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It was truly an inspiration for me to moderate the Affordable Housing panel at Bisnow’s annual BMAC West event in Los Angeles on November 2. Three of the four panelists were developers and the fourth a banker. Why put a banker on an affordable housing panel? Anybody operating in this space knows how painfully complicated it can be to assemble the “capital stack” necessary to put the “affordable” into affordable housing, and it requires a financial partner with equal conviction. While we spent time lightly discussing the finance side of things, the panel got really compelling when the speakers stepped into the potentially emotionally charged arena of social impact investing and community building.
All of these individuals are extremely passionate about what they do, which is really a prerequisite mindset for either preserving or producing these communities that provide critical shelter for our neighbors who are less financially blessed. Some of the most powerful statements of the day came when I asked the speakers to share the counter-narratives they have crafted in response to the hostile negative feedback that springs from opposing voices in their public hearings, which often is built around some variant of “we don’t want those people living in our neighborhood,” because the affordable projects become “low-income slums,” (which is an actual quote from an anti-SB 9 flyer.) Answers to the question all involved explanations of the importance of social connection in creating relationships with other neighbors, and how this leads to a kind of “pride of place,” in which residents strive to take care of the property—both its people and its buildings.
This mutually caring behavior is reinforced by the developers through the provision of a host of supportive services for residents, such as after-school programs for children of two-working-parent families who might otherwise end up “latchkey kids.” In every answer, there was a strong case made for investing in the residents, to give them a “step up,” which is really investing in the greater community at the end of the day and ultimately, investing in ourselves. These attitudes and policies are reflective of a significant driving motivation built on an ethos of caring.
When we discuss subsidized (“Big A Affordable”) housing, it is important to understand that residents at many income levels, from extremely low to moderate, are eligible to live in these communities. These are our neighbors who teach our children, care for us at the local Urgent Care, fix our cars, defend us from criminals, put out fires, and serve us meals at our favorite restaurants. We want these people in our neighborhoods, and we’re not going to have them if we don’t produce dwellings that only require a manageable portion of their income to afford every month without going into “severe housing stress.” Don’t miss that when these residents are able to spend less on rent, they have more resources to buy food, clothing, and other necessities, which contributes to the overall economic health of the larger community.
My absolute favorite moment of the day came when panelist Michael Costa answered the question of why he does what he does and was moved nearly to tears in the process. “When I see the look on a young mom’s face when we turn over the keys to a place where she and her children can live in safety and security, and see the gratitude, it hits me right here,” he said, thumping his hand on his chest. It was a magic moment. I am super thankful for Mike, and also for Daryl Carter, Malcom Johnson, and Matt Haas for doing what they do to make the world a better place, one community at a time.
Grey Is The New Green In Mixed-Use Infill
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Throughout California, and probably most of the country, underperforming regional malls and shopping centers are being surveyed for their redevelopment potential, particularly as they deteriorate into a distressed status. The critical element that makes these projects similar is that they take advantage of the real estate available on expansive existing fields of surface parking. This one aspect is the key ingredient in finding an existing retail/commercial center that will be a good candidate for redevelopment. As these “greyfields,” as they are often known, function like open land from a planning perspective, they are what makes the opportunities so attractive.
Redeveloping an aging or dying mall or shopping center is hardly a fresh idea, but it remains a good one. Today there are a number of significant such projects in the development pipeline, including Main Place Mall in Santa Ana, California, where a very ambitious program of hotels, offices, apartments, and other uses is proposed, or the former Laguna Hills Mall, also in California, where a similar blend of ingredients is anticipated. Placing denser housing on these properties makes complete sense because many of them are already near better performing commercial centers, and the resulting “village” should be able to provide some of the benefits of a traditional town center if it includes sufficient resident serving amenities, such as bars and restaurants, among other services. Constructing new housing on underused surface parking is just a good idea, almost no matter how you slice it.
The mall redevelopment projects cited here, in addition to many others, are substantial undertakings, but they’re not the only opportunities. There are many smaller retail centers on properties that are equally attractive due to their proximity to other shopping, jobs, and resident services that might be in easy walking distance or have convenient access to transit; not every redevelopment needs to focus on a seventy-acre regional mall in order to help whittle away at the seemingly intractable undersupply of housing. These locations have access to existing infrastructure and services, so arrive at the starting line with more going for them than a traditional green field. What is the obstacle to the widespread implementation of this strategy?
Perhaps the biggest problem with the wide-scale redevelopment of retail/commercial properties is what used to be known as the “fiscalization of land use.” That’s a fancy way to say it’s politically hard to change a use on a site from one which produces a generous income stream for the municipality to one that doesn’t—such as changing from a retail center, or worse yet, an outdated auto dealership, to multifamily housing, which generates far fewer dollars for the City coffers. This underlying dilemma is a consistent fly in the ointment of proposed commercial-to-residential or mixed-use redevelopments. Main Place, because of its sheer mass, was probably able to navigate that income stream quandary by including a ton of commercial space and hotel rooms, both of which generate cash flow. A cooperative approach is suggested here—that the developer and the City meet extremely early in the process to discuss the mix of uses that would not only provide the desired housing, but also include ingredients that could continue to generate tax and fee income, and hence make the project approvable.
