Wednesday, March 30, 2011
The latest census figures from Detroit (Chad's hometown blogged about here and here) have inspired the New York Times to solicit opinions from several urban planning experts about the way forward for post-industrial cities confronted with large-scale property abandonment. Jennifer Bradley (Brookings-MPP) and Terry Schwarz (Kent State's Cleveland Urban Design Collaborative) each offer shrinking city visions that challenge the idea that all planning must be for demographic expansion and economic growth. Their greening strategies, including attention to urban agriculture and ecosystems, contemplate a 'new normal' for cities that may, in some ways, be better than historical peak periods.
Richard Florida (Toronto-Business) and Sam Staley urge beleaguered areas to pursue a focused (and apparently unsubsidized) effort to retain and attract residents in a mobile society. Still others, such as Toni Griffin (Harvard-Planning), see Detroit and similar cities as merely the most egregiously wounded casualties of unsustainable sprawl-promoting policies that must be changed throughout the U.S. These brief articles and even the comment board are all worth checking out. (Hat Tip to Nicole Garnett (Notre Dame) and her student, Sean Ashburn)
I would also encourage those interested in working with the land use challenges faced by undercrowded, post-industrial cities to check out The Center for Community Progress (f/k/a National Vacant Properties Campaign). Over the years, I have had the chance to participate in conferences and technical assistance efforts that have brought urban development practitioners together with experts such as Jennifer Bradley, Terry Schwarz, Kermit Lind (Cleveland State), Joe Schilling (Va. Tech-Metropolitan Inst.) and CCP's co-founder, Frank Alexander (Emory).
March 30, 2011 in Community Design, Community Economic Development, Comprehensive Plans, Crime, Density, Detroit, Development, Economic Development, Planning, Redevelopment, Smart Growth, Sustainability | Permalink | Comments (0) | TrackBack (0)
Wednesday, March 23, 2011
Sheila Foster (Fordham) has just posted Collective Action and the Urban Commons, 87 Notre Dame L. Rev. ___ (forthcoming 2011), another interesting and important article on community control of land resources in the urban context. Here's the abstract:
Urban residents share access to a number of local resources in which they have a common stake. These resources range from local streets and parks to public spaces to a variety of shared neighborhood amenities. Collectively shared urban resources suffer from the same rivalry and free-riding problems that Garrett Hardin described in his Tragedy of the Commons tale. Scholars have not yet worked up a theory about how this tragedy unfolds in the urban context, particularly in light of existing government regulation and control of common urban resources. This Article argues that the tragedy of the urban commons unfolds during periods of “regulatory slippage” - when the level of local government oversight and management of the resource significantly declines, leaving the resource vulnerable to expanded access by competing users and uses. Overuse or unrestrained competition in the use of these resources can quickly lead to congestion, rivalry and resource degradation. Tales abound in cities across the country of streets, parks, and vacant land that were once thriving urban spaces but have become overrun, dirty, prone to criminal activity, and virtually abandoned by most users.
Proposed solutions to the rivalry, congestion and degradation that afflict common urban resources typically track the traditional public-private dichotomy of governance approaches. These solutions propose either a more assertive central government role or privatization of the resource. Neither of these proposed solutions has taken root, I argue, because of the potential costs that each carry - costs to the local government during times of fiscal strain, costs to communities where the majority of residents are non-property owners, and costs to internal community governance. What has taken root, however, are various forms of cooperative management regimes by groups of users. Despite the robust literature on self-organized management of natural resources, scholars have largely ignored collective action in the urban context. In fact, many urban scholars have assumed that collective action is unlikely in urban communities where social disorder exists.
This Article highlights the ways in which common urban resources are being managed by groups of users in the absence of government coercion or management and without transferring ownership into private hands. This collective action occurs in the shadow of continued state and local government ownership and oversight of the resources. Formally, although the state continues to hold the regulatory reigns, in practice we see the public role shifting away from a centralized governmental role to what I call an “enabling” one in which state and local government provides incentives and lend support to private actors who are able to overcome free-riding and coordination problems to manage collective resources. This Article develops this enabling role, marks its contours and limits, and raises three normative concerns that have gone unattended by policymakers.
