Comparative Analysis Repurposing Underutilized Spaces and Regulatory Challenges Several trends have emerged in the laws being proposed and passed across the country. The first is a desire to circumvent the single-family zoning policies that bar high-density development. The single-family zoning policy, which has been around since 1916, is particularly vexing for developers pursuing high-density projects and for communities trying to expand housing quickly. The other trend is state and local governments looking for creative solutions to address housing shortages, whether it’s cutting the red tape for development around transit hubs or putting restrictions on single-family buildings. COVID-19 has also impacted housing policy on the state level. Buildings that are underutilized, such as retail or office space, are being rezoned for conversion into housing. In addition, some laws are being recalibrated to help developers meet certain regulatory benchmarks, as doing so has become more difficult with labor shortages and supply-chain disruptions precipitated by the pandemic. Balancing the local community’s expectations with state-wide housing initiatives appears to be the biggest obstacle to getting legislation passed and new construction underway. Building positive relationships with stakeholders on both the state and local levels can help developers looking to pursue a residential project in line with the new regulations. In addition, an ability to communicate the positive impact and necessity of these buildings to community stakeholders ahead of legislative changes has proven necessary. The impact and efficacy of these policies will take a long time to fully analyze, but for the most part, it will depend on the ambition of developers working in the region. Opening the door to housing production is just one step to boosting housing production, and the success will depend on how many firms have the vision and ambition to rise to the occasion. Zoning and regulatory changes are a step toward addressing housing shortages, but the building and construction process for major residential projects is complex. At the end of the day, it’s the developers who need to take advantage of these regulatory changes, and the legislative action is designed to facilitate this kind of business in individual states. 21
Driving The Next Decade of Development, State-By-State Page 20 Page 22