure and environmental needs. However, the County must be realistic and understand that the value created by redevelopment, while often substantial, cannot address every community benefit/preference, and that trying to expand the breadth of community benefits can detract from the ability to deliver on core priorities. Moving forward, the County should focus on the core purpose of neighborhoods – providing a safe, accessible, and sustainable place for people to live and meet their day-to-day needs. Housing (and by extension, affordability) is inseparable from that purpose, and should thus be among the most important considerations.

Perspectives on best practices for achieving the County’s and corridor’s goals.

The County has a broad toolkit for addressing housing and community development needs within the Lee Highway Corridor. Several of the specific considerations and policy approaches discussed in the past that were germane to the County’s Call for Ideas (fall 2020; prior comment letter) and the AHMP 5-year review (spring 2021, prior comment letter) apply to the Lee Highway Corridor. As the Lee Highway planning process progresses, there should be continued engagement to identify more detailed suggestions for targeted policy issues. At a high level:

  • Most importantly, policies resulting from the Plan Lee Highway process should ensure that there is sufficient height, density, and form flexibility to make affordable housing (and other prioritized community benefits) economically feasible. Restricting these elements in the interest of non-vital concerns (such as “eye-of-the-beholder” factors like specific aesthetics and “neighborhood character”) will likely reduce the integrative potential of development in the corridor and increase the per-unit cost of developing committed affordable housing.

  • The County should reconsider its approach to the Arlington East Falls Church neighborhood. A recent Plan Lee Highway presentation suggested that there would not be testing of various land use plans given the previously-adopted plan for the neighborhood. The County should reverse this decision. The East Falls Church neighborhood has access to what is perhaps the corridor’s best transportation asset – a Metro station that allows for a “one-seat ride” to critical centers such as Tysons, the Rosslyn-Ballston Corridor (and downtown Washington, DC), and the emerging node at Dunn Loring/Mosaic District. A stated goal of the Lee Highway planning effort is to enable East Falls Church to be a transit-oriented and mixed-use district. Planning materials also describe the importance of expanding safe and equitable transit access. Though the current East Falls Church Plan points to these issues as well, it does not provide sufficient tools/incentives to accomplish these goals. This is in part due to an over-emphasis of “protecting” the single-family exclusive nature of a significant portion of the areas surrounding the Metro station. Recent development in the corridor (including a subdivision of detached single-family homes within feet of the station itself) illustrates that the current approach to land use in East Falls Church is incompatible with a transit-oriented vision, and an abdication of Arlington’s responsibility to maximize the potential of the entire region’s investment in the Metrorail system. Ending the County’s ban on apartments, attached single-family forms, and other more naturally affordable housing types in most of the low-density areas closest to the station is critical to achieving the County’s stated goals for housing affordability, transit access, and environmental sustainability. While this would likely result in some degree of change, such change is already happening (in the form of teardown/redevelopment of larger homes). High-land values and the high-quality of exiting homes are likely to make this change evolutionary, rather than radical. Prioritizing low-density housing (and thus making more attainable housing development less feasible) in an area where property values are boosted by the region’s investment in transit constitutes a wealth transfer from the tax-paying public to a small number of private property owners. This investment will be substantially more effective if more people have access to the neighborhood, which only can be accomplished through more housing units and more diverse housing types.

  • The Plan calls for a Complete Streets approach. However, streets are rarely truly “complete” if multi-modal access is not prioritized. Adding a protected bike lane or a sidewalk to a 4-6 lane road is a marginal improvement at best, but does not fundamentally change the dynamic of automobile prioritization. If cars are able to proceed at a high rate of speed without robust traffic calming measures, pedestrians and bicyclists will always be at potentially deadly risk. Prioritizing transit and active transportation should be the County’s primary approach. Given the severe regional shortage of housing, there is excess demand for every transportation lifestyle – car-dependent, car-light, and car-free. As such, if County policies related to parking and transportation infrastructure continue to make car-oriented housing, commercial, and retail development the “path of least resistance,” that is what will get built, contrary to the County’s stated multi-modal goals and Vision Zero policy. In its policies, the County should alter the “path of least resistance” and enable the market to better respond to demand for car-light and car-free lifestyles. This will have benefits for the environment, transportation network, and housing affordability.  

  • Open space and environmental requirements should prioritize contiguous areas and public space. Environmental research suggests that contiguous (particularly forested) natural space yields the best outcomes for stormwater retention, habitat preservation, and tree cover maintenance.  While private yards/open space may be better than impervious cover in many cases, they do not offer the same benefits and are subject to change by private property owners. As such, relevant requirements should be flexible and prioritize the expansion of land area available for public conservation efforts. For example, the County could allow (or incentivize) density/height transfers in exchange for conservation easements on lots adjacent to public space (or for the establishment of new public space).