March 23, 2011 in Agriculture, Community Design, Community Economic Development, Economic Development, Environmental Justice, Environmental Law, Environmentalism, Food, Land Trust, Local Government, Property, Property Theory, Scholarship, Urbanism | Permalink | Comments (0) | TrackBack (0)
Saturday, March 12, 2011
Dennis Keating (Cleveland State) and Wendy Kellogg (Cleveland State-Urban Affairs) have posted Cleveland's Ecovillage: Green and Affordable Housing Through a Network Alliance. The article offers a case study of EcoVillage, a transit-oriented affordable housing project in the Detroit Shoreway neigborhood of Cleveland. Here's the abstract:
This article presents a case study of the inter-organizational network that formed to produce four housing projects in Cleveland's EcoVillage designed to integrate social equity and ecological stewardship as the basis for neighborhood redevelopment. Our paper builds on concepts of community development and housing production through inter-organizational networks spanning nonprofit, public, and private organizations that developed and supported four green and affordable housing projects. We are interested in understanding how development of the housing projects changed and connected traditional neighborhood development and ecologically-oriented organizations and how their interaction changed the practice of housing production and environmental and sustainability advocacy locally and regionally. The results of the study reveal that the marriage of green and affordable housing in Cleveland, despite some challenges, was viewed as important and beneficial by the organizations involved, and resulted in a range of demonstration projects that not only changed the EcoVillage, but affected other neighborhood housing projects in Cleveland as well. The projects resulted in enhanced capacity for green housing production through creation of a new network of organizations spanning the housing and environmental sustainability fields of practice that continues to support sustainable housing and neighborhood development in Cleveland.
March 12, 2011 in Affordable Housing, Climate, Community Economic Development, Density, Development, Environmentalism, New Urbanism, Pedestrian, Planning, Redevelopment, Scholarship, Smart Growth, Sustainability, Urbanism | Permalink | Comments (0) | TrackBack (0)
Tuesday, March 8, 2011
On Friday, the federal government assumed control over the Philadelphia Housing Authority. For months, The Inquirer in Philadelphia had been reporting about corruption and mismanagement in the Housing Authority's finances, including "$38.3 million in legal expenditures since 2007." "That tab included conflict-laden payment to the law firm of [the son of former Mayor Street, who also just resigned as chair of the Housing Authority]." In addition, it included $11.7 million to Ballard Spahr, where former Gov. Ed Rendell is a partner now (and was prior to being governor). As a point of comparison, the Housing Authority paid $10.3 million (16,700 units of housing and 14,800 vouchers) in legal fees in 2010, while New York City's housing authority paid $8.6 million (180,000 units of housing and 99,000 vouchers). The Philadelphia's Housing Authority's executive director was fired in September (for, among other things, settling sexual harassment complaints against him for $648,000) and the board resigned last week.
This all led me back to an article I wrote 5 years ago critical of public authorities, focusing primarily on the lack of relationship between public funds and the democratic process. At the time, public authorities issued more debt per year than all the cities and states combined (i.e. borrow) and they held more debt than all the cities and states combined (i.e. borrowed). Many states had the majority of their debt held by public authorities. New York, for example, had about 90% of its debt held by public authorities. I then discussed how typical elections for mayor, governor, representatives, and councilmembers have little impact on the decisionmakers at public authorities (see, e.g., Gov. Mitt Romney's desperate attempts to remove the head of the Mass Turnpike Authority). This lack of oversight and accountability, I argued, allows for mismanagement, corruption, and graft.