Do we need new laws to help make the process easier? A California State Senator recently proposed a bill that would theoretically make it easier for developers to propose major makeovers to existing underperforming or dying malls and shopping centers, provided the final mix included some affordable housing. Seems to make sense, but it also came with a bunch of strings attached, which is a standard issue with many government-initiated “incentives.” At the end of the day, after all the community stakeholders had been satisfied, the underlying zoning requirements met, and the subs lined up to do the construction were receiving prevailing wages, the apparent benefits available felt overshadowed, outweighed by the other obligations.
It appears the projects mentioned above, in addition to some in the Bay Area, LA, and Inland Empire, accomplished their development objectives through the existing zone change and municipal review process. Main Place Mall, with its proposed program of 1,900 dwellings, 400 hotel keys, 750,000 square feet of office space, and nearly a million and a half square feet of commercial uses, was of such a mass that it needed to generate its own Specific Plan. While this thorough entitlement process can be a grind, in the end there tend to be fewer problematic add-on requirements, such as would come along with the supposedly helpful state law, and they can all be negotiated along the way.
While the proposed State law started with a good intention, it just got burdened by bureaucracy, and by the potential to tread on the sacred ground of loss of local control, which is one of the threats of the RHNA (Regional Housing Needs Assessment) process. How could municipalities possibly have their cake and eat it too with regard to these retail and commercial redevelopments? Creating an overlay zone that could be generously applied over existing commercial properties would accomplish a couple of things. First and foremost, if it were straightforward enough, it would provide that elusive assurance developers always seek—predictability. That is, the overlay zone would make it “by-right” to develop multifamily housing on a retail site, even if it includes guidelines and policies to encourage harmony with the existing community context. Perhaps if the project includes attainable housing, it becomes a ministerial review, which would be a tremendous time-saver. In other words, the cities and counties take from the State what it otherwise intends to impose on them, and just do it themselves. The combination of defined parameters of the overlay zone plus the ministerial review would have the guaranteed effect of expediting the delivery of desperately needed housing while enhancing the built environment, all under local control.
Finding the right density and product for a greyfield site of any size is key to success. The state law had a complicated formula for requiring certain minimum densities which were theoretically driven by the fabric of the surrounding context, with the intent of developing something not wildly out of proportion or character with its surroundings. While the search for the proper formula is driven by proximity, land values, and achievable rents, it is also generally true that the closer a property is to an urban core, the bigger the proposed buildings will be. Placing new apartment buildings around Main Place Mall while structuring thousands of parking spaces to compensate for those lost demands large buildings. However, in less urban or even suburban redevelopment opportunities—areas where projected rents are lower—it may be best to pursue less expensive, and hence less dense wood-framed dwelling units. I’ve seen instances where a site seemed to demand at least wrap density, but actually penciled better with a four-story town-over-flat scenario or even 3-story stacked flats. Creativity in imagining what solutions would best bring these smaller properties back to life is critical.
For the State to consider a tool to help achieve many of the goals discussed here is a very good thing. However, reclaiming control of the process for the local jurisdiction seems to be a more promising pathway, where the development team can work directly with City staff to achieve a win-win outcome. Thoughtful overlay zones that can be broadly applied across a City can help to resuscitate even the properties that are of a more modest scale.
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Adaptation of new technologies for apartment leasing and management is driven largely by residents’ habits, preferences, and lifestyles. Today’s residents are also, quite literally, driving technology as more and more consumers are opting for the purchase or lease of an all-electric vehicle. These cars, while lower in emissions, place increased demands on the community’s infrastructure—as their paradigm for re-fueling is not to visit the local gas station, but to plug in at home and “fill up” in the evenings. Now is the time to begin to consider how to plan your multifamily residential community to maintain resilience as the world changes around us, to strategize ways to avoid becoming less desirable as a resident option long before the useful life of the building has reached an end. It is necessary to plan for a gradual, then rapid shift to all-electric vehicles, which means the criteria by which residents will choose homes will include the availability of charging facilities that exceed the capacity of a 110 plug. Planning ahead now to anticipate and accommodate this increased demand will help avert the need for an extraordinarily expensive and disruptive renovation down the road.
California is leading the way nationally to a less fossil-fuel-reliant/lower greenhouse gas future. Governor Gavin Newsom recently issued an executive order requiring that by 2035, all new cars and passenger trucks sold in the state must be zero-emission vehicles (the corollary here, of course, is that electric vehicles must be using clean power / green energy so we are not trading one problem for another). While that theoretically includes fuel cell vehicles, they still account for only a tiny percentage of current ZEVs. This target date, only roughly as far in the future as the 2008 recession is in the past, demands some serious consideration of what this trajectory implies.
Californians purchase nearly 900,000 personal vehicles in a typical year; the state has about 27.7 million registered vehicles, of which approximately 1,300,000 are “retired” every year—so roughly 1,000,000 units are cycled through annually, equal to about 3.5% of the existing stock. Today the common lifespan of a car is estimated to be about 8 years or 150,000 miles. Gratefully, advances in automotive engineering have expanded that timeframe over the last couple of decades, to give cars a longer life; furthermore, it is estimated that electric vehicles can be expected to last around 12 years or about 200,000 miles. For the sake of simplifying the math, let’s just take the average of those spans and declare that the typical reliable life of a car in the sunshine state is about 10 years. So, every year about a million go away, and another million are added to the fleet—out with the old, in with the new. At these numbers, the complete cycling out of the system of all the cars on the road today would take about 28 years. Mark your calendars: by about 2048, there will be virtually no combustion engine vehicles on California’s roads. While it might be anticipated that sales of gas-powered vehicles may surge in the couple years leading up to 2035, after that it will be only electrical vehicles replenishing the fleet at a million units/year, leading to a tremendous acceleration of the statewide conversion.
