Multifamily Affordable Housing Strategy for the City of Detroit

The City of Detroit’s Multifamily Affordable Housing Strategy provides a blueprint for related City policy, driving toward the goal of preserving and developing 12,000 multifamily affordable units by 2023

CHALLENGE

As Detroit’s housing market recovers from decades of disinvestment, some residents are unable to find adequate and affordable housing in the city. In some areas, demand is increasing for urban amenities and housing costs are rising. Elsewhere in the city, other neighborhoods face steep obstacles to regaining economic strength.
 
While the City’s Housing and Revitalization Department is actively promoting preservation and new development of affordable housing since the City’s emergence from bankruptcy in 2014, it did not have a formalized strategy for pursuing policies and programs to realize its equitable growth goals. Such a strategy would allow the City to proactively message its affordable housing goals to the market and track progress against those goals.

 

Solution

To guide the City’s future initiatives related to affordable housing development and preservation, inclusive growth, homelessness, and housing development in priority planning areas of the city, HR&A worked closely with the City to develop a public-facing housing strategy document that expressed the City of Detroit’s housing priorities and established a formalized plan for implementation.
 
HR&A reviewed our previous assessment of Detroit’s housing market, which tested the feasibility and impact of affordable housing policies and recommended those that would be most effective in Detroit. The knowledge developed in this stage of work was key in developing a strategy outline and coordinating the drafting of content for all initiatives with support from the City and partner organizations. Finally, HR&A oversaw the production of a document designed for public release. HR&A brought a unique combination of experience in national affordable housing policy analysis and a recent, in-depth understanding of multifamily affordable housing and the multifamily market in Detroit to the strategy’s development.
 

Impact

The city released its Multifamily Affordable Housing Strategy in the spring of 2018 with the goal of preserving 10,000 existing affordable units and developing 2,000 new affordable units by 2023. As the first strategy of its kind in Detroit in decades, the document will guide the City’s future work of ensuring new growth is equitable and that residents of all incomes have quality housing accessible to public transit, employment hubs, and other essential services. The City has already established an affordable housing loan fund and is implementing initial strategies arising from the study.
 

Read the Full Study

Capacity Building for the National Disaster Resilience Competition

The National Disaster Resilience Competition institutionalized the practice of resilience in cities across the country.

CHALLENGE

To confront increasing physical vulnerability to the effects of climate change and decreasing public funding available for infrastructure and community development, the U.S. Department of Housing and Urban Development (HUD) and the Rockefeller Foundation partnered to transform resilience building policy and practice through the National Disaster Resilience Competition. In 2014, President Obama allocated $1 billion in HUD funding to competition winners, which were selected from places that suffered presidentially-declared disasters between 2011 and 2013.

Solution

HR&A supported the Rockefeller Foundation’s management of the program, providing technical support for 67 cities, states, and counties as each prepared competition submissions. This work ensured that the projects and programs would respond to a broad array of climate-related risk, and address social, economic and environmental challenges. HR&A also designed and delivered a capacity-building program for participants that provided individual technical support to teams to guide them through proposal development; regional “Resilience Academies” that brought together a network of experts to support teams in assessing risk and developing strategies and projects to address them; and tools and other resources to help interpret HUD guidance.
 

IMPACT

The competition enhanced local, state, and regional resilience techniques by offering resources and encouraging partnerships to amplify potential financial and social benefits activated by federal funds. In 2016, HUD announced the 13 winning cities, states, and counties of the $1 billion competition. Funded projects include state watershed, coastal protection, community flood grant, and public housing resilience pilot programs; and coastal wetland and rural river resilience efforts among other projects.
Following the awards, the Rockefeller Foundation engaged HR&A to incorporate workshop teachings into a permanent resilience curriculum, which was deployed across the world through the Global Resilience Academy.

Defining the Economic Impact of WeWork

Challenge

As part of an initiative to shape the future of work and cities, WeWork was interested in demonstrating how the WeWork community creates an economic ripple effect for people, businesses, neighborhoods, and cities.

Solution

To quantify the economic benefits of WeWork to a range of stakeholders interested the company’s growth, HR&A developed the first detailed economic and fiscal impact analysis of WeWork communities in New York City, Los Angeles, and Chicago. The analysis focused on WeWork’s value-add to each partner and its crucial role in growing each city’s innovation economy, small business sector, and entrepreneurial community. HR&A built on this by assessing neighborhood-level demographics and market trends, and creating illustrative profiles of WeWork’s members. Finally, HR&A developed projections to estimate how WeWork’s expansion could impact other cities across the U.S.
 
