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301 & 305 Donald.

The KCLBA got these two lots from the City along with a requirement that the home built on it is sold to a family making at or below 80% AMI. We looked at building two small SFH's on the lot but could not make that work financially as it relates to the 80% AMI requirement. The townhouse project allowed us to create an economy of scale to keep pricing down, which is imperative due to the affordability requirements. Building 3 units at one time on one site lowers our cost per square foot. Recent changes to Grand Rapids zoning allows these to be built without having to go through the very costly process of a zoning variance. Also, being able to build attached single family homes and not having to bear the expense of developing condominium documents certainly allows us to bring these type developments to the Grand Rapids market and make them affordable. Habitat could not make the numbers work either. The KCLBA lost $25,000 on this failed development! I could go on and on and on with my frustration about the denial of this project but will leave it for another day. Actually, selling the lots is exactly what we are doing. Lot For Sale signs are on site now, or should be shortly. Here is what I will watch closely though, how many people wanting to build a single family home on this lot are willing to put the amount of $ on the street to go through the HPC application, hoping it will not be turned down? We will see...

Based on the HPC's recent denial of the KCLBA's 3 unit townhouse project on Donald Place, I highly doubt it. This building is in a Historic district. IF, and that's a big IF, it is allowed to be demolished, I am not sure what they would allow to be built on this site.

No, it is income restricted. There was a LIHTC used to help finance this.

Ohhh, I know...maybe we should bring in some castle elements to really set it apart

The only thing coming down is the former gas station now car lot, the old industrial building on Myrtle, and the first 2 homes. This development does not go as far north as the rental place.

Here you go folks, more renderings for this project. I am biased because I was part of this process from the beginning but I think it is going to add so much to this area!

You should add the old PB Gast Building at 1515 Madison to this list.

This is actually a team effort that includes ICCF, the City of GR, Kent County Land Bank, Habitat, LINC, and Amplify GR. This is a very large complex project. Not sure what role each agency is going to play yet...the devil is in the details. Yes the ultimate goal is to move the families living in these units to home ownership. In case anyone is wondering about the state of the housing market in GR, the owners received 12 offers form different entities originating from 9 states.

This is a very rough estimate between 2012 and 2015 there have been about 426 market rate units and 622 low income housing tax credit units. The estimate for units to actually come on line (this does not mean under construction) in 2016 and 2017 is 2,663 market rate units and 511 LIHTC units. This does not include the potential abandoned homes renovated, or new single family home construction.

Hate to say this, but I agree with X99. My concern is not necessarily with the rise of prices, it is with the stagnant area median income. Check it out, between 2005 and 2014 the AMI for families in GR went from $45,897 (2005) to $47,269 (2014). When inflation is considered there is an actual loss of $8,300 annually per family. Here is the real rub the national average for the same time period with inflation considered, the loss annual lost revenue per family is only $1,768. Point is, we have a major wage issue in our City and our region.

Jeff, it is going to be interesting to see Grand Rapids population numbers over the next several years. We have literally several thousands of new units (mostly rental) coming on line. Here is the rub and why we need to watch the population closely: the City has basically "mortgaged" the property tax increases on these new developments for the next 28 years through various tax credit mechanisms. The City does this because the theory is that these new units will bring in new residents and thus more income tax revenue which is a HUGE part of the City budget. However, if someone moves from somewhere here in the City into one of these new units there is no income tax gains. There is one theory whereby no increase in population still brings the income tax gains. That is when a college grad already living in GR gets a job in GR and moves into an apartment downtown. Nevertheless, it is worth watching closely...at least I am for sure... Actually if you look at the cost of a mortgage on a $225K house and compare it to rent for a 3 bedroom unit, rent has gone up exponentially faster and higher than the cost of owning a home. Problem is, it is almost impossible for a new home buyer to find a home in the City.

That is a rental being built by the same developer that did the new construction mixed use building on Weathly next to the Old Striders/Judes/Spoonlickers building. I will have to agree with you, not only does that look incredibly odd, I am not sure how its going to cash flow because that beast could not be cheap to build...

I'm not so sure the modern design would not receive HPC approval. Look at Ted Lott's place on Diamond, or the new construction home on the corner of Madison and Pleasant. Maybe not this exact design but with a few modifications to the materials choice, it might fly. Right now at the KCLBA, we are seeing some pretty darn cool efficiently designed homes that builders are proposing on some of our empty lots. I am hoping this housing shortage/crisis we are seeing will bring out more creativity to get more units per site. If I get permission from the developers, I will share them.