If you were to begin planning today to develop and construct a denser, urban infill residential building with structured parking in Los Angeles, the total length of the entitlement/drawing/construction phase could easily amount to 5 years, plus perhaps another year to lease-up and stabilize. Your sparkling new property might be up and running by 2026. Before it celebrates its tenth year of operation, sales of combustion engine vehicles in California will have ceased. Another ten million or so older, mostly combustion engine vehicles will have been retired. Meanwhile, the sales growth of EVs has been continuous; perhaps even logarithmic. A reasonable estimate of the EV share of the total California fleet in 2036 would be perhaps around 25%, or nearly seven million cars.
Not all of these environmentally-friendly vehicles will be parked in suburban garages; an increasing number will also populate denser urban residential communities, and they’re going to want to charge up at home, even if their overnight parking space is in a structure. So, conservatively, one might speculate that by 2036, fifteen years from now, any urban community could have up to 15% EVs. Do you see where I’m going with this? That’s not very long from now, and the building will be perhaps 15% into its projected useful life. As the community matures, the demand for vehicle charging stations will continue to increase. Those communities with insufficient charging facilities for the growing electric fleet will begin to be “unchosen” by discriminating renters.
Luxury apartment buildings coming online in the very near future may debut with up to 5-10% of their parking spaces equipped with charging stations; many have pre-wired for a larger number, even up to 20%. I believe it is time to ramp up the consideration of what may need to be provided in the not-so-distant future as the percentage of EVs grows, and the demand for charging stations right along with it. What’s a reasonable number to aim for? How about pre-wired for 50%, with an initial buildout of 15-20%? Having the infrastructure in place is really the backbone to avoid painful and costly future renovations; maybe the smart move is to go all in and pre-wire for 100% of the spaces. No matter what, you won’t want to have to install the infrastructure as a renovation project; it will be outrageously expensive. Better to overreach now and have a cushion than to go back tomorrow and tear things apart to re-tool.
Incidentally, to allay concerns about how this many EV charging stations will swell the anticipated electrical loads of the building, there are software applications that cleverly gauge the demand and distribute charging in a managed manner so that the fundamental electrical service of the building doesn’t need to increase beyond reason. Besides that, there are third-party providers who coordinate with building owners to supply and manage the stations, collect the fees, and return an income stream to the property, usually with low to no start-up costs to the building owner. The vendor can even make recommendations for the number of chargers to be installed at the time of the project’s grand opening and will drive the build-out of additional charging stations as the demonstrated need increases.
So, please anticipate the all-electric future, and design the infrastructure into your projects today. Your future investment committee will thank you.
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Above Image Shows An iDA Lab Low-Density Redevelopment Concept – 10 Homes On 2 Lots With A Community Room.
We, the residential development community at large, are entering an unprecedented season of public/private partnership with an unassailably noble goal of housing everybody in our beloved and beleaguered California. Forces of supply, demand, and policy are aligning at a moment in history when it could not be more sorely needed. At the center of this perfect storm? RHNA, the Regional Housing Needs Assessment.
The Regional Housing Needs Assessment is a tool used by the California State Department of Housing and Community Development to establish the quantity of additional housing units presumed to be needed throughout the state using the criteria of population, jobs base, transportation, and other factors. Numbers are established on a regional basis, and the local Council of Governments (COG) assigns a share to each city within the region. Cities respond by updating their Housing Element, a component of the city’s General Plan that demonstrates how sufficient potential building sites are available in the jurisdiction and zoned to accommodate the designated allotment of new homes, at a range of affordability levels. The current assessment, coming in the midst of an intractable housing crisis, allots a very high proportion of the total number to units affordable to extremely low- and very low-income households.
A housing element is updated about every 8 years. From the previous cycle to the current, the leap in required allotments was substantial for most municipalities, and many are reeling from the load they are being requested to carry. To put that into perspective, the updated RHNA number for SOUTHERN California is 1,342,827 new dwellings spread over 191 cities. On a practical level, it is necessary to produce 180,000 units annually in California to keep up with demand; since the financial crisis, the pace has been about 100,000 per year, so supply continues to fall behind. It would take nearly 170,000 unit deliveries per year over the cycle period to produce the assigned number.
Nearly 50 cities in the region have appealed to the State to challenge their allotments; almost all have been denied. In the previous RHNA cycle, only a tiny percentage of municipalities delivered on their numbers, and it is generally observed there was no real penalty for missing them. In the current cycle, that has changed; cities now face consequences from the State if they fail to produce, by the deadline in October, an updated Housing Element certifiable by the HCD. These consequences can include the changing of the City’s RHNA cycle from 8 years to 4, which would impose a horrendous workload on the Planning Department, or the imposition of moratoria on the issuing of ANY building permits, or even the mandated approval of proposed housing developments. In other words, California State law has grown teeth.
Demand for housing continually increases in California, even in spite of the State’s much-lamented recent net out-migration of households. It is difficult to ignore the underlying fundamentals of supply and demand, and the more than 40% of existing households who are “housing stressed,” devoting more than 35% of their monthly household income to cover their housing costs. These households comprise the majority of those leaving the state in search of more affordable living situations. Thus, the RHNA numbers emphasize the production of housing that will encourage more of these folks to stay.
