Item 19 2023-01225 Missing Middle Housing Study Preliminary Recommendations & Considerations for Draft 2040 General Plan Proposed Floor Area Ratios PART 4 — Sacramento City Council, October 24, 2023

Missing Middle Housing
Informational Report
City of Sacramento
Missing Middle
Housing Study
December 2022
With consultants:

Cascadia Partners
Collaborative Design + Innovation
Unseen Heroes
Konveio
Atch. 7-
MMH
Informational
Report
Prepared For:

City of Sacramento
Community Development Department
300 Richards Boulevard, 3rd Floor,
Sacramento, CA 95811
916.264.5011
Prepared By:

Opticos Design, Inc.
2100 Milvia Street; Suite 125
Berkeley, California 94704
510.558.6957
With Consultants:

Cascadia Partners
1022 NW Marshall St., Suite 380
Portland, OR 97209
971.808.2366
Collaborative Design + Innovation
www.cdiway.net
503.706.4740
Unseen Heroes
3433 Broadway,
Sacramento, CA 95817
916.692.5560
Konveio
www.konveio.io
877.405.9142
2 Missing Middle Housing Informational Report December 2022 What’s
Inside?
What is the MMH Study? 5
What is Missing Middle Housing? 23
Case Studies 55
Missing Middle Housing
Informational Report
Missing Middle Housing Informational Report December 2022 3 4 Missing Middle Housing Informational Report December 2022

CHAPTER
1What is
the MMH
Study?
In this chapter
What is the Missing Middle Housing study? 6
The Housing Crisis 8
Housing in Sacramento 10
MMH Study Objectives 14
What Will the MMH Study Do? 16
Community-Vetted Solutions 20
Missing Middle Housing Informational ReportDecember 2022 5 A data-driven, citywide study to assess the
"where, how and why" of Missing Middle
Housing in Sacramento
The Missing Middle Housing (MMH) Study is a focused
effort to explore ways to implement Missing Middle
Housing in Sacramento. It will help the city to respond to the growing demand for housing choices, walkable
living, and the urgent need for attainable housing at
all income thresholds.

The year-long study acts upon Council direction from
January 2021 to explore a set of approved strategies to facilitate the ongoing General Plan update (General
Plan 2040). The study will include extensive citywide
analysis to provide land use, zoning and policy
recommendations to remove existing barriers and
facilitate the production of Missing Middle Housing.

It will inform the City’s long-term planning approach
and housing policy in the General Plan and Housing
Element.

Housing affordability, equity and access are top
priorities of the City of Sacramento. The Missing
Middle Housing study will include analysis to
assess displacement risk, and mitigating policies
and measures to avoid displacement of existing
residents and to maintain the current scale and feel of established neighborhoods.

What is the
Missing Middle
Housing study?
6 Missing Middle Housing Informational Report December 2022 Chapter 1 — What is the MMH Study?
The Missing Middle Movement
has begun. Are you ready to do
your part to solve our housing
crisis?”
Daniel Parolek
Principal, Opticos Design
The MMH
study is a
roadmap
to increase
housing
choice and
equity for
current and
future
residents
Missing Middle Housing Informational ReportDecember 2022 7 Chapter 1 — What is the MMH Study?
36 What’s Next? Real Estate in the New Economy
rooms become more coveted. Pedestrian access to restau- rants, cafes, and parks or recreation centers adds real value.

Meanwhile, more single-family homes are occupied by renters changing the feel and politics of suburban communities. Today, 14 percent of households are multigenerational families, a share that will undoubtedly increase, especially as inner-city and new immigrant households opt for suburban neighbor- hoods. In the banner years of the past decade, over 2 million homes were produced. Going forward, don’t expect more than 1 million new homes per year—and that happens only once the markets are back, after several more years.

Live
Projected Growth in Population Age 65 and Older by State, 2010–2020 (Percent) Source: Brookings Institute analysis of 2010 Census Bureau population projections. 43 49
61 45
45 50 29
35 31
38 43
4430 32
31 65
45 49
46 46
46 51
38 70
47 29
30 27
28 27
26 27
23 23
26 34
41 25
28 26
24 24
36 33
28 26 25 41
41 38
[ 42–70
[ 29–42
[ Below 29
The Housing Crisis
Population groups
36 What’s Next? Real Estate in the New Economy
rooms become more coveted. Pedestrian access to restau- rants, cafes, and parks or recreation centers adds real value.

Live
Projected Growth in Population Age 65 and Older by State, 2010–2020 (Percent) Source: Brookings Institute analysis of 2010 Census Bureau population projections. 43 49
61 45
45 50 29
35 31
38 43
4430 32
31 65
45 49
46 46
46 51
38 70
47 29
30 27
28 27
26 27
23 23
26 34
41 25
28 26
24 24
36 33
28 26 25 41
41 38
[ 42–70
[ 29–42
[ Below 29
Decades of building low-intensity Single-Family Homes and zoning restrictions have suppressed the housing diversity that naturally occured in cities prior to the 1950s.

In Sacramento, as in much of the
region, the limited availability of
multifamily housing options has
contributed to the escalating crisis
of housing access and affordability.

Severe competition for limited housing
inventory has led to ever-rising costs
for both rental and ownership, and
growing housing inequality.

There is a significant mismatch
between current US housing stock
and shifting demographics, combined
with the growing demand for walkable
urban living. This has been poignantly
defined by recent research and
publications by Christopher Nelson and
Chris Leinberger, and most recently by
the Urban Land Institute’s publication
“What’s Next: Real Estate in the
New Economy.”
1 National trends are
mirrored in Sacramento as well as the
surrounding region.

The solution to the national and
regional housing crisis is not as
simple as adding more multifamily
housing stock using the same housing
typologies that have been built over
the past couple of decades. Instead, it
will be necessary to shift the way we
design, locate, regulate, and develop
homes.

Projected percentage growth
in population, 2010-2020
The US population is aging
and this trend is expected to
continue. For instance, Florida
saw a 49% increase in its
population aged 42 to 70.

Source: Brookings Institute
analysis of 2010 Census Bureau
population projections; www.
uli.org
Notes
1 https://americas.uli.org/
42 - 70
29 - 42
Below 29
8 Missing Middle Housing Informational Report December 2022 Chapter 1 — What is the MMH Study?
What can help?
To meet this urgent need for attainable
housing, several steps need to be taken
concurrently. A critical step is to increase
the delivery of housing at all income
levels, but in a manner that is sustainable
and feasible, and does not adversely
impact existing infrastructure capacities
(of roads, utilities, etc.) and the quality of
life of existing residents.

A critical strategy is to streamline and
encourage the production of smaller,
simpler, less complicated and less
expensive housing projects in areas
that have existing infrastructure and
amenities. Missing Middle Housing
can fulfill this requirement, and provide
an efficient way to meet this pent up
demand.

Missing Middle types continue to
play a role in providing homes to the
“middle-income” market segment
that typically straddles 60% to 110%
average median household income."
Dan Parolek
Principal, Opticos Design
To solve the national
housing crisis, we need
to rethink and evolve,
reinvent and renew."
"What's Next: Real Estate in the
New Economy"
Urban Land Institute, 2011
Housing for the future
Housing typologies for the coming decades will
need to reflect changing demographics and
household preferences.

By 2050:
of US households will not have
children
of Americans (1 in every 5) will be over
65 years of age
of the population will be LatinX (with
a higher ratio of multi-generational
family structure)
85%
19%
29%
Changing preferences
Housing preferences are changing too.

According to www.realtor.com, 29% of Baby
Boomers (age 55 to 64) and 61% of Millennials
(age 25 to 34) say they want housing choices
other than Single-Family Homes.

Single
Family
(39%)
Condos
(10%)
Condos (9%)
Townhomes
(34%)
Townhomes (11%)
Baby Boomers (55 - 64) Millennials (25 - 34)
Multifamily (15%)
Multifamily
(7%)
Mobile
Homes
(2%)
Single
Family
(71%)Mobile
Homes
(2%)
Missing Middle Housing Informational ReportDecember 2022 9 Chapter 1 — What is the MMH Study?
Changing Demographics + Impact on Housing
According to the US Census,
Sacramento's demographic makeup
is changing. From 2010 to 2018, the
fastest growing population group
was that of persons aged 65-74,
whose numbers increased by 43% as
compared to an overall population
increase of 6% during that same
time period. In contrast, the
population of persons aged 24 and
under decreased from 36% to 33%.

These demographic patterns reflect
national trends, and are anticipated
to continue for future decades. Due
to the increasing senior population,
it is anticipated that compact
housing types near transit and
neighborhood serving amenities will
be in demand.
2 Research indicates that building
middle-priced housing increases
long-term regional affordability. As
new market-rate housing is built,
it causes higher-income people to
move, vacating older housing stock
that can now be accessed by lower-
income households. Studies indicate
that increasing housing supply
tends to reduce housing prices,
particularly over the long run. The
City of Portland, for example, found
that allowing smaller units citywide
could reduce average housing costs
by 56% over a 20-year period.
3 Housing in Sacramento

CLOSER LOOK
Sacramento is experiencing a housing shortage as well as a lack of housing diversity. Demand for available housing is increasing as people from other metro areas are getting priced out and looking to move to Sacramento.

Sacramento, similar to other areas in
the region, is facing rising housing
unaffordability. The reasons for this
are many, including a greater number
of households relocating from
nearby metropolitan areas and more
expensive regions such as the Bay Area.

Sacramento offers a high quality of life,
and the increased demand on limited
available housing will have a significant
impact on existing Sacramento
residents unless steps are initiated to
solve the crisis.

Sacramento's population characteristics
are also projected to change. According
to the Sacramento Area Council of
Governments (SACOG), the City of
Sacramento is projected to continue
adding new residents to its current
population of 525,000 (US Census, 2021)
Notes
2 City of Sacramento Housing
Element 2021-2029
3 Victoria Transport
Policy Institute, www.
cityofsacramento.org
4 City of Sacramento Housing
Element 2021-2029
10 Missing Middle Housing Informational Report December 2022 Chapter 1 — What is the MMH Study?
at a rate of about 1.1 percent per year. If
this rate is realized, the City would add
about 140,000 new residents by 2040

4. Of this population increase, the fastest
growing population groups are of
those aged 65 and older. Similarly, the
number of single-person households
is also anticipated to increase over
the coming decades. Both these
population groups can benefit from
housing options other than the Single-
Family Home. But over 66 percent of
the city's current housing stock is that
of Single-Family Homes.

The Sacramento housing market has
become increasingly competitive, with
average home sale prices at $505,000
in 2022, an increase of 9.8 percent
from 2021 - 2022 according to Redfin
(www.redfin.com). With over half of
Sacramento households falling into
the "low", "very low", or "extremely low"
income levels, the increase in home
prices has made it challenging for most
local residents to purchase a home
and realize the generational wealth
that homeownership can provide.

A household is considered "house-
burdened" if it needs to spend more
than 30 percent of its total household
income on housing. That figure for
Sacramento is high - 39 percent of
its households fall under the "house-
burdened:" category. The Housing
Opportunity Index, a key measure to
assess ownership housing affordability,
reflects the percentage of homes that
a household earning the area median
income can afford. In Sacramento, the
Housing Affordability Index dropped
from a high of 83 percent in 2011 to 39
percent in 2020.

