scholarly journals Green Affordable Housing: Implications of Costs and Benefits for Municipal Incentives

2019 ◽  
Author(s):  
Armin Jeddi Yeganeh ◽  
Andrew Patton McCoy ◽  
Steve Hankey
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Local Governments ◽  
Renewable Energy Sources ◽  
Spillover Effects ◽  
Listing Service ◽  
Costs And Benefits ◽  
Construction Costs ◽  
Market Rate ◽  
Housing Units

In the year 2017, about 89 percent of the total energy consumed in the US was produced using non-renewable energy sources, and about 43 percent of tenant households were cost-burdened. Local governments are in a unique position to facilitate green affordable housing that could reduce cost burdens, environmental degradation, and environmental injustice. Nonetheless, limited studies have made progress on costs and benefits of green affordable housing to guide decision-making, particularly in small communities. This study investigates density bonus options for green affordable housing by analyzing construction costs, sale prices, and spillover effects for green certifications and affordable housing units. The authors employ construction costs and sale data from 422 Low-Income Housing Tax Credit (LIHTC) projects and 11,418 Multiple Listing Service (MLS) transactions in Virginia. Using hedonic regression analyses controlling for mediating factors, we find that the new construction of market-rate green certified houses is associated with small upfront costs but large and statistically significant price premiums. The construction of market-rate green certified houses has large and statistically significant spillover effects on existing non-certified houses. Existing non-certified affordable housing units show small and statistically insignificant negative price impacts on transactions of surrounding properties. The magnitude of social benefits associated with green building justifies the local provision of voluntary programs for green affordable housing where housing is expensive relative to its basic costs of production to promote sustainable development.

scholarly journals Green Affordable Housing: Cost-Benefit Analysis for Zoning Incentives

2019 ◽  
Vol 11 (22) ◽  
pp. 6269 ◽  
Author(s):  
Armin Jeddi Yeganeh ◽  
Andrew Patton McCoy ◽  
Steve Hankey
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Local Governments ◽  
Renewable Energy Sources ◽  
Spillover Effects ◽  
Housing Cost ◽  
Listing Service ◽  
Transaction Prices ◽  
Market Rate ◽  
Housing Units

In the year 2017, about 89% of the total energy consumed in the US was produced using non-renewable energy sources, and about 43% of tenant households were cost burdened. Local governments are in a unique position to facilitate green affordable housing, that could reduce cost burdens, environmental degradation, and environmental injustice. Nonetheless, limited studies have made progress on the costs and benefits of green affordable housing, to guide decision-making, particularly in small communities. This study investigates density bonus options for green affordable housing by analyzing construction costs, transaction prices, and spillover effects of green certifications and affordable housing units. The authors employ pooled cross-sectional construction cost and price data from 422 Low-Income Housing Tax Credit (LIHTC) projects and 11,016 Multiple Listing Service (MLS) transactions in Virginia. Using hedonic regression analyses controlling for mediating factors, the study finds that the new construction of market-rate green certified houses is associated with small upfront costs, but large and statistically significant price premiums. In addition, the construction of market-rate green certified houses has large and statistically significant spillover effects on existing non-certified houses. Existing non-certified affordable housing units show small and often insignificant negative price impacts on the transaction prices of surrounding properties. The study concludes that the magnitude of social benefits associated with green building justifies the local provision of voluntary programs for green affordable housing, where housing is expensive relative to its basic cost of production.

Millennial ‘YIMBYs’ and boomer ‘NIMBYs’: Generational views on housing affordability in the United States

2020 ◽  
pp. 003802612091612
Author(s):  
Max Holleran
Keyword(s):  
Baby Boomers ◽  
Affordable Housing ◽  
Low Income ◽  
Rental Housing ◽  
The United States ◽  
Housing Affordability ◽  
Single Family ◽  
Market Rate ◽  
Job Opportunities ◽  
Housing Costs

This article examines housing activism in five American cities using interviews with millennial-age housing activists, seeking more apartment development, and baby boomers who are members of neighbourhood groups that oppose growth. Many of the groups supporting growth have banded together under the banner of the ‘Yes in My Backyard’ (YIMBY) movement which seeks fewer zoning laws and pushes for market-rate rental housing. In desirable cities with thriving job opportunities, housing costs are pricing out not only low-income renters but also the middle class. The millennial activists sampled blame baby boomers for the lack of affordable housing because of resistance to higher density construction in neighbourhoods with single-family homes (characterising these people as having a ‘Not in My Backyard’ [NIMBY] mindset). The research shows that boomers and millennials not only disagree over urban growth but also more fundamental questions of what makes a liveable city.