As the demand for housing, particularly affordable housing grows continually, available land for housing development, of course, is decreasing. This imbalance sets up a fundamental tension for most cities, particularly those who already feel they are “built out.” In the City where I work, the RHNA requirement would demand enough dwelling units to accommodate over 20% of the existing population based on the City’s average household size. That is a major load, by anyone’s estimation. Of those, nearly half are earmarked to be affordable to households earning between 0 – 80% AMI.
Many Cities are holding public workshops to consider plausible alternative approaches to possibly reach these intimidating numbers. Unless a City happens to be surrounded by vast tracts of open land that are not already dedicated to public open space, and therefore inviolable, the search for developable parcels to hit the allotted numbers will be a scrappy affair. Thankfully, with the State’s new ADU law, there’s a resource hiding in plain sight, which is existing backyards of single family dwellings. That’s a start, and it’s a bonus that most accessory dwelling units, or “granny flats” tend to be more affordable than an apartment in a managed community with amenities. If there is any undeveloped land large enough to support a neighborhood of single family detached housing, then to improve it with a design that incorporates both an ADU and perhaps a Junior ADU on each lot would yield more than double the density for that neighborhood that one might normally expect from SFD tracts.
But ADUs, great as they are, will ultimately represent only the tiniest little trickle of production. It is obviously necessary to scout locations for multifamily projects at varying ranges of density, and that’s really where the rub is, as those properties are in extremely short supply; that is, at least under the current zoning. The State has recognized that developments up to 30 dwelling units per acre are considered affordable and can count toward the designated total. At a recent City Housing Element update workshop, I posed a question about the need for re-zoning and up-zoning of entire swaths of the City, particularly large lots, in order to reach the RHNA numbers. The response was quite encouraging; it was agreed that yes, in order to have a prayer at identifying sufficient sites with adequate capacity for new housing, it would be necessary to amend underlying zoning, either by overlay, such as a Conditional Use Permit (CUP), or by outright zone changes. If new zoning is proposed, it would also require an update of the City’s General Plan, so the assumptions made in the Housing Element could legally be supported and encouraged by City policy. It was evident the City was seeking help from its citizens to identify such potential sites, as they indicated that if a participant owned land that needed a re-zone, and they were considering housing, they should approach the planning staff with a proposal, which would be given serious consideration.
How awesome is that? I know the behavior of brokers and land acquisition people seeking to find deals; they drive by an underutilized site, in a good location, and wonder “Huh; could we make this work?” I believe the position of the City on this is that they will take any reasonably plausible lead that can be brought to their attention. When it is necessary to conjure 20,000+ new dwellings, no reasonable offer will be refused for consideration. Of course, there will still be an entitlement process required to make it possible, but we’re veterans of that process and used to it.
I deeply and sincerely hope this process will usher in a new season of profound cooperation between the Cities and the private developers who will actually produce the dwellings. Remember the City only has to identify the potential sites; they are still almost entirely dependent on the development community to deliver the new homes. In a sense, almost anyone can be a developer at some level, and all are needed—from the typical empty nester, high equity homeowner seeking to increase the value of their investment with an ADU to the large institutional organizations with the clout to produce hundreds of units at a time.
So keep your eyes open for awesome opportunities that didn’t exist yesterday! Working together we can accomplish the impossible.
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Like what we drive, where and how we live reflects our lifestyles and stages. The needs of each stage differ and require varied physical accommodations that are life stage appropriate. Individuals and households are in constant motion, moving from one stage to the next; some steps just last longer than others. This “circle of life” repeats itself with every successive generation such as Gens X, Y, and Z. About every 14-18 years the cycle begins again. Because cycles overlap, we always have all stages to comprehend and design for simultaneously.
Starting out with limited means, it may make perfect sense to dwell in a micro unit in an urban core, close to transit and the attractions that make this life stage so much fun. One might choose a suite in a themed urban co-living building, which in addition to its affordable rent, comes with built-in community. From here, life often leads one into a special relationship that progresses to a partnership, which forms a new household, often followed by offspring, which represent yet another kind of family unit. Ultimately the offspring leaves the nest, which one might hope, resulting in a new life stage which resembles a previous one, but with more resources! Many folks arrive at this mature stage, and, romancing the memories of a previous cosmopolitan life, downsize back to an urban loft. And so, the cycle repeats.
The nuances of how to appeal to each life stage adjust with changing times, and the evolution is subtle. To stay abreast of the morphing norms is the task of the residential designer, as augmented by marketing research and by paying critical attention to the broader culture. Designing in all housing genres simultaneously creates an imperative to not only stay abreast of the needs of the various life stages, but also to encourage cross pollination from one type to another, understanding the specific product distinctions.
Approximately 65% of Americans occupy single family houses; there are a billion variants of these homes, including size, appointments, and proximity to neighbors and a town center. A detached home is prized for its desirable qualities—it gets light from all sides, usually includes some kind of yard or other private outdoor open space and has a distinct sense of autonomy. As resources are more abundant, these properties become larger and farther apart. Projects on the high end of this spectrum stretch the design team to embrace the perks that luxury affords—which means spending a lot of time in possibility thinking, the inventions of which can be re-interpreted and applied to all types.
