Building consensus for affordable housing

Abstract

At one time the national goal of affordable housing was a widely held consensus that led to decent housing for millions of Americans. Today, proponents of affordable housing must negotiate with diverse and sometimes hostile parties to secure project approvals. Discussions are frequently adversarial, and stalemate is too often the result. The consensus has collapsed.

If progress toward affordable housing is to be made, proponents will have to recast the way they operate within this new environment. More than new financing plans or recommendations for regulatory relief are needed. Attention must also focus on the processes by which groups address divergent interests and come to agreement. “Principled negotiation,” a form of joint problem solving, when coupled with third‐party intervention, offers a promising and effective means of dealing with this hostile environment.     

Current practices for procuring affordable housing: The Canadian context

Abstract

This article describes the current housing system in Canada, focusing particularly on the various mechanisms still available for providing affordable housing. Beginning with an overview of the Canadian housing system, it provides a brief history of Canadian housing policy and program initiatives instrumental in developing the inventory of affordable housing available today.

Current practices and procedures in private lending for affordable housing are highlighted. A discussion of current initiatives available to provide affordable housing follows, with a focus on the role of government, the third sector, and new partnership arrangements implemented to encourage more affordable housing. The conclusion highlights recent changes, the current state of the affordable housing sector, and the impact these changes may have on low‐ and moderate‐income households in Canada.     

Preventive servicing is good for business and affordable homeownership policy

Abstract

This article documents the growing importance of preventive servicing—business practices that emphasize early intervention in delinquency and default management practices that also help financially troubled borrowers avoid foreclosure. We suggest that the loan servicing side of the affordable housing delivery system may be underappreciated and undercapitalized.

We use a database of more than 28,000 affordable housing loans to test several preventive servicing‐related propositions and find that after we control for loan and borrower characteristics, the likelihood that a delinquent mortgagor within this universe will ultimately default varies significantly across servicers. This suggests that loan servicing is an important factor in determining whether low‐ and moderate‐income borrowers who fall behind in their mortgage payments will end up losing their homes through foreclosure. It also suggests a need for policy makers to incorporate preventive servicing into affordable homeownership programs.     

RTC's affordable housing program: Reconciling competing goals

Abstract

Congress gave the Resolution Trust Corporation (RTC) authority to sell modestly valued housing at below‐market prices and with concessionary financing to enable lower income families to become homeowners and to expedite sales. Nonprofits and public agencies seeking to buy properties for occupancy by lower income people also qualified for these favorable terms. Setting a precedent for future housing policy initiatives, Congress conditioned access to this special program on the imposition of permanent low‐income use and affordability restrictions.

This paper considers whether the RTC can reconcile its mandate to maximize preservation of affordable housing with its duty to maximize return on assets and minimize negative impacts on local markets. This issue is addressed through a comparative review of property disposition programs administered by three other federal agencies. The author concludes that the RTC's three goals can be harmonized and suggests criteria for evaluating the RTC's performance in meeting its affordable housing mandate.     

Making space for space

This article explores the effectiveness of appeals to ‘active citizenship’ as an answer to the ‘neoliberal’ political vocabulary of consumer choice and market freedom. It does so through a case study on recent reforms to post-compulsory education in Australia. A common response to education and social welfare policy is to expect government to accord with ideals of citizenship such as self-determination, participation and equality. However, the case study suggests that the governmental rationalities of modern mass-education systems are irreducible to these abstractions. Reference to the social rights of citizens is embedded in the rationales of social and education policy. Nevertheless, this should not be construed as the recognition or misrecognition of an absolute ideal or principle. Instead, the negotiation of social rights can be seen as the product of the mass school system's own capacity to apply common norms to a population and to use these norms in maintaining the settlements negotiated within expanding social welfare systems.     

Reporting for sale: the market for news coverage

This paper proposes a formal model of the market for political news. Under reasonable market conditions and when the audience has psychological biases, it may be profitable for outlets to differentiate their coverage. Moreover, the implications of the model speak to a deeper impact of political polarization of the electorate.     

Availability of affordable healthy food in Hillsborough County,Florida

Prior research has indicated that low‐income neighborhoods in urban regions throughout the United States have limited access to healthy food, which partly explains the prevalence of diet‐related diseases. Our study provides new evidence on the relationship between access, prices of healthy food, and key demographic factors in Hillsborough County, Florida. The research team completed 65 surveys of grocery and convenience stores regarding availability and prices of 11 food items included in the Nutrition Environment Measures Survey in Stores (NEMS‐S). Results from the regression analysis indicate that affordable healthy food is more likely to be found in grocery stores than in convenience stores. There is no significant evidence, however, that low‐income neighborhoods have less access to healthy food than the not‐low‐income ones. We also observe significant price differences among types of stores but not in grocery‐to‐convenience store ratios among income groups, suggesting that low‐income families are not exposed to higher food prices.     

