Legal

Luxury vs. Affordable Multifamily Housing

Arizona’s cities should focus on growing both

by Benjamin Graff

It may be surprising to hear that a city or community can be opposed to a luxury multifamily development just as strongly as an affordable housing development, but for very different reasons.

As a land use and zoning attorney who represents clients focused on both luxury and affordable multifamily housing, I have seen this scenario in various jurisdictions. While there are numerous legal and political considerations with each product type, Arizona’s cities should focus on embracing both luxury and affordable housing developments. The combination of the two helps stabilize rents, injects a diverse housing supply that meets ever-growing demand, and positions a city to attract economic development opportunities.

Developers obtaining approvals for multifamily developments often encounter the ultimate “Catch 22.” When proposing a luxury development, the city or community may push back and express a desire for affordable housing. But proposing affordable housing brings the opposite demand for luxury units, amenities and higher rental rates. The biggest challenge is communicating why a luxury or affordable multifamily development is the best fit for the proposed location and how offering all types of multifamily developments helps stabilize rental rates and meet a diversity of housing demands.

Many clients ask if a city can require a developer to build affordable or luxury housing, or whether the city can dictate that a proposed rental development must instead consist of for-sale condominiums. The answer to both questions is no, as the Federal Fair Housing Act can be interpreted to prohibit such actions.

But even with the law on their side, developers still need to navigate political and community hurdles. Since Arizona and municipal zoning laws do not distinguish between affordable, market-rate and luxury multifamily developments; it is the underlying zoning district and associated development standards, including density limits, that legally impact what can be developed on the site. In many situations, a developer will need to rezone the property to reach desired density limits, height and development standards. Some cities provide for a planned unit development or planned area development option, which allows the developer to write and design its own zoning district to facilitate a more enhanced and appropriate development.

Interestingly, cities with defined goals and policies for attracting and developing affordable housing are more willing to support luxury developments. If a city is confident in its ability to develop much-needed affordable housing, it can be equally supportive of luxury multifamily developments to support a larger diversity of housing options at varying price points. Phoenix and Tempe are strong examples of cities that are working on policies to attract and develop affordable housing while simultaneously encouraging market-rate and luxury multifamily developments.

Notwithstanding the benefits of attracting both options, some communities continue to push back.

In recent years, we have seen multiple examples where a city’s actions may serve to push all multifamily development beyond its municipal boundaries, opting instead for only singlefamily home ownership opportunities. This can be a shortsighted tactic that prevents new families and employees from locating in and, eventually, producing tax revenue for the city. Typically, families and employees moving to a new state seek quality rental housing. This allows the renters to start their careers and families, with the goal of buying a home in the future. But if a city does not provide diverse multifamily rental options, they will push such individuals into neighboring jurisdictions, which may ultimately become those families’ permanent home and benefit from the associated tax generation.

What if there is an opportunity for a luxury multifamily developer to contribute to a city’s affordable housing goals? Is this type of contribution legal? The answer is yes, as long as this is not a quid pro quo in return for the approval of the development.

The contribution must be voluntary and in no way tied to a rezoning application or other development approval under the city’s discretion. In Tempe, for example, Mayor Corey Woods and the city council created the Hometown for All initiative in January 2021. Under this initiative, for every luxury or marketrate multifamily development built in Tempe, an amount equivalent to 50% of certain permitting fees paid to the city by the developer goes toward supporting affordable and workforce housing. The developer can also make an additional voluntary contribution to the fund.

As we see the demand for diverse housing options continue to grow, it will be the cities that simultaneously attract and encourage luxury and affordable multifamily developments that will be best prepared for the future.

Benjamin Graff is a partner in the Phoenix office of Quarles & Brady LLP and leads the Land Use & Zoning Practice Group. An established Arizona land use and zoning attorney, he has extensive experience in government relations and Arizona politics. His practice includes work with luxury multifamily, senior living, affordable housing, single-family, industrial uses, office and mixed-use developments. quarles.com

The Arizona Humane Society Rob and Melani Walton Papago Park Campus, which will be located near Papago Park, will allow the Arizona Humane Society to offer comprehensive rescue, medical and behavioral care for pets at a level not yet seen in the United States.