Recently we have seen the advent of smaller, more closely spaced single family homes, which appeal to first time buyers, especially when money is cheap and there’s a pandemic to escape. The production pace of this type of dwelling was blistering in 2020 and has accommodated many younger families searching for the sublime combination of ownership along with a yard for the puppy and kids. Forecasters are predicting the boom will continue at least through 2021. These houses, particularly if they are only two stories, are about the least expensive construction there is. Design thinking in this context is a vastly different enterprise than with luxury product—in these smaller, more value priced homes, everything must be considered with a great sensitivity to the bottom line, so simplicity and efficiency become very key drivers.
With the advent of Accessible Dwelling unit laws in California and other states, experimentation and invention in the single family space has really accelerated. Introducing a “granny flat” into a new build detached house doubles the density of the neighborhood, provides attainable housing opportunities, and creates a mini “circle of life” situation where the residents of the primary house and the ADU (assuming all are extended family members) may swap spaces over a long period of time. These new ground-up homes with built-in ADUs are a gateway to multifamily housing.
Multifamily communities, especially 2- and 3-story wood-framed walkup apartments, have been hot in the suburbs and exurbs, because they are the most affordable homes to construct, and the value of the underlying land is typically less. The fire has been fueled by the recent exodus from dense urban cores. As is the case with single family homes, there is a broad range of product types in this category, driven by the desires of target residents. Some people live in these properties for a very long time; others are merely passing through on their way to ownership of a single family home!
Because the amenities in a low-rise multifamily community are shared, great care must be taken by the design team to incorporate elements that specifically appeal to the anticipated residents. With the recent surge of working from home, and the ability to have an abundance of goods and services delivered directly to our dwelling, the traditional community clubhouse needed to be reconsidered. Today’s “resident services hub” reflects the “live/work/play” lifestyle of its residents by having at its core the spaces and services that support working from home—like an alternate place to work when one needs a break from her apartment or to gather with other WFH colleagues, and a place to enjoy with friends all the stuff that’s being delivered. Think about food and beverage trucks or traveling entertainment, all which would satisfy one’s needs.
The big dogs in multifamily properties are those with structured parking: “wraps,” podiums, and high rises. While these communities accommodate a much higher number of persons per net land area, they are the most expensive type to build and are typically located in proximity to an urban core, making the land base more expensive. As a result, they tend toward “luxury” product and command higher rents or sales prices in the event of condominiums. These communities are vertical in nature, with residents living much closer to one another, so random encounters and shared experiences become a desirable aspect of life, as do the thoughtfully planned common spaces in the building, which are evolving in the same way as the suburban “clubhouses”. Relationship of the property to its cultural context is also critically important because many residents spend more time outside their flats than in them, as they take full advantage of the perks their neighborhood offers. Because the cost of these projects is so high, efficiency in plan and skin is a perpetual driver of the design team’s solutions.
So many different conditions, yet with so many elements in common—all influencing one another! The driving intention for all residential design is to create as much comfort and value as possible for a resident relative to what she can afford. Designing tight spaces, such as the micro unit previously mentioned, refines the team’s ability to make the most strategic use of every available square inch of area, wasting nothing, which becomes a strategy applicable to the entire spectrum of homes. Imagining day to day experiences in the dense urban core is quite different than anticipating open space, trails, and rambling amenities in a suburban walk-up location or single family neighborhood, together with the shared spaces, both interior and exterior, that provide seamless transitions from one to the other. What is learned from one experience always helps lead and refine the others.
Today we find ourselves in the situation where the demand for housing has outpaced production for such an extended period of time, making the resultant deficit of homes feel nearly insurmountable. In this environment, it is simply necessary to have more housing, of all types, everywhere it can reasonably go. There is no one product that will on its own make a dent in the deficit; we need more of everything, and an industry energized to imaginatively and intentionally design and deliver it.
Danielian Associates has more than 50 years of residential experience, both domestic and international, that has covered the entire range of residential types from single family detached to high rise, plus the common spaces that support them. In all those years, and in all those products, we have learned the basics of the types, but even more importantly, to listen to our clients and understand which approaches work best for the project in mind.
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ICON Palm Springs Wins a Gold Nugget for Best Architectural Design of a Single Family Detached Home at the 2019 Gold Nugget Awards Presented by PCBC and the California Building Industry Association
Judges for the 2019 Gold Nugget Awards announced the Danielian-designed ICON Palm Springs project a Grand Award winner. Built by Far West Industries with interiors designed by AI Designs, the ICON collection features modern architecture and an authentic Palm Springs experience with ample room for entertaining and indoor-outdoor living throughout. The open floor plans and generously sized flex room options ensure that homeowners can customize each new home and make it their own.
ICON Palm Springs had previously been announced as a Merit Award winner in early May in anticipation of the 56th Gold Nugget Awards ceremony.
“The relatively small square footages of these floor plans were a bit of a challenge. The design team was asked to develop a modern architectural theme that carried seamlessly from the exterior to the interior and ‘lived much larger’ than its true size,” said John Danielian, AIA, President at Danielian Associates. “Our firm takes great pride in working collaboratively to develop design solutions that support successful projects and enable our clients to meet their goals. I am very proud to say that we achieved those results at ICON.”
The 56th Annual Gold Nugget Awards were held on Friday, May 31st in San Francisco, CA in conjunction with the PCBC Show. Each year the awards recognize outstanding architectural and planning achievements in home and community design, retail and commercial design, site planning, mixed-use development and specialty housing categories. Grand Award winners were selected from a pool of over 600 submissions with all entries judged by esteemed industry professionals. ICON Palm Springs was announced the Grand Award winner out of a revered group of finalists in its category, including Trilogy at Monarch Dunes – Valles Collection – The Solvang by Shea Homes and Bassenian Lagoni Architecture, Vita at Altis – Plan 3 by Pardee Homes and Bassenian Lagoni, and Altura – The Bryce by McCaffrey Homes and KTGY Architecture + Planning.