The impact of rising housing costs
is typically felt more by renters than
homeowners, increasing the probability
of displacement. In Sacramento,
approximately 45 percent of residents
of households at
low, very low, or
extremely low
income levels.
50%
of households in
2021 spent > 30%
of their income
on housing.
39%
of the city's
existing ~197,000
housing units is
single-family.
66%
of residents are
renters. Rents
increased by 19%
from 2021-22.
45%
44%
decrease
in housing
affordability,
2011 to 2020.

Housing Opportunity Index, City of
Sacramento, 1991 - 2020
Source: Sacramento Housing Element
2021-2029, www.cityofsacramento.org
Missing Middle Housing Informational ReportDecember 2022 11 Chapter 1 — What is the MMH Study?
19%
annual rent
increase in
2020-21
(fifth highest
among
50 largest
metros).

Missing Middle Housing provides
homebuilders with a practical way to address
changing market and demographic trends -
diversifying their portfolios and communities
in the process."
Amy Albert
Editor-in-Chief, Professional Builder
are renters. Average rents in the city
increased by 19 percent from 2021 -
2022, an unprecedented increase.

According to new research from
the website www.realtor.com, the
Sacramento region saw the fifth
highest increase in rental prices among
the nation’s 50 largest metro areas in
2021. As of December 2021, the median
monthly rent in the Sacramento region
reached $2,103, an alarming increase
of 19.5 percent from 2020, placing
Sacramento’s rents at an equivalent
price point as the Washington, D.C., and
Seattle metro areas.

Vacancy rates in Sacramento are lower
than the region, and this along with
the inadequate housing supply further
restricts housing choice, and increases
competition for the available inventory.

Housing needs projected for
Sacramento are in stark contrast to
what is being produced currently. On
average, 2,000 new housing units
have been produced each year over
the past decade and this increased to
3,364 units in 2021. This falls short of the
approximately 5,700 new housing units
needed annually for the city to meet
its target of 45,580 new housing units
required between 2021-2029 as its share
of the Cycle 6 Regional Housing Needs
Allocation (RHNA).

Multifamily housing will need to be an
essential component of future housing
in Sacramento, both to meet the
pent up need and also for reasons of
affordability. Research by the Victoria
Transport Policy Institute reveals that
townhouses typically cost 30 percent
less per unit, and apartments up to 50
percent less per unit than Single-Family
Homes of comparable quality.
5 average number
of new housing
units per year
over past decade.
2,000
new residents
projected for
Sacramento by
2040.
~140k
new housing
units needed
by 2029 to meet
RHNA Cycle 6.
~45k
new homes
needed per year
to meet RHNA
2029 targets.
5,700
12 Missing Middle Housing Informational Report December 2022 Chapter 1 — What is the MMH Study?
Impact of Middle-Income
Housing on Affordability
A variety of housing strategies will be
needed to meet Sacramento's housing
needs. To advance housing choice
and affordability, both market-rate and
subsidised housing needs to be built.

Housing built with subsidies is typically
provided to groups at low, very low
and extremely low income thresholds
as described by the state. Providing
subsidised affordable housing is critical,
however, the amount of local, state,
and federal funding available to finance
subsidised housing is inadequate. The
city cannot rely solely on the production
of income-restricted housing to meet
the growing need in the community for
attainable housing. Funding sources for
building moderate-income housing are
also limited.

Research indicates that building more
middle-priced housing increases
long-term regional affordability. As
new market-rate housing is built, it
causes higher-income households to
move into the newer units, vacating
older housing stock that can now be
accessed by lower-income households,
in a process called "filtering." Several
studies indicate that increasing housing
supply tends to reduce housing prices,
particularly over the long run. The City
of Portland, for example, found that
allowing smaller units citywide could
reduce average housing costs by 56
percent over a 20-year period.
6 Missing Middle Housing can be an
effective strategy to help provide more
attainable, small-scale multifamily
housing units in an incremental
manner citywide.

Senate Bill 9 (SB 9) + Impact on Housing Production
Senate Bill 9 (SB 9) requires
jurisdictions to ministerially approve
two residential units on a parcel
within a single-unit residential
zone if the development meets
specific objective criteria. The bill
also requires ministerial review for
subdividing one lot into two lots,
each with a minimum area of 1,200
square feet, within a single-unit
residential zone. It permits up to
two units on each parcel (four
total dwelling units on what was
formerly a single-unit lot) and the
new units can be achieved through
new construction or conversions/
additions to existing structures.

SB 9 applies for all single-family
residential parcels not within historic
districts, ecologically sensitive zones
and other protected areas. SB 9
is anticipated to help bring more
housing units onto the market,
and extend homeownership
opportunities at more attainable
price points for prospective buyers,
who would be able to apply for
traditional mortgages . But research
indicates that the actual impact on
housing production may be less than
originally anticipated. In a 2021 study
by the Terner Center of the University
of California at Berkeley, Sacramento
has 116,000 SB9-eligible parcels.

However, out of that number, only
9,600 parcels (8%) are likely to
produce market-feasible units.
7 CLOSER LOOK
Notes
5 Victoria Transport
Policy Institute, www.
cityofsacramento.org
6 www.cityofsacramento.org
7 Terner Center, UC Berkeley
https://ternercenter.
berkeley.edu/wp-content/
uploads/2021/07/SB-9-Brief-
July-2021-Final.pdf
Missing Middle Housing Informational ReportDecember 2022 13 Chapter 1 — What is the MMH Study?
MMH Study Objectives
This study will aim to advance Sacramento's housing goals by striking a balance between stimulating housing production, increasing housing choice, and ensuring housing equity and access.

Advance City Council-approved
GP2040 Key Strategy
To support the City of Sacramento's
efforts to update its General Plan and
Climate Action and Adaptation Plan
(General Plan 2040 Update, public
review draft targeted for the first
quarter of 2023, and adoption targeted
for Fall 2023), the Sacramento City
Council approved a set of key strategies
in January 2021. The Missing Middle
Housing Study was initiated to gain a
better understanding of the benefits
and challenges of allowing a greater
array of housing types, referred to in
this study as Missing Middle Housing
(MMH). This study will conduct technical
analysis and in-depth community
outreach to craft recommendations for
citywide implementation of MMH.

Focus Efforts to Develop
Sacramento-specific Solutions
The MMH study aims to understand
existing conditions and research
case studies and best practices
to recommend solutions that are
Sacramento-specific. The study focus
is on MMH but should be considered
as part of a broader community
discussion on housing solutions and
the other housing-focused strategies
and planning efforts by the city to
deliver more housing choices.

Provide More Local Control Over
Outcomes
Recent policy direction and legislation
from the state has been focused on
meeting long-term housing goals
such as increasing housing supply and
affordability across jurisdictions, taking
into consideration size, population,
and changing demographics. State
laws often enable local jurisdictions
to respond with local as well as
supplementary policies to achieve state
housing goals. As long as minimum
state requirements are met, these local
regulations help to achieve statewide
objectives, while still allowing the
policies and process to be informed
by the local context and respond to
community input. These regulations
help determine aspects of the built
environment such as the building form
(lot coverage, height, etc.), required on-
site parking capacity, and the number
of homes allowed in a building.

For example, as a statewide mandate,
Senate Bill 9 was not focused on
Sacramento's local context or shaped
by input from residents. The city's
MMH strategy is an opportunity for
a collaborative process between the
city and residents to shape a local
MMH option, tailored specifically for
Sacramento that can help ensure a
more predictable built outcome.
14 Missing Middle Housing Informational Report December 2022 Chapter 1 — What is the MMH Study?
Why is this strategy being considered?
Through over two years of outreach for the 2040 General Plan Update, several priorities have risen to the top: climate change, equity, inclusive economic development and of course housing availability and affordability.

Faced with steep increases in both rent and home prices caused by a severe housing shortage as well as limited housing options available, residents have expressed that they want a city where people of all backgrounds and income levels can afford to live. Sacramento needs a lot more housing, particularly, housing that is lower in cost and more attainable for our residents. For us to meet this tremendous need, we must build more attainable housing types that do not require subsidy, such as accessory dwelling units, duplexes, triplexes and fourplexes.

These Missing Middle Housing types are not regulated affordable housing, but by being lower in cost than single-family products by nature, can help to house many of our middle-income residents, hence the term “missing middle,” and add to the city’s overall supply of housing. These Missing Middle Housing types are not only more attainable rental options but could also provide opportunities for entry-level homeownership. The majority of the city’s neighborhoods are currently zoned for single-unit homes, the most expensive housing type to own or rent. Because of this lack of options, if you want to live in most of the city’s residential neighborhoods, you are largely limited to buying or renting the most expensive housing type on the market.

Additionally, by restricting the majority of the city’s neighborhoods to one housing type, existing zoning rules reinforce housing and social disparities among our communities. This strategy will not solve these disparities on its own but would signify a big step towards equity and inclusivity, or at least, remove a significant barrier to achieving that goal. This proposal can also help to create a more sustainable city by providing housing closer to employment, transit, and amenities, reducing greenhouse gas emissions and air pollution. In addition, research has shown that smaller homes carry a smaller carbon footprint than their larger counterparts.

CLOSER LOOK
Source: FAQs about the
Missing Middle Housing
Study
For more FAQS visit: http://
www.cityofsacramento.org/
Community-Development/
Planning/Housing/Missing-
Middle-Housing/FAQs
Permit a greater array of housing
types such as duplexes, triplexes, and
fourplexes (also referred to as Missing
Middle Housing) in existing single-unit
neighborhoods.

Key Strategy, General Plan 2040 Update
Sacramento City Council, January 19, 2021
Missing Middle Housing Informational ReportDecember 2022 15 Chapter 1 — What is the MMH Study?
What Will the MMH Study
Do?
The Missing Middle Housing Study is intended to be data-driven and transparent, to avoid subjective interpretation or inherent bias, and to fairly communicate the analysis findings to the community and decision-makers. The desired outcomes of the study and important study tasks are summarized in this section.

The City of Sacramento's Missing
Middle Housing initiative has several
important objectives, listed below. The
desired outcomes of the Missing Middle
Housing (MMH) study are aligned to
meet these objectives.
■ Increase housing supply and choice,
■ Provide attainable housing options,
■ Allow small-scale, incremental local
housing development that can be
financed by the average homeowner,
■ Provide economic opportunity for
passive retirement income,
■ Create opportunities to house inter-
generational households,
■ Reduce racial and socioeconomic
disparities reinforced by single-unit
zoning, and
■ Allow the housing market to respond
to the downward trend in average
household size.

Desired Outcomes of the MMH Study:
- A place-based, community-vetted approach to
enable housing choice, livability and attainability.
- Empower residents to invest in their community
through neighborhood-scale projects that can
create generational wealth and new housing.
- Increase reliance on local investors and builders
to provide much-needed housing.
- Establish zoning and design recommendations
for MMH suitable for Sacramento.
16 Missing Middle Housing Informational Report December 2022 Chapter 1 — What is the MMH Study?
125'
75'
50'
125'
Context mapping
The entire city of Sacramento will
be analyzed in terms of existing
physical character, street and block
sizes, and level of connectivity. The
intent is to identify existing Context
Types, that will form the framework
for further place-based analysis.

Lot character analysis
Every residential parcel will be
categorized based on lot width and
depth to identify which Missing
Middle Housing types would fit on
each lot based on typical building
dimensions, access, off-street
parking and other considerations.

Displacement risk
assessment
Displacement risk will be assessed,
based on many factors including
education, race, income, housing
market, and access to jobs. Based
on the level of displacement risk,
different mitigating strategies will
be developed.

