Balancing act: the effects of race and poverty on LIHTC development in Boston

Abstract

The debate about where to build affordable housing remains unresolved. Fair housing advocates encourage placement in low poverty neighborhoods while community development proponents support the opposite approach. Prior work notes the Low-Income Housing Tax Credit (LIHTC) program is disproportionately found in Black and poor areas but the results are based on 20-year old data and ignore effects within LIHTC neighborhoods. This paper uses recent data and multivariate analysis to explore the impact of neighborhood racial composition and poverty rate on LIHTC development in the Boston metropolitan region. We find race is associated with the presence of LIHTC development while poverty is associated with the amount of LIHTC housing built, which reveals important differences between project siting and size. LIHTC units are not more heavily concentrated in Black or poor neighborhoods, conditional on LIHTC development. The findings suggest how the LIHTC program can be used to balance competing fair housing and community development priorities in developing affordable housing.     

The Spatial Pattern of Low Income Housing Tax Credit Properties: Implications for Fair Housing and Poverty Deconcentration Policies

Problem, research strategy, and findings: Housing policies of the U.S. Department of Housing and Urban Development (HUD) emphasize the spatial dispersal of housing assistance to promote fair housing objectives. The Low Income Housing Tax Credit (LIHTC) program, the nation's largest affordable housing subsidy program, is not administered by HUD and therefore is not closely monitored for compliance with dispersal objectives. Using spatial point pattern analyses, I identify the geographic extent of LIHTC property clustering, characterize the local clustering of individual properties and explore the determinants of local clustering within the nation's largest metropolitan areas. In most metropolitan areas, LIHTC properties are more highly clustered than multifamily housing units, although the extent of clustering differs by metropolitan area. Clustered LIHTC properties tend to be located in more densely developed central-city locations that have higher poverty rates and higher minority concentrations.

Takeaway for practice: To encourage more affordable housing construction within areas that offer greater economic and social opportunities to LHTC residents, policymakers should 1) provide incentives to locate LIHTC properties within high-opportunity areas, 2) eliminate current incentives to cluster housing in areas with inherently higher poverty and minority concentrations (Qualified Census Tracts and Difficult Development Areas), and 3) enhance coordination between HUD and the Department of the Treasury to implement federal fair housing goals.     

THE EXTERNAL NEIGHBORHOOD EFFECTS OF LOW‐INCOME HOUSING TAX CREDIT PROJECTS BUILT BY THREE SECTORS

ABSTRACT: This study examines the external neighborhood effects of Low‐Income Housing Tax Credit (LIHTC) Projects built in Santa Clara County, California from 1987 to 2000. Three types of developers have built LIHTC projects in this area: nonprofit, for‐profit, and a county public housing authority. Using a difference‐in‐difference hedonic regression approach, this study finds that almost all the LIHTC projects examined have generated significantly positive impacts on nearby property value. In particular, the study also finds that most nonprofit projects have delivered benefits similar to those of for‐profit projects. Yet projects built by some of the largest nonprofits and the county housing authority have generated the greatest neighborhood impacts. Low‐income neighborhoods have also benefited more from LIHTC developments than other types of neighborhoods.     

The Link Between Local Comprehensive Plans and Housing Affordability: A Comparative Study of the Atlanta and Detroit Metropolitan Areas

Problem, research strategy, and findings: I question whether the strength of affordable housing policies in local comprehensive plans is associated with better affordable housing outcomes, which I measure as a decrease in the share of low-income households who spend more than 30% of their income for housing, otherwise known as cost-burdened households. I first assess the strength of affordable housing policies in 58 local comprehensive plans, counting the number of—and degree of coercion in—those affordable housing policies. I then analyze the relationship between the strength of affordable housing policies and changes in the share of low-income households with cost burden. I find that the strength of affordable housing policies is higher in the Atlanta (GA) metropolitan area than in the Detroit (MI) metropolitan area. I also find that the strength of affordable housing policies is positively associated with a decrease in the share of low-income households paying more than 30% of their income for housing in the Atlanta metropolitan area. I do not find a comparable relationship between plan strength and housing outcomes in the Detroit metropolitan area. I also find that the state role matters: Georgia provides more support and guidance for local comprehensive planning, and for affordable housing policies in those plans, than does Michigan.