What’s Next In Single Family Architecture
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An overview of the top design trends that will be seen throughout the rest of the year
As appeared in the February 2019 issue of Builder & Developer Magazine
Many experts and industry professionals expect 2019 to be a pivotal year in residential homebuilding. While demand for new homes is generally still strong in most market segments, buyers are now finding that they have more options available. This means they can be more selective about their purchases. Now, more than ever, home design can help builders differentiate their products and help realize faster sales velocities.
Here are the top design trends we anticipate seeing this year in single-family architecture.
THE INDOOR-OUTDOOR LIVING REIGN CONTINUES
There is no mistaking the elevated user experience that indoor-outdoor living brings to homebuyers. While this has normally been associated with the Sun Belt and more moderate climates, we are seeing indoor-outdoor living elements included across the US. One public builder recently reported that 20 percent of its buyers nationally are opting into their indoor-outdoor program.
Smaller floor plans and attainable housing will need to look for additional, creative ways to incorporate indoor-outdooring. A kitchen window that opens up to a small outside bar or a dining nook positioned perfectly to give an al fresco feel – a little creativity here can yield a heightened homeowner experience with minimal impact to bottom line costs.
Danielian’s District at the Edge showcases unique architecture with a pop of color in this California based design.
CUSTOMIZATION
With the ability to customize and control nearly everything at a consumer’s fingertips, architectural customization will be a way for homebuilders to differentiate themselves.
A few leading builders have adopted programs that allow buyers to add in options and make floor plans changes that are not tied to a specific construction schedule. If a buyer comes in and decides to purchase a specific home that is already framed, the options have already been included in the home’s design. This grants buyers greater flexibility and the ability to customize their home for the way they live. Expect to see more opportunities for customization.
INNOVATION IN ATTAINABILITY
With high demand from millennials and first-time buyers to purchase homes alongside high land costs in many markets, in which we are seeing perhaps a slightly softening market condition, is a lack of attainable housing supply.
Look for substantial innovation this year in small lot products. Having a planning and architecture team working together under one roof will be advantageous here, as good planning can maximize home values while your architecture team works in tandem to create smaller footprints that both live large and maximize privacy.
The ABC Green Home 3.0 showcases modern style architecture designed by Danielian Associates.
MATERIALS & FINISH WORK
Also knowing where to value engineer and where a simple upgrade will enhance a small space can add tremendous appeal. A single statement or highlight feature within a small floor plan, such as a full-height kitchen backsplash or an enhanced feature wall, can be included in price-sensitive products and give even first-time homebuyers a sense of luxury. These small touches, carefully added, will help create a more elegant space and a better living experience with minimal cost impact.
Across all products types, modern and transitional design is still very popular. We also see increasing demand for contemporary farmhouse design. Look for creative use of industrial materials in residential applications and increased use of lighting as a design highlight.
TECHNOLOGY
Smart homes are now the industry standard. The best home technology will function as a cohesive system, be absolutely seamless, and be simple to use. Look for continued innovation in the application of technology within the home, particularly with the active adult markets.
There is some fantastic technology within the multifamily housing industry using smart robots and an AI stack. This system increases usable square footing by storing, managing, and retrieving objects on-demand in the ceiling. These systems are already being used in existing rental products in high-cost areas like San Francisco and Seattle. Perhaps we will see this technology cross over to higher density single-family housing as well.
The Altair Irvine development, developed by Lennar features Danielian’s signature Undertainment Floor.
WHAT IS NEXT?
In addition to these design movement trends, we turned to the Danielian Team to hear straight from the source what they expect to see in single-family residential architecture and planning in 2019:
Joe Wicentowich – Co-housing will become a growing trend, particularly as it relates to attainability. Look for more “co-op living” to address the growing attainable housing issue.
Alena Chernolevskaya – Look for increased use of off-site home manufacturing technologies and on-site assembly to save on construction and labor costs.
Louis Bretana – Smaller floor plans and attainable design should allow options for communal spaces, depending on the level of interaction desired at any given time. Lifestyles and trends are always in flux so versatility in design of public and private spaces is equally important.
Miguel Martinez – Safety and security are two hot button issues. Creative use of voids in floor plans can affordably create safe spaces in homes at all price points. Peace of mind is priceless, particularly for families.
Jeff Stevens – Redevelopment of malls and other large commercial spaces and integrating residential onsite to grow demand for a broader range of services while also increasing available housing supply. Rethinking these commercial spaces to create experiences, entertainment and retail – creating a true ‘Live, Work, Shop, Play!’
Robin Titcher – The increase in catastrophic wildfires will create a demand for fireproof homes. Beyond far beyond the current code, expect to see substantial innovation in creating a fully fireproof home.
Andrew Schaffner – Increasingly frequent package deliveries continue to be a management issue for homeowners. Expect to see innovative ways for secure package delivery and storage incorporated into residential architecture.
Victor Alvarez – Expect to see increases in VR / AR technologies to enhance communication between designer and client and also between builder and homebuyer.
Rene Alvarado – Look for increased incorporation of eco-friendly materials, particularly as it applies to indoor health and wellness.