Market feasibility
assessment
Different Missing Middle types will
be analyzed for market feasibility
in each context within the city,
to assess whether the potential
revenue from sale or rental is
worth the development costs for
developers or homeowners.

Context-specific Missing
Middle Housing toolkits
Policy and zoning toolkits will be
developed for each context type to
enable Missing Middle, calibrated
to ensure attainability, built
form compatibility and financial
feasibility, and will include strategies
to avoid displacement.

Methodology
The Missing Middle study follows a
sequence of analysis steps to provide
context-sensitive strategies for enabling
Missing Middle Housing citywide. The
key analysis steps are summarized in the
flowchart to the right.

Key Deliverables
The MMH study will share its findings
through four key reports, which will be
available for public review:
■ Document 1: Missing Middle
Housing Informational Report (this
document)
■ Document 2: Missing Middle
Housing Scan
TM (citywide place-
based and feasibility analysis)
■ Document 3: Displacement Risk
Assessment (citywide assessment of
displacement risk and strategies)
■ Document 4: Missing Middle
Housing Deep Dive
TM (zoning and
policy recommendations).

Missing Middle Housing Informational ReportDecember 2022 17 Chapter 1 — What is the MMH Study?
Citywide Context and Lot
Analysis
For this study, the team will analyze
existing neighborhoods to examine
building and street patterns, infill
potential and existing infrastructure.

Through this analysis, a hierarchy of
context types will be created based
on the intensity of form and use,
level of access and connectivity, and
anticipated degree of change.

The context types will be determined
by a variety of factors relating to
physical form and character, including:
■ existing building form,
■ street and block pattern,
■ lot sizes, widths and depths,
■ connectivity and access,
■ mobility options and transit, and
■ access to amenities.

Along with the context type analysis,
citywide mapping will be done to
identify typical lot dimensions to
understand which MMH types will fit.

Displacement Risk Assessment
Housing equity and access are key
concerns for this study. The study
includes a "Displacement Risk
Assessment" task that will examine
existing conditions to identify issues,
define the type of displacement that
can be assessed, and determine
which communities could potentially
be at risk. The study will provide
recommendations to safeguard
against displacement risk and potential
solutions.

Feasibility Testing
Three critical metrics to assess the
success of Missing Middle are testing
for Feasibility, Attainability and
Livability. Fulfilling all three criteria
is what distinguishes Missing Middle
from other multifamily housing, and
the MMH study will aim to meet these
criteria. The analysis will include "Test
Fits," the design testing of typical
Missing Middle prototypes on select lot
configurations to assess the following
aspects of viability:
■ Feasibility: financial feasibility of
particular housing types within each
context type, evaluated through a
static developer pro forma.
■ Attainability: testing feasible Test
Fits with median income thresholds
to establish whether these are
attainable to most residents.
■ Livability: compatible physical form
with the existing surrounding context
and current scale and feel of the
neighborhood.

The Test Fits also help identify existing
regulatory barriers to developing
Missing Middle Housing. Since these
building types have inherent minimum
dimensions, the Test Fits reveal the
impacts and limitations of lot width
and lot depth toward building size
and off-street parking. The Test Fit
process seeks to optimize the unit
count for a given lot size with respect to
desired building form, while achieving
feasibility. Since this process involves
actual building types and site layouts,
the results are more precise than
numeric calculations based on density
or Floor Area Ratio (FAR) alone.

Analysis Highlights
18 Missing Middle Housing Informational Report December 2022 Chapter 1 — What is the MMH Study?
Character Areas
in R31) 1 - Multifamily Neighborhood
Mostly House - Scale Buildings
2) 2 - Multifamily Neighborhood
Mostly Block - Scale Buildings
3) 3 - Mix Residential/Civic
4) 4 - Other
Mountain View R3 Standards — Workshop 2 of 2
Precise Plan Areas
Central Expressway
El Camino Real
Castro Street
Bayshore Freeway
Character Areas
in R3
Mountain View R3 Standards — Workshop 2 of 2
1) 1 - Multifamily Neighborhood
Mostly House -Scale Buildings
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in R31) 2 - Multifamily Neighborhood
Mostly Block -Scale Buildings
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Based on research, analysis, and
community feedback, the study will
provide fact-based recommendations
for implementing Missing Middle
Housing in Sacramento.

It is important that the
recommendations are not generic and
are tailored to different parts of the city
to respond to local conditions.

The recommendations will be
organized as “toolkits” to be applied
in different contexts, to respond to
existing opportunities and constraints,
and provide outcomes that are feasible
and compatible with neighborhood
conditions.

A Toolkit Approach to Solutions
Above Example of context type analysis
from Mountainview, CA, mapping existing
built form and uses, access to transit and
amenities.

Below Test Fit example that includes
modeling building prototypes on existing
lots to understand what can fit, and
proforma analysis to test for financial
feasibility.

Missing Middle Housing Informational ReportDecember 2022 19 Chapter 1 — What is the MMH Study?
Community-Vetted
Solutions
Community engagement is a nuanced process of sharing and communicating ideas to local residents and stakeholders, seeking feedback and coming to consensus on methodology and approach.

For the Missing Middle study, there are two phases of engagement, each including robust outreach, discussion and feedback.

Phase 1 Engagement
Phase 1, completed in November 2022,
focused on "Information Gathering
and Sharing". As the name suggests,
this was an opportunity to listen to
residents, understand community
concerns, and provide clarifications.

In this phase, the engagement was
oriented around communicating
fact-based information about
Missing Middle Housing, its typical
characteristics, benefits, and design
considerations for Sacramento.

Community feedback received
on these topics will form a shared
understanding of what Missing Middle
Housing in Sacramento will look like - in
terms of scale, size and built form; and
potential issues that may arise as a
result of implementing Missing Middle
that would need to be addressed.

Phase 1 builds upon the City's prior
community engagement efforts.

The outreach focus was on including
additional stakeholder groups to
those contacted previously, to ensure
that a wide variety of viewpoints was
represented. Also guiding the process
is a Missing Middle Housing Working
Group (MMHWG) comprising of
Sacramento's leading housing experts,
industry professionals, and community
leaders.

Critical to Phase 1 outreach was a
workshop series, completed in October
2022, that provided information and
also prioritized listening sessions to
understand community concerns and
priorities. Meaningfully engaging with
individuals and groups, particularly with
under-represented groups, will provide
authentic and clear direction to the
consultant team. The workshops were
structured as a combination of in-
person and virtual events to maximize
participation.

Phase 2 Engagement
In Phase 2, the focus will be on
"Solutions and Recommendations."
This phase is anticipated to include
community workshops and digital
outreach, and the project team will
share study findings to date, preliminary
analysis-based recommendations,
and get feedback to help shape the
final recommendations that will be
the outcome of the Missing Middle
Housing study.
20 Missing Middle Housing Informational Report December 2022 Chapter 1 — What is the MMH Study?
Missing Middle Housing Informational ReportDecember 2022 21 Chapter 1 — What is the MMH Study?
22 Missing Middle Housing Informational Report December 2022

CHAPTER
2 In this chapter
What is Missing Middle Housing? 24
"Middle" in several ways 28
Typical Missing Middle Housing Types 30
How and where can Missing Middle Housing work? 32
Why Should Sacramento Consider Missing Middle? 36
Potential barriers to MMH in Sacramento 50
What is
Missing
Middle
Housing?
Missing Middle Housing Informational ReportDecember 2022 23 1900
In the early to mid-1900s, Sears,
Roebuck and Co. sold house plans and,
later, kit houses to the American market,
and some of these houses were Missing
Middle Housing types such as the
fourplex.

Very few MMH types have been built since the early
1940s due to regulatory constraints, the shift to
auto-dependent patterns of development, and the
incentivization of single-unit homeownership by the
federal government.

In Chicago, two- and
three-flat buildings make
up a quarter of the overall
buildings. In the 1910s and
’20s, Bohemian immigrants
may have worked hard and
saved enough money to
build or buy one of these
buildings.

Before the 1940s, MMH were
a natural part of the housing
mix, helping to provide
housing choices to people at
a variety of stages in their life
and income levels. 2000
What is Missing Middle
Housing?
Typical Characteristics
■ Small-footprint buildings
Missing Middle types typically
have small- to medium-sized
footprints, with a body width,
depth, and height no larger than
a Single-Family Home. This size
compatibility makes them a good
tool for neighborhood infill.
■ Smaller, well-designed units
These multifamily housing types
typically have smaller-sized units
that can help keep development
costs down. Well-designed smaller
units can attract a different market
of buyers and renters whose needs
are currently not being met.
■ Create community
Missing Middle types integrate
private open spaces, or shared
ones as in a Cottage Court, which
promotes a sense of community.

These types also fit a variety of
lifestyles, such as multigenerational
homes, co-living, etc.

Missing Middle Housing is a range of house-scale
buildings with multiple units - compatible in scale
and form with detached Single-Family Homes -
located in walkable neighborhoods ."
Dan Parolek
Founder of the Missing Middle concept, www.missingmiddlehousing.com 24 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Key criteria for Missing Middle
Not all smaller-scale multifamily
housing types are Missing Middle.

Three key metrics for assessing a
Missing Middle type is whether it
provides attainability, livability, and
market feasibility.
■ Marketable to many
Missing Middle types look and feel
like a house, not a large building,
with features such as entrances
off a street and not an apartment
hallway. They provide a good fit
for many groups looking for this
"middle" scale of home.
■ Promote walkability
Missing Middle types work
best in, and support walkable
environments where driving
is a choice but not a necessity.

They promote more active,
healthy lifestyles and with more
pedestrians, safer neighborhoods.
■ Provide local benefits
These housing types are a way
of gently and incrementally
introducing more housing without
drastic changes to neighborhood
character. Missing Middle can be
a way to empower local residents
and builders to gain equity.

Sacramento Missing Middle Housing Study | Workshop One
The Missing Middle Sweet SpotTM
20 3 criteria for assessing results
2022 Opticos Design, Inc.

Feasibility
Attainability Livability
Place-based
MMH toolkits
based on three
key criteria
Missing Middle Housing Informational ReportDecember 2022 25 Chapter 2 — What is Missing Middle Housing?
Defining Missing Middle
For the purpose of this study, the term
Missing Middle Housing (MMH) refers
to house-scale buildings that contain
more than one home such as Duplexes,
Triplexes, Fourplexes, and Cottage
Courts, usually built to the same scale
as surrounding Single-Family Homes.

These types are compatible in scale
with Single-Family Homes and help
meet the growing demand for more
housing choice and walkable urban
living. MMH also responds to the
shifting household demographics
nationwide and can meet the need for
more housing choices at different price
points, including both rental and home
ownership opportunities.

As Missing Middle Housing types
have smaller building footprints than
typical multifamily buildings, they
blend in with Single-Family Homes
without bulky or out-of-scale massing.

This counters the misconception
that multifamily housing can mean
only large buildings that overpower
Single-Family Homes and are thus not
compatible in low-intensity residential
neighborhoods.

What is not MMH
Missing Middle Housing (MMH) is more
than just multiple units that fit into
a house-scale building. Where MMH
is located, and how it is oriented to
public streets and spaces are critical
attributes. It is important that MMH
demonstrate good design so that they
can be perceived as benefiting the
architectural quality of a neighborhood.

