Multifamily Housing 'Matrix' Needs a Re-Boot

A year ago, Springfield adopted a new system for evaluating multifamily housing rezoning requests. An intricate point system dubbed the multifamily “matrix” has been in use ever since. 

I served along with other members of the community on the task force that drew up the matrix. Throughout the processed I was one of several who voiced concern about the potential outcome of utilizing such a system at all. It seemed to me that we were using a sledgehammer to kill an ant. Why not simply adopt a few statements of principle – guidines, if you will – that become the criteria through which staff, planning and zoning officials and council members exercise reasonable judgment? Instead, we opted for a prescriptive point system.

When the matrix was adopted, I outlined (in a column for the September issue of Housing News) my concerns about the policy and some basic benchmarks we should utilize to evaluate it. Here is an excerpt from that column:

“…I hope my fears prove unfounded, but the stakes certainly are high. That’s why the best part of the task force’s recommendation is that we reconvene in a year to evaluate the system and make recommendations for any needed changes. In the meantime, we should watch a few indicators very carefully:

 Number of rezoning applications received: If we receive significantly fewer rezoning applications over the next year than we did in 2005 & 2006, we need to consider that we may have severely harmed our local economy by driving jobs and revenue out of town. We should always use real market data to evaluate, and avoid rash decisions based on a “general feeling” of city council members or anyone else.

 Percentage of rezoning applications approved: If we are rejecting a significantly higher proportion of applications than in years past, we should re-work the matrix. 

 Financing. The design guidelines section of this matrix is a New Urbanism style guide, put into policy. New Urbanism is one of many design styles, but this matrix makes it the only one that receives rezoning points. Evidence exists that many lenders view the style as a risky and expensive variation from more conventional and proven development styles, and they often avoid them. Since we are essentially imposing New Urbanism on the multifamily development community (to qualify for higher density you must meet at least 50% of the design guidelines), we should take special note of how lenders respond.

 We must carefully evaluate the point levels during this year, to ensure they are fair to new development.”…”

The multifamily housing task force is now reconvening to re-evaluate the matrix. My hope is that these four criteria will be the ones utilized to determine how the matrix should be changed (or if it should be retained at all). Arguably, the matrix (at least thus far) has failed on all four benchmarks.

Number of rezoning applications received – I know of developers who have simply decided it isn’t worth trying to navigate the complex maze offered by the Springfield matrix.  Surrounding communities require far fewer bureaucratic hoops. To make a good judgment on this point, the task force will need data. City staff should gather the number of rezoning applications (developments, not units) approved and denied over the last year in Greene County, Christian County, Republic, Willard, Nixa, Ozark, Rogersville, etc. to compare. By any objective standard, Springfield should run well ahead of all these jurisdictions. It is more urbanized. It has a higher percentage of renters to owners. Occupancy rates in existing units remain high. There is no reason Springfield shouldn’t outperform all surrounding jurisdictions on the number of multifamily rezoning applications received – unless developers are being pushed away by policies and procedures.

Percentage of rezoning applications approved – This should be simple enough to compare the last 12 months to approval percentages in the past, as well as to current percentages in surrounding communities.

Financing - In the last year, financing for all construction projects has become less flexible.  If “New Urbanism” developments were on less-than-certain ground for financing a year ago, there is no reason to believe lending institutions have loosened standards this year to embrace this financially riskier option.

Evaluate the points – Let’s face it, the points are confusing. Nobody (including staff council members) seems able to agree on just how to allocate points. Despite the best efforts of the task force to keep the process objective and clear, the result has been muddled and confusing. If the matrix has created more confusion than simplification, it should be reconsidered.

Local Housing Market Poised to Rebound Sooner than Expected?

Our friends at the Greater Springfield Board of Realtors last week met with Federal Reserve Vice President Dr. Howard Wall, and the picture he paints for the near future in the greater Springfield market is cautiously optimistic for a nice rebound (and soon). 

We all know that nationwide home sales and new construction have been down severely. Locally, our down period began later.  And we in the Ozarks are hopeful that our reputation for being insulated from the extremes continues. That would mean we can expect this slowdown in the housing economy not to run as deep, or for as long a period of time, here as it has/will elsewhere. 

In the residential construction industry, of course, the first thing that must happen before large numbers of homes can be built again, is for those on the market today to start selling more rapidly. KY3's Cara Restelli reported last week on the possibility that our local housing market may have hit bottom, with a rebound on the way.  In case you missed it, you can watch the news story below.

National Honors for Your HBA

Today was another full day at the Executive Officers Seminar of NAHB in Providence, RI. Education sessions continued and I have pages of important and valuable notes from seminars today on Advanced Association Law and Data Collection & Member Needs Assessments. Charlyce received expert instruction in membership retention and meeting member needs. So much valuable information was shared today that we’ll need some time to sift through it all. Still, it is so useful to get advanced content like this from some of the best experts in their field. I anticipate it will pay off greatly for our members.

Today saw three more Association Excellence Awards for the HBA of Greater Springfield, bringing your HBA’s total national awards to five for the year. You can read about the two we received before today in yesterday’s blog entry. Today, the HBA of Greater Springfield received the honors of:

• Best Political Action Program Administered – Ozark Board of Aldermen Elections 
• Best Workforce Development Plan Implemented – Partnership with OTC on the Construction Readiness Program
• Best Specialty Fundraising Program – CBBT Sporting Clays Tournament

For the second year in a row, the HBA of Greater Springfield received more Association Excellence Awards than any other association in our size category. This is a great recognition of the work of our members, committees, and board of directors, as well as the support efforts of the HBA staff. It is a great honor to work with you on these projects, and I’m so proud that your efforts continue to receive recognition on a national stage.