Support these efforts by visiting azhumane.org/ donatenewcampus. azhumane.org/newpapago-park-campus

Tyler Butler is the chief social impact officer for the Weedmaps’ corporate portfolio, where she leads programs that positively impact humanity. She is also the founder of 11.11CoLab and is often cited as a subject-matter expert by Forbes, SHRM, Entrepreneur, US News & World Report and more. weedmaps.com

Ryan Companies, Building Stories of Impact

Commitment to communities, the environment and its people

by Tyler Butler

Through thick and thin, Ryan Companies has a history of doing the right thing. Its community support is rooted in its purpose to create places for people to thrive. Its leadership recognizes that commercial real estate leaves an imprint on customers, team members and the larger society, and they’ve made a commitment to be a valued partner in growing stronger communities.

Since 1938, Ryan has created a legacy of commitment to communities, the environment and its people. Stewardship is one of its core values, and “Always do the right thing,” attributed to former CEO and third-generation leader Jim Ryan, is one of the mottos the company commonly uses. Ryan has grown from a small family-owned company into a company where everyone feels like family. And while the company has grown significantly, its leadership has never walked away from the values and culture that are rooted in its core: integrity, honesty and community.

“Ryan’s commitment to positively impact the communities we work in every day is deeply embedded into our culture and is a commitment we act upon in a variety of ways. Through employee donations, corporate matches, regional grants, scholarships and volunteer time, Ryan and our team members live the company motto of ‘Do the right thing’ in cities and neighborhoods throughout the country,” shares Colleen Kucera, senior marketing director and Southwest regional representative to the Ryan Foundation Committee.

This commitment is put into action through a variety of programs, one of which empowers Ryan employees to donate to any 501(c)(3) charity they are most passionate about. Ryan takes this commitment one step further by matching all logged donations.

Chuck Carefoot, senior vice president of construction in the Southwest division, says, “We support employee contributions of time and talent through community service by encouraging each team member to use up to 20 hours of work time annually to volunteer in the community. Stewardship truly defines the culture at Ryan; our employees do a fantastic job of engaging in their local communities to give back to causes they are passionate about.”

A vital component to Ryan’s strategic planning is a focus on its total societal impact. Its leadership is mindful that what the company does and how the company does it makes communities better. Each year, the efforts of the companywide Ryan Gives Back initiative results in hundreds of thousands of dollars of giving, including employee donations, matching funds and corporate grants. While each of its regions select organizations to support year-round, its main event is the annual Ryan Gives Back campaign.

Ryan also gives back by leveraging its own business as a conduit for positive change. Every few years, the company selects a nonprofit project and credits back all project fees. In 2021, Ryan chose the Arizona Humane Society to support through its new campus, which broke ground late last year: the new Arizona Humane Society Rob and Melani Walton Papago Park Campus, a 72,000-square-foot campus and medical complex that will be a state-of-the-art facility that will create a sustainable, long-term system of care for the Valley’s most vulnerable animals. Thanks to Ryan’s generous support, all profits on the project were credited back to the Arizona Humane Society, which, according to the company, represents a savings of more than $1 million.

These larger charitable giving efforts are guided by the Ryan Foundation Committee, which focuses corporate funds to three areas: Health & Wellness, Education, and Food & Shelter. The company is known to sponsor charitable events across the country, from hospital galas to golf tournaments and walks for various causes. Ryan has a full-circle giving program and also holds fundraising events regularly, for team members, customers and vendors, with money raised going to local nonprofit organizations.

Ryan has ensured the company’s legacy of giving will continue. It has created the Jim Ryan Award, which was established to be given out annually to the team member who best exemplifies the stewardship qualities of the late CEO, who passed away almost 10 years ago. Recipients are nominated by their peers and are considered for their unwavering commitment to the greater good. The award comes with a $10,000 donation that can be directed to the charity of the winner’s choice. It’s through programs such as this and the company’s many other contributions that Ryan will continue creating communities that thrive.

Ryan Companies ryancompanies.com

ANTIDOTE TO THE VUCA WORLD

From the cancel culture to the mass resignation today, people are acting in ways never anticipated. In ancient times, people created myths to explain what they could not understand, and the rise in conspiracy theories today is not much different. As people scramble to find ways of coping in the VUCA (volatile, uncertain, complex, ambiguous) world, the Enchanted Brand offers a positive path (inspiring thinking that transcends reality) with tangible tools (the branded product/service), so people activate to carve their own rewarding path forward.