Takeaway for practice: Planners should continually promote local comprehensive plans that include more and stronger affordable housing policies and advocate for greater state support for comprehensive planning and affordable housing policies because these appear to lead to a greater likelihood of implementing stronger plans.     

Achieving Regional Housing Planning Objectives: Directing Affordable Housing to Jobs-Rich Neighborhoods in the San Francisco Bay Area

Problem, research strategy, and findings: Low-income households face affordability issues and are often forced to live in areas with limited job access and inadequate transportation. Local communities exacerbate these problems through exclusionary zoning. We study the impact of the Association of Bay Area Governments (ABAG) change in allocation formula under California’s affordable housing mandate. The old policy followed a fair share strategy, whereas the new policy requires local jurisdictions to locate mandated affordable housing units in jobs-rich areas. We compare affordable housing produced in the region before and after ABAG adopted the jobs-housing policy; we also compare the new patterns to the location of market-rate housing and to the experiences of San Diego (CA) and Los Angeles (CA), both of which retain fair share allocation. We do not control for variables that may have affected affordable housing location. ABAG’s policy shift is associated with a 104% improvement in the balance of housing and jobs at the local level; affordable housing units are more likely than market-rate housing to locate in jobs-rich areas, which may indicate that localities prioritize affordable housing. We also find that more affordable housing locates in such areas in the San Francisco Bay Area (CA) than in San Diego or Los Angeles.

Takeaway for practice: A voluntary regional government in a state with mandatory affordable housing requirements can affect the production and distribution of affordable housing. A total of 25 U.S. states require localities to include affordable housing elements in their comprehensive plans; we suggest that regional and local planners use these opportunities to meet multiple policy goals by directing affordable housing to jobs-rich neighborhoods.     

Housing Recovery Lessons From Chile

Problem, research strategy and findings: The 8.8 magnitude earthquake and subsequent tsunami that struck south-central Chile on February 27, 2010, affected 75% of the country's population and damaged or destroyed 370,000 housing units (about 10% of the housing in six regions). Within six months, the Ministry of Housing and Urban Development published a plan to repair or rebuild 220,000 units of low- and middle-income housing with government assistance within four years. By February 2014, 94% of the housing was complete. The successful rebuilding effort had strong leadership at the national and local levels and used existing programs and institutions. The management staff adapted programs over time to meet the needs of local conditions. When compared with housing recovery programs in other countries, Chile's program stands out, combining national government management with local citizen input. The reconstruction plan also included updated zoning plans, road and infrastructure improvements, heritage recovery, and new master plans for affected cities. Going forward, the earthquake created an opportunity for Chile to use the recovery planning to expand national urban policy and to develop a framework for citizen participation at the local level.

Takeaway for practice: Successful planning in disaster recovery involves strong government leadership and coordination together with the engagement of local government and the participation of citizens.     

The Effect of Mandated Planning on Plan Quality

Problem: What is a “good plan”? Among their key goals, plans aim to communicate, influence and engage. Persuasiveness (the ability to engage and motivate) is, therefore, an essential plan quality. Unfortunately, all too many comprehensive plans lack this important quality. In addition, state planning mandates intended to strengthen planning can instead worsen this shortcoming.

Purpose: To develop a methodology to measure and compare the communicative and persuasive qualities of plans in states with and without planning mandates.

Methods: A specially designed protocol was developed to measure the communicative and persuasive qualities of comprehensive plans. Plans of 20 municipalities in states with planning mandates were compared with those of 20 municipalities in states without planning mandates. Statistical analyses of the results were conducted using the Wilcoxon–Mann–Whitney (U) test and simple t tests.