I was surprised to learn tonight that our president, Kevin Clingan (and our board of directors and staff) had nominated me to receive the EOC’s top national award of Executive Officer of the Year. I was even more shocked to actually receive the award at tonight’s AEA Awards Gala. This is a great honor to receive and I am so humbled by it. 

One of the great things about my job is that I often get credit for the work of others. Because of this reality, I always want to be cautious not to fall into the trap of believing my own press clippings. I want you to know that I consider this award to be recognition of the great home builders association we all treasure. It is recognition of a uniquely visionary and dynamic board of directors; of a remarkably talented and committed staff; and, most of all, of our truly exceptional members - the caliber of which most associations simply could never imagine the privilege of serving. I have said it before, but I believe it cannot be said enough: I am so grateful to work for you, our HBA members. Thank you so much for allowing me that honor.

 

Another late night. Signing off from Providence, RI until tomorrow.  

- Matt

Wednesday in Providence: Awards & Education

I’m just getting back in my hotel room after HBA Operations Manager Charlyce Ruth and I went to dinner with Crystal Harrington. Crystal is the Executive Officer at the HBA of Southwest Missouri (Joplin). Part of the value of this event is sharing information with peers, and I always enjoy getting together with Crystal. 

Day two of the annual Executive Officers Council Seminar of the National Association of Home Builders was filled with useful information and a couple of honors awarded to the HBA of Greater Springfield.

Charlyce and I split up today so we could cover more educational ground. I attended seminars on increasing the effectiveness of a local PAC, on ‘When to Lead and When to Follow,’ and on anticipating and fulfilling expectations and wishes of members even before they are expressly mentioned. 

Charlyce caught an excellent program from association law attorney Jeff Tennenbaum on legal issues pertinent to a 501(c)3. The content should help the HBA Charitable Foundation to excel. She also learned a new method for systematically evaluating association programs for effectiveness and their relevance to members.

The HBA of Greater Springfield also was honored with two Association Excellence Awards. The association’s Fiscal Strategy and Financial Plan for a Shifting Market received the AEA award in the category of Best Association Operations Program. This tool was developed by the budget committee as an accompanying document to the annual budget. It provides a roadmap for accurately forecasting those areas of the budget that are most and least likely to be affected by the shifting housing market. It anticipates which departments will be affected for the better or for the worse, and by how much. It also provides contingency financial plans for use in the event any projections and forecasts ever fall short.

We also received the AEA award for Best Communication to Members – Directories Published for the HBA membership directory. Our members are familiar with this product and have found it quite useful over the years. The most recent version of the award-winning directory is available to HBA members in the showroom of HBA Directory Distribution Sponsor Southern Materials Company. 

The rest of the Association Excellence Awards will be announced tomorrow (Thursday), so I hope to have more to report then. In the meantime, please know Charlyce and I are working hard to learn everything we can while we are here to help provide greater value to our members for their membership dollar. 

That’s all for now. More tomorrow.

- Matt

Matt and Charlyce Attend EOC Seminar in Providence

This week marks my first attempt to provide full-scale daily blogging to our members, from a location abroad. HBA Operations Manager Charlyce Ruth and I touched down tonight just before midnight local time in Providence, Rhode Island. Providence is the site of this year’s Executive Officers Council Seminar of the National Association of Home Builders. 

This annual event provides opportunities for Executive Officers and senior staff of HBAs from across the country to network, share ideas and successful programs and services for members. We also learn from a wide variety of expert seminar presenters on topics ranging from association legal issues to enhanced member services to political strategies (the list goes on and on). Annually the EOC Seminar provides valuable content that is put to work for the benefit of HBA members. This year’s seminar is focused largely on providing support for HBA members and their businesses in an increasingly challenging housing market. Charlyce and I will be actively seeking any and every membership edge your HBA can offer to help your business survive and even thrive. The EOC seminar is also the venue for the annual Association Excellence Awards where HBA programs, advocacy & services to members are evaluated and measured against those of peer associations from across the country. The HBA of Greater Springfield again is up for several awards this year, and I hope to have good news to report to you as winners are announced throughout the week.

Tomorrow will be a busy day at the EOC Seminar. Charlyce is enrolled in NAHB’s spokesperson training program. This is excellent and very useful training. I have taken the course, as have a number of our board members over the years, and it has helped us carry your association and industry message in the local media and in other public settings. I’ll be busy with my duties as a member of the national EOC board of directors, welcoming new executive officers and serving as a guide/mentor to a couple of first-time attendees the board has assigned to me. Of course, I’ll also have the opportunity to learn in seminars. And the first series of Association Excellence Awards will be announced. 

It was nice to get some work done in the office today before catching our 5pm flight, but we are paying for it now - checking into the hotel as the clock strikes midnight.  If you need to reach Charlyce or me this week, we will be checking e-mail frequently. Meanwhile, Public Affairs Director Jennifer McClure is riding herd back at the HBA headquarters, along with Kay Wylie and Linda Thieman. They will happily help you with any needs you have this week.

Don’t forget Tuesday is Election Day (I voted absentee last week). Several HBA members and friends will be on the ballot and they need your support. Of special note is HBA builder and board member Terry Ozborn who is in a tight race for Greene County Public Administrator. If you live in Greene County, please pull a republican ballot to vote for him (and tell every friend you can find to do the same). More tomorrow.

- Matt