lecture 6 - march 7 2016

8/16/2019 Lecture 6 - March 7 2016

http://slidepdf.com/reader/full/lecture-6-march-7-2016 1/23

PPOL‐G 697 Special Topics:

Urban Housing Policy

Public Policy PhD program & UPCD programDepartment of Public Policy and Public AffairsMichael P. Johnson, PhDMonday, March 7, 2016

Lecture #6: Housing andcommunity development

8/16/2019 Lecture 6 - March 7 2016


Right to the Cityevent:March 14, 4 PM,

Boston City Hall

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

2

8/16/2019 Lecture 6 - March 7 2016


How can we understand thelandscape of housing in the U.S.?

• Housing is provided in

multiple ways

in

the

U.S.:

• ‘Unassisted’ housing• New construction• Sales of existing housing

•

‘Assisted’ housing

• Government• Owned and managed• Subsidized

• Non ‐profit• New construction• Rehab• Transformation into

alternative uses

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

3

What role does housing ‘policy’ play in U.S. housing markets?

Source: Joint Center for Housing Studies, 2014

8/16/2019 Lecture 6 - March 7 2016


Where is housing policy ‘done’ inthe United States?

National: Housing cost burdens are generally highest along the coasts

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

4

Source: National Low Income Housing Coalition 2015

8/16/2019 Lecture 6 - March 7 2016


Where is housing policy ‘done’ inthe United States? (cont’d)

Regionally: Housing cost burdens concentrated in particular regions in MA

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

5

Source: National Low Income Housing Coalition, 2015

8/16/2019 Lecture 6 - March 7 2016


Where is housing policy ‘done’ inthe United States? (cont’d)Locally: Housing market characteristics are associated with neighborhood demographics

M a r c h 7

, 2 0

1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

6Source: Johnson et al. (2015)

8/16/2019 Lecture 6 - March 7 2016


Housing policy at the state andlocal levelHousing expenditures by states and localities, though growing over

time, are

a small

fraction

of

total

spending.

M a r c h 7

, 2 0

1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

7While also a small fraction of Federal tax expenditures, state and

local housing spending, combined, exceeds Federal direct housing assistance.

8/16/2019 Lecture 6 - March 7 2016


What do we mean by ‘housingand community development’?

• Housing

• Community development

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

8

How do the two concepts complement each other?

8/16/2019 Lecture 6 - March 7 2016


What is the distinction between‘place‐based’ and ‘people‐based’development?

• Place ‐based development

• People ‐based development

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

9

How do the two concepts complement each other?

8/16/2019 Lecture 6 - March 7 2016


Sources ofstate and localspending:Block grants

• Community development

block grants

• HOME Investment Partnership Program

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

10

Source: Schwartz, 2014

What are the key benefits and costs of these

programs?

8/16/2019 Lecture 6 - March 7 2016


Sources of state and localspending: Tax‐exempt bondfinancing

• Bond financing pays for mortgages for first ‐time homebuyers and for multifamily rental housing developments

• Bond financing is provided by housing finance agencies

• Products:• Mortgage revenue bonds• Mortgage Credit

Certificates• Multifamily Housing

Bonds

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

11

Source: masshousing.com

8/16/2019 Lecture 6 - March 7 2016


Sources of state and localspending: Housing trust funds

• Established by government, with a dedicated funding source, and targeted to low ‐ and moderate ‐income households

• More flexible than federal programs, including block grants• Sources of funding:

• Property tax surcharge•

Document recording

fees

• Impact fees on non ‐residential development• Lawsuit settlements

• Housing programs supported by trust funds:•

New construction and rehabilitation• Transitional housing programs for homeless• Housing education and counseling• Tenant ‐based rental assistance

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

12

8/16/2019 Lecture 6 - March 7 2016


Housing trust funds havesignificant limitations

•

Don’t meet

housing

needs

of

most

‐vulnerable

families

• Limited time requirements to preserve affordability

• Not universal in program reach

• Revenues fluctuate with economic conditions

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

13

8/16/2019 Lecture 6 - March 7 2016


Local actors: Communitydevelopment corporations

• Definition: “…nonprofit organizations whose primary mission is to serve, or provide investment capital for, low ‐income communities and low ‐income persons and who maintain accountability to residents of low ‐income communities by including representatives on their governing board or an advisory body.” (U.S. Department of Health and Human

Services)• 4,600 CDCs across the U.S. • 1.61 million units of low ‐ and moderate ‐income housing since

1960s•

Non ‐housing development activities include:• Homebuyer counseling• Education and training• Economic development

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

14

8/16/2019 Lecture 6 - March 7 2016


CDCs tend to be small andurban‐serving

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

15

Source: National Alliance of Community Economic Development Associations, 2010

8/16/2019 Lecture 6 - March 7 2016


CDCs increase housing choice fordiverse communities

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

16


8/16/2019 Lecture 6 - March 7 2016


CDCsprovideprimarilyrentalhousing tolower‐incomecommunities

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

17


8/16/2019 Lecture 6 - March 7 2016


CDCs also provide special‐needshousing and economicdevelopment activities

M a r c h 7

, 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

18


8/16/2019 Lecture 6 - March 7 2016


CDCs are supported by a varietyof funding sources

M a r c h 7 , 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

19


8/16/2019 Lecture 6 - March 7 2016


Purpose‐BuiltCommunities:East Lake,Atlanta M

a r c h 7 , 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

20

Source: http://purposebuiltcommunities.org/our ‐network/atlanta ‐east ‐lake/

If a community ‐based organiz ation can provide:• High quality mixed ‐income housing• Cradle ‐to ‐college education with local control• Workforce development and other social services• Infrastructure and services that enhance quality of lifethen the neighborhood can become safe, sustainable and welcoming to middle ‐income families

8/16/2019 Lecture 6 - March 7 2016


How can we take CDC successes‘to scale’?CDCs have built deep expertise in low ‐income housing provision. However:

• Resources to develop such housing are dwindling• Nonprofit developers are chronically undercapitalized• Individual funding model does not support scale economies• Projects take too long and are too complicated• Current structure discourages innovation

Meeting affordable housing needs over the long run will require:• Flexibility and diversification• Innovation in program design• Provide funding to the organization, not just the project• Encourage collaborations across sectors• Promote private ‐public nonprofit partnerships• Develop comprehensive impact measurement

M a r c h 7 , 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

21

8/16/2019 Lecture 6 - March 7 2016


What are critical perspectives onthe CDC movement?

• Can CDCs really operate as corporations, yet advocate for their communities?

• Can CDCs meet the need for affordable housing by scaling up? Should they?

“Community’s tendency is to preserve neighborhood space as a use value for the service of community members, while capital’s tendency is to convert neighborhood space in to exchange values that can be speculated on for a profit. This sets up an

antagonistic relationship. Capital’s conversion of neighborhood space into exchange values drives up rents, destroys green space, eliminates neighborhood ‐based commerce, and disrupts neighboring patterns” (Stoecker 1997, p. 5)

M a r c h 7 , 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

22

8/16/2019 Lecture 6 - March 7 2016


Reflection: What are thebenefits, costs andcontradictions of housingpolicy and practice?

• Balance between Federal, State and local actors,

responsibilities and funding• ‘Hidden’ versus ‘public’ programs, revenue sources and

beneficiaries• Tension between mandates, incentives and guidelines• Strengths and limitations of the CDC sector

M a r c h 7 , 2 0 1 6

P P O L ‐ G 6 9 7 L e c t u r e # 6

23

lecture 6 - march 7 2016

Documents