Historic preservation in declining city neighbourhoods: Analysing rehabilitation tax credit investments in six US cities

Urban Studies ◽  
2016 ◽  
Vol 54 (7) ◽  
pp. 1673-1691 ◽  
Author(s):  
Stephanie Ryberg-Webster ◽  
Kelly L Kinahan
Keyword(s):  
Historic Preservation ◽  
Affordable Housing ◽  
Low Income ◽  
Population Decline ◽  
Comparative Case Study ◽  
Tax Credit ◽  
Market Rate ◽  
Wide Range ◽  
The Usa ◽  
Us Cities

Historic preservation is common practice across the world, including in US cities. At the same time, population decline, economic distress and vacancy prevalent in declining cities, also known as legacy, shrinking or post-industrial cities, creates a pressing threat to a vast array of urban historic buildings. In the USA, recent planning and policy emphasises strategic demolition and/or targeting resources in potentially viable neighbourhoods, with little attention paid to historic preservation. To fill this gap, we use a comparative case study of federal historic rehabilitation tax credit (RTC) investments from 2000 to 2010 across the neighbourhoods of six legacy cities: Baltimore, Cleveland, Philadelphia, Providence, Richmond and St. Louis. This is the first study to use disaggregated, longitudinal RTC data to analyse investment at the neighbourhood scale. We use the Hirschman-Herfindahl Index to evaluate investment concentration and US Census 2000 data to characterise neighbourhoods where developers chose to undertake RTC projects. The findings show that RTC investments occurred across a wide range of places, including very low- and low-income neighbourhoods, and produced both market-rate and affordable housing across each city’s neighbourhoods. The findings indicate that preservation occurs across a wide range of legacy city neighbourhoods and inform urban planners and policymakers about locations where the private sector is willing to invest with favourable financing.

A multiobjective optimization model for locating affordable housing investments while maximizing accessibility to jobs by public transportation

2017 ◽  
Vol 46 (3) ◽  
pp. 490-510 ◽  
Author(s):  
Qing Zhong ◽  
Alex Karner ◽  
Michael Kuby ◽  
Aaron Golub
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Public Transportation ◽  
Dispersion Model ◽  
Spatial Interaction ◽  
Location Model ◽  
Upper And Lower Bounds ◽  
Light Rail ◽  
Transit Accessibility ◽  
Housing Units

This paper develops a new optimal location model for siting affordable housing units to maximize the accessibility of low-income workers to appropriate jobs by public transportation. Transit-accessible housing allows disadvantaged populations to reduce their reliance on automobiles, which can lead to savings on transportation-related expenditures. The housing location model developed here maximizes transit accessibility while reducing the clustering of affordable housing units in space. Accessibility is maximized using a high-resolution space-time metric of public transit accessibility, originally developed for service equity analysis. The second objective disperses subsidized housing projects across space using a new minimax dispersion model based on spatial interaction principles. The multiobjective model trades off accessibility maximization and affordable housing dispersion, subject to upper and lower bounds on the land acquisition and construction budget. The model is tested using data for Tempe, AZ including actual data for vacant parcels, travel times by light rail and bus, and the location of low-wage jobs. This model or similar variants could provide insightful spatial decision support to affordable-housing providers or tax-credit administrators, facilitating the design of flexible strategies that address multiple social goals.

scholarly journals Do segregated housing markets have a spillover effect on housing prices in nearby residential areas?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Ismail ◽  
Abukar Warsame ◽  
Mats Wilhelmsson
Keyword(s):  
Low Income ◽  
Local Governments ◽  
Housing Prices ◽  
Spillover Effect ◽  
Housing Markets ◽  
Spillover Effects ◽  
High Income ◽  
Housing Values ◽  
Content Type ◽  
Property Assessment

Purpose The purpose of this study is to analyse the trends regarding housing segregation over the past 10–20 years and determine whether housing segregation has a spillover effect on neighbouring housing areas. Namely, the authors set out to determine whether proximity to a specific type of segregated housing market has a negative impact on nearby housing markets while proximity to another type of segregated market has a positive impact. Design/methodology/approach For the purposes of this paper, the authors must combine information on segregation within a city with information on property values in the city. The authors have, therefore, used data on the income of the population and data on housing values taken from housing transactions. The case study used is the city of Stockholm, the capital of Sweden. The empirical analysis will be the estimation of the traditional hedonic pricing model. It will be estimated for the condominium market. Findings The results indicate that segregation, when measured as income sorting, has increased over time in some of the housing markets. Its effects on housing values in neighbouring housing areas are significant and statistically significant. Research limitations/implications A better understanding of the different potential spillover effects on housing prices in relation to the spatial distribution of various income groups would be beneficial in determining appropriate property assessment levels. In other words, awareness of this spillover effect could improve existing property assessment methods and provide local governments with extra information to make an informed decision on policies and services needed in different neighbourhoods. Practical implications On housing prices emanating from proximity to segregated areas with high income differs from segregated areas with low income, policies that address socio-economic costs and benefits, as well as property assessment levels, should reflect this pronounced difference. On the property level, positive spillover on housing prices near high-income segregated areas will cause an increase in the number of higher income groups and exacerbate segregation based on income. Contrarily, negative spillover on housing prices near low-income areas might discourage high-income households from moving to a location near low-income segregated areas. Local government should be aware of these spillover effects on housing prices to ensure that policies intended to reduce socioeconomic segregation, such as residential and income segregation, produce desirable results. Social implications Furthermore, a good estimation of these spillover effects on housing prices would allow local governments to carry out a cost–benefit analysis for policies intended to combat segregation and invest in deprived communities. Originality/value The main contribution of this paper is to go beyond the traditional studies of segregation that mainly emphasise residential segregation based on income levels, i.e. low-income or high-income households. The authors have analysed the spillover effect of proximity to hot spots (high income) and cold spots (low income) on the housing values of nearby condominiums or single-family homes within segregated areas in Stockholm Municipality in 2013.