 

IMPACT

Our study found that WeWork would be among the largest private-sector employers in New York City, Los Angeles and Chicago, supporting 50,000 jobs across the three cities. For each member, one additional job is created somewhere else where in the city, in total representing nearly 1% of each city’s workforce. A subsequent report, WeWork’s Global Impact Report 2019, expanded to track impacts the impacts of the company worldwide. Findings from both studies will be incorporated into WeWork’s Future of Work initiative and will continue to support outreach to policymakers as WeWork expands.

Development Management & Public Financing Strategy for Broadway Station

Broadway Station Partners developed a market-supportable master plan and a public financing strategy to develop one of Denver’s largest and most complex transit-oriented development sites.

CHALLENGE

After acquiring the former Gates Rubber Company plant, Broadway Station Partners wanted to pursue development of one of Denver’s only remaining urban transit-oriented development sites. Located three miles from downtown and directly adjacent to one of the busiest light rail stations in the city, the site could provide much needed housing, office space, and walkable retail in one of the fastest growing cities in America.
 
Though the site’s location and immediate transit access are inherently valuable, environmental contamination and connectivity challenges associated with a freight and light rail line bisecting the former industrial site required significant capital and infrastructure improvements to make development feasible. To navigate the unique site challenges in the planning process, the landowners engaged HR&A to advise on the balance of infrastructure investment and value-generating development to inform the project’s development strategy, master plan, and public finance strategy.

SOLUTION

Working closely with an engineering and planning team, HR&A advised Broadway Station Partners on strategies to unlock and create value by identifying activating uses, infrastructure improvements, and amenities. The team’s assessment of the local real estate market and financial feasibility of different development densities, typologies, and infrastructure programs informed the master plan, which targets infrastructure investments that improve connectivity and placemaking to unlock potential for development density and value.
 
To understand the extent of public financing needed for the substantial infrastructure improvements, HR&A analyzed the potential for value-capture tools to fund infrastructure development. To do this, the team assessed the impact of the development program, phasing, local market, and financing structures among other considerations for potential capital sources – including tax increment financing (TIF) and revenues from the site’s metropolitan district, or special taxing district. This analysis formed the foundation of the landowner’s tax increment financing request, financing plan, and negotiations with local public authorities, ensuring that revenues generated by the site are sufficient to finance required infrastructure and help produce market returns for the landowner in the long-term.
 

IMPACT

The Denver City Council unanimously approved the landowner’s $140 million public infrastructure financing request, including a $90 million tax increment financing package, the second largest approved in the city. Infrastructure development on the site broke ground in 2018.

100 Resilient Cities Logo

100 Resilient Cities Challenge

HR&A is supporting urban leaders in 100 cities across the United States as they develop comprehensive, actionable plans to become more resilient to social, economic, and physical risks and challenges.

HR&A supports the 100 Resilient Cities program, a global initiative pioneered by The Rockefeller Foundation, and Chief Resilience Officers across the United States as they develop comprehensive resilience strategies and implementation plans that respond to their cities’ unique set of risks and long-term vision and goals. Each strategy and implementation plan is designed to build the capacity of individuals, communities, institutions, businesses, and systems within a city to not only survive a major disruption event such as an earthquake or flood, but also to adapt and grow in the face of chronic stresses such as poverty or housing availability.

HR&A works with each Chief Resilience Officer and other senior officials to develop comprehensive resilience strategies.

At the forefront of Resilience Strategy Development, HR&A has supported the comprehensive strategic plans for Norfolk, New York City and New Orleans – the first to be delivered as a part of the 100RC program.  In Norfolk, HR&A worked with the Chief Resilience Officer (CRO) to design initiatives that will make the coastal city more prepared for climate change, create economic opportunity in new and growing sectors, and strengthen communities and neighborhoods while deconcentrating poverty. New York City’s strategy, developed with support from HR&A, envisions a more resilient city embracing balanced growth, a more inclusive economy, sustainability in the face of climate change, and more resilient infrastructure and services. In New Orleans, HR&A supported the CRO in prioritizing initiatives advancing coastal protection and restoration, creating equity through opportunity, and redesigning regional transit systems. Future strategies may include the development of high priority implementable projects and initiatives that strengthen infrastructure, generate economic opportunity, improve governance structures, and build social capital.

 

Through the Resilience Strategy Development process, HR&A supports cities and CROs to:

  • Identify and prioritize potential acute shocks and chronic stresses that their cities face;
  • Provide thought leadership by guiding use of best practices and delivering data-driven analyses;
  • Coordinate and facilitate stakeholder workshops; and
  • Design a Phase-1 Resilience Strategy

 

HR&A led agenda-setting workshops for six of the ten selected North American cities: Los Angeles, California; Norfolk, Virginia; Boston, Massachusetts; Boulder, Colorado; Tulsa, Oklahoma; St. Louis, Missouri; and El Paso, Texas. Prior to each workshop, HR&A analyzed the city context, including demographic, economic, social, and physical metrics, to define a city-specific strategic plan. Learn more about the program at 100resilientcities.org

St. Paul Union Depot Exterior

Union Depot Redevelopment and Activation

For Union Depot, a multi-modal transportation center in St. Paul, Minnesota, HR&A designed and implemented a redevelopment and activation strategy that maximized the economic and fiscal benefits generated from its redevelopment.