With so many of public authorities existing (more than all cities combined) and performing significant land use functions including, housing, transportation, economic development, water, sewer . . . etc, I wonder how, if at all, infusing more democracy into the control of these functions would impact land use today. Would placing these functions under a city or state allow for more integration of land use issues? Would it allow cities to be more flexibility in spending on land use issues (see, e.g., Philadelphia's unsuccessful attempt to gain access to Philadelphia Parking Authority's funds, generated from land in Philadelphia)? How would it impact the democratic process? I'm not sure where these functions should reside, but with each new revelation of public authority corruption, I question whether we have the most efficient system.
March 8, 2011 in Community Design, Community Economic Development, Development, Economic Development, Housing, HUD, Local Government, Planning, Redevelopment | Permalink | Comments (0) | TrackBack (0)
Wednesday, March 2, 2011
Jerry Long (Idaho) explores the causes of and reasons for a community's commitment to sustainable land-use planning in his recently posted Private Lands, Conflict, and Institutional Evolution in the Post-Public-Lands West, 28 Pace Env. L. Rev. ___ (forthcoming 2011). Here's the abstract:
As rural communities face amenity-driven population growth and globalizing culture and economic systems, the process by which those communities imagine and implement desired futures grows increasingly complex. Globalization- and technology-facilitated and amenity-driven population growth increases the value of place-bound benefit streams – including land – promoting increased levels of physical development and a changed built environment. At the same time, globalizing culture and evolving local demographics might alter local land-use ideologies, yielding a preference for resource protection and more sustainable local land-use regimes. This article engages in a theoretical and empirical exploration that seeks to answer a single question: Why, in the face of competing land-use ideologies, might a community choose to adopt a more resource-protective, or resource-sustaining, land-use regime? Ultimately, it is only upon witnessing the actual effects of previous choices on the ground – including most significant, real harm to valued social or natural amenities – that a community is able to imagine and implement a land-use regime that can protect the amenities that community values.
March 2, 2011 in Community Design, Community Economic Development, Comprehensive Plans, Conservation Easements, Density, Development, Environmental Law, Environmentalism, Federal Government, Globalism, Land Trust, Las Vegas, Local Government, Planning, Scholarship, Smart Growth, Sprawl, Subdivision Regulations, Suburbs, Sun Belt, Sustainability, Urbanism, Water, Zoning | Permalink | Comments (0) | TrackBack (0)
Tuesday, March 1, 2011
For years cities, such as Montreal (the RESO), have been developing space underground. In what CNN reports as a "first," Helsinki has developed an Underground Master Plan. The plan designates a diverse group of uses for the underground area, ranging from industrial to recreation uses, such as an existing swimming pool (which, fortunately, doubles as a bunker when necessary). According to the report, Helsinki sits on bedrock strong enough to support the existing streetscape even when space is carved out for the lower levels. The CNN report claims a host of environmental benefits from the action, many of which are disputed in the comments.
As cities such as Helsinki start to think about the relationship between the street level and the subsurface (as inhabitable space), the next step may be to craft a three dimensional master plan. And who knows, this may be Seattle's chance to recommission its underground, although "[w]hen your dreams tire, they go underground and out of kindness that's where they stay." (Margaret Fuller).
March 1, 2011 in Architecture, California, Common Interest Communities, Community Design, Community Economic Development, Comparative Land Use, Comprehensive Plans, Density, Development, Downtown, Economic Development, History, Homeowners Associations, Housing, Local Government, New Urbanism, Planning, Politics, Property, Property Rights, Property Theory, Real Estate Transactions, Redevelopment, Smart Growth, Sprawl, State Government, Subdivision Regulations, Urbanism, Zoning | Permalink | Comments (0) | TrackBack (0)
Saturday, February 26, 2011
As I get ready for Property's land-use finale this semester, I will be making room to show a scene from one of my favorite movies of all time, Bill Forsyth's Local Hero. A mid-level oil executive (Peter Riegert) is dispatched by the company CEO (Burt Lancaster) to buy up an entire Scottish coastal village to make way for a vast North Sea petrochemical facility. Almost to a person, the villagers welcome the opportunity to pull up stakes and sell.