 Creating a more durable planning approach for Arlington’s future
The Plan Lee Highway effort is critical to meeting a variety of Arlington County’s future development and infrastructure goals. However, as the County considers a new development paradigm for the corridor, it should consider why this robust planning effort is necessary in the first place. In a previous generation, County land use and zoning policies codified a specific vision of development – low density, single-use, predominantly auto oriented – across much (though not all) of the corridor. In creating a relatively inflexible policy, the County reduced the capacity for evolutionary change as markets shifted, existing building and infrastructure approached the end of its life cycle, and the mismatch between current conditions and current needs grew and grew. Prescriptive County policies created an illusion of stasis and a misleading expectation among some residents that neighborhoods do not (or should not) change over time. Despite this illusion, change occurred anyway, in the form of teardowns and redevelopment that lock out all but the wealthiest purchasers, and increased through-traffic as development was pushed to further-out locations.

I support the County’s current priorities for redevelopment of the corridor. Mixed-use, denser, and multi-modal development/infrastructure is the better path at this stage of the County’s life cycle, and I hope that the County will adopt policies that enable this path.

However, in enabling more efficient and affordable development patterns, the County should learn the lessons of past planning efforts. The “vision” for the corridor (and the County, for that matter) is not one single vision – it is the aggregate of the vision of the people that live, work, and play in the area. And as people change, so may that vision. The demographics, consumer preferences, development technology, financial systems, economies, or any of the other factors that influence neighborhoods are not static. Therefore, it is imperative that policies that result from the Plan Lee Highway effort are sufficiently flexible to enable, rather than tamp down, that evolution. There are practical approaches to achieving this goal, which can include:

  • Minimizing restrictions on form/use outside of provisions related to health and safety and enabling low-impact neighborhood-serving retail and accessory commercial units (similar to accessory dwelling units) in all neighborhoods. This allows for new “nodes” to emerge if demand exists.

  • Complementing increased height/density guidelines with flexibility that permits the next increment above prevailing density/height to proceed by right (enabling future incremental growth).

  • Providing regulatory flexibility for “tactical” improvements (similar to expansions of restaurant “pop-up” outdoor seating in response to COVID).

  • Conducting rapid, small-scale pilots to test innovative transportation, public space activation, micromobility, or other infrastructure and public realm improvements.

This list is incomplete, and not all of these ideas may make sense for the Lee Highway Corridor. The critical takeaway is that this is about a mindset rather than a specific tool:

  • Neighborhoods (like ecosystems) are complex, interactive, and evolve by nature. Planning is an imperfect science. As such plans should avoid the tendency to micromanage and account for every scenario, and embrace flexibility and experimentation.

Comments on Arlington County's Affordable Homeownership Policies

On April 15, 2021, Arlington County is holding a Housing Commission Tools and Trends Subcommittee meeting as part of its 5-year review of the Affordable Housing Master Plan. The topic of that meeting is affordable ownership options. Earlier today, Neighborhood Fundamentals’ Michael A. Spotts offered the following comments on the topic in his capacity as private citizen and Arlington resident. (Click through to see full content)

Recapping Recent Neighborhood Fundamentals Projects: Federal Policy, Statewide Housing Needs, and Local Rental Preservation

By Julie Pagaduan, Housing Policy Research Intern (LinkedIn)

After a hiatus, the Neighborhood Fundamentals blog is returning with more content. Last week, we announced the release of the ULI Terwilliger Center Home Attainability Index (read more about this national data resource). Moving forward, new content will be posted more frequently. In the meantime, the following is an overview of recent projects supported by Neighborhood Fundamentals .

New Deal for Housing Justice: A Housing Playbook for the New Administration (January 2021)

The New Deal for Housing Justice was published by Community Change, a national organization focused on community health and social justice. It focuses on the Biden administration’s opportunities to implement federal initiatives that will advance racial justice and address the nationwide affordable housing crisis. Policy recommendations highlight the need for strengthening community organziations, expanding government programs, addressing racial and ethnic barriers to housing, and adopting a strong COVID-19 relief program .

Neighborhood Fundamentals was a contributing author to the Playbook, focusing on issues related to improving housing opportunities and access in rural areas. Tackling critical challenges such as persistent poverty and racial homeownership gaps,  policy recommendations focus on coordinated action among the federal government, non-profits, and community-based organizations. Proposed initiatives included building community development capacity and institutions, expanding access to capital, preserving rental housing, and advancing geographical equity in federal grant/loan programs.