HR&A served as strategic real estate advisor to the Ramsey County Regional Railroad Authority for the redevelopment of the historic Union Depot from 2010 through 2012. This $238 million dollar project, funded in part by the American Recovery & Redevelopment Act of 2009, connected Amtrak and regional and local bus services, and will serve as a terminus of the Central Corridor Light Rail between St. Paul and Minneapolis, among other longer-term transitways for the region.

Since opening its doors, Union Depot has become the living room for the Lowertown neighborhood and a destination for residents from across the region.

HR&A first led a multidisciplinary team to prepare an economic analysis and development strategy for the Union Depot in 2010. The firm managed the team to produce a market analysis for real estate development; recommended a preferred development program for the station that includes a robust program of public and private events, as well as a distinctive retail destination and marketplace; established a transit-oriented development strategy for adjacent land; analyzed the economic benefits of project implementation; and generated an implementation and stewardship structure for ongoing project success. RCRRA’s Board endorsed HR&A’s recommendations for the development strategy in late 2010, and engaged HR&A to lead the procurement necessary for implementation.

 

HR&A drafted the developer solicitation document that was released by RCRRA in December 2011 alongside a Request for Proposals for property management and bicycle center operations. HR&A helped RCRRA market the opportunity and, following a strong response from the private sector, supported RCRRA in selecting an asset manager who is responsible for activating and developing community and commercial components of the project, as well as providing property management services. The contract was structured to incentivize revenue generation within the facility, as well as the activation of public spaces in and around the Union Depot building.

 

Union Depot now hosts regular public programs, is home to signature works of art by local artists, and is building demand for major retail and restaurant investments.

 

Downtown Cincinnati Revitalization

HR&A recommended a bold strategy to revitalize Cincinnati’s Downtown, then worked with corporate, civic and governmental leaders to establish the Center City Development Corporation (3CDC), which has so successfully led the transformation of Fountain Square and Over-the-Rhine.

HR&A designed and supported the creation of 3CDC, a public-private development corporation, to steward revitalization and on-going development in Downtown Cincinnati. In 2004, 3CDC, in partnership with the City of Cincinnati began a two-year, $49 million renovation of Fountain Square. The completed project has brought people back to Downtown Cincinnati in record numbers, has spurred investment of over $125 million in additional private investment in the Fountain Square District, and continues to serve as a catalyst for new residential, retail and restaurant development in the region.

HR&A worked as the real estate and public policy advisor for the planning of Cincinnati’s Downtown.

Working in partnership with the City of Cincinnati, Downtown Cincinnati, Inc., the Cincinnati Business Committee, and master planning firm Cooper Robertson & Partners, HR&A crafted a strategic investment plan that addressed a number of Downtown planning and development issues, including enlivening Fountain Square.

 

Fountain Square, the traditional heart of Cincinnati suffered from poor design, an absence of programming and lack of maintenance, resulting in a void of life and activity Downtown. HR&A helped to create 3CDC to guide the redevelopment of the Square, conceived of an innovative financing structure, framed a programming strategy, and shaped the redesign of the public plaza. In the years since, 3CDC has proven to be a successful public-private partnership, serving as the principal advocate and steward of Downtown and its core assets.

 

HR&A also provided strategic implementation direction for revitalization of the city’s most troubled neighborhood, Over-the-Rhine.

Over-the-Rhine, the site of riots in 2001, was crippled by residential and commercial disinvestment, a lack of retail options, and entrenched crime. In response, HR&A recommended a range of interventions including targeted public sector investments such as the redevelopment of its signature open space, creating new parking options, and buying and rehabilitating deteriorated multifamily housing units. We suggested a robust public-private partnership to facilitate reinvestment throughout the neighborhood, plus a regulatory system with revised design guidelines to create a physical sense of identity by complementing and celebrating the neighborhood’s historic architectural fabric. Today, Over-the-Rhine is enjoying a startling turnaround and is heralded nationally as a success story in neighborhood revitalization. Over-the-Rhine is now the center of Cincinnati’s thriving arts community, historic buildings have been renovated into a variety of housing and retail options, major new mixed-use projects have recently come online, and crime has decreased substantially.

 

  • International Economic Development Council Partnership Award, 2009­