scholarly journals The Mirage of Housing Affordability: An Analysis of Affordable Housing Plans in New York City

SAGE Open ◽  
2018 ◽  
Vol 8 (4) ◽  
pp. 215824401880921 ◽  
Author(s):  
Bakry Elmedni
Keyword(s):  
New York ◽  
New York City ◽  
Private Sector ◽  
Affordable Housing ◽  
Low Income ◽  
York City ◽  
Local Governments ◽  
Housing Affordability ◽  
Unintended Consequences ◽  
Major Player

In the opening of the 21st century, housing affordability was described by the U.S. Congress as the most urgent issue facing America. This article provides an analysis of how feasible Mayor de Blasio’s Five Borough Ten-Year Plan will be in providing adequate affordable housing to low-income residents in New York City (NYC). It examines three main topics: (a) the Plan’s focus on using the private sector to achieve public goals and whether this is likely to come with unintended consequences such as less focus on the needy and gentrification of struggling neighborhoods, (b) the role of the nonprofit sector, which has historically been a major player in housing policies in the NYC, and (c) how much influence or control a municipal government has on economic forces to avoid negative outcomes. The analysis reveals that while providing any number of affordable units is a positive thing, it is unreasonable to assume that this intervention alone can adequately address the housing affordability crisis in NYC. This article also exposes other emerging problems as the plan is being implemented. One major concern is that through tax credits and rezoning efforts to encourage private-sector development, the Plan may wind up benefiting housing developers and gentrifiers more than actually ameliorating the housing crisis in NYC. Housing affordability is a multifaceted issue which requires a multifaceted approach from federal and state governments working in tandem with local governments.

scholarly journals Optimizing prefabricated construction techniques in UAE as a solution to shortage of middle-income housing

2018 ◽  
Vol 221 ◽  
pp. 01006
Author(s):  
Mohamed Elkaftangui ◽  
Mohamed Basem
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Land Values ◽  
Infrastructure Development ◽  
Construction Costs ◽  
Mena Region ◽  
Middle Income ◽  
Capital Costs ◽  
Construction Techniques ◽  
Low Income Families

Housing is a major subject in the Middle East and North Africa (MENA) region, JLL, the world’s leading real estate investment and advisory firm, highlights the social and economic impact of a marked shortfall in the required supply of middle-income housing, suggesting that significant efforts are needed to address the current imbalance. For an equal standard and life style in UAE and KSA, the gap of sale and rent prices raises many questions. The middle-income sector of the market represent almost 40 percent of all households in the UAE. Several factors that have contributed to the current shortage of affordable housing, high land values, High capital costs for associated infrastructure development, low adoption of prefabricated construction techniques have contributed to higher construction costs, lower financial returns, making such developments less attractive for developers, limited access to suitable finance for low income families, due to generally immature mortgage markets. Resolving the shortage of middle-income housing requires a concentrated effort involving government agencies, private developers and other stakeholders. This Study will investigate the UAE Housing market to propose solutions for a better progress of the precast sector and focusing on the promotion of sustainable and industrial approaches to construction.

DESIGN CONCEPTS FOR THE INTEGRATION OF BAMBOO IN CONTEMPORARY VERNACULAR ARCHITECTURE

2019 ◽  
Vol 14 (4) ◽  
pp. 223-241
Author(s):  
Shahryar Habibi
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Financial Stability ◽  
Home Ownership ◽  
Vernacular Architecture ◽  
Design Strategies ◽  
Construction Costs ◽  
Design Concepts ◽  
Housing Systems ◽  
Low Income Families

