EBALDC Releases “Volumetric Modular Construction in Bay Area Affordable Housing: Barriers, Opportunities and Insights”

For Immediate Release: November 10, 2022

Key takeaway: a lot of promise, but also many challenges

Oakland, CA — On Wednesday, November 9th, the East Bay Asian Local Development Corporation (EBALDC) released its white paper, Volumetric Modular Construction in Bay Area Affordable Housing: Barriers, Opportunities and Insights. Written and researched by Kristin Palm, and supported through a grant from JPMorgan Chase, the white paper’s findings were discussed during a standing room only event at SPUR Urban Center in San Francisco.

_{Standing room only at SPUR}

“We continue to be committed to supporting affordable housing opportunities and working with industry leaders to make impactful change in our local community,” commented Tony Tolentino, Vice President, Global Philanthropy, JPMorgan Chase. “EBALDC has the on-the-ground expertise and long-standing relationships to help inform solutions to the ongoing housing crisis.”

_{EBALDC CEO Andy Madeira (l) and Executive Director for Community Development Banking at JPMorgan Chase James Vossoughi (r) provide opening remarks}

In summarizing the report findings, Palm focused on some of the challenges for modular construction, including high contractor bids, supply chain issues, predevelopment financing, bonding, and insurance. She also offered some observations and considerations around forming teams experienced with modular construction, standardizing bonding policies, financing through philanthropy and government, and standardizing unit layouts.

_{Kristin Palm, Research Lead and Writer}

Moderated by EBALDC’s Executive Vice President of Real Estate Development, Capri Roth, the panelists included some of those who were interviewed extensively for the white paper:

• Justin Dove, Area Executive Vice President, Arthur J. Gallagher Co.
• Matt Smith, Vice President of Business Development, Factory_OS
• Nick Gomez, Principal Director of Modular Design, AO Architecture
• Tyler Pullen, Doctoral Researcher, Terner Center for Housing Innovation/UC Berkeley

“The steep increase in Bay Area construction costs has outpaced capital raised for affordable housing development,” said Roth. “We greatly appreciate JPMorgan Chase’s support that allowed us to research modular construction as an alternative to traditional built-on-site construction methods. We are also incredibly grateful for all the insight and expertise provided by our panelists and others who agreed to be interviewed for the white paper. Bringing together thought partners who are also practitioners is crucial as we figure out how, together, we can address the Bay Area’s affordable housing crisis.”

_{l-r: Capri Roth (EBALDC), Tyler Pullen (Terner Center), Justin Dove (Arthur J. Gallagher), Matt Smith (Factor_OS), Nick Gomez (AO Architecture)}

Indeed, everyone agreed with Pullen’s assessment, “Taking full advantage of off-site methods will require a cultural shift to embrace new approaches in a broadly risk-averse and conservative industry, potentially creating friction with the entrenched interests of conventional business models and practices.”