The scene that I will show involves the negotiations over relocating the elderly beachcomber, who is skeptical about releasing his legal claim in exchange for any of the most expensive tropical shorelines in the world. Another scene offers a brief exchange relating to sustainable economic development. Both go quickly to the heart of the difference between market and subjective valuations of land and the role the latter plays in sustaining community. If nothing else, my prep will be an excuse to watch one of the funniest movies about modern village life around.
February 26, 2011 in Beaches, Community Economic Development, Development, Economic Development, Eminent Domain, Environmentalism, Oil & Gas, Property, Property Theory, Sustainability, Takings | Permalink | Comments (1) | TrackBack (0)
Thursday, February 24, 2011
The last installment in the Cityscape trilogy is Peter Meyer's Brownfields, Risk-Based Corrective Action, and Local Communities. Here's the abstract:
This article addresses the problems facing communities that suffer both environmental risks from past contamination and depressed economic activity. In such settings, redevelopment of contaminated sites and the associated economic development may require compromised standards for environmental mitigation. This potential conflict is often resolved through risk-based corrective action on sites cleaned only for their prospective use. But partial cleanups can be shown to face inevitable failure at some future date. Thus, in such an approach, communities face risks that they need to understand and should be capable of accepting or rejecting. The article considers these risks and assesses four alternative land use control strategies for assuring community participation in making decisions about both the cleanup process today and the response to risks of failure in the future.
February 24, 2011 in Community Design, Community Economic Development, Development, Economic Development, Environmental Justice, Environmental Law, Environmentalism, HUD, Industrial Regulation, Nuisance, Redevelopment, Scholarship, Sustainability | Permalink | Comments (0) | TrackBack (0)
Like yesterday's featured article from Cityscape, Marie Howland's (U. Md.- Planning)The Private Market for Brownfield Properties also takes advantage of Baltimore's industrial heritage to track brownfield sales. Here's the abstract:
This study examines land sales over a 10-year period - 1990 to 2000 - in one southwest Baltimore industrial district - Carroll Camden - to determine the effect of land contamination on property sales and sales price. I tracked all sales, selling price, time on the market, and the presence of land contamination in the 5,580-acre area. The results indicate that after the mid-1990s, contaminated parcels sold on the private market, with price discounts that accounted for contamination and cleanup. Out of the 144 parcels sold over the 1990-to-2000 decade, positive and market-clearing prices were found for 45 parcels with either confirmed or historical-reasons-to-suspect contamination. Interviews with owners and brokers of parcels on the market for 2 years or more and analysis of the data indicate that the contaminated parcels that did not sell within the 2-year period (1) had above-market asking price; (2) were small and odd-shaped; (3) had inadequate road access for modern trucks; (4) had outdated water, sewer, and telecommunications connections; or (5) had incompatible surrounding land uses. Two policy implications result from these findings. First, if a city such as Baltimore wants to revitalize an industrial area - maintaining its industrial function and remediating contamination - government-subsidized cleanups may not be the most cost-effective policy. Rather, the city should (1) modernize the outdated infrastructure, including roads and fiber optic connections; (2) remove the outdated residential structures that sit in the midst of the industrial area and diminish the desirability of some land parcels for industrial use; (3) consolidate small and odd-shaped properties that are not conducive to modern manufacturing, warehousing, or other industrial uses; (4) ensure city services are efficiently provided, including trash cleanup and police and fire protection; and (5) improve access and egress for modern trucking. The evidence from the Baltimore study indicates that the private sector will discount land prices and assume cleanup responsibilities. The second policy implication is that the market is capable of brownfield cleanup in some locations.