This paper discusses the development of design concepts for a row of typical bamboo houses, including the layout configuration and the function/aesthetics properties that are important from an architectural perspective. The purpose of this paper is to discuss the role of bamboo in investigations of structural and sustainability benefits and to highlight key research ideas that are important for industrialized production and cultural systems. The development of bamboo housing systems can advance efforts directed at securing home ownership for low-income families through lowering the construction costs to levels that are within their budgets. This paper aims to demonstrate approaches for using bamboo as a structural material for low-income and affordable housing. Bamboo housing can improve the financial stability and economic sustainability of low-income families. This paper presents a review of examples of vernacular architecture and building elements and then highlights the design of two bamboo-structure residential houses based on bio-climatic design strategies.

scholarly journals Implementasi Undang-Undang No. 1 Tahun 2011 terhadap Kondisi Perumahan bagi Masyarakat Berpenghasilan Rendah di Kota Medan

PERSPEKTIF ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 131-139
Author(s):  
H. Riza Sirait ◽  
Rudi Salam Sinaga ◽  
Maksum Syahri Lubis
Keyword(s):  
Low Income ◽  
Local Governments ◽  
House Prices ◽  
Market Price ◽  
Research Approach ◽  
Housing Conditions ◽  
Construction Costs ◽  
Low Income Families ◽  
Common House

The purpose of this research is to Know and explain the results of the evaluation of the quality of housing conditions for low-income people (MBR) in Medan City, Know and explain the implementation of Law no. 1 of 2011 concerning Housing and Settlement Areas for MBR in Medan City, Knowing and explaining the supporting factors and obstacles to improving the quality of housing conditions for low-income people (MBR) in Medan City. This research is a qualitative design. The research approach is based on phenomenology and the constructivism paradigm in developing science. The results of the research are normatively Law no. 1 of 2011 has been quite effective in accommodating the provision of housing support for low-income families. Implementation of 1 Year 2011, there are still many problems, especially those related to the role and capacity of local governments, both in terms of commitment and funding, so it is necessary to develop derivative regulations related to local governments. There are still weaknesses in housing regulations, among others, related to the current income limit for MBR, which is relatively 35% higher than the average wage / salary income of people in Indonesia, as well as the benchmark for common house prices which are 44% lower in value than the market price in accordance with construction costs on the market.

scholarly journals Affordable Housing Crisis or Shortage?: Reconciling Legal Scholarship with Free Market Solutions Over the Use of Eminent Domain for Economic Development

2019 ◽  
Vol 37 (1) ◽  
Author(s):  
Anthony W. Cosgrove
Keyword(s):  
United States ◽  
Affordable Housing ◽  
Low Income ◽  
Local Governments ◽  
Free Market ◽  
The United States ◽  
Eminent Domain ◽  
Legal Scholarship ◽  
Low Income Families ◽  
Market Solutions

Throughout the United States, low-income families are having an increasingly difficult time finding an affordable place to live. Due to high rents, static incomes, and a shortage of housing, local communities, particularly in urban areas, are struggling to fight off this wave of decline and displacement. Currently in the U.S., an estimated 12 million families are now spending more than half of their income on rent. According to Federal Guidelines, “[f]amilies who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation, and medical care.”A large reason for this overspending by low-income families is that the supply of affordable housing is shrinking. Landlords and tenants both are adding to the affordable housing problem as “all sides are being squeezed.” Today, most new construction on rental housing is for the high-end market, “not for low and middle-income families.” So while the problem is clear, the cause of the problem is anything but.This note seeks a better understanding of the current housing problems plaguing local communities around the United States. Whether it is attributable to a crisis of societal construction or a shortage in the supply of affordable housing, this note attempts to reconcile current legal scholarship on local government initiatives, and economic free market solutions to lower barriers.Part I of this note examines the historical background of government initiatives to promote local development primarily through the mechanism of eminent domain. Frequently one of the first tools pulled out of the local government toolkit, eminent domain has evolved over the past century along with a shroud of controversy over its use. Part II details the current problems associated with local governments’ use of eminent domain, particularly regarding its effectiveness (or lack thereof) in accomplishing the government’s intended policy. Part III observes many of the other incentives local governments are using beyond eminent domain and examines their effectiveness in redeveloping their communities for all classes of residents.Part IV reviews current proposals of legal and government-side solutions including “inclusionary” eminent domain, Community Benefits Agreements (CBAs), and Community Development Corporations (CDCs). Part V then proposes alternatives to these regulatory proposals through market-oriented solutions based on increasing the overall supply in the market through deregulation of the zoning and permitting process. Exploring case studies in: Durham, North Carolina: Atlanta, Georgia: and Anaheim, California, this note will make the case that the solution to creating more affordable housing can be found in a reconciliation of both the legal/government and market-based proposals. Part VI offers this reconciliation and provides a comparative study of a proposal first implemented in Rotterdam, Netherlands, and its potential application to local governments in the United States. Lastly, I will conclude this note by describing how local governments should help alleviate the affordable housing problem in light of the reconciliation of government and market-based solutions.

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