For instance, the following
characteristics define what may be a
multi-unit building but is not MMH:
■ Location of parking at the front of
the lot, or the building frontage as
predominantly garages. This does
not help to activate the adjacent
street or sidewalk.
■ Lack of street-facing entrances,
windows, and/or frontage elements
such as porches or stoops. These
building details are essential for
creating a connection between the
building and the street, and creating
a walkable, pedestrian-friendly
environment.
■ Lack of diversity of building types on
a block. MMH is most effective as part
of a variety of housing types.
1900
In the early to mid-1900s, Sears,
Roebuck and Co. sold house plans
and, later, kit houses from catalogs
that included Missing Middle
Housing types such as the fourplex.

The predominance of single-unit
development led to regulatory and
financing challenges for Missing
Middle Housing.

In the 1990s, as the high costs of
sprawl started to be felt; coupled
with changing housing preferences.

Recent decades have seen a
resurgence of Missing Middle types.

By the 1920s, Missing Middle types
were common in cities such as
Chicago, Boston and New York,
providing affordable housing for the
urban workforce.

In the post-war 1940s, the
paradigm shift towards suburban
development started. In many parts
of the country, single-family zones
disallowed any other housing types.
2000
26 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Why are they "missing"?
Missing Middle types are not a new
concept - Duplexes, Fourplexes,
Cottage Courts, etc., were commonly
seen in cities up until the 1940s,
and provided housing choices and
affordable options in towns and cities
across the country. They are labeled
"missing" because very few of these
housing types have been built in the
past thirty to fourty years.

In the post-war years, changes to
zoning codes, incentives from the
Federal Government, and changes to
the real estate financing landscape
led to the Single-Family Home being
touted as the "American Dream," often
located in suburban - car-dependent
and less walkable places - where MMH
types traditionally do not work well.

Restrictive zoning and covenants used
to allow only Single-Family Homes
to "protect property values" actively
disallowed Missing Middle types, and
thereby housing diversity, in most cities.

Recent shifts in consumer preferences
nationwide signal a revival of MMH.

A growing need for more housing
choices, coupled with a rising
preference for walkable living, is
spurring the demand for these types.

This offers a unique opportunity to
re-establish MMH types in housing
markets across the country to help
address today's housing challenges.

Above: Single-family
zoning in many cities
across the US allow only
detached Single-Family
Homes; a major barrier
for MMH.

Source: New York Times,
www.nytimes.com; 2019
Below: Production of
Missing Middle types
from the 1900s to 2010s.

Source: American
Housing Survey
Residential land zoned for: detached single-family homes other housing Washington 36%New York 15% Minneapolis 70% Los Angeles 75% Portland, Ore. 77% Charlotte, N.C. 84%Seattle 81% Sandy Springs, Ga. 85% Arlington, Tex. 89% San Jose, Cal. 94% Missing Middle Housing Informational ReportDecember 2022 27 Chapter 2 — What is Missing Middle Housing?
Sacramento Missing Middle Housing Study | Workshop One
“Middle” in two different ways
13 Sacramento Missing Middle Housing Study | Workshop One What can MMH in Sacramento look like?
17 Gentle infill without a drastic
change to existing built character
ü MMH types blend well into a
single-family neighborhood.
ü Where appropriate, Missing Middle
can also create neighborhood “main
streets” and mixed-use centers.
ü Small-scale infill will enable existing
neighborhoods to grow and evolve.
"Middle" in Several Ways
A middle form and scale between Single-
Family Homes and multifamily buildings.

Missing middle types, while providing more units than a Single-Family Home, look and feel similar to those. Even Missing Middle types such as Sixplexes and Eightplexes look like larger homes. This house-scale character is carefully regulated through limits on building width, depth and height; and also how the building "sits" on the lot.

House-scale infill
As shown in this graphic.

Missing Middle types
(shown in yellow) are often
indistinguishable from
neighboring Single-Family
Homes (shown in grey) in
building form and scale. This
compatibility makes them a
powerful infill tool.
28 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
The "barbell" of affordable housing
They can deliver attainable housing choices
to middle-income families.

Missing Middle types can provide attainable units without requiring subsidies, when compared to typical Single-Family Homes as well as larger multifamily projects. This is largely because MMH uses "Type V" construction, inherently less complicated and costly than the Type 1 (podium) construction required for larger multifamily buildings.

Subsidized housing
At one end of the spectrum
of strategies to provide more
affordable housing is to create
more housing subsidized with
public funds, typically with
income restrictions. While this is
critical and must continue, this
strategy alone will not be able
to address the housing shortfall.

MMH are lower-cost by design
■ Lower land costs
■ Lower construction costs
■ Smaller units
■ Incremental development
Market-rate housing
Typical market-rate
multifamily options being
produced in today's housing
market is in the form of large
buildings. High construction
and land costs set price
points that are not attainable
to the vast majority of
income groups.

Market-rate units that are
lower-cost without subsidy
A proven strategy to make
housing more affordable is to
increase the supply of market-
rate housing. If these units
can be smaller and less costly
to deliver, they can provide
housing options at all income
levels.

Missing Middle Housing Informational ReportDecember 2022 29 Chapter 2 — What is Missing Middle Housing?
Typical Missing Middle
Housing Types
Typical Missing Middle Housing (MMH)
types are summarized below. Some
of these types, such as the Multiplex,
work at different scales and can
accommodate from three to 18 units.

For Sacramento, the envisioned palette
of Missing Middle types in residential
areas will be at the lower end of the
intensity spectrum.

While each MMH type has its own set of
characteristics such as building width,
depth and height, they also share some
common characteristics:
■ Height. Typically two to two and a
half stories. A third story is typically
only considered for Upper Missing
Middle types.
■ Units per building. Typically two to 12
units per building, with a maximum
of 19 units for Upper MMH.
■ Footprint. Small "house-scale"
buildings. For larger MMH, the
building massing is articulated to
retain the house-scale character.
■ On-site open space. Shared open
rear yard, side yard, or courtyard.
■ Parking. Typically lower parking
ratios than single-family, with parking
location and access regulated.

Triplex and Fourplex
3-4 units
Cottage Court
5-10 units
Duplex Side-by-Side
2 units
The Palette of Missing Middle Housing Types
Duplex Stacked
2 units
For more information visit www.missingmiddlehousing.com 30 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Multiplex Small
6-10 units
Multiplex Large
7-18 units
Courtyard Building
6-20 units
Townhouse
1 unit
Live/Work
1 unit
Multigenerational housing
Missing Middle Housing lends itself well to innovation, such as this example of a multi-generational home. Several housing units on a single lot can allow multiple generations to have both separate and shared living space.

Missing Middle Housing Informational ReportDecember 2022 31 Chapter 2 — What is Missing Middle Housing?
How and Where Can Missing
Middle Housing Work?
Missing Middle Housing and
Walkability
Missing Middle Housing (MMH) is
most impactful in areas that are
walkable with access to transit and
amenities; where everyday amenities
are within walking, biking, or rolling
distance. MMH also works in areas that
could become walkable with some
improvements to pedestrian and
bike connectivity. For example, most
traditional downtowns have Missing
Middle types. Similarly, a neighborhood
with good street connectivity,
amenities, and at least some transit,
could also support MMH.

Many single-family neighborhoods can
also become "MMH-ready" with the
enabling of more housing of diverse
types, upgrading the public realm
to enhance street connectivity, and
providing access to amenities.

While it is possible for MMH to be built
in a suburban, auto-oriented context,
they may not attract the same tenant
types and may instead deliver less
compact, less sustainable patterns of
development. The result of this may
not achieve the same returns or rents
for developers given the growing
demand for walkable living and access
to amenities.

Incremental Change with
Missing Middle
Thoughtful, incremental change can be
just as significant in the long run as big,
transformative changes. Missing Middle
Housing supports community-driven,
incremental transformation through
attainable housing that is gradually
added to the existing stock. There
are various ways in which Missing
Middle types can be integrated into
neighborhoods. They can be dispersed
within a neighborhood block of
Single-Family Homes; or be used to
"book-end" residential blocks. They can
also be used as effective transitions
between higher-intensity residential
or mixed-use development and lower-
intensity residential neighborhoods.

The graphics on the facing page
highlight some of these approaches.

Housing Choice and
Attainability
Housing preferences vary from one
household type to the next, and also
for the same household at different
life stages. In order for MMH to work,
there must be a balance between
the trade-offs and the sought-after
housing characteristics. For example,
if a household greatly values a large
house with a large backyard, then it
may make sense for the household
to choose a Single-Family Home,
despite the larger cost of ownership
and additional cost of car ownership for
everyday needs.

MMH can deliver more attainable
housing options given their smaller
unit sizes. The trade-off for this
compactness and proximity is the lack
of large backyards and limited parking
access. For an increasing number of
buyers and renters, needing a car or
several cars for daily needs is a financial
32 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Distributed Throughout a
Block with Single-Family
Homes
Through gentle intensification,
small Missing Middle types
can be easily integrated into
a single-family neighborhood.

Since these types are "house-
scale", they blend in well with
the existing fabric.

Transition from Single-Family
to Higher-Intensity Housing
Larger Missing Middle types
can serve as a great transition
between large apartment
or other higher-intensity
housing and single-family
neighborhoods. They create an
effective buffer between the
"block-scale" larger buildings
and smaller "house-scale"
residential buildings.

On the End-Grain of a Single-
Family Block
Corner parcels are frequently
larger than interior parcels
in many single-family
neighborhoods. These corner or
end-of-block parcels are great
opportunities for intensification.

Transition from Single-Family
to Mixed-Use Corridor
Missing Middle types can
create great transitions in scale
and massing between single-
family neighborhoods and
busier mixed-use corridors.

Note: Yellow colored
buildings are MMH types in
these examples.

Missing Middle Housing Informational ReportDecember 2022 33 Chapter 2 — What is Missing Middle Housing?
burden, as is a huge mortgage to
support living in a Single-Family Home.

Buyers or renters of these housing
types are choosing to trade larger
suburban housing for less space,
less yard to maintain, and proximity
to services and amenities such as
restaurants, bars, markets, services, and
employment.

Growing Demand for Walkable
Living
The National Association of Realtors
(NAR)'s Community Preference Survey
indicates a growing preference for
walkability, with an uptick since the
Covid-19 pandemic. Nearly 51 million
households nationwide would prefer
to live in attached housing units in
walkable neighborhoods - in other
words, Missing Middle Housing. Of
these 51 million who would prefer a
MMH option, 11.7 million are households
with children, 23.1 million are multi-
adult households without children,
and 16.6 million are single-person
households, most of whom are
sixty-five years of age or older. These
demographic groups are among
the fastest growing segments of the
nation's population.
1 1.Source: NAR 2020 Community and
Transportation Preference Survey.

Walkable neighborhood
in East Sacramento.
34 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Courtyard in Central City
Duplex in Land Park
Duplex in Oak ParkExisting Missing Middle types in Sacramento Missing Middle in Sacramento
Many great examples of Missing Middle
Housing (MMH) exist throughout
Sacramento, including over 3,500
Duplexes, Triplexes, and Fourplexes.

Most Sacramento neighborhoods have
good street connectivity and block and
lot patterns that can support MMH.

The recent passing of Senate Bills 9 and
10 mean that more MMH and other
multifamily types could be created
throughout the city if proper standards
are in place to regulate the built result
of these projects. SB 9 allows up to
two units on any single-unit parcel,
and up to four with an urban lot split.