February 24, 2011 in Community Economic Development, Development, Economic Development, Environmental Justice, Environmental Law, Environmentalism, HUD, Nuisance, Redevelopment, Scholarship, Sustainability | Permalink | Comments (0) | TrackBack (0)
Wednesday, February 23, 2011
A recent issue of HUD's Cityscape journal contains several articles on land use and remediation of environmental contamination. The first featured here is Voluntary Cleanup Programs and Redevelopment Potential: Lessons from Baltimore, Maryland by Dennis Guignet and Anna Alberini (both U. Md.--Ag. & Resource Econ.). Here's the abstract:
In the United States, policy has increasingly shifted toward economic incentives and liability attenuation for promoting cleanup and redevelopment of contaminated sites, but little is known about the effectiveness of such policies. These policies include, among others, state Voluntary Cleanup Programs (VCPs), which were established in the United States in the 1990s and, to date, have been implemented in nearly every state. This article focuses on 116 Baltimore properties that were enrolled and participated in the Maryland VCP from its inception in 1997 to the end of 2006 and examines what type of properties tend to participate in these programs, how these properties compare with other eligible but nonparticipating sites, and what the redevelopment potential of VCP properties and implications is toward open-space conversion.
We find that most applicants (66 percent) actually requested a No Further Requirements Determination directly, rather than proposing cleanup. Nevertheless, the VCP led to the identification and environmental assessment of 1,175 acres of contaminated land in the city of Baltimore alone. In Baltimore, VCP properties tend to be industrial, located in areas zoned as industrial, and away from residential neighborhoods. In more recent years, larger properties have increasingly enrolled in the program. Most participating sites are reused as industrial or commercial properties. In contrast with Alberini (2007), these findings suggest that, in Baltimore, pressure for residential development has not driven VCP participation to date. Based on differences in zoning requirements, the VCP may reduce demand for potentially contaminating activities on pristine land by as much as 1,238 to 6,444 acres, in Baltimore alone.
February 23, 2011 in Community Economic Development, Development, Economic Development, Environmental Justice, Environmental Law, Environmentalism, HUD, Industrial Regulation, Nuisance, Redevelopment, Scholarship, Sustainability | Permalink | Comments (0) | TrackBack (0)
Thursday, February 17, 2011
Perhaps I am late to the game on this one, but I just saw the trailer for a documentary about the Atlantic Yards controversy. The movie, called Battle of Brooklyn, tells the story of Brooklyn's use of eminent domain to build a sports arena. I am a big fan of eminent domain (hmm.. not sure if that is the right way to put it), but will likely see this movie that appears to focus on the protesters.
The main protester that the film follows actually agreed to a $3 million settlement and moved out. I wonder if they include that tidbit.
- Jessica Owley
February 17, 2011 in Affordable Housing, Community Economic Development, Constitutional Law, Development, Economic Development, Eminent Domain, Environmental Justice, New York, Property Rights | Permalink | Comments (5) | TrackBack (0)
Tuesday, February 15, 2011
Carmen Gonzalez (Seattle) has posted Climate Change, Food Security, and Agrobiodiversity: Toward a Just, Resilient, and Sustainable Food System. Here's the abstract:
The global food production system is in a state of profound crisis. Decades of misguided aid, trade and production policies have resulted in an unprecedented erosion of agrobiodiversity that renders the world’s food supply vulnerable to catastrophic crop failure in the event of drought, heavy rains, and outbreaks of pests and disease. Climate change threatens to wreak additional havoc on food production by increasing the frequency and severity of extreme weather events, depressing agricultural yields, reducing the productivity of the world’s fisheries, and placing pressure on scarce water resources. Furthermore, the climate crisis and the biodiversity crisis are occurring at a time of rising global food insecurity. The United Nations Food and Agriculture Organization reports that 1.05 billion people currently suffer from chronic hunger – a figure that represents one sixth of humanity.
This article examines the underlying causes of the crises in the global food system, and recommends specific measures that might be adopted to address the distinct but related problems of food insecurity, loss of agrobiodiversity, and climate change. The article concludes that the root cause of the crises confronting the global food system is corporate domination of the food supply and the systemic destruction of local food systems that are healthy, ecologically sustainable, and socially just. The article argues that small-scale sustainable agriculture has the potential to address the interrelated climate, food, and agrobiodiversity crises, and suggests specific measures that the international community might take through law and regulation to promote sustainable agricultural production.