Results and conclusions: Requiring local governments to prepare plans did not result in better plans—at least as measured by a protocol tailored specifically to assess the persuasiveness and communicative quality of plans. Plans prepared in mandate states were much more rigid and standardized than those prepared in nonmandate states. Nonmandated plans also scored much higher in terms of their narrative and storytelling qualities than mandated plans. Private consultant involvement in plan making significantly increased the communicative and persuasive qualities of plans.

Takeaway for practice: Plans in all 40 municipalities fell far short of the ideal communicative and persuasive qualities set forth in the protocol. The deficiency was greatest in states with planning mandates. The involvement of private consultants had a positive impact on plan quality, while the provision of state funding for planning did not.

Research support: None.     

Housing liquidation and financial adequacy of retirees in New Zealand

Abstract

This study investigates the impact of housing on financial adequacy of New Zealand retirees using the Survey of Family, Income, and Employment (SoFIE) data for the period 2002–2009. We examine the differential effect of housing liquidation options, rent imputation and asset liquidity on financial adequacy. We report evidence of financial adequacy variation across five housing liquidation options and this is influenced by rent imputation. The results show that non-homeowners are less financially adequate than homeowners. We find that Māori, renters and individuals living in multi-dwelling occupancies have much lower levels of financial adequacy. Individuals of Pākehā or Asian ethnicity, homeowners and those living alone benefit more from imputed rent derived through home ownership. Our study highlights the need for the New Zealand government to address the lack of suitable public housing, rising housing and rental prices and mandate compulsory contributory retirement savings plans.     

Adaptive Planning for Disaster Recovery and Resiliency: An Evaluation of 87 Local Recovery Plans in Eight States

Problem, research strategy and findings: A pre-disaster recovery plan that considers how a community should be redeveloped is a logical first step to support resiliency during high uncertainty and rapid change, yet limited attention has been given to recovery plans. In this study, we evaluate local disaster recovery planning in eight southeastern states and find that such planning receives limited public support: Less than one-third of vulnerable local jurisdictions had a recovery plan, and those plans received low plan quality scores. Unfunded state mandates produce weaker plans than plans in other states without mandates. We find that a collaborative network of stakeholders initially intent on reordering priorities results in stronger plans.

Takeaway for practice: Local recovery planning should be designed to operate under conditions of high uncertainty. Local jurisdictions can choose plan design options that reflect how they build capability for recovery planning: 1) standalone community-wide recovery plan; 2) comprehensive land use plan; 3) emergency management plan; and 4) small area recovery plan. Because recovery planning lacks a public constituency, and is new to most local jurisdictions, the stand-alone community-wide recovery plan design option is the most effective at building local commitment. This option involves a plan-making process that concentrates time, effort, and resources focused on a building a network of stakeholders who likely have the greatest responsibility in rebuilding efforts because they care most about the impacts of a disaster.     

Deconcentrating Poverty With Housing Programs

Problem: Housing programs of the past have exacerbated the problems of concentrated poverty. Current housing programs serving very low-income households, including homebuyers as well as renters, should be examined to determine the extent to which they help households make entry into neighborhoods with low concentrations of poverty.

Purpose: This research is designed to assist planners in understanding how well various approaches to resolving housing affordability problems can facilitate the poverty deconcentration process.

Methods: Administrative data from the Department of Housing and Urban Development are used to assess the degree to which federal housing programs help lowincome homebuyers and renters locate in neighborhoods where less than 10% of the population is below poverty.

Results and conclusions: Subsidizing households ought to be more effective than subsidizing housing units at helping lowincome households locate in low-poverty areas, and whether a household rents or buys should not matter to whether a program succeeds at deconcentration of the poor. Yet, analysis of national datasets across several housing programs finds neither of the previous propositions to be true. Housing vouchers suppliedto households are not helping renters locate in low-poverty areas any more effectively than are current project-based subsidies. It also turns out that tenure matters; a disproportionately higher share of low-income homebuyers are locating in low-poverty neighborhoods than are lowincome renters.

