Increasing Housing Development in Grand Rapids

Permit-Ready Plans Program

Grand Rapids’ Permit-Ready Plans Program launched in February 2025 with the goal of lowering barriers for infill housing development. The program includes eight home designs, featuring single-family, two-family, and multi-family options. They are offered at no cost to developers, reducing the architectural fees that accompany new construction. These plans have been reviewed for compliance with local zoning and building requirements, decreasing permit processing timelines.

Once an individual or company has obtained a vacant lot they can submit an application for the Permit-Ready Plans Program. The application requires a survey and site plan. They then will apply for a building permit, which will be reviewed much quicker due to the pre-reviewed nature of the plans. Once the building permit is received, construction can start.

The permit-ready plans are approved for any vacant lots in the city’s Traditional Neighborhoods, provided all other zoning requirements are met.

In addition to the Permit Ready Plans Program, Grand Rapids worked on several other complimentary initiatives to support new housing creation, discussed later on in this case study.

Program Origin

This initiative was first introduced by the Michigan Economic Development Corporation (MEDC), Michigan Municipal League (MML), the city of Grand Rapids, and Driven Design, LLC. After a 2023 housing needs assessment determined that 34,700 housing units were needed in the county, with over 14,000 needed in the city, the City Commission requested housing policy recommendations from the Planning Commission. Grand Rapids’ planning and economic development departments came together to create the Permit Ready Plans Program, which launched in 2024. They felt that this was the best strategy to work with developers to build on vacant lots throughout the city and provide a one-stop platform for information sharing.

Program Cost and Management

There was no added cost to design the Permit-Ready Plans program, as it was created internally by staff. As of 2025, it had not incurred any associated costs. There were significant costs to obtain the housing plans. The MEDC and City of Grand Rapids paid approximately $70,000 for 3 sets of plans, including full construction drawings. The quadplex designs are available as all-gas or all-electric in order to cover building trade requirements from either build.

One pre-existing full-time city planner manages the program and there has not been a need to hire additional staff. The planning department created the application and website page in partnership with the city’s IT department. In the first year of the program, the city planner has spent considerable time on promotion in the form of hosting Lunch & Learns and attending neighborhood association meetings and other community events. All planners and building department staff understand the program and are prepared to assist as needed.

Obstacles

While the Permit-Ready Plans program itself has not encountered many issues, the housing plans themselves have proved tricky. While the designs meet the zoning requirements, many of the vacant parcels are too narrow to accommodate the pre-reviewed designs without variances to waive setback requirements. The narrowest plan in the Permit-Ready Plans portfolio is 20 feet wide, and the local planners are realizing that the Mid-Century lots with 40+ feet widths, are best able to support the permit-ready plans, rather than the older neighborhoods with more narrow lots.

Since the program has gone into effect, the city has received feedback that the cost estimates for building the designs far-exceed the estimated return a project will generate, particularly for the multi-family plans. To address this, the city is reassessing the cost estimates to ensure that they are specific to Grand Rapids (currently the estimates are a statewide average).

Outcomes

As of May 2025, two permit-ready plans designs are in the process of being constructed in Grand Rapids. A nonprofit has obtained a permit to build two of the quadplex plans on two vacant lots.

As Grand Rapids gets the Permit-Ready Plans program up and running, they are already identifying future areas for expansion, including permit-ready plans for Accessory Dwelling Units (ADUs).

Supportive Zoning Changes

In addition to the pre-reviewed plans, Grand Rapids updated their zoning code in 2024 to allow for more housing development. These text amendments were done independently of the Permit-Ready Plans program, with the purpose of providing a more equitable approach to development within the city. But by allowing more housing types by right, the changes are crucial to achieving the expedited permitting goal of the Permit Ready Plan program. Changes include:

Accessory Dwelling Units

  • Streamlined review process and allow as a permitted use

  • Removed owner occupancy requirement, which required a homeowner live in the primary dwelling unit

  • Modified height and setback requirements

  • Permitted in association with single- and two-family dwellings

  • Eliminated parking requirement

Multi-Family Development (within the Low-Density Residential Zone District)

  • Reduced lot area and width requirements for two-family and multiple-family residential developments of six (6) or fewer units

  • Permitted multiple-family residential developments of six (6) or fewer units when located on Link Residential or Network residential streets

  • Eliminated established (i.e. median) lot area and width requirements

  • Allowed conversion of existing single- and two-family housing stock to higher densities

 Parking Requirements

  • Within the TN-LDR Zone District, eliminated parking requirements for developments of six (6) or fewer dwelling units on Link Residential or Network residential streets

  • Modified the required distance to transit (from 300 feet to ½-mile) to allow for increased utilization of the parking reduction

Unrelated Occupants

  • Modify definition of Family, increasing unrelated occupants from four (4) to six (6)

It is important to note that these zoning amendments were not applied city-wide, but rather focused on the areas classified as Traditional Neighborhood (TN) which were constructed prior to WWII and abut the downtown area.

Increasing Small Local Developers to Build More Homes

The City of Grand Rapids is tackling the housing shortage from multiple angles by working to grow the number of small, local developers in the region that can build housing. The Equitable Development Initiative is a 10-week developer training program created by the Urban League of West Michigan. It is designed to support underrepresented and emerging developers by connecting them with the resources needed to be successful in the field.

During this 10-week program, participants learn the fundamentals of real estate development including skills in project management, design, permitting, property management, and financing.

The city’s Planning & Economic Development Departments have attended multiple Equitable Development Initiative cohort classes and hosted Lunch & Learns to educate participants on the Permit-Ready Plans program and the new Land Bank Authority. The city anticipates several cohort members using the Permit-Ready plans to gain access to the plans and the technical expertise of city planners.

While the Equitable Development Initiative is open to anyone, one of its purposes is to offer resources to African American and other minority emerging developers. Program participants should have a year of relevant experience in development or a related industry like law, real estate, construction or finance. The program also requires that applicants meet the minimum credit score eligible for a loan, either on their own or with a co-signer. The standard fee for the course is $2,500 though scholarships are available for prospective participants.

Success of the Equitable Development Initiative is measured by competition rates and regular surveys for participants as well as the ability for program graduates to secure capital and launch projects. Now that the first cohort has completed the course, leadership is exploring ways to improve the program moving forward.

Assembling Infill Lots for Building

The City established the Grand Rapids Land Bank in 2024 with the goal of activating vacant and blighted land for housing development. Until 2023, land banks in Michigan were run at the state or county level. With the passing of new legislation, cities and townships were able to establish their own land banks. In February 2025, the Grand Rapids Land Bank transferred 98 properties from the state land bank to the city. These properties are now able to be purchased by interested developers.

The Land Bank is managed by the city’s Economic Development department, with the department director serving as the Land Bank’s Executive Director. The department is actively working to establish Land Bank operations policies and practices. The Permit Ready Plans website shows available Land Bank properties and pertinent information like whether they are buildable and what types of housing are permitted by right.

Interested parties can apply online to purchase a Land Bank site. The Land Bank will enter into a 12-month option period with the applicant during which time they can secure financing and contractors for their project. Once this is complete and they have submitted a building permit to the city, the Land Bank will proceed with the purchase agreement and closing.