Wednesday, February 9, 2011
This is the characterisation of a development project in central London, near the Elephant & Castle, where social housing is being demolished in the name of regeneration, to be replaced by privately owned accomodation with 25% protected as 'affordable'. The project was initiated by the Liberal Democrat majority on Southwark Council and is now being implemented by the currently Labour controlled council. (Both are parties that have conventionally been understood as being on the left of British politics).
These projects are public-private collaborations, at their simplest, the public authority applies for the permissions (particularly for compulsory purchase of the existing properties) while the developer (here (essentially) the Australian-based Lend Lease) provides the cash. There are clear analogies with the approach upheld in Kelo (although here there is no outrage on legal grounds) and there is little doubt that this development will be built. The 'decanting' of existing socially housed residents is already underway, either by buying them out or by re-housing council tenants 'nearby'.
One reason given for the regeneration is aesthetic, with proponents arguing that brutalist architecture brutalises people. There is certainly wide agreement that Heygate is not an objectively attractive development. Yet residents emphasise the extent of community spirit on the estate.
A further justification for redevelopment has been that this prime piece of real estate provided relatively spacious accommodation with significant green space, which should be developed more intensively with the majority available for private ownership. Indeed, the specification for the re-build is such that the project was selected as one of Bill Clinton's 17 'climate positive' neighbourhood developments.
So it will be a 'climate positive' example of 'state-sponsored, de-greening gentrification'.
Saturday, January 8, 2011
Carolina Academic Press has just released the 4th edition of Housing and Community Development: Cases and Materials (Amazon has a substantial preview). Barbara Bezdek (Maryland) has joined the already prominent list of eight community development and law professor editors. The first revision in more than eleven years clearly bears the imprint of Barbara’s hard work. New excerpted material puts the very timely topic of revitalization front and center and includes post-Kelo redevelopment, vacant building receivership (full disclosure, this one’s mine), tenants of foreclosure properties, Peñalver and Katyal on Property Outlaws.
January 8, 2011 in Affordable Housing, Books, Community Economic Development, Development, Economic Development, Eminent Domain, Federal Government, Financial Crisis, Housing, Planning, Property, Property Rights, Race, Redevelopment, Sustainability, Takings | Permalink | Comments (0) | TrackBack (0)
Friday, December 31, 2010
We are very glad to announce that Prof. James J. Kelly, Jr. is joining us as an Editor of the Land Use Prof Blog. Jim has been an Assistant Professor and the Director of the Community Development Clinic at the University of Baltimore School of Law. In the Spring of 2011, he will be a Visiting Professor at Washington & Lee. I'm also pleased to announce that Jim has accepted a permanent position beginning in the Fall of 2011 as a Clinical Professor of Law at Notre Dame Law School, where he will direct a new community development project. I'm really glad to see that Notre Dame will be bringing Jim on board--to the campus where his now brother-in-law was my freshman roomate back in 1991 (small world dept.).
Jim is an expert in community development law and practice, and has written extensively on the topic of land trusts for affordable housing: see his pieces Homes Affordable for Good and Land Trusts that Conserve Communities. He went to UVa and Columbia and has extensive experience with community-based nonprofits. As we mentioned last week, Jim and his clinic played an important role in the recent passage of Maryland's Affordable Housing Land Trust Act. Jim guest-blogged with us last summer, and it's great to have him here in 2011.