Takeaway for practice: I recommend that housing planners seeking to make poverty deconcentration more effective use housing placement counselors, administer programs at the metropolitan scale, lease and broker market-rate housing directly, promote mixed-income LIHTC developments, practice inclusionary zoning, and monitor the impacts of these efforts.

Research support: U.S. Department of Housing and Urban Development.     

State and Municipal Climate Change Plans: The First Generation

Problem: Global warming has emerged as one of the new century's top planning challenges. But it is far from clear how state and local governments in the United States can best address climate change through planning.

Purpose: As of 2008, 29 states had prepared some sort of climate change plan, and more than 170 local governments had joined the Cities for Climate Protection (CCP) campaign that requires that a plan be developed. This article analyzes this first generation of climate change plans and seeks to assess the goals being set, the measures included or left out, issues surrounding implementation, and the basic strengths and weaknesses of state and local climate change planning to date.

Methods: I conducted this research by analyzing planning documents as well as interviewing state and local officials by telephone. I analyzed the plans of three types of governments: all states with planning documents on climate change; cities with populations of over 500,000 that are members of the CCP campaign; and selected smaller cities that are CCP members.

Results and conclusions: Most plans set emissions-reduction goals, establish emission inventories, green public sector operations, and recommend a range of other measures. Many recent plans have been developed through extensive stakeholder processes and present very detailed lists of recommendations with quantified emissions benefits. But emissions-reduction goals vary widely, many proposed actions are voluntary, few resources have been allocated, and implementation of most measures has not yet taken place. Most plans do not address adaptation to a changing climate. Officials see rapidly growing public awareness of the issue and general support for climate change planning, but reluctance to change personal behavior.

Takeaway for practice: Future climate change planning should (a) set goals that can adequately address the problem; (b) establish long-term planning frameworks in which progress toward these goals can be monitored on a regular basis and actions revised as needed; (c) include the full range of measures needed to reduce and adapt to climate change; (d) ensure implementation of recommended actions through commitment of resources, revised regulation, incentives for reducing emissions, and other means; and (e) develop strategies to deepen public awareness of the need for fundamental changes in behavior, for example regarding motor vehicle use.

Research support: This research was supported by the University of California, Davis Department of Environmental Design.     

Statehouse Versus Greenhouse

Problem: In the absence of U.S. federal action to address the problem of climate change, a diverse array of nonfederal policy entrepreneurs and climate action planners has produced an impressive body of plans and policies to fight climate change at the regional, state, and local levels. Their actions are highly laudable, but have they actually reduced greenhouse gas (GHG) emissions?

Purpose: This article evaluates the work of a group of innovative state-level policy entre-preneurs whose actions were chronicled by Barry Rabe, and a set of 29 state climate action plans systematically analyzed by Stephen Wheeler. It compares states with and without climate policy entrepreneurs and states with and without climate action plans, asks if either plans or entrepreneurs have been successful in reducing CO2 emissions, and identifies the elements within plans that are associated with the greatest reductions.

Methods: The analysis uses multiple regression models to explain changes in per capita CO2 emissions attributable to residen-tial, commercial, transportation, and total nonindustrial end users from 1990 to 2007. A package of control variables accounts for political, social, climatic, economic, and urban form factors, while policy variables isolate the effects of climate policy entrepre-neurs, climate action planners, and specific policy recommendations within climate action plans.