SB 10 encourages local governments
to allow up to ten units in transit rich
and urban infill sites. However, neither
of these provide much guidance for
building form and scale. By considering
the needs of the communities in
Sacramento and the existing contexts,
the MMH study can provide guidance
on how to encourage appropriately
scaled MMH types throughout the city.

Duplex
Triplex
Fourplex
Missing Middle Housing Informational ReportDecember 2022 35 Chapter 2 — What is Missing Middle Housing?
I'm a single person.

I need a studio
apartment that's close
to where I work and
bikeable to downtown.

We are roommates. We
need a three-bedroom
unit with space to host.

We're not into yard
work, and don't need a
backyard.

We are retirees. We
need a home where
we are surrounded by
community. We don't
drive and prefer to be very
close to what we need.

We are a couple. We
need a small place where
we know our neighbors.

We want to be able
to walk to shops and
restaurants.

Why Should Sacramento
Consider Missing Middle?
Changing demographics and household needs should be reflected in the housing choices for the coming decades.

While no two households are alike,
considering the unique needs of
Sacramento households from all walks
of life will enable us to plan housing
for everyone. The snapshots below
illustrate a few of the unique housing
needs of different household types and
lifestyle preferences.

Demographic trends for Sacramento
indicate a downward trend in average
household size and an increasing
number of elderly residents on a
fixed income who need attainable
age-friendly housing options as they
downsize. Missing Middle Housing can
allow the market to respond to this
growing need.

The Missing Middle Housing concept
has the potential to empower local
homeowners, builders, and civic
leaders to reinvest in their communities
to provide much-needed housing,
strengthen the local economy, and
build generational wealth. It also
provides opportunities for multi-
generational living and passive income.
36 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
We are a family.

We need space for our kids
to live and play, and we'd like
a backyard. We'd love if they
could walk to school.

We are a multigenerational family. We need room for three generations to live together. Grandma and grandpa need their own space to retreat, but still want to be steps away from their kids and grandkids to be present in the family's daily life.

Age distribution and household sizes in Sacramento
Source: City of Sacramento Housing Element 2021-2029
Missing Middle Housing Informational ReportDecember 2022 37 Chapter 2 — What is Missing Middle Housing?
How Can MMH Expand Housing Choice?
There is a growing understanding that what we now refer to as "multifamily" was once a much more nuanced type of development than what the market has produced over the past 50 years.

As more people choose to live in
cities and walkable neighborhoods,
compared to suburban locations,
it had spurred a rediscovery of
great examples of Missing Middle
Housing types from pre-World War
II neighborhoods. These small-scale
multifamily types have traditionally
provided communities and developers
housing choices that fall in-between
the Single-Family Home and large
apartment buildings. We now have
an opportunity to enable these types
to once again help meet the housing
needs of a changing population, in
both new and established housing
markets.

Increasing housing choice has many
advantages. If neighborhoods have
a variety of housing types, including
housing units of different sizes and
bedroom counts, it helps in creating
more resiliency in the face of housing
Pre-1940s neighborhoods typically
have a variety of housing types, and
they contain multifamily buildings
ranging from Duplexes Triplexes and
Fourplexes, to "Mansion" Apartment
types with 5 to 10 units. These types
are now referred to as Missing Middle
Housing because they represent
the palette of housing choices in
the middle, between Single-Family
Homes and large apartment
buildings. After the 1940s, suburban
expansion shifted the focus away
from Missing Middle types, and
multifamily came to be associated
with larger buildings that are often
incompatible with the scale of many
residential areas.

MMH IN OUR CITIES
38 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Increasingly, cities are revising
zoning codes to encourage smaller
home-building as one solution for
addressing the national housing
crisis. Here are a few examples:

Minneapolis, MN is allowing
Triplexes by-right across all zones
allowing residential use.

Portland, OR is updating its
residential zoning to allow Duplexes,
Fourplexes and Sixplexes (when
affordable units are provided).

Spokane, WA is using a 12-month
ordinance to permit Duplexes,
Triplexes, and Fourplexes citywide.

MMH IN ZONING CODES
market fluctuations. It gives residents
options to downsize or move without
needing to leave the neighborhood
or area and possibly disrupting their
lifestyles by needing to, say, find a new
job or school district.

The choice to downsize or move need
not apply only in cases of market
fluctuations - greater housing choice
can enable the same household to
stay rooted in the community but be
able to change their accommodation
as their needs change. For example, a
household may evolve over 50 years
from a single person to a couple to a
family to an empty nester. The ability to
navigate these life stages while having
the choice to remain in the same
neighborhood or area can have huge
social and community benefits.

A population that is diverse in age,
income level, household size and
composition is widely considered to
make a community more vibrant,
cohesive, and desirable. For these
reasons, policy makers and institutions
such as the American Association of
Retired Persons (AARP) and National
Association of Home Builders (NAHB)
are advocating for more housing
choice, and are supportive of Missing
Middle Housing.

When considering where opportunities
exist for improving housing choice
in a typical community, we need to
consider single-family areas since
they often comprise the majority
of areas zoned for residential use in
most jurisdictions. However, most
single-family zones do not allow
Missing Middle Housing types. In an
emerging trend, cities nationwide,
including Portland, Spokane, Iowa City,
Minneapolis and others have been
adjusting their single-family zoning to
allow more housing types.

Communities and organizations,
including AARP, are realizing that Missing
Middle Housing is important in helping
neighborhoods thrive while providing
housing choices as people age."
Dan Parolek
Principal, Opticos Design
Missing Middle Housing Informational ReportDecember 2022 39 Chapter 2 — What is Missing Middle Housing?
How Can MMH Advance Housing Attainability?
Missing Middle Housing represents the "middle" building scale and form, but it also relates to its "middle" level of affordability. These types have historically delivered attainable choices to middle- income families.

Missing Middle Housing (MMH)
increases housing attainability by
delivering smaller units that can
typically be produced and sold at lower
costs than comparable Single-Family
Homes. Key attributes of MMH that
lead to attainability include:
■ Smaller spaces and shared costs.

Missing Middle types deliver multiple
units on the same size lot as a Single-
Family Home, allowing distribution
of the land cost and making each
unit inherently more affordable.

Because the units tend to be smaller
than conventional Single-Family
Homes, they can be less expensive
to build (provided land prices are not
already inflated to the point where
this advantage no longer applies). As
shown in the table below, the median
sale price of a Duplex in Sacramento
was $70,000 lesser than that of a
Single-Family Home.
■ Cross-subsidize affordable units.

Missing Middle projects can also be
designed creatively as mixed-income
projects to deliver neighborhood-
scale affordable-housing options.

MMH has the potential to greatly
expand the availability of housing
that's attainable for households with
a variety of incomes.
■ Reducing transportation costs.

Building parking is expensive,
especially with the high cost of land
in high-demand markets. The cost
of building parking is passed on to
the buyer or renter, thus increasing
the cost of housing. In addition, the
average annual cost of owning and
operating a car in the US is nearly
$10,000. Missing Middle Housing
supports walkable environments
where car ownership can be a choice
but not a neccessity.
■ Income, Equity and Empowerment.

Historically, Missing Middle types
provided lower-income households
an opportunity to attain higher-
quality living and to improve their
economic situation. Since federal
home loans can be used for
buildings with up to four units, a
homeowner can qualify to purchase
a Missing Middle Housing building
that would contain their own unit,
plus up to three additional units.

This can provide rental income to
help subsidize their housing cost.

Alternatively, smaller condominium
residences enable a household to buy
a starter unit, build equity, and then
buy a larger home when needed.

Median home sale prices by
building type, 2018
Source: City of Sacramento
Housing Element 2021-29.
40 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Housing Tenure in Sacramento
As discussed previously in Chapter One,
Sacramento has seen a 44% decrease in
housing affordability from 2011 to 2020.

While this affects all residents, the impacts
on renters may be more. Currently,
55% of residents are renters, and with
rents increasing by 19% from 2020-21,
affordability is a critical issue for the city.

Trends indicate that renters are also more
likely to be displaced than home-owners
in times of housing market volatility and
rent increases. In Sacramento, there are
distinct areas where the ratio of renters
to owners is higher than the city average.

This means that these areas, as shown on
the map to the right, have a greater risk of
displacement due to rent increases and
the potential for the homes they currently
rent to be bought and sold.

To increase housing affordability, a multi-
pronged approach is needed. Housing
production strategies such as MMH, in
addition to neighborhood stabilization
and tenant protection strategies, can help
indirectly in decreasing displacement risk
by retaining or adding to the affordable
housing stock, as smaller-scale housing
that can be offered at lower overall price
points than larger homes

1. Housing tenure vulnerability
Census Tracts with Higher
Than Median % of Pop who
rent their home
Renters are at greater risk of
displacement due to rent increases
and the potential for the homes they
rent to be bought and sold. This
map shows areas where the share of
renter households is greater than
the citywide average.

City of Sacramento
Median:
50%
Housing tenure vulnerability in Sacramento. Census tracts in Sacramento where the share of renter households is greater than the citywide average. Source: Cascadia Partners
Notes
1 The Landscape of Middle-
Income Housing Affordability
in California, Terner Center,
April 2022
Missing Middle Housing Informational ReportDecember 2022 41 Chapter 2 — What is Missing Middle Housing?
How Can MMH Promote Housing Equity?
MMH offers an incremental approach to infill development and it is a great way to gradually transform a neighborhood physically, socially and economically, while promoting housing equity.

Past discriminatory practices of
racially restrictive covenants and
government-sponsored redlining have
created barriers to homeownership
and intergenerational wealth-building
for many families of color. Present-
day single-family zoning in high
opportunity neighborhoods continues
to reinforce the racial wealth gap and
socioeconomic disparity we see today
in our communities.

The prohibition of Missing Middle
Housing (MMH) types and thereby
lower-cost multifamily unit types,
denies many low and moderate-
income families the opportunity to live
in neighborhoods with the best parks,
schools, and other desirable amenities.

Allowing Missing Middle Housing
types in Sacramento’s neighborhoods
will help create more equitable and
inclusive communities by addressing
the remnant forces of government
policies of exclusion and racial
segregation.

Small, incremental changes can be
just as significant in the long run as
big, transformative changes. MMH infill
can support neighborhoods, residents,
and homeowners, creating suitable
environments for small businesses
and local incubators to thrive. Notably,
MMH offers the opportunity for renters
to become homeowners, first-time
Redlining is an unfortunate
part of Sacramento's past,
and its impacts on equity
are visible even today
Source: HOLC Redlining in
Sacramento in 1937, Mapping
Inequality: Red Lining in New
Deal America, https://dsi.
richmond.edu/panorama/
redlining
42 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
buyers to find lower-cost housing, and
new and current homeowners to get
additional income through rent.

In addition, MMH supports a
community-driven incremental
transformation through attainable
housing that is gradually added to
the existing housing stock. In this way,
MMH advances housing equity by
reducing racial and socioeconomic
disparities reinforced by single-unit
zoning while acknowledging the
need for improvements to the
existing infrastructure. Development
corporations and local banks can create
additional financing tools to support
incremental MMH developments.

Appendix H-3: Fair Housing Assessment
City of Sacramento Housing Element 2021-2029 | As Amended December 14, 2021 Page H-3-41 H3
FFiigguurree HH 33--2244:: CCiittyy AArreeaass wwiitthh HHiissttoorriicc RRaacciiaallllyy RReessttrriiccttiivvee CCoovveennaannttss

Source: Hernandez, Jesus. (2009). Redlining Revisited: Mortgage Lending Patterns in Sacramento 1930-2004.