Mike Boyd – With co-living becoming more accepted, the next evolution would be a hybrid of communal living combined with communal work spaces. Micro units that share common areas and in separate but connected location sharing “we work” style offices. These micro communities could be grouped together to create larger, walkable, and more sustainable communities.
A Look At The Man Behind Danielian Associates
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Architect Art Danielian’s vision made a mark on Orange County
You might not know Art Danielian’s name off the top of your head, but you know his work.
The founder of Danielian Associates is a veritable titan in Orange County’s architectural scene. Over the past five decades, he has amassed more than 640 awards and completed 5,272 projects around the world. His Irvine-based firm has designed custom homes, residential communities and dynamic large-scale creations throughout OC and worldwide.
The first architect to be inducted into the California Building Industry Hall of Fame, Danielian recently was nominated Person of the Year by the Council on Shaping Advancements in Generational Environments (SAGE) for 50 years of service to the community.
What’s behind such an august career? We sat down with the man himself to find out:
WHAT IGNITED YOUR PASSION FOR ARCHITECTURE?
I grew up in Pasadena, and my uncle worked as an architect nearby. He gave me a job sweeping floors. I came to realize architecture was a fascinating process, witnessing two-dimensional drawings transform into three-dimensional buildings. I took an architecture class at Pasadena City College, and our first assignment was a home-design competition, which I won. That sealed the deal for me on my career path. I later graduated with a degree in architecture from USC and worked for Ed Fickett, FAIA, one of the nation’s pioneers in master-planned residential communities. I started Danielian Associates in 1968.
HOW HAS YOUR FIRM PLAYED A ROLE IN SHAPING THE OC LANDSCAPE THESE PAST FIVE DECADES?
I truly feel that innovation in housing starts in Orange County. While no one individual OC firm can take credit, I believe Danielian Associates played a part in the collective advancements over the past 50 years. Architectural design is an evolutionary process, not a revolutionary occurrence. Our innovations throughout the decades with wide and shallow lots, “combo/condo” projects (a mix of townhomes and flats in one configuration) – and, more recently, designs that allow for higher density housing while maintaining livability, homeowner privacy, and usable outdoor space – have provided OC residents with higher-quality design options and created affordable housing choices in an area known for its very high land costs.
NAME A PROJECT IN ORANGE COUNTY YOU ARE PARTICULARLY PROUD OF.
One of my favorite projects of all time was The Terraces in Corona del Mar. The site was very challenging. We used the natural steep grade to build direct-access stacked duplexes, ultimately creating a dynamic senior housing project.
WHAT WAS THE INSPIRATION BEHIND YOUR HABITAT FOR HUMANITY HOME DESIGN IN FULLERTON?
Sustainability has always been at the core of our architecture and design philosophy. The Habitat for Humanity home in Fullerton was a partnership with Peninsula Publishing, Habitat for Humanity of Orange County, our firm and several others. The city of Fullerton required that the design honor the mid-century Eichler-style architecture woven throughout its downtown. The resulting two-story home was unique in that it
was a net-zero energy home (meaning it produces more energy than it consumes). It won national awards for its green design. The keys were eventually turned over to a former U.S. military veteran and his family – that was the best part.
DESCRIBE YOUR RECENT INVOLVEMENT IN THE MARCH VETERANS VILLAGE PROJECT IN RIVERSIDE, WHICH SUPPORTS VETERANS AS THEY REINTEGRATE INTO CIVILIAN LIFE.
To be able to provide housing and supportive services to those who served our country is truly a special honor. We are very proud of our work with the United States Veterans Initiative, and residents are already taking advantage of the resources now available to them.
ANY INSIGHTS ON CURRENT HOUSING TRENDS IN OC?
With high land costs in Orange County and a huge appetite for entry-level and attainable housing, we need to get creative to achieve density levels with home prices that young professionals and growing families can manage. If we continue to ignore this population, there won’t be any new housing in Orange County that our children will be able to afford.
YOU ONCE COMPARED YOUR WORK TO “GETTING TO GO TO A CANDY FACTORY EVERY DAY.” DO YOU STILL FEEL THAT ANTICIPATION AND EXCITEMENT?
Yes. To see a project go from a napkin sketch to a finished home where people live and thrive – that is a very rewarding process. An architect is always learning and honing his craft
Delivering Design at Lumiere
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Danielian Associates teams up with Lennar in Altair Irvine to create luxury homes with innovative interior spaces
When the Danielian Associates team was asked by Lennar to design the largest product at Altair in Irvine, the firm knew it had to create an extraordinary interior living experience for future residents. At one point during the visioning process one of the firm’s architectural designers said, “Guys and Gals, this may be just the right opportunity to introduce a courtyard basement feature into a production home environment.” Boom. With 60’ x 105’ lot sizes already predetermined and a targeted move-up / luxury buyer demographic for the product, this basement feature was just the solution for delivering homes with very large open floor plans and private outdoor space within relatively small lot configurations. From that visioning team meeting, the Undertainment™ Floor was born. While courtyard basements are not necessarily new to the Danielian team or to custom home builders for that matter, bringing this element into a production home neighborhood in Irvine certainly is new.
Featuring contemporary architectural styling throughout, Lumiere delivers luxury living at its finest with thoughtful details and seamless indoor / outdoor living elements within its six floor plan offerings. The old adage form follows function certainly applies, and each of the six floor plans were meticulously crafted with the homeowner experience in mind. The crown jewel of the Lumiere neighborhood is the Plan 3X and the Plan 4X residences which offer walk out, courtyard basements and ample amounts of natural daylight throughout the center of each home.