Results and conclusions: State-level climate actions reduce GHG emissions by a measurable but modest amount: about one half metric ton per person per year. This represents 2–3% of the average American's 24-ton annual total GHG emissions. The reduction is small in comparison to the magnitude of the problem, but a substantial tax increase or population shift away from sprawling areas would be necessary to achieve the same reduction. specific policies I find to be associated with lower emissions include: building efficiency in both residential and commercial sectors, Leadership in Energy and Environmental Design (LEED) policies in the commercial sector, and California's vehicle efficiency standards in the transportation sector.

Takeaway for practice: It is encouraging that we can already identify emission reduc-tions related to state climate action. However, the observed reductions remain small com-pared to the scope of the problem. These findings should persuade states without plans to begin the planning process while encourag-ing states with plans to encourage more entrepreneurship aimed at developing a second generation of policy options for stabilizing our planet's climate with or without federal action.

Research support: None.     

Housing the Urban Poor in 1800: Courts in Atherstone and Coventry,Warwickshire

Abstract

The character of the demolished houses in eighteenth- and early nineteenth-century court developments in Atherstone and Coventry has been established from a variety of sources. Typically they had one-room plans with one or two bedrooms upstairs and, in Coventry, sometimes a 'top shop' on a third floor. The living rooms in Atherstone had distinctive internal fittings, with a closed-off pantry, stair and coalhole at the rear. The houses in the Warwickshire courts were among the smallest examples of industrial housing recorded, though they did not include either single-room or cellar dwellings.     

The role of housing policy in perpetuating conditional forms of homelessness support in the era of housing first: Evidence from Australia

Abstract

Despite widespread enthusiasm for Housing First approaches to addressing homelessness, conditional models of support that require ‘housing readiness’ persist in many jurisdictions. Existing research cites an ongoing commitment to conditionality amongst homelessness services providers as a key reason for its persistence. In this paper, we argue that State housing policies also play an important role in perpetuating conditionality in the homelessness sector. Drawing on research carried out in an Australian jurisdiction, we show how policies regarding the supply and allocation of social housing compel homelessness service providers—including Housing First services—to employ conditionality practices. We also demonstrate the detrimental impact this has on the housing outcomes of homelessness people with complex needs. We conclude that our findings challenge the claim made by some that Housing First constitutes a ‘paradigm shift’, and instead highlight the complex processes of policy translation and assemblage that shape the adaptation of Housing First in different contexts.     

Access to housing and the death of a Mexican‐American building tradition

Adobe row houses represented the possibility for poor families, including female‐headed families, to become owner‐investors in housing. Such housing could be self‐built, could be improved and enlarged over time, could house a variety of household types and — given a permissive regulatory climate — could contribute to economic activity. Between 1880 and 1950 a norm of single‐family home ownership and professionally built housing appears to have guided owners away from traditional adobe housing. However, its characteristics suggest a flexible model of homes and home ownership that is suited to the present socio‐economic conditions of many Americans.     

Disaster Recovery Among Multiethnic Immigrants: A Case Study of Southeast Asians in Bayou La Batre (AL) After Hurricane Katrina

Problem, research strategy, and findings: Immigrants suffer disproportionately from disasters because they have limited capacity to prepare for, respond to, or recover from a disaster. Unfortunately, planners and emergency managers are often inadequately trained or educated about the unique sociocultural needs and assets among immigrant groups. Hurricane Katrina exposed challenges to long-term recovery among Southeast Asian immigrants in Bayou La Batre (AL). We employ qualitative research methods, including in-depth interviews, focus groups with immigrants, and site visits, to better understand the barriers to disaster recovery and to inform local, state, federal, and nongovernmental agencies on how to better prepare disaster plans that would improve disaster recovery for multiethnic, multicultural, immigrant populations. We find four significant categories of sociocultural barriers to disaster recovery for Southeast Asian immigrants in Bayou La Batre: 1) language, literacy, and communication; 2) cultural differences in help-seeking; 3) inability to navigate the disaster recovery bureaucracy; and 4) and lack of leadership. Despite these barriers to recovery, immigrant groups can also teach us about resiliency in the face of disaster. The levels of trust, cooperation, and collaboration within the ethnic immigrant community help to buffer the damaging effects during the response and recovery period.