International Journal of Urban and Regional Research. 33. 291-313. 10.1111/j.1468-2427.2009.00873.x.

3.7.2 Mortgage Loan Access
Despite efforts to reform long-standing practices of discrimination in the housing credit system, patterns of inequality still exist. The Great Recession and housing crisis brought to light the unusually high concentration of non-White residents with subprime mortgages and property foreclosures across the country. Subprime mortgages are a type of housing loan most often given to individuals that have weak credit history. Subprime mortgages carry higher interest rates, and are thereby are more expensive, because there is a pre-determined higher risk of default. A concentration of subprime mortgages in areas with concentrations of minorities is a potential consequence of historically punitive practices, such as redlining.

In 2017, there were 89,838 loan applications filed in the region for owner-occupied homes, 4.7 percent of loans were subprime, which is slightly higher than the national rate of 4 percent. Within the City of Sacramento, Hispanic/Latino (12.6 percent) and Other Racial Minorities— which includes Black, Native American, and Pacific Islander— (11.4 percent), received the most subprime loans followed by Asian (4.4 percent) and Non-Hispanic White (4.5 percent) buyers.

Racially restrictive
covenants prevented
equity in home-ownership
for generations; with many
restricting allowed housing
types to include only
Single-Family Homes.

Source: Figure H 3-24, City
of Sacramento's Housing
Element 2021-2029.

Image courtesy Dr. Jesus
Hernandez (2009): Redlining
Revisited: Mortgage Lending
Patterns in Sacramento
1930-2004. International
Journal of Urban and
Regional Research. 33.
291-313. 10.1111/j.1468-
2427.2009.00873.x.

Missing Middle Housing Informational ReportDecember 2022 43 Chapter 2 — What is Missing Middle Housing?
How Can MMH Support Economic Growth?
MMH can provide pathways for local homeowners and builders to invest in their neighborhoods and build generational wealth through small-scale, incremental housing and mixed-use projects.

1 Small-scale, lower-cost Missing
Middle projects
allow local
investors, builders to compete for
MMH projects, strengthening the local
construction labor market.
3 Support and help incubate
small businesses through MMH
types that offer smaller ground
floor commercial spaces, that
would otherwise not be available or
affordable for starter businesses and
local entrepreneurs.
2 Provide passive income
opportunities for local homeowners
through conversions and additions to
existing homes.
4 Provide economic diversity
to neighborhoods by adding
more households of varying income
levels, and in a pedestrian-oriented
environment that increases foot traffic
to support neighborhood-serving retail
and services.
44 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Establishing Walkable Mixed-Use Neighborhoods
MMH can support the gradual
evolution of neighborhoods and
the establishment of walkable
neighborhood-serving centers.

By adding more housing in a gentle,
incremental manner, MMH can
help to transition from an auto-
dependent development pattern
to one with higher connectivity
and more supportive of an active,
healthy lifestyle. Mixed-use walkable
development patterns create
new destinations, and space for
neighborhood-serving retail, service,
institutional and public uses in a
pedestrian-oriented environment. This
approach can be used to transform
underutilized strip malls, large vacant
parcels and redevelopment of places
such as arenas and other large sites.

Existing condition: underutilized retail and parking
Long-term change: evolution of a mixed-use neighborhood with Missing Middle Housing, community open spaces and trees, and active ground floors along the street with neighborhood-serving retail.

Near-term transformation: existing retail + new housing Missing Middle Housing Informational ReportDecember 2022 45 Chapter 2 — What is Missing Middle Housing?
How Does MMH Promote Livability?
MMH types thrive in, and in turn support walkable environments with active, pedestrian-friendly streets, sidewalks and public spaces. They help build community by integrating well-designed open spaces as well as design elements such as porches and stoops that encourage everyday interaction. 1
Pedestrian-friendly, active
living and healthy communities
Missing Middle supports walkability
and an active lifestyle with reduced
dependance on the car. Active streets
and pedestrian activity promote
healthier, safer communities.
2 More everyday casual
interactions build community
Missing Middle Housing types regulate
building frontages, street-facing
entrances, active frontages, and shared
open space that promote everyday
interaction, casual conversations and a
sense of community.
4 Quality living experience
Missing Middle emphasizes smaller but
well-designed interiors with natural light,
dedicated entrances, and other features
that provide an experience similar
to a Single-Family Home. MMH also
prioritizes outdoor space on the lot, often
in shared configurations.
3 Age-friendly housing option
The diversity of housing types and
sizes offered by MMH support aging-
in-place, senior housing and co-living
configurations.

46 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Aging-In-Place with Multi-Generational Housing
All too often, buildings are treated as
static objects, but this attitude is in
tension with the fact that the people
inhabiting them are very much not.

What if homes were permitted to
accommodate the full life cycle of the
people living there?
A greater mix of housing types
helps meet differing income and
generational needs, such as allowing
seniors to age in place within their
existing community. The Multi-
Generational House is an example of
a home in which different types of
units provide for the needs of people
at different stages of life. This building
type has the added benefit of
allowing for incremental development
and rental income opportunities,
which can make it easier to finance
and more affordable to build over
time. The diagrams and narrative
below show just one possibility, but
these are illustrative of a broader
concept that can be tailored to the
unique circumstances of individual
households.

Stage 1: The “Single-Family
Home”.

This story begins with
an ordinary house on an ordinary
lot: parents with young children
moving into a new home whose
downstairs living spaces and
upstairs bedrooms promise to
provide enough space for their
family.

Stage 2: Wing Unit Addition.

As their oldest child becomes
a teenager, the family begins
to consider adding a separate
space to support her growing
independence and to provide
more space for younger siblings.

They add a wing to the back of
the house, containing a bedroom,
bathroom, and living/dining
room.

Stage 3: Carriage House
Addition (ADU). Later on, they
decide to add a carriage house
adjacent to the alley. Initially, it
is rented out to pay down the
construction cost and to provide
retirement income. Later on,
this unit can provide a great
opportunity for a graduating
child needing a place to live while
pursuing a new job and building
savings, or a grandparent that
wants to move closer to the family
but still have a place of their own.

Missing Middle Housing Informational ReportDecember 2022 47 Chapter 2 — What is Missing Middle Housing?
Promoting transit-oriented development
means more opportunities for walkable
neighborhoods and car-free transit, which
would cut pollution and result in shorter
commutes, less driving, less congestion,
fewer road fatalities, and improved health
outcomes from cleaner air.''
The Alliance for Housing Solutions
How Can MMH Respond to Climate Change?
Smaller homes offered through MMH types carry overall a smaller carbon footprint than larger homes — when efficiently sized and designed, they require less energy to heat and cool.

One of Missing Middle Housing
(MMH)'s key principles is to align
environmentally-friendly growth with
attainable housing production. Since,
by design and product type, MMH
types tend to be smaller in footprint,
they result in less carbon emissions per
household, when compared to larger
homes.

Research finds that residential energy
use accounts for roughly 20 percent of
greenhouse gas (GHG) emissions in the
United States, and that in addition to
decarbonizing our energy consumption
and increasing the energy efficiency
of our homes, fundamental changes
to the built form of our communities
are necessary to meet global and state
GHG reduction goals. These changes
include incentivizing smaller homes
that have reduced energy demands
per capita compared with their larger
single-family counterparts.

Missing Middle types are smaller
by design and require less energy
to heat and cool, making them
more energy efficient. By being the
“Goldilocks” in terms of scale and
size, Missing Middle Housing has the
potential to reduce further sprawling
development patterns and support
low-carbon modes of transport, while
also blending into the fabric of existing
neighborhoods.

MMH can, through gentle infill, increase
the number of households in an area,
increasing the feasibility and efficiency
of public transportation routes,
pedestrian and bike infrastructure, and
community amenities.

MMH works better in areas with
pedestrian, bike networks, transit
access and active uses. When in
proximity to jobs and neighborhood
amenities—especially when designed
with an emphasis on walkability—MMH
can break the link between housing
48 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
Smaller footprint buildings are
more "green" in terms of per capita
consumption; while incentivizing
residents to walk and bike.

For example, the Cottage Court
MMH type is composed of buildings
with very small footprints —
sometimes as small as 500-600
square feet. These cottages are
typically 1-1½ stories, detached, and
oriented around a shared court
running perpendicular to the street.

The courtyard itself is usually
landscaped, taking the place of rear
yards, and offering the opportunity
for informal interactions among
residents and the opportunity
to enjoy the green space. The
courtyard also addresses the street
and encourages interaction with
neighbors.

THE COTTAGE COURT
and car dependence, and encourage
more active, healthy lifestyles.

As communities adopt MMH housing
ordinances, they have an opportunity
to re-think and re-establish their
environmental goals to consider how
future growth can align with climate
change issues, environmental hazards
and mitigation strategies, such as
stormwater and water management.

New zoning enabling Missing Middle
Housing can include environmental
incentives to promote reduced
driveway and off-street parking
requirements, and preservation of
existing greenery and tree canopy.

Missing Middle Housing Informational ReportDecember 2022 49 Chapter 2 — What is Missing Middle Housing?
Regulatory Barriers
In many cases, zoning standards
disallow multifamily buildings, ruling
out Missing Middle Housing (MMH)
types from being legally built. But this
may not be the only regulatory factor
that poses a barrier to MMH; there
are many other regulations that can
prevent MMH from occurring.

For example, many jurisdictions place
a maximum limit on the density
permitted in residential zones, typically
measured in dwelling units per acre
(du/ac). This is often based on the
common misconception that higher
density means larger, bulkier buildings.

However, density is a simple calculation
that is not an accurate predictor of built
form. Many MMH types have moderate
to high densities, but are "house-scale"
and blend in with Single-Family
Homes in residential neighborhoods.

Frequently, MMH types cannot be
built because their resultant density is
higher than that the zone permits.

Another typical barrier to MMH is
minimum parking requirements,
measured as the number of parking
spaces required per housing unit.

Often, these minimum parking
standards are so high that only larger
parcels can work for MMH in order
to fit the required parking. This can
significantly limit the number of parcels
on which MMH can be built.

Building heights and stepbacks can
limit MMH as well, since many cities
use stepbacks or building height limits
for multifamily zones when adjacent to
Potential Barriers to MMH in
Sacramento
Density is an imperfect
determinant of built form
Density is a calculation of
the number of dwelling
units on a lot. The same
building envelope and same
size lot can yield a variety
of densities based on how
many units the building
contains. Regulating by
building size, form and
massing can predict built
outcomes more accurately
than regulating by density.
50 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
single-family zones. These regulations
are typically geared more towards
large-scale apartment development
and don't consider how small-scale infill
housing may also be limited by it.

Minimum requirements for private
open space can limit MMH, as it
requires larger lots than necessary for
MMH. While MMH types lay emphasis
on well-designed open spaces, these
are typically shared and not private
spaces. Similar limiting regulations
include side yard requirements, buffer
yards, and rear yards.

Large front and side setbacks can
pose a barrier to MMH as well, if they
are not calibrated to lot size and can
constrain the building envelope to the
point of infeasibility. Large setbacks are
often mandated with large multifamily
buildings in mind, and similar to
building heights and stepbacks, may
have the unintended result of inhibiting
smaller-scale multifamily buildings as
well as larger ones.

At times, jurisdictions allow Missing
Middle but without adequate analysis
and regulating standards. Inadequate
planning for Missing Middle can lead to
built outcomes that are incompatible,
unattainable, or infeasible, and can
undermine the success of future
Missing Middle projects.

