-Marc Ojanen, AIA, LEED BD+C

-Shen-I Chiou, AIA, LEED AP

Dear Friends & Fans of OCA,

At the core of our mission is a deep passion for residential projects. We view these developments as the building blocks of thriving communities and a source of meaningful impact on people’s lives. Each project is a chance to collaborate closely with clients, turning their visions into reality while enhancing quality of life.

In this newsletter, we examine how recent legislation and a revitalizing economy are driving a surge in residential construction, benefiting homeowners, developers, and communities through increased access to quality housing.

We’re also excited to share insights into one of our innovative San Francisco projects currently in the planning phase, positioned to take advantage of the city’s recent focus on housing initiatives.

Additionally, we feature an interview with EDR Design Build, a Los Gatos-based firm leading the way in cutting-edge residential design.

Stay with us as we delve into these exciting developments and showcase the future of residential architecture in our region.

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If you do want to stay in touch with us, wonderful! We would enjoy continuing to share great information with you and thank you for your continued support and being an essential part of our growth and success!

01. Green Light for Growth: Build Your Future Now!

The San Francisco Bay Area is on the brink of a significant shift in real estate and construction, driven by new legislation and expected federal interest rate cuts. With streamlined development processes and the possibility of lower mortgage and construction loan rates, property owners and developers have a rare chance to act.

Federal Reserve Chief Jerome Powell has recently indicated that interest rate cuts are imminent as inflation approaches 2%. This mix of regulatory easing and favorable financing conditions creates a prime moment for building, renovating, or investing in property.

Taking advantage of this environment now can help you secure lower costs and simplified approvals before rising demand pushes up construction expenses.

Whether you're a homeowner, buyer, or developer, there’s no better time to start planning your next project.

Click the button below to connect with us and explore how these changes can bring your vision to life!

Click To Schedule A Free Call

02. Recent Changes in Approval Processes: Making Housing Projects Easier and More Profitable Than Ever!

We take great pride in creating new housing solutions, whether it's adding an ADU to a family home, developing a vibrant subdivision, or designing a thoughtful multi-family urban infill project. Each of these endeavors allows us to make a positive impact on our communities.

In the Bay Area, even simple projects can become complex and time-consuming due to zoning restrictions and lengthy approval processes. These challenges have contributed to the state's housing shortage, driving up rent and homeownership costs. The need for zoning reform has become urgent to facilitate new housing development and address the ongoing crisis.

However, recent regulatory changes like SB 9, SB 423, and San Francisco's Housing Constraints Ordinance are transforming the real estate landscape. These laws are breaking down bureaucratic barriers, streamlining processes, and creating new opportunities for property owners and investors.

Whether you're looking to add an ADU, subdivide your property, or embark on a larger development, these changes have made it more achievable than ever to bring your real estate projects to life.

Here's a brief overview of each piece of legislation with link to a blog post with more information:

(Note: while state laws provide a framework, specific regulations can vary significantly between different Bay Area cities and counties)

  • SB 9: This law allows homeowners to split their single-family lots and build up to four units, significantly increasing density and creating new housing opportunities. Click SB 9 to read more.

  • SB 423: This legislation facilitates the development of multifamily housing by providing a streamlined, ministerial review process for qualifying projects, reducing the time and complexity involved in obtaining approvals. Click SB 423 or SB 423 SF to read more.

  • San Francisco's Housing Constraints Ordinance: Aimed at reducing permit approval times, this ordinance offers incentives for certain projects, further simplifying the development process. Click SF HCO to read more.

  • ADU Regulations in the Bay Area: Recent California laws have streamlined the process for building accessory dwelling units (ADUs), allowing homeowners to add up to two units—one detached and one junior ADU—on their property. Size limits typically range from 800 to 1,200 square feet, and parking requirements are often relaxed, especially near public transit. While height and setback regulations vary by jurisdiction, the permitting process has become more accessible. Click ADU to read more.