Maryland Department of Housing and Community Development: Statewide 10-Year Housing Needs Assessment (December 2020)

The National Center for Smart Growth and Enterprise Community Partners developed a 10 -Year strategic plan to make Maryland a more affordable place to live by 2030. The proposed framework and intervention tools are informed by regional assessments in the Maryland and DC area. This framework will guide the Maryland Department of Housing and Community Development and local partners to address specific housing barriers in each jurisdiction.

Neighborhood Fundamentals was a contributing author for the Needs Assessment, authoring the local housing policy profiles that identify how local governments can structure their housing policies and programs to adopt broader best practices and better leverage state affordable housing programs and financial resources. The state programs evaluated in these policy briefs address a range of initiatives, including rental housing development (Rental Housing Program, Partnership Rental Housing Program), homeownership supports (Maryland Mortgage Program), and improving housing quality (Maryland Housing Rehabilitation Program).

Montgomery County, MD Preservation Study (November 2020)

On behalf of the Maryland-National Capital Park and Planning Commission, HR&A Advisors, LSA, and Neighborhood Fundamentals conducted a review of rental housing in Montgomery County, with the goal of identifying interventions to better preserve the existing affordable housing stock, including both market-rate and expiring subsidized properties..

As part of this effort, Neighborhood Fundamentals conducted a comprehensive evaluation of policy tools to support preservation efforts in Montgomery County. Associated recommendations include enhancing the County’s capital resources for preservation (including trust fund resources and property tax incentives) and adopting land use and planning incentives to encourage the preservation of affordability in redevelopment initiatives.

New Research: ULI Terwilliger Center 2021 Home Attainability Index

Earlier today, the ULI Terwilliger Center released the 2021 Home Attainability Index. The 2021 Index is an easily accessible compilation of housing and equity-related metrics that can set a data-informed foundation for regional discussions of housing needs and solutions. Specifically, the Index provides a high-level snapshot of the extent to which a housing market provides a range of housing choices attainable to the regional workforce, with an intentional focus on issues related to racial, socioeconomic, and intraregional disparities and inequities. This research release includes three publications: an interactive data spreadsheet to explore Index data and create customized charts and graphs; a national summary report, and a research brief on Housing, Health, and the COVID-19 Crisis. All materials are available for download on the ULI Knowledge Finder website.

 A high-level review of the 2021 Index data shows that:

  • The most severe cost burdens among middle-income households are predominantly found in the most-populous regions.

  • However, there is a nationwide lack of attainable homes for many members of the workforce that is not limited to the most vibrant U.S. metropolitan economies.

  • In particular, there is a national struggle for lower-income households to find attainable rental units.

  • Segregation—both by income and race—cuts across market types and geographies, and high housing costs threaten to worsen racial and socioeconomic disparities.

Any release of housing research would be remiss if it did not consider the impacts of COVID-19 and associated economic disruption. Despite data limitations, it is possible to extrapolate some COVID-19-related impacts through research on previous conditions and trends, supplemented with newer data. In reviewing existing literature and analyzing 2021 Index data, the Terwilliger Center found the following:

  • “Preexisting conditions”—from the perspectives of health, household finances, and social equity—are closely linked to the relative impacts of the pandemic.

  • The center’s Occupational Analysis shows that leading up to the crisis, frontline workers, health workers, and workers in occupations particularly vulnerable to income disruption struggled to afford modest rental housing in most of the 107 regions in the 2021 Index data set.

  • These preexisting disparities by income and race have been exacerbated by the COVID-19 crisis, with lower wage earners (who are disproportionately Black and Hispanic) more likely to work in high-contact jobs. Many of those jobs have been lost, and those people who continue to work are at risk of contracting the virus.

  • Though local, state, and federal interventions have mitigated some housing-related challenges, a significant number of households have accrued large amounts of deferred rent/mortgage payments, raising the longer-term risk of an eviction/foreclosure crisis.

  • From a housing market perspective, a significant amount of conflicting or opaque data exists on the long-term impacts of the pandemic on consumer preferences and housing demand.

Conversations about post-COVID housing markets have been dominated by elements of consumer preferences regarding location (in the context of changed commuting patterns, unit size, and amenities). However, these conversations focus on households with the financial means to have such choices, which is unlikely to be the case for many whose lives and jobs have been significantly disrupted by the pandemic. Many households will struggle to simply maintain housing and pay off accrued rent or mortgage debts and will find tenure choice out of reach if prices rise and lending standards tighten.

This research was developed by Michael A. Spotts in his role as the Senior Research Fellow with the Terwilliger Center, with research support from Neighborhood Fundamentals. Julie Pagaduan served as the research and data analyst, and Subira Brown provided research assistance.