Wednesday, December 29, 2010
James J. Kelly, Jr. (Baltimore; Washington & Lee (visiting)) has posted Maryland's Affordable Housing Land Trust Act, recently published in the Journal of Affordable Housing and Community Development Law, Vol. 19, p. 345, Spring/Summer 2010. The abstract:
On May 20, 2010, Maryland’s governor, Martin O’Malley, signed the Affordable Housing Land Trust Act (AHLT Act) into law. Its enactment marked the culmination of six years of advocacy by the University of Baltimore Community Development Clinic and by the Maryland Asset Building and Community Development Network. The AHLT Act authorizes a new method of creating and sustaining permanently affordable homeownership. By using the affordable housing land trust agreements outlined in the legislation, Maryland nonprofits and governmental agencies may now enter into enforceable long-term agreements with publicly subsidized low- and moderate-income homeowners to ensure that their homes remain affordable to other income-qualified homebuyers in the future. With the development of this essential tool for the creation of permanently affordable homes, Maryland has addressed key obstacles to preserving the affordable housing gains it has made through its pioneering efforts in community-based nonprofit housing development and inclusionary zoning.
This article will explore the legal obstacles that advocates of permanently affordable homeownership in Maryland faced prior to this year’s statutory amendments, the dialogue that produced the final bill, and the way forward for permanently affordable housing in Maryland and elsewhere. Part I will give background about efforts to create permanently affordable homes and the difficulties presented by several legal doctrines common to many states and one unique to Maryland. Focusing on the legislation itself, Part II will describe the advocacy effort and stakeholder dialogue as well as the resulting bill that addressed a variety of concerns raised by the indefinite dedication of land to affordable homeownership. Part III will discuss how existing models of resale restrictions used by community land trust and inclusionary zoning programs can be adapted to meet the affordable housing land trust approach outlined in the statute. The article concludes with a discussion about the value of possible changes in the law of other states to support stewardship of housing affordability.
This is a significant real world legislative achievement, and is due in large part to the efforts of Prof. Kelly and his University of Baltimore Community Development Clinic, so be sure to check out the article. You may remember Jim's excellent guest-blogging for us last summer; we might be hearing more from him very soon (hint, hint).
December 29, 2010 in Affordable Housing, Community Design, Community Economic Development, Housing, Land Trust, Planning, Politics, Real Estate Transactions, Scholarship, State Government | Permalink | Comments (0) | TrackBack (0)
Thursday, December 23, 2010
Robert B. Avery & Kenneth P. Brevoort (Federal Reserve) have posted The Subprime Crisis: How Much Did Lender Regulation Matter? The abstract:
The recent subprime crisis has spawned a growing literature suggesting that regulatory preferences for lower-income borrowers and neighborhoods, embodied by the Community Reinvestment Act (CRA) and affordable housing goals for the Government Sponsored Enterprises, Fannie Mae and Freddie Mac (GSEs), may have caused or contributed to the crisis. For the most part, the empirical analyses presented in this literature have been based on associations between aggregated national trends. In this paper we examine more directly the links between these regulations and outcomes in the mortgage market, including measures of loan quality and delinquency rates. Our analysis has two components. The first component focuses mainly on the CRA. We argue that historical legacies create significant variations in the type of lenders that serve otherwise equal neighborhoods and that, because not all lenders are subject to the CRA, this creates a quasi-natural experiment of the impact of the CRA. The second component of our analysis uses all lenders but takes advantage of the fact that both the CRA and GSE goals rely on clearly defined geographic areas to determine which loans are favored by the regulations and which are not. Using a regression discontinuity approach, our tests compare the marginal areas just above and below the thresholds that define eligibility. We argue that if the CRA or GSE goals had an impact, it should be clearest at this point. We find little evidence that either the CRA or the GSE goals played a significant role in the subprime crisis. Our lender tests indicate that areas disproportionately served by lenders covered by the CRA show less, not more, evidence of risky lending or ultimately higher mortgage delinquency rates. Similarly, the threshold tests show no evidence of a regulatory effect.
