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As many developers have held off building apartments in the face of new city regulations and rising costs, Koz Development has plunged in with a series of high-density, low-priced housing projects.

The Snohomish, Washington-based developer has six separate projects either under construction or in development in Portland; they total approximately 533 multifamily units.

In the process, Koz is providing affordable housing through Portland’s inclusionary housing rules and an older program that inclusionary housing replaced. Koz is developing approximately 80 affordable units while many other developers are building projects with none.

Koz’s projects are unusual. They include only micro-units, some smaller than 500 square feet. Many of the developments have no parking for residents, while others include a modest number of parking spaces.

Koz performs in-house architecture, seeking to replicate its model as cheaply as possible. The developer has stuck with one general contractor for its Portland projects, Seabold Construction. For some projects, Koz doesn’t even use a general contractor.

Koz 鈥� the name is short for 鈥渃ozy鈥� 鈥� has targeted Portland for its fast-growing population and employment base. The developer locates projects in Portland’s urban core, typically in dense areas close to public transit.

Of the six projects, two were conceived under Portland’s now-defunct MULTE program, which was replaced by inclusionary housing. Two newer apartment projects are in development according to the city’s inclusionary housing guidelines. The other two planned projects are condos, and therefore don’t include affordable rental units.

As the developments have proceeded, Koz has had to adjust to the city’s shifting rules for providing affordable housing. MULTE was a better fit, because the 10-year affordability period matched a 10-year property tax exemption, Koz CEO Cathy Reines said.

鈥淔rom a financial perspective, (MULTE) is a program that is easier to justify,鈥� she said. 鈥淭he inclusionary housing program obviously is a little tougher. That reduction in rent goes out well beyond any kind of tax benefit you might get on the project itself.鈥�

The inclusionary housing program’s fee-in-lieu option, which gives developers the ability to pay their way out of building affordable housing, isn’t feasible, Reines said.

鈥淔or our projects, paying the fee is not an option,鈥� she said. 鈥淚t’s cost-prohibitive.鈥�

Koz’s business model is likely to appeal to 20-somethings in search of cheaper rents. As a business proposition, Koz makes less rent on each unit than more spacious apartments, but makes up for it with a higher price per square foot.

鈥淐hunk rent is much lower than standard units,鈥� said Brian Wilson, development partner at multifamily developer Mainland Northwest. 鈥淚n terms of dollars per square foot on the property, and getting it financed and leveraged, it’s really good.鈥�

Some neighborhood groups have raised objections to Koz’s projects on the grounds that their tenants are likely to use scarce street parking. Koz executives say many of their tenants are interested in urban living and don’t have cars.

Removing parking from the equation helps developers keep costs down, Wilson said.

鈥淚t’s one of the most expensive parts of the project, and you don’t get much return on it,鈥� he said.

Koz is also considering building in downtown Salem, which has recently seen an uptick in development.

鈥淚t’s a great market,鈥� said Joshua Scott, co-owner of Koz and leader of its design and construction teams. 鈥淲e’re just looking for the right opportunity.鈥�

Here’s a look at Koz’s projects in Portland:

• The furthest along is at 2165 S.W. Yamhill St., just west of Providence Park and south of Burnside Street. The project is relatively small at 30 units; six will be rented at 60 percent of the area median income. The building is currently being framed. Reines said the building should earn its certificate of occupancy in early 2018.

The units average about 290 square feet each, with 215 square feet on the ground floor and an additional 75-square-foot bedroom loft accessed by a staircase.

• Koz broke ground in early October at 1075 N.W. 16th Ave. in the emerging Slabtown neighborhood. The project will have 128 apartments in studio, one-bedroom and two-bedroom configurations.

Twenty percent of the units will be affordable, pegged to 60 percent of area median income. The project is immediately west of the Interstate 405 overpass.

• Koz plans its first Portland condominium project at 1111 N.W. 16th St. The building will have 65 condominiums 鈥� all studios. The units will be partially furnished with built-in Murphy beds. The condos will average 425 square feet, with 鈥渉igher-end finishes鈥� and air conditioning. The project is 鈥渢ruly intended to be an affordable, upscale condominium project there in the Northwest District.鈥�

The condominium project will have some parking at grade level, but the number of spaces is to be determined, Reines said.

• Koz plans to break ground by the end of October at Southeast 13th Avenue and Ankeny Street, in the Buckman neighborhood. The project will be Koz’s first that falls under inclusionary zoning rules. Approximately 15 percent of the 87 units will be offered at rates affordable to 80 percent of the area median income. The project will have a mix of studio and one-bedroom units.
• A 108-unit apartment project is awaiting permits so that construction can begin at Southwest Fourth Avenue and Grant Street, near Portland State University. Twenty percent of the units will be affordable, pegged to 60 percent of area median income. Koz hopes to break ground in mid-November.
• Koz plans a condominium project at 4708 N.E. Sandy Blvd. The mixed-use building will have 114 residential units over ground-floor commercial space. The project replaces an Umpqua Bank branch.