Takeaway for practice: Our study reveals that cultural competency among staff members engaged in preparedness, response, and recovery is essential for an effective disaster recovery process. Furthermore, engaging immigrant groups in long-term recovery requires trust and relationship building prior to a disaster. In doing so, more culturally appropriate and effective disaster recovery plans can be developed.     

Private and social rented housing in Europe: Distinctions,comparisons and resource allocation 1

The difficulties of clearly distinguishing private and social rented housing in a western European context are set out. The issues are illustrated by information for Germany and France. It is argued that comparative housing tenure data can be misleading and that distinctions in terms of ownership are of less significance for resource allocation than the specifics of the relationship between the state and the housing market. The significant production, distribution, pricing, subsidy and profit issues as they relate to rented housing are identified. The policy implications of an approach which is resource allocation rather than tenure orientated is outlined.     

Low-Income Access to Urban Land and Housing in Botswana

Like most developing countries, Botswana—a middle-income country—has experienced rapid urban growth, which has brought in its wake many social and economic problems. One of the key challenges has been the lack of access to land and housing for the poor who have moved into the urban centres in large numbers in search of employment and economic survival. Many programmes and strategies have been introduced by both central and local governments to address this problem. These include: squatter settlement upgrading; public housing through site, service and self-help housing; subsidised plot allocation; financial incentives for housing construction, etc. Many challenges have hampered the implementation of these strategies and programmes including fast urbanisation, which outstrips supply of land and housing for most urbanites; unaffordability of many of these schemes; poor targeting; high defaulting rates and poor management of these schemes. This paper calls upon the government, the private sector and local communities to devise holistic solutions to enable low-income households to procure decent accommodation in urban areas.     

Index to Volume XIX

Problem, research strategy, and findings: Advocates of community benefits agreements (CBAs) between coalitions of nongovernmental organizations (NGOs) and real estate developers contend that CBAs promote public accountability and responsiveness to community concerns. This study assesses the Los Angeles Sports and Entertainment District (LASED) CBA, which scholars and practitioners have described as a model for such agreements. I assess compliance with key provisions of the agreement related to jobs, affordable housing, and parks and recreational facilities. I also assess whether compliance with these provisions has yielded benefits beyond those required under existing laws and regulations. I find that the parties to the agreement have technically complied with many, although arguably not all, of its provisions. But some of the provisions in the CBA are not legally binding, other provisions overlap with requirements that the developer would have had to satisfy even without the CBA, and some reports required by the CBA are unavailable. As a result, outcomes such as living wage jobs and funding for affordable housing units are not clearly attributable to the CBA; other outcomes, such as targeted hiring, are unknown due to a lack of relevant information.

Takeaway for practice: Although CBAs may not fulfill all the claims that advocates make on their behalf, they can play important roles in community development by directing public and private spending to underserved neighborhoods. But collecting and verifying the relevant data may be challenging, even if reporting requirements are clearly spelled out in the CBA. As the complexity of a CBA increases, so do the challenges of assessing outcomes and assigning responsibility for those outcomes.     

Affordable housing in National Register districts: recognizing the advantages of historic urban neighborhoods in Louisville and Covington,Kentucky, USA

This paper draws attention to the public policy opportunities created by the spatial characteristics of urban historic districts. Using the Kentucky cities of Louisville and Covington as case studies, the research uses geographic information systems (GIS) to demonstrate that Low Income Housing Tax Credit (LIHTC) units developed in historic districts listed on the National Register of Historic Places are closer to libraries, transit stops, parks, and schools than are LIHTC units developed in ‘non-historic’ areas of these cities. The findings are particularly relevant for policy-makers adopting a neighborhood-oriented approach to improving the quality of affordable housing, and for those seeking strategies for bringing new life to declining urban areas.