December 23, 2010 in Community Economic Development, Federal Government, Financial Crisis, Mortgage Crisis, Mortgages, Politics, Real Estate Transactions, Scholarship | Permalink | Comments (0) | TrackBack (0)
Monday, December 20, 2010
Tim Iglesias (San Fransisco) sends word that he has posted State and Local Regulation of Particular Types of Affordable Housing, forthcoming in The Legal Guide to Affordable Housing Development, Tim Iglesias & Rochelle E. Lento, eds. (American Bar Ass'n 2011). The abstract:
This chapter is part of "The Legal Guide to Affordable Housing Development", a practical guidebook covering most important areas of law that apply to affordable housing development. This chapter analyzes a wide variety of state and local regulation affecting the development of several types of affordable housing which are neither traditional single family nor multi-family. Specifically, the chapter discusses statutes, ordinances, regulations and leading case law concerning the siting of manufactured housing (Section II), farmworker housing (Section III), accessory or secondary units (Section IV), single room occupancy hotels (SROs) (Section V), condominium conversion regulation (Section VI), and emergency shelters and transitional housing, including domestic violence shelters (Section VII).
Sounds like a very helpful overview of the crucial state and local government role in affordable housing. The book looks like a great resource; Prof. Iglesias indicates that it will be out in May 2011 at the annual conference of the ABA Forum on Housing and Community Development Law in D.C.
December 20, 2010 in Affordable Housing, Books, Community Economic Development, Conferences, Development, Housing, Local Government, Scholarship, State Government | Permalink | Comments (0) | TrackBack (0)
Thursday, November 18, 2010
From the Conservative Blogger, a post (with accompanying photo) about how the children's play area at the Salt Lake City airport inadvertently (or cleverly) replicates the typical planning dilemas of a small town. My favorites:
Underutilized Downtown: Even without those dirty deeds by developers to bring a Walmart to town, the downtown is suffering from a lack of businesses and street life. The town’s goal to bring artists and boutique shops was never realized due to personality conflicts between the local planning board and the chamber of commerce...
City Park: The park is unfortunately located on an environmentally-degraded site on the edge of town, the result of a manufacturing plant that skipped town 20 years ago and left the town without a major employer or a business generator for the freight railroad.
Surface Parking Lot: The downtown merchants complained of a parking problem downtown after years of being in a state of denial over their employees occupying parking spaces on Main Street, prohibiting shoppers from accessing their stores. The town spent millions to acquire land on the edge of downtown to build a non-descript parking facility that is rarely used except by vagrants wishing to make drug deals.
For those of you who travel to or live in the mountain west, next time you fly through Salt Lake check out this "emerging planning conundrum" near the E Gates.
Jamie Baker Roskie
Monday, September 13, 2010
The Notre Dame Journal of Law, Ethics, & Public Policy has published a Symposium on Urban Development in the 21st Century: Notre Dame Journal of Law, Ethics & Public Policy, Volume 24, Number 1, 2010.
FOREWORD: A New Urban Vision for a New Urban Reality, Adolfo Carrión, Jr., p. 1
On Public Plaintiffs and Private Harms: The Standing of Municipalities in Climate Change, Firearms, and Financial Crisis Litigation, Raymond H. Brescia, p.7
Can Urban Solar Become a "Disruptive" Technology?: The Case for Solar Utilities, Joel B. Eisen, p.53
American Cities as Firms in the 21st Century—Or, Should Philadelphia Move to New Jersey? Richardson Dilworth, p.99
The Order-Maintenance Agenda as Land Use Policy, Nicole Stelle Garnett, p.131
Four Land Use Vignettes from Unzoned(?) Houston, John Mixon, p.159
An Urban Slice of Apple Pie: Rethinking Homeownership in U.S. Cities, Georgette Chapman Phillips, p.187
Justice and the Just Compensation Clause: A New Approach to Economic Development Takings, John T. Goodwin, p.219
Old Shtetlism and New Urbanism: Uncovering the Implications of Suburban Zoning Laws for Community Life through the Jewish-American Experience, Amir Steinhart, p.255
It looks like a fascinating group of pieces. Now if only they could beat Michigan.
September 13, 2010 in Community Economic Development, Development, Economic Development, Eminent Domain, Environmental Law, Housing, Houston, Local Government, Property, Scholarship, Takings, Urbanism, Zoning | Permalink | Comments (0) | TrackBack (0)