LAKE FOREST, CA—The urbanization of the suburbs, meaning pedestrian-friendly neighborhoods where people live, play and work, is making its way into master-planned communities, Meta Housing Corp.'s director of acquisitions Shaun Bradley tells GlobeSt.com exclusively. We spoke with Bradley about the latest trends in master-planned communities, where they are becoming more prevalent and how affordable housing plays into the mix.

GlobeSt.com: What trends do you see emerging in master-planned developments in 2015?

Bradley: As the popularity of master-planned developments continues to grow, we are seeing an increase in more-urbanized communities being developed within suburban areas. This includes developments in close proximity to retail, services and healthcare. Today's consumers continue to seek pedestrian-friendly environments where they can easily walk to nearby services and transportation. The upward trend of creating master-planned communities where people can conveniently access everything they need quickly, affordably and close to home will continue to rise in 2015.

In addition, demand for amenity-rich environments that foster connectivity and engagement will continue to gain momentum in 2015. Residents are seeking housing in which they can feel connected with their community, and with their surrounding neighborhood. In order to accomplish this, master developers are increasingly integrating collaborative spaces that appeal to various demographics. In these spaces, residents have the opportunity to interact and connect with one another.

GlobeSt.com: Is there a growing demand for master-planned communities in Orange County? How does that demand compare to nearby markets?

Bradley: As 2015 progresses, demand for master-planned communities continues to increase in higher-cost areas such as Los Angeles, San Diego and Orange counties. This demand is extremely high when compared to nearby markets. In the Inland Empire, for example, there is a strong need for master-planned communities and sufficient open parcels available; however, the economics required to develop within this region are not as strong as in more coastal, higher-cost regions.

This activity is well-aligned with the concept that people want to live, work and be entertained within a small radius. As a result, areas such as Orange County, Los Angeles and San Diego, where job growth and job opportunities are greater, will continue to lead the demand for master-planned communities in 2015.

GlobeSt.com: What factors are important when integrating affordable housing into master-planned communities?

Bradley: There are several key factors to developing successful affordable housing within master-planned developments, including:

• Financing—The process of financing these projects and bringing them to fruition is complex. Master developers need to work with affordable developers who understand how to make a project competitive for tax credits and tax-exempt bonds in order to bring in financial sources that aren't typically available.
• Architecture—Affordable-housing developers must work thoughtfully to ensure that the architecture of all affordable components is well-integrated into the community as a whole.
• Construction—Quality construction is essential. Affordable projects must deliver the same level of excellence as the master-planned developments in which they are located.
• Sustainability—Affordable developers who focus on sustainability are able to reduce successfully a project's impact on its surrounding community, while also reducing costs through energy-saving features.
• Resident qualification—It's essential to ensure that residents are well qualified and will continue to meet required criteria in order to contribute to the success of the master-planned community as a whole. Affordable developers with a rigorous qualification process will be able to ensure a positive resident mix.

GlobeSt.com: We understand that Meta Housing is currently developing an affordable component of the Baker ranch master-planned community in Lake Forest. How is that project reflective of the current trends in master-planned development?

Bradley: Arroyo at Baker Ranch reflects the new age of affordable housing. The 189unit apartment community will feature large collaborative spaces that will foster interaction and connectivity among residents. This project will also demonstrate the level of quality and depth of amenities required to meet demand in today's master-planned development market. The community, which will offer 100%-affordable, one-, two- and three-bedroom floor plans, will also feature a large community center, swimming pool, outdoor play area, on-site laundry and a business center.

GlobeSt.com: What are the benefits of partnering with an affordable developer like your firm when developing master-planned communities?

Bradley: Affordable-housing developments differ from market-rate developments, particularly with regard to how they are financed. The rules and regulations for securing tax credits and tax-exempt bonds are constantly evolving and require deep expertise to navigate. For this reason, master-plan developers can benefit from working with the specialists in affordable housing who are expert in bringing together the complex and competitive financial sources that are required to maximize profits in these projects.

In addition, master-plan developers can benefit from a specialist's expertise in working through the complications of “inclusionary” housing requirements and coordinating the needs of the master developer, the financing partners and the City. Cities and existing residents will naturally have questions about proposed affordable projects and their anticipated resident base. A good affordable development specialist will be able to work extremely well with local municipalities, as well as master developers and finance partners, in order to ensure that the needs of cities and their residents are being met and that affordable projects are welcomed in their communities. The fact is, the right affordable partner is a critical component of the development team.