In some cases, a city's impact fee
structure can also pose a barrier to
Missing Middle if not calibrated to
smaller multifamily units, particularly
for small-scale builders.

Financing Barriers
Securing financing for Missing Middle
projects can pose a challenge for many
small-scale builders and homeowners
since the home financing mechanism
has been set up with the Single-
Family Home, or the large multifamily
apartment building in mind. The lack of
predecents and comparable properties
can hinder banks and financial
institutions from offering financing at
competitive interest rates. As a result,
builders may need to take on more risk,
such as a higher percentage of pre-sold
units; and construction loan conditions
are typically also more complex.

Similarly, buyers find it more difficult to
secure loans to buy condominiums, as
well as more complicated assessment
procedures.
125'
125'
?
Financing mechanisms
are often skewed towards
a few building types, such
as Single-Family Homes,
Townhomes, and larger
"podium" style residential
multifamily developments.

The market for financing
small-scale multifamily is still
evolving.

Missing Middle Housing Informational ReportDecember 2022 51 Chapter 2 — What is Missing Middle Housing?
Development Risk
Laws such as California's Senate
Bill 800 exist for good reasons, but
create liability risk for small-scale
developers who might otherwise
be interested in creating Missing
Middle Housing. SB 800 (Construction
Defect Liability, passed in 2002) was
established to protect buyers from
potential harm from poor construction
quality. However, the unintended result
is that many builders, particularly small-
scale builders and developers, are wary
of lawsuits and avoid small multifamily
projects. This is a barrier for Missing
Middle Housing condominium projects.

Missing Middle is not easily classified
by industry standards, and that has
hindered the growth of enough
developers that specialize in this type
of housing. Since these types were not
allowed by many zoning codes till very
recently, this market is yet to develop.

Implementation
Barriers
When a building has three or more
units, most jurisdictions treat those
multifamily buildings the same as
commercial buildings and require that
the International Building Code (IBC)
rather than the International Residential
Code (IRC) be followed. The IBC is
more prescriptive than the IRC, and
increases costs of construction, making
it harder for most builders to build
MMH efficiently, particularly small-scale
builders.

Community Concerns
Affordable housing is becoming
increasingly difficult to find in
Sacramento. As housing prices rise,
more and more communities are
concerned about affordability and
displacement. As new housing is built
and neighborhoods get gentrified,
there are valid concerns from long-time
residents about getting priced out of
desirable neighborhoods. While the
intent of Missing Middle Housing is to
provide more attainable housing, MMH
projects may face opposition simply
because any new housing is unfairly
correlated with gentrification.

One of the city's top priorities is
to promote positive change in
communities which have experienced
chronic disinvestment while ensuring
that those same people are able
to reap the benefits without risk of
displacement. State housing law (AB
686) requires jurisdictions to take
Over time, this has spawned a
legion of attorneys who specialize in
persuading condo association board
members to sue their builder for
something—anything! —because it’s
better to be safe than sorry when the
statue of limitations is running out."
Dan Bertolet
Sightline Institute
52 Missing Middle Housing Informational Report December 2022 Chapter 2 — What is Missing Middle Housing?
meaningful actions to overcome
patterns of segregation, address
disparities in housing needs and access
to opportunity, and foster inclusive
communities. The primary action cities
can take is to provide more lower-cost
housing options in areas of the city
with the most access to opportunity ;
and take steps to avoid displacement.

Phase One of community engagement
for the MMH study was recently
concluded and a summary of
input received will be summarized
in a seperate report. However,
community concerns that are often
heard about adding more housing
to neighborhoods relate to fears of
overcrowding, reduced open space and
room for trees, loss of street parking,
and reduced privacy.

Concerns have also been expressed
about outside investors purchasing
available housing stock, driving up
prices and leaving less opportunities
for home-grown investment and
homeownership. These concerns are
valid and will need to be adequately
investigated and addressed for Missing
Middle to be successfully implemented
in Sacramento.

Community concerns often revolve around lifestyle issues such as perceived loss of greenery, concerns about trash collection, etc.

So much of the real estate industry is
extractive, where far-away investors
mine the value from properties that
line our streets. MMH can create a
more generative real estate model,
where local people can invest in
their own neighborhoods and in that
process, create new life and value that
benefits their community.”
Incremental Development Alliance
Missing Middle Housing Informational ReportDecember 2022 53 Chapter 2 — What is Missing Middle Housing?
54 Missing Middle Housing Informational Report December 2022

CHAPTER
3Case
Studies
In this chapter
How Portland Implemented Missing Middle Housing 56
How Spokane Implemented Missing Middle Housing 64
Other Cities That Have Implemented MMH 66
Missing Middle Housing Informational ReportDecember 2022 55 How Portland Implemented
Missing Middle Housing
Portland implemented its Residential Infill Project (RIP) in 2020 to allow more housing options with a focus on Missing Middle Housing (MMH) types. The city of Portland chose to allow MMH citywide, rather than designate the types to certain areas and expanded on these types permitted in later phases. Portland made critical decisions in order to incentivize certain types of housing and to allow its residents to benefit from the results.

Background
As Portland continues to change,
the needs of its residents is evolving.

Growth forecasts for the 2035
Comprehensive Plan showed that
Portland is projected to add 260,000
new residents, or 123,000 new
households by 2035. The city's Growth
Profile also shows that by 2035, 75
percent of households are predicted
to have no children in them. According
to OregonMetro.Gov, communities
of color have seen a great increase in
population in the metro area from 3
percent in 1960 to almost 26 percent
percent in 2010. With the increase in
population and decrease in household
size, the need for smaller units is also
growing.

Considering these projections for
Portland's growth, as well as rising
unaffordability, the city recognized the
need for more housing choices. This led
to the initiation of the Residential Infill
Project (RIP).

Residential Infill Project
The Portland Residential Infill Project
(RIP) began to address the issues of
rapid growth and change in household
size by allowing more housing units
to be built in residentially zoned
neighborhoods. This project included
two phases: RIP 1, which went effect on
August 1, 2021, and RIP 2, which went
into effect on June 30, 2022.

RIP 1 allowed more housing types
citywide in certain residential zones and
RIP 2 expanded on the housing options
and the zones they were permitted in.
75%
of 123,000 new households
projected by 2035 will have
no children.
56 Missing Middle Housing Informational Report December 2022 Chapter 3 — Case Studies
RIP 1
In order to allow for gentle infill, the first
phase of the Residential Infill Project
(RIP 1) allows for up to 4 units on most
lots in the city's most common single-
family zoning districts: R2.5, R5, and R7.

Missing Middle Housing (MMH) types
permitted in addition to a Single-
Family Home include the following
combinations: Single-Family Home
+ ADU, Duplex, Triplex, Single-Family
Home + two ADUs, Duplex + ADU and
Fourplex. Additionally, RIP 1 uses a
sliding Floor Area Ratio (FAR) allocation,
rather than density, as the chief
regulator of the built form. A Single-
Family Home on its own can have an
FAR of 0.5; two-unit combinations
(Duplex or Single-Family Home + ADU)
can have an FAR of 0.6, and three
to four-unit combinations (Triplex,
Fourplex, Single-Family Home + two
ADUs, or Duplex + ADU) can have an
FAR of 0.7.

Portland adopted supporting policies in
this effort, including removing parking
minimums, and creating visitability
requirements for buildings with three
or more units such as n
o-step entries,
wider doorways and ground floor
bathroom and living space.

RIP 2
Following RIP 1, RIP 2 was adopted
in order to comply with House BIll
2001 (HB2001), a state law enacted to
address the housing crisis in Oregon.

HB2001, passed by the 2019 Oregon
Legislature, requires cities with
populations greater than 25,000 to
allow Duplexes on any lot zoned for
single-family, by June 30, 2022.

While RIP 1 had permitted MMH on
three of the most common single-
family zones, RIP 2 permits Duplexes
and expands allowances for additional
ADUs on all buildable lots in the R10
and R20 zones. Additionally RIP 2 adds
other types of MMH, including attached
houses (Townhouses) and Cottage
Clusters (also known as Cottage Courts
and Pocket Neighborhoods) in the R2.5,
R5, and R7 zones. It also increases the
allowed FAR for Fourplexes in the R5
and R2.5 zones.

In addition to HB2001, RIP 2 also
addresses SB458 by allowing Middle
Housing Land Divisions (MHLD) for
Duplexes, Corner Duplexes, Triplexes,
Fourplexes, Cottage Clusters, and
detached Duplexes. MHLDs allow lot
splits, creating a more straightforward
ownership structure compared to the
condominium process. MHLD allows
one unit per resultant new (split) lot,
and the new unit receives its own
utilities. MHLD requires pedestrian
access to the street for internal lots
but does not require street frontage,
minimum lot sizes or dimensions.

Cottage cluster example used
for illustrating RIP 2
Source: www.portland.gov/bds/
events/2022/6/16/lunch-and-
learn-residential-infill-project-
part-2-rip2
Missing Middle Housing Informational ReportDecember 2022 57 Chapter 3 — Case Studies
Triplex Fourplex
Impact of RIP 1 and RIP 2 on
Housing Affordability
The sliding FAR implemented in the
RIP creates incentives for more units
that are smaller in size, as opposed
to larger Single-Family Homes. This
spreads the land cost over more
dwellings and results in greater
affordability.

Additionally, the Deeper Affordability
Bonus allows up to 6 units on a lot
previously zoned single-family if half the
units are affordable.

As the graphic below shows, the effect
of these measures on affordability is
clear - while a Single-Family Home is
affordable at 170 percent of Median
Family Income (MFI), the affordability
of a fourplex is 80 percent MFI, greatly
expanding housing access.

Financial feasibility and
housing affordability
comparison

Source: Images from "The
-Plex Paradox" webinar,
hosted by the Terner
Center and presented by
Sandra Wood.

Single-Family Duplex
58 Missing Middle Housing Informational Report December 2022 Chapter 3 — Case Studies
Public Outreach and Timeline
In the years leading up to the
Residential Infill Project (RIP), Portland
city staff had sought community
input on proposed changes to
residential zoning and had convened
a Stakeholder Advisory Committee
comprised of community members,
architects, developers, and other
Portland stakeholders.

Over an 18-month process initiated in
2015, this committee discussed housing
issues and opportunities, and organized
informational lunch-and-learns. The
efforts culminated in a Concept Report,
which was presented to the City
Council and approved in December
2016. Following the Concept Report,
staff developed the Zoning Code
and map amendments to create the
Discussion Draft. This Discussion Draft
was open to the public for 2 months
in 2017 to receive comments. These
comments informed the Proposed
Draft, which went before Planning and
Sustainability Commission for further
public discussion.

In early 2019, the Planning and
Sustainability Commission placed their
Revised Proposed Draft before City
Council. On January 15 and 16, 2020,
the City Council held public hearings
and heard from over 100 people in
addition to receiving over 500 written
testimonies. Resulting amendments
include the "deep affordability bonus"
which allows up to 6 units on a site
when half of those are affordable to
households earning up to 60 percent of
the Median Family Income (MFI), as well
as density restrictions on sites in historic
conservation districts.

In August 2020, the Residential Infill
Project was adopted, with the changes
taking effect in August 2021.
"Lunch and learn"
informational session for
RIP 2

Source: Image from City
of Portland's RIP 2 Lunch
and Learns. Presented by
Morgan Tracy.