Brownfield redevelopment and affordable housing: A case study of New Jersey

Abstract

A total of 779 New Jersey residents were surveyed to determine the number of people who during the next five years would be willing to move to housing built on brownfield sites that have been remediated to the extent that they pose no plausible brownfield‐related health risk to residents.

Fourteen percent of the respondents said they would be willing to move to and live in housing built on cleaned‐up brownfields. These respondents were disproportionately relatively poor and young and resided in apartments and cities, especially cities where the city government was actively promoting brownfields. These respondents also did not like their current neighborhoods, did not feel threatened by the idea of living on a cleaned‐up brownfield site, and trusted experts to advise them on the health risks involved.     

Beyond NIMBY and poverty deconcentration: reframing the outcomes of affordable rental housing development

Policies and research around affordable rental housing remain stuck between the “rock” of not-in-my-backyard (NIMBY) fears and the “hard place” of deconcentrating poverty goals, leading to fragmented outcome measurement in contemporary project-based affordable rental housing programs. This article compares the motivations and results of existing research focused on NIMBY concerns around place to that of programs that promote the deconcentration of poor people. We suggest reframing the argument for project-based affordable rental housing by bolstering outcome measurement on neighborhoods and developments and expanding it to include tenants. Building upon current evaluation practices of mobility studies and the Low Income Housing Tax Credit program, we present a comprehensive framework for evaluating outcomes of project-based rental housing developments within their local context at three relevant scales: project, household, and community. We present an array of indicators and examine data collection needs and limitations, acknowledging the political and financial obstacles to comprehensive evaluation but arguing for the need to justify expenditures and prove results to the public. We recommend that government agencies stretch beyond NIMBY arguments and deconcentration of poverty goals to be proactive in targeting, measuring, publicizing, and redressing an expanded set of outcomes through better comprehensive planning for affordable housing. Through more rigorous and comprehensive evaluation of outcomes at all scales, it may be shown that affordable housing development yields a broad range of benefits for the people housed, projects financed, and the communities where it is built.     

The advisory commission on regulatory barriers to affordable housing: Its behavior and accomplishments

Abstract

In March 1990, Secretary Jack Kemp of the U.S. Department of Housing and Urban Development (HUD) appointed a 22‐member commission to investigate the nature and extent of regulatory barriers to affordable housing, as well as what to do about them. Chaired by Thomas Keane, ex‐Republican governor of New Jersey, the Advisory Commission on Regulatory Barriers to Affordable Housing grappled with this issue for over a year, releasing its final report in early July 1991.¹ As a commission member, I had an unusual opportunity to observe just how the commission worked and what it accomplished. This paper tries to put those two subjects in perspective. It has been written from the viewpoint of a longtime specialist on housing, who also served on the very first urban commission—the Douglas commission—23 years ago.²     

The local political economy of the regulatory state: Governing affordable housing in England

Regulatory governance involves the use of heterogeneous mechanisms to extract welfare gains from market-based processes. While often viewed as a depoliticization mechanism, here, we explore a distinctly political manifestation of regulatory governance. Our study focuses on the governance of affordable housing in England, specifically on local authorities' use of ‘Section 106′ (S106) powers to compel private developers to include affordable housing in new developments. We show that, following the financial crisis, the governance of affordable housing shifted from a partisan to a valence issue. As the crisis increased the issue salience of affordable housing, left-wing authorities' hitherto higher tendency to intervene was eroded in the midst of a broad-based increase in S106 deployment. In addition to extending insights into the political economy of regulatory state intervention, our findings shed valuable light on the undersupply of affordable housing in England.     

Making monsters

His research centers on extreme techniques of influence and social control. He shared in a 1979 Pulitzer prize for an exposé of Synanon. Among his other books are Interpersonal Behavior in Small Groups;and Utility and Choice in Social Interaction.     

Does homeownership counseling affect the prepayment and default behavior of affordable mortgage borrowers?

The lack of industrywide data on homeownership education and counseling (HEC) programs has severely limited evaluation. In particular, very little evidence exists on the relationship between HEC completion and loan prepayment, an outcome of interest to both mortgage lenders and consumer advocates. Where mortgage prepayment directly influences the sustainability of affordable mortgage products, it also reflects the ability of underserved borrowers to access lower‐cost credit through refinancing. This study uses a uniquely rich data set to examine the impact of HEC completion on prepayment and defaultamongborrowers receivingHECfrom a variety of providers across 42 states. The loans, originated between 1999 and 2003, are observed through the first quarter of 2006, a period in which strong housing appreciation and decreasing interest rates generated substantial refinancing activity. Using a competing risks model of mortgage prepayment and default, we find that HEC programs based on classroom instruction and individual counseling improve a borrower's exercise of the mortgage prepayment option, but that programs based on home study or telephone counseling did not affect borrower behavior. Counseling shows no effect on default propensities. © 2008 by the Association for Public Policy Analysis and Management.