By simplifying the development process and reducing bureaucratic hurdles, these reforms make it easier for property owners and developers to contribute to the housing supply. This means you can move forward with your projects more efficiently, enhancing your investment potential while helping to create thriving communities. 

Ready to take the next step? Contact us today to discuss how we can help you navigate the latest regulatory changes and capitalize on the exciting opportunities in the Bay Area housing market. Let’s work together to turn your vision into reality!

Click To Schedule A Free Call

03. Featured Project //

Revitalizing Noe Valley: A Sustainable Transformation for Urban Living

High in the hills of San Francisco's Noe Valley neighborhood, an unremarkable 1942 home is set for a dramatic transformation. This ambitious remodel and addition project will breathe new life into an outdated structure that has outlived its functionality, creating a modern, energy-efficient residence that meets the demands of contemporary urban living while remaining sensitive to the neighborhood context.

The comprehensive redesign will expand the home by building up and building out, replacing cramped spaces with generous, efficiently arranged, contemporary interiors. Warm exterior materials and concise details will complement the neighborhood's character, while generous glazing will flood the home with natural light and frame stunning city views from its elevated position.

Incorporating an Accessory Dwelling Unit (ADU) on the ground floor will increase housing density and qualify the project for streamlined approval under San Francisco's Housing Constraints Ordinance. Coupled with recent legislative changes, including AB 1114, this could reduce the approvals timeline from two years to as little as four to six months!

The reimagined home will feature structural upgrades along with state-of-the-art energy-efficient systems, including improved insulation, high-performance windows, and smart home technologies. These features will enhance comfort, reduce energy consumption, and ensure compliance with current building, energy, and seismic code standards, creating a healther, safer and more sustainable living environment.

By adding an income-generating ADU and maximizing space, the project will offset costs and boost the property's long-term value and return on investment. This approach serves as a model for revitalizing San Francisco's aging housing stock, demonstrating how outdated homes can be transformed into beautiful, sustainable living spaces that address the city's housing challenges and set a new standard for urban revitalization!

Click Images to Enlarge

04. Contractor Profile //

Interview with EDR Design Build

We recently had the opportunity to connect with EDR Design Build, a relatively new player in the construction industry based in Los Altos with an impressive portfolio of built work throughout the Bay Area. In our conversation, we explored their innovative approaches and strategies for adapting to the rapidly evolving construction landscape, particularly in the context of the current economy.

Can you tell us about your background and how you got started in the construction industry?

Sarmad was born into the world of construction, following in the footsteps of his contractor father. He earned a master’s degree in Civil Engineering from UC Berkeley and went on to work as a Senior Project Manager at Webcor, where he built an impressive portfolio that includes the Moscone Center in San Francisco, SurveyMonkey in San Mateo, and the Four Seasons Residences in both Beverly Hills and San Francisco. Sarmad is now the Co-Owner & the CEO of the company! 

As for me, Eddie, I’m a serial entrepreneur with experience in several industries. My background is project management, sales, logistic and system building. About a decade ago, I transitioned into construction sales and project management with a focus on high-end residential projects. I quickly fell in love with the idea of revolutionizing this industry and have since dedicated myself to creating a seamless, almost hands-off experience for homeowners by streamlining and enhancing the residential construction process. 

What geographical areas do you serve, and what size projects are ideal for you regarding square feet and/or budget?

We proudly serve most of Santa Clara and San Mateo Counties, as well as Pleasanton and Fremont. Our ideal projects include new builds, additions, complete remodels, and ADUs. These are our specialties, and we’ve perfected the systems to handle them with ease. When it comes to pricing, most of our work is custom, so we tailor our estimates to each project. You’ll find our prices to be competitive, offering great value for the high-quality work we deliver. 

What types of residential projects do you typically work on, and what do you enjoy most about them?

We do Additions and complete remodeling /reconfiguration of the house. We mostly enjoy seeing the clients happiness once they see the new chapter of the life. Construction is much more than a career, its a life mission to build someones future. 

How would you describe your approach to working with clients during a project? 

