CAMBRIDGE, MA – The Lincoln Institute of Land Policy will unveil the largest study to date of inclusionary housing – the policy where developers reserve a part of new development as affordable – at Intersections 2017, the annual affordable housing conference of the Grounded Solutions Network, in Oakland, California.

Inclusionary housing is gaining attention as a bulwark against displacement amid soaring housing costs. In the Working Paper Inclusionary Housing in the United States: Prevalence, Impact, and Practices, authors Emily Thaden and Ruoniu (Vince) Wang, of Grounded Solutions, survey the landscape of inclusionary housing in the United States, identifying 886 jurisdictions in 25 states that have enacted the policy. The paper documents nearly 200,000 affordable housing units that have been made and nearly $2 billion in fees paid by developers in lieu of building affordable units – likely underestimates because of missing data.

The paper also breaks down policies by different characteristics, including whether they are mandatory or voluntary, whether they make for-sale or rental units, and crucially, the length of time for which they require units to remain affordable. The paper finds that least 90 percent of inclusionary housing programs require that units remain affordable for 30 years or longer.

“This trend in local inclusionary housing programs differs from the relatively small-term affordability requirements in federal housing programs, which range from five to 30 years,” Thaden and Wang conclude. “The embrace of long-term and lasting affordability requirements by local governments illustrates their commitment to preserve the affordable housing stock in their communities as well as the more prudent use of public and private investment in affordable housing.”

As the authors point out, successful inclusionary housing policy depends on management and stewardship to ensure compliance and upkeep of units.

The paper, available for download on the Lincoln Institute website, builds on a body of work on affordable housing, gentrification, and displacement. The 2015 report Inclusionary Housing: Making and Maintaining Equitable Communities, by Rick Jacobus, offers solutions for overcoming the major political, technical, legal and practical barriers to the adoption of inclusionary housing, as described in media coverage from Portland, Maine, to San Francisco, and in outlets such as Planetizen. The 2014 Working Paper Achieving Lasting Affordability through Inclusionary Housing by Thaden, Robert Hickey, and Lisa Sturtevant, provides a case study analysis of 20 programs.

The Lincoln Institute has done extensive research on community land trusts, a mechanism for providing permanent affordable housing that can be used on its own or in conjunction with inclusionary housing. According to data released in 2009, homeowners in community land trusts are much less likely to lose their homes to foreclosure than owners of market-rate homes, a finding further explored in a 2010 Land Lines magazine article, Outperforming the Market. In addition, The Community Land Trust Reader, a collection of 46 essays, brings together the seminal texts that inspired and defined community land trusts, and the report The City-CLT Partnership (also available at Intersections 2017) outlines how cities can provide investment and support to community land trusts.

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REDMOND, WA – MG Properties Group, a private San Diego-based real estate investor and operator, has announced the acquisition of Reunion at Redmond Ridge in Redmond, WA.

Reunion at Redmond Ridge is a 321-unit class “A” active living 55+ senior community built in 2008. Located in one of the most desirable master plotted communities in the Seattle region, the property offers convenient access to shopping, employment, nature, biking trails and an 18-hole championship golf course. 

Reunion is a small 11-minute drive from downtown Redmond, providing residents with convenient access to strong employers, a variety of retail and entertainment options, and outdoor activities.  Nearby employers include Microsoft, AT&T, Nintendo, Expedia, and a growing cluster of medical facilities. 

The units at Reunion are spacious with 9′ ceilings and a mix of flat-, carriage-, and townhome-style floorplans.  A full community amenity package includes two community rooms, outdoor grilling areas, two state-of-the-art fitness centers, a cyber café, library, and a mini-garden.  MG Properties Group plans to perform modest interior renovations and to update the property’s common areas. 

The sellers were represented by Jon Hallgrimson, Eli Hanacek and Frank Bosl at CBRE. The acquisition was financed with a $53,250,000 10-year fixed-rate Fannie Mae loan arranged by Robert Prouty and Brooks Benjamin at KeyBank.

According to Mark Gleiberman, MGPG’s Chief Executive Officer, “The location and demographics of this property make it an brilliant long-term strategic buy for our private investment capital.  This is a high quality property with a unique value proposition for residents.”

Reunion at Redmond Ridge marks MG Properties Group’s 11th acquisition in the past 12 months.  The eleven acquisitions totaled 3,271 units and approximately $656,000,000 in combined buy price. The company is targeting further acquisitions in Washington, Oregon, Arizona, California, Colorado, and Nevada. 

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TUCSON, AZ – Bascom Arizona Ventures has bought three apartment communities located in Tucson & Sierra Vista, Arizona for $70,225,000, or $86,484 per unit. Bascom Arizona Ventures assumed the existing HUD loans for all three properties. Hamid Panahi of Marcus & Millichap represented the buyer and seller in the transactions. The onsite property management will be overseen by Arizona based Morrison, Ekre & Bart Management Services (MEB). 

The buy comes on the heels of the recent acquisitions of Springs at Silverbell, a 290-unit “Class A” community, and Springs at Continental Ranch, a 196-unit “Class A” community, both located in northwest Tucson, as well as La Entrada, a 186-unit community located near downtown Tucson.

All three properties offer a resort-style swimming pool, relaxing spa, 24-hour fitness center, business center, and private garages. Residents at Summit Vista (288 units), built in 2008 and Crescent Ridge (272 units), built in two phases (2001 & 2008), delight in simple access to Interstate 10 and are proximate to some of the area’s largest employers, as well as a plethora of retail, dining, and entertainment options. Also built in two phases (2004 & 2008), Port Royale (252 units), is proximate to Ft. Huachuca, the largest military installation in the state. 

Mark Brotherton, Portfolio Manager of Bascom affiliate Bascom Arizona Ventures, comments, “The Southern Arizona portfolio provides us with an exceptional opportunity to buy another multifamily portfolio in a recovering market, well below replacement cost, with significant upside with our value-add program. Summit Vista, Crescent Ridge, and Port Royale are our 17th, 18th, & 19th acquisitions since August 2012 in the state of Arizona, and our fourth and fifth in Tucson in the past year. We are very excited about our newest acquisitions and look forward to commencing our value-add program as soon as possible.”

Bill Wright, Asset Manager of Bascom affiliate Bascom Arizona Ventures, adds, “The Bascom renovation program is designed to cure the previous owner’s extensive deferred maintenance, bring the properties to full operational capacity, and support Bascom’s proven business plot.” 

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