ICCF no longer has a mortgage company. Getting existing residents in neighborhoods that are gentrifying or at risk of gentrification into home ownership is almost impossible because of the lack of inventory. If you search GRAR this morning looking for a home to purchase in GR between $100K and $200K, which is an affordable range for a mortgage, you will only find 50 homes for sale right now. Then in your search actually look at the 28 homes that are priced from $100k to $150K and look at the location, size, and condition of the home. So there is literally no existing inventory for families to purchase. That would lead one to say, well let's build in the City. Actually there are a decent amount of build-able lots in these neighborhoods. But you have a math problem. Buy a lot: $6,500-$15,000 Build a 1,200 sf home at $150 per sf: $180,000 Site costs (landscaping, driveway, sidewalks, etc): $10,000 If you want a garage: $15,000 Utility hook up fees: $5,000 Total (without a contingency): $216,000 This is if a buyer is building their own home. If it is a developer building to re-sell the cost to build goes way higher to factor profit and offset closing costs. Tell me a neighborhood that is either gentrifying or at risk of gentrifying that can support a $216,000 to $250,000 price point?

Walker, if I could answer the question about gentrification in an Urban Planet post I think I could make millions writing a book. One thing about housing, whether it be new construction or renovation of existing, when it happens in mass like has happened in the Baxter and surrounding neighborhood it has a huge effect on the value of all the real estate in that neighborhood. This is true regardless of whether or not it is ownership or rental being built. I was told that the Eastown and Baxter neighborhoods have seen the highest increase in average sales price in a 7 county region. In general, without any sort of a study done, I can tell you that unequivocally lower income households (demographically this means African American and Hispanic families) are being displaced from our City in startling numbers. There is evidence of this is in the demographic changes we are seeing in Grand Rapids Public Schools and conversely Kentwood, Wyoming, Godwin Heights, and even Northview, and Comstock Park School systems. Average rent for a 2 bedroom in Grand Rapids is approaching $900 a month.

Yep, it is the KCLBA. In fact I am thinking of changing my UP name to KCLBADave. This is the first of many townhouse projects we hope to build in the next 18 months. Here is what is unique to our town house development, the layout and design of the units is exactly the same. In fact they can even be built stand alone. The floor plan is 17x40 with garden basements. The basement has a finished room and full bath. The main floor is completely wide open with no walls so it flows front to back, and the second floor has 2 bedrooms and a full bath with a balcony off the master. However, while the design is exactly the same as far as layout the outside can be finished to fit into the neighborhood. I will try to post several examples of our design when I get a chance. Here is the real kicker, they are zero lot single family homes, meaning the demising wall between the units is the parcel line. There is a common easement for the drives and the yard. The new zoning changes approved by the City a few weeks ago has language that allows for these to built with planning approval only, there is no need to go in for a full blown zoning change. This is huge as it will save developers quite a bit of money. There is no need to condo them, and the up front costs to get a permit are minimal. This project is the first one, and has the added detail of getting HPC approval. We could have built two small single family homes on these two lots. But this project allows us to get 3. We have another site where we are building 5 on a site that would have only allowed 2. Another benefit is because we are building these in areas where there has never been home ownership units like this before, our appraiser has to look outside the neighborhood to get comps. To us it ticks a lot of boxes Increased density, More inventory for a market starved for properties for sale Efficient design that lowers price per square foot An opportunity for GRCC to increase the number of students in their construction programs

I was with some people today talking about the topic of the day - HOUSING or lack thereof, and specifically affordable rental. One of the folks I was meeting with said, "Well there is one bright spot about the 'castle monstrosity' being built in Grandville...once they are unable to lease it up because it either overlooks an expressway or the gravel quarry, it'll make great affordable housing." I thought to myself...I am going to have to post that on UP tonight...so there you go...

Jeff your snark is in full effect today I see.

That's exactly what the City is doing. The stop work order was executed almost immediately when this dangerous situation was discovered and a vendor is being quickly sought to physically shore it up to keep it safe and that work will result in a lien on the building.

Holy crap, that is funny! My wife and kids are obsessed with Chick Fil A. Me...Meh

There is a new restaurant going into the space that was The Pita House on the corner of Wealthy and Ethel. The "other" pita shop that was supposed to open there did not come to fruition, even though they have a sign.

A little bird told me that the pita place is not opening on the corner of Ethel and Wealthy where the Pita Shop used to be. Another restaurant is close to working out a deal for this space. Stay tuned...

There are currently no development plans for this site. In fact Urban Roots was told that they can continue their operations there next season and are encouraged to continue to engage in the planning process for this area as urban farming most certainly can and should fit in the redevelopment plans for the area in the right location and context.