Jane Cavalier Lucas, CEO and founder of BrightMark Consulting, is a nationally recognized brand strategist, board member, blogger and author of The Enchanted Brand (Amazon). She helps organizations conquer a changing world with powerful brands and reputations. Recognized for creating breakout brands like Snapple and Qwest, Cavalier has worked with more than 100 organizations, including American Express, ExxonMobil and the U.S. Navy. brightmarkconsulting.com

Elevated Marketing – Empowering a Brand with Enchantment

Six characteristics of an enchanted brand

by Jane Cavalier Lucas

When people face a world that is too complex to understand, constantly changing in unexpected ways and unclear, they put up barriers of distrust and caution. This environment creates debilitating distress, and most people don’t have the tools or training to deal with it. This affects decision making and can lead to irrational choices driven by fear. Sound familiar?

Enchanted brands are the next paradigm in branding to help organizations thrive in a VUCA (volatile, uncertain, complex, ambiguous) world. These are brands that serve people rather than sell goods, and in doing so forge a strong, trusted partnership. Rather than tell people how to think and feel, these brands inspire new thinking by stimulating the imagination. Instead of prescribing, they open choices and empower people to create their own desires (out of enchantment). This personal, creative decision making is what makes an Enchanted Brand compelling. People are sparked to imagine something they desire — their own personal view of it. They lean in to buying the branded product as a way to pursue that dream, because the brand is part of the source code and linked to achieving it.

On a foundational level, the Enchanted Brand possesses these six characteristics:

Intention: Has a clear, relevant point to make. The Enchanted Brand has an emotional and practical outcome it aims to achieve in the life of everyone who touches it. It should inspire specific thinking and action, and help people overcome the challenges of a VUCA world. It should stand for an idea with a high level of meaning. Chanel is an Enchanted Brand that wants women to experience the thrill of divine, feminine beauty so they can cultivate their own version of it.

Engaging: Must entertain and arouse curiosity. An Enchanted Brand is designed to make people “feel good” and stimulate new thinking. If the brand doesn’t evoke positive feelings, it is not an Enchanted Brand. It also challenges people so they move into the imagination. This is what sparks curiosity — a strong desire to know or learn something. To that end, the brand presents something new or unfamiliar in an inviting way. The John Deere brand engages people in the fantasy of American farming, although they may have never set foot on a real working farm.

Enriching: Stimulates the imagination and clarifies emotions. The Enchanted Brand seeks to open the aperture of life by opening the mind to new possibilities associated with positive emotions. Rather than fear something new, people gravitate embrace it. The brand enriches life like a great book, poem or TV show. Many people feel enriched by the level of creativity that the Apple brand makes possible for them.

Authentic: Tethered to a compelling truth. Although Enchanted Brands are about fantasy, the fantasy has relevance because it is based in truth. Just like great comedy. You laugh, because it is so true! The truth can be found in many places — in what people are facing or even in what the branded/product can actually do. A Range Rover can go off-road for 4,000 miles which might inspire someone to feel the rugged adventure of it all. This truth helps validate the fantasy.

Aligned: Attuned to anxieties and aspirations of the real world. Historically, brands have sugar-coated the world and not recognized the real human difficulties at work. This is why many lose relevance. The Enchanted Brand maps to enduring human challenges by providing an antidote to specific anxieties associated with them. The Johnson & Johnson brand provides a profound level of trust, embedded in the motherbaby bond that is the essence of the brand, to alleviate the high anxiety presented by complex, risky healthcare solutions that require a leap of faith.

Enabling: Promote self-confidence and personal value. The Enchanted Brand is designed to create more personal agency in the world. The purpose of the brand is to counteract the disabling effects of the VUCA world and to strengthen the sense of personal power that is being overwhelmed. This is how the Navy Seal brand helps courageous warfighters persevere in extreme VUCA circumstances, as they are driven by high ideals that can never be compromised.

Imagine if just a small fraction of the hundreds of millions of dollars spent annually on brands in our culture was spent on creating Enchanted Brands rather than on brands that pollute, dilute or refute our personal identities. During this time of epic change when people face the de-humanizing effects of revolutionizing technologies in work, life and society every day, we need to strengthen what it means to be human. The Enchanted Brands bring in the power of art, ideas that touch people in deep ways and elevate them to a higher place. This mental power is what will propel people to try and buy products, work hard, invest in the future and stay loyal.