The Undertainment™ Floor Defined
These courtyard basements are not the stuffy basements that you might be familiar with, they truly go above and beyond which is why the firm coined the term Undertainment™ to describe these spaces. From the get-go, the design focus was on the interior architecture and the functionality of the spaces. Ranging in size from 1866 – 1985 SF, the Undertainment™ Floor features an outdoor courtyard with fireplace, game room and lounge, built-in wet bar, flex room, additional bedroom and bathroom. This space is just as ideally suited for entertaining as it is for everyday living with a heightened sense of distinction. The 3X and 4X Plans Undertainment™ Floors are modeled with numerous options – a home theater, wine room, exercise studio, home office, and entertainment lounge – to give future buyers a glimpse into the endless customizable living experiences that are possible within this space. The first and second floors wrap around this private courtyard space, creating a perfect opportunity to leverage a central corridor of natural sunlight and celebrate it throughout the home. To create a truly seamless architectural experience, the elevation style and theming must be carried throughout the home and into the interior spaces. With so much indoor / outdoor living opportunities in these floor plans, the contemporary styling details have been integrated into both the interior and exterior architecture. The architecture and interior design teams worked together to create an environment that brings the story and design intent of these homes to life, while allowing the future buyers to live their own story and personalize their living experience.
It’s All About The Experience
Lumiere features six different luxury floor plans, each designed with a diverse user experience in mind. The architecture team and builder worked together to identify buyer demographics and craft homes that matched a wide-range of user experience preferences.
The Plan 1 at 3,471 SF offers single story living with indoor / outdoor living elements woven into the floor plan throughout, ideal for a luxury move-up or for downsizing. The second story is perfect for entertaining guests or relaxing with an over-sized loft that opens out to a second floor California Terrace.
Plan 2 offers the flexibility of a master suite on the first floor harmonious an additional master suite on the second floor. The over-sized game room and adjacent California Terrace allows for everyday living and entertaining with large families.
The Plan 3 and 3X range in size from 4,824 – 6,613 SF (the Undertainment™ Floor is featured in Plan 3X) and include Lennar’s popular NextGen® Suite. These homes allow for multi-generational living with an attached private suite with separate entrance, living room, bedroom, bathroom, laundry area and kitchenette. The suite is connected to the main home in a way that allows for as much privacy or connection to the heart of the home as desired. A grand foyer opens up to the large great room, generously over-sized kitchen island, and a large outdoor living space making this plan the perfect mix of private spaces and large gathering places.
Plan 4 and 4X range in size from 4,605 – 6590 SF (the Undertainment™ Floor is featured in Plan 4X). Featuring five bedrooms, a very large open floor plan, and entertaining areas with adjacent covered outdoor spaces upstairs and down, this home is designed to bring elegance and sophistication to everyday living and entertaining.
“Altair is such a distinctive and unique new master planned community, it is unlike anything that is currently available in Irvine,” said John Danielian, AIA, President of Danielian Associates. “As an ever-evolving architecture and planning practice, we are always looking to create innovative housing products and leverage opportunities to bring custom home design details into a production home environment. This gives our builder clients an edge in the market. The simple elegance, location, stunning views, and its proximity to world class restaurants and entertainment make Altair a true destination for authentic, resort style living. Lumiere at Altair tells that story and reflects a living experience that is unparalleled.”
Project Information:
Project: Lumiere at Altair
Location: Irvine, CA
Builder: Lennar
Interior Designer: Ambrosia Interior Design
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THE DANIELIAN-DESIGNED ‘UNDERTAINMENT™ FLOOR’ TO MAKE ITS DEBUT AT LUMIERE GRAND OPENING
Lumiere, the sixth and final Lennar neighborhood will open at Altair Irvine on Saturday, June 23. Two floor plans will feature spacious courtyard basements, creating an ultra-luxurious entertaining and living experience.
With a constant goal of creating innovation in residential architecture, the Danielian Associates team have designed the Undertainment™ floor, which will be featured in two of the six plans at Lumiere within the exclusive gated community of Altair Irvine. The Undertainment™ courtyard basement floors will range in size from 1866 – 1985 SF and include features such as a spacious lounge area, media room, game room, oversized wet bar / kitchenette, wine cellar, bedrooms with en suite bath, office, and powder room.
“It’s always a challenge to push design innovation while simultaneously being cognizant of the cost pressures our builder clients face, especially with rising land costs,” said John Danielian, AIA, Principal at Danielian Associates. “The Undertainment™ basement floor option can be a great solution for increasing square footage in a luxury product targeted to specific market segments where land costs are very high. We took the concept of a basement level, designed it with a sophisticated living experience in mind, incorporated an indoor / outdoor living element, and successfully incorporated it into a production housing environment in Orange County.”
Although presales are currently underway, Lennar will officially unveil this collection of contemporary-styled luxury homes at the grand opening of Lumiere on Saturday, June 23rd. Four models will be available to tour.
Lumiere offers six different floor plan options ranging in size from 3,471 – 6,817 SF, including a single story living plan with second floor loft and deck. These modern open floor plans feature up to 6 bedrooms / 6 baths with a blend of stunning features, grand living spaces, gourmet-inspired kitchens, dual master / multigenerational living options, two and three-car garages, outdoor balconies and interior courtyards with seamless indoor / outdoor transitions, and an unrivaled experience for everyday living and entertaining.