We treat every client like family, as if we were working on our own family’s home. Communication and setting expectations are incredibly important to us. We keep our clients informed and educated every step of the way, ensuring that every decision they make is thoughtful and well-founded. 

What sets your company apart from other contractors in the Bay Area? 

The combination of our warm, caring approach with our high level of efficiency, professionalism, and process orientation sets us apart. Our communication and procurement systems ensure a fast, high-quality project, providing our clients with peace of mind throughout the entire process.

How have recent changes in material costs and labor availability impacted overall construction expenses for residential projects in the Bay Area? 

We’ve been gearing up for this moment for a while! We’ve built strong, lasting relationships with our subs and employees, ensuring we pay well and take great care of our team. We’ve made fantastic hires and partnered with top-notch vendors to keep lead times on track. 2024 has been our most successful year yet, and we’re just getting started!

Interest rates are expected by many to be lowered in the coming months.  How do you foresee this impacting your work in both the near and long term?   

As more people turn to us, we’re excited to stay true to our strengths. We’re committed to maintaining the same high standards and won’t stretch ourselves thin. Our focus remains on delivering outstanding work and running a strong, efficient operation. With growing demand, we’re ready to take on larger projects that showcase our expertise and continue to exceed expectations.

What unique challenges do residential projects in the San Francisco compared vs. other Bay Area locations, and how does your company address them?

We made the decision to step back from working in San Francisco because we believe the city's strict regulations pose challenges for both contractors and homeowners. The process has become quite complex, with separate inspections for building, plumbing, electrical, and mechanical work, which increases the amount of coordination required. Additionally, the city has implemented a tax on contractors' gross receipts, and logistical issues like parking difficulties and concerns about vehicle break-ins further complicate the situation. 

Can you share a memorable project that you’ve worked on and what made it special? 

We remodeled a 4,000 square foot home from 1906 in Hillsborough, where we restored 100-year-old trim. The house was rich in history and had such unique spaces. We successfully recreated that same timeless vibe with a fresh, new feel. The clients were thrilled with the result. It was challenging, but it was incredibly rewarding to keep that history alive. 

Can you share a brief example of a complex problem you encountered on a recent project and how you solved it?

We’re currently building a house in Campbell, and one of the walls was grandfathered in as non-conforming. The city approved our plans, but once we began construction, we discovered that the wall lacked a foundation. The city considered this a repair alteration and asked us to push the wall back. However, we collaborated with an engineer and the architect to find a solution, ultimately bringing the wall into compliance. 

What recent innovations or technologies have you incorporated into your residential projects, and how have they benefited your clients?

We use a CRM to ensure that clients receive all communications, including schedules for finish materials and delivery updates. We leverage AI to streamline field processes, create project timelines, and track data from previous correspondence. Additionally, we use logs to facilitate seamless communication among our team in the field.

Please reach out to us if you are in a related field (real estate, construction, A&E professional, etc.) and would like to be featured in one of our future newsletters!

05. Resources to Help Start Your Building Journey //

In the early planning stages of a building project?

Download Our Free Project Planning Guide...

Looking for A Building Professional?

Download Our Dream Team Directory...

Ready to start a building project within the next 12-18 months?

Let's Strategize...

Click To Get The Guide
Click To Get The Directory
Click To Schedule A Project Strategy Call

We're proud to be a referral business. Over 70% of our clients come from the referrals of happy clients. We're so grateful and appreciative of this, and that's how we can continue to do great work.

If you know anyone who is ready to start a residential or commercial project, get expert advice on how to get started, or evaluate a property before purchase. Please share any of the links above or send us an introductory email to info@ocarch.net

OJANEN CHIOU ARCHITECTS is an award-winning architect specializing in custom home design and residential remodels as well as multi-family, mixed-use, tenant improvements, educational, civic/cultural design services.  With over 25 years of experience with modern custom homes, institutional and large-scale commercial projects, OCA’s expertise will help you find the right design solution to meet your goals and budget.

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