Notes
1 https://americas.uli.org/
Missing Middle Housing Informational ReportDecember 2022 59 Chapter 3 — Case Studies

1. Regulate by building type and consider existing lot sizes.

Portland conducted various analyses
to determine commonly occurring
lot sizes within the city on residential
parcels. This analysis looked beyond lot
area and focused instead on the widths
and depths of lots. By doing so, the
city was able to determine the realistic
dimensions of housing types that could
fit on common lot sizes. This approach
to choosing housing types yields more
context-sensitive, house-scale results.

Additionally, Portland enabled Missing
Middle types by specifically naming,
defining, and regulating standards
for these types, including Duplexes,
Triplexes, Fourplexes, Townhouses,
and Cottage Courts. Regulating each
housing type with its own development
standards leads to more predictable
built results, and new homes that fit
better into their surrounding context.

What lessons can be learned from Portland?
Diagrams illustrating RIP
code changes
Source: Images from "The
-Plex Paradox" webinar,
hosted by the Terner Center
and presented by Sandra
Wood.
60 Missing Middle Housing Informational Report December 2022 Chapter 3 — Case Studies

2. Regulate building scale and form over density standards.

Density is not an effective tool for
regulating the scale of built results, as it
is a simple calculation considering the
number of units per parcel, but it does
not consider the form of the building.

Creating standards which incentivize
more, smaller, and attainable units that
are appropriately scaled was an integral
part of the RIP process.

Portland achieved this by using a
sliding Floor Area Ratio (FAR), with less
FAR permitted for fewer units and an
RIP bonus for affordable units.

Previous regulations had actually
allowed much greater FAR with fewer
units, resulting in out-of-scale large
Single-Family Homes replacing older,
smaller houses. The sliding FAR now
discourages the production of large,
Single-Family Homes which dwarf their
neighbors, and now incentivizes small,
house-scale Missing Middle Housing
types that offer more affordable units.

Missing Middle Housing Informational ReportDecember 2022 61 Chapter 3 — Case Studies
Diagram illustrating sliding FAR
Source: Images from "The -Plex Paradox"
webinar, hosted by the Terner Center and
presented by Sandra Wood.

What lessons can be learned from Portland?
Example of a Single-Family
Home conversion to a
Fourplex
Source: Image of Dekum/
Charles Fourplex in Portland,
OR by Garlynn Woodsong.

3. Create opportunities for homeowners.

In order to protect existing housing
stock and create greater opportunities
for residents to build equity, Portland
incentivized home conversions to
Missing Middle types. Incentives for
home conversions include reducing the
fees and other costs.

Portland also changed existing
standards in response to community
concerns, such as the way to measure
building height (from the lowest
point of the site and exclude dormer
windows).

Diagram illustrating
measurement adjustments
Source: Images from "The
-Plex Paradox" webinar,
hosted by the Terner Center
and presented by Sandra
Wood.
62 Missing Middle Housing Informational Report December 2022 Chapter 3 — Case Studies

4. Right-size parking standards.

In an effort to encourage more
Missing Middle development, Portland
removed parking minimums, but kept
parking maximums. While Portland
already had standards for parking
placement which promoted better
streetscapes and public realms, as a
part of RIP, the city created additional
parking location regulations for narrow
lots.

Diagram illustrating parking layouts for
narrow parcels
Instead of a series of narrow lot curb cuts
that eliminate on-street parking, shared
driveways and and alley-accessed parking
are encouraged.

Source: Image from Portland RIP Summary,
www.portland.gov
Missing Middle Housing Informational ReportDecember 2022 63 Chapter 3 — Case Studies
The city of Spokane enacted its Building Opportunities and Choices for All (BOCA) Interim Ordinance to test how best to increase housing choice and attainability with Missing Middle.

Rationale and Methodology
The city of Spokane, Washington is facing
a large flux of new residents combined
with a significant shortage of attainable
housing. As housing costs escalate, the
city chose to break from the previous
strategy of focusing on Single-Family
Homes and large apartment complexes
to solve the problem.

Instead, the city conducted a housing
study in 2021. This Housing Action
Plan (HAP) highlighted the impact
of the housing shortage, especially
on specific demographic groups. A
Housing Emergency Proclamation was
adopted the same week as the HAP
Implementation Strategy, reiterating
many of the same goals.

As a result, the Building Opportunities
and Choices for All (BOCA) Interim
Ordinance was adopted as an emergency
need for a 12-month period without
requiring a formal public hearing process.

BOCA permits Duplexes, Triplexes and
Fourplexes citywide for this 12-month
period along with several other
regulations to encourage housing.

Originally, the city had studied a range of
alternatives for where Duplexes, Triplexes,
Fourplexes, and Townhouses could be
constructed based on access to transit.

However, the City Council approved a
citywide application.

How Spokane Implemented
Missing Middle Housing
Row of Townhouses in
Spokane, WA
Source: www.kuow.org
64 Missing Middle Housing Informational Report December 2022 Chapter 3 — Case Studies
Strategies to Address Community Concerns
Loss of Neighborhood Scale and
Form and Speculative Development
A prominent concern expressed by
the community was of speculative
development resulting in the
demolition of buildings which form
the architectural character of a
neighborhood, thereby changing the
look and feel of the neighborhood. As
a way to mitigate this concern, the city
will use this pilot project to track permit
rates as well as housing valuation.

Additionally, the city proposed a series
of house-scale-based regulations,
such as nuanced setbacks, larger front
porches and increased Floor Area Ratio
(FAR) to make development more
feasible. In addition, shared driveways
were allowed, stairs to upper levels
disallowed on the front facade; and
every parcel was granted the right to
build an Accessory Dwelling Unit (ADU).

Displacement
The city has launched several initiatives
to combat potential displacement:
■ Projects of Citywide Significance
Grant
• For projects which help the homeless
and youth, protect against COVID-19,
or spur economic development, the
city will pay a significant portion of
the project fees, including plan review
fees, impact fees, utility connection
fees, etc.
■ Multifamily Tax Exemption (MFTE)
• For projects which add at least four
new units, the city awards a partial
property tax waiver of about $1,000
per year for every $100,000 of the
property's valuation for a period of
eight years.
• If the developer reserves 25 percent
of the units for low to moderate
income households, the waiver
extends to 12 years.
• If a developer is planning to tear
down existing rental units which
would displace low to moderate
income households, they are required
to relocate the households at the
developer's expense
Other Strategies and Initiatives
The city is working to develop a
"Spokane Collection" of architect-
designed, pre-approved housing plans
that can reduce time and cost for
potential homebuilders.

In addition to the citywide MMH
zoning, Spokane passed policies
several years prior in the Infill Housing
Toolkit to permit Cottage Housing
with a conditional use permit in the
RA through RTF zones. This creates
additional ownership options with
smaller units and shared open spaces.

Multiplexes in Spokane, WA
Source: www.kuow.org
Missing Middle Housing Informational ReportDecember 2022 65 Chapter 3 — Case Studies
Other Cities That Have
Implemented MMH
Cities such as Minneapolis have enacted policy changes to enable Missing Middle Housing (MMH), with different strategies that Sacramento can learn from.

Minneapolis, MN
As a part of the city's new General Plan,
Minneapolis 2040, new policies were
implemented to permit Missing Middle
in the city:
■ Up to three units are permitted on all
residentially-zoned lots.
■ Minimum off-street parking
requirements have been eliminated.
■ Financing for buildings of two to 20
units of affordable housing through
the Minneapolis Missing Middle
Housing Pilot program.

Iowa City, IO
As part of an effort to redevelop the
city's 900-acre South Districts of land,
Iowa City implemented zoning changes
to allow for Missing Middle. This
rezoning includes a few key strategies:
■ A form-based code approach to
regulate built results.
■ A residential market analysis to
determine the feasibility of MMH
types, to ensure that the housing
types being enabled by policy
changes are also feasible under
current market conditions.

Minneapolis Built Form
District maps
From left to right:
districts that are
appropriate for MMH,
districts where MMH
is allowed but less
appropriate, and
districts where MMH is
unlikely due to FAR and
height requirements.

Source: www.
minneapolis2040.com
66 Missing Middle Housing Informational Report December 2022 Chapter 3 — Case Studies
Section 3.1 — City of Greenville
Zoning Districts
R-9
R-6
RM-1
RM-1.5
C-3
I-1
S-1
RDV
RM-2
RM-3
C-1
C-2
PD
OD
FRD
5 min walking distance
from Centers
Walkable Environments
5 min walking distance
from Bus Stops
Parks/Open Space
Amenities
Current Zoning in Walkable Centers
Key
Identified Walkable Centers
Downtown Core
Urban Center/
Downtown Transition
Neighborhood
Main Street
Medical/Institutional
Interstate 85
Downtown
Interstate 385
The map identifies the zoning districts and areas that are within the walkable environments (easy walking distance of “walkable centers”), and are prime areas for Missing Middle Housing.

Opticos Design, Inc. © 2019 — MMH Scan™Greenville, South Carolina — December 3, 2019 37 Chapter 3 — Analysis
Greenville zone analysis
identifying walkable areas
and zones supportive of
Missing Middle.

Source: Opticos Design
Iowa City South District's Future
Land Use Map
relies on form-based zones to facilitate
Missing Middle Housing types.

Source: www.icgov.org, Opticos Design
Greenville, SC
The City and County of Greenville is
in the process of adopting zoning
amendments to enable Missing Middle
Housing. The process involved:
■ Potential build-outs modeled for
six zones identified as suitable for
Missing Middle.
■ Recommended standards to remove
identified barriers established after
design testing on 12 lot types.

Missing Middle Housing Informational ReportDecember 2022 67 Chapter 3 — Case Studies
Marin County
As a part of county-wide Objective
Design and Development Standards
(ODDS), Marin County has adopted
a Form-Based Code toolkit that
sets standards for enabling Missing
Middle Housing types by-right. The
form-based standards regulate the
built form of these MMH types and the
toolkit approach enables the standards
to be calibrated to the specific local
conditions. Some of the MMH types
permitted and regulated are:
• Carriage House
• House
• Duplex
• Cottage Court
• Fourplex
• Townhouse
• Courtyard
• Pocket Neighborhood
Marin County Objective
Design and Development
Standards Toolkit
Form-based standards for
the T4N.S zone standards for
Missing Middle Housing.

Source: Opticos Design
68 Missing Middle Housing Informational Report December 2022 Chapter 3 — Case Studies
Above: Case studies for
AARP with MMH types
Source: Opticos Design
Below: "Discovering and
Developing MMH"
a publication created
by AARP Livable
Communities and Opticos
Design.

Source: www.aarp.org
AARP
AARP has been a champion of Missing
Middle Housing, working for the past
several years to provide educational
materials about MMH and advocating
for zoning changes to enable MMH
across the country.

Created as part of its Livable
Communities initiative and Opticos
Design, AARP has created a free
publication, "Discovering and
Developing Missing Middle Housing,"
a resource for local leaders, builders
and planning professionals, as well as
community members.

MMH offers many building types that
adapt well to senior housing, co-living
and similar options. MMH also supports
aging-in-place.

Missing Middle Housing Informational ReportDecember 2022 69 Chapter 3 — Case Studies
With consultants:

Cascadia Partners
Collaborative Design + Innovation
Unseen Heroes
Konveio

Sacramento City CouncilOctober 24, 2023

Sacramento City Council
October 24, 2023