Valence,Policy Ideas,and the Rise of Sustainability

This article introduces to policy studies the concept of valence, which we define as the emotional quality of an idea that makes it more or less attractive. We argue that valence explains why some ideas are more successful than others, sometimes gaining paradigmatic status. A policy idea is attractive when its valence matches the mood of a target population. Skilled policy entrepreneurs use ideas with high valence to frame policy issues and generate support for their policy proposals. The usefulness of the concept of valence is illustrated with the case of sustainability, an idea that has expanded from the realm of environmental policy to dominate discussions in such diverse policy areas as pension reform, public finance, labor markets, and energy security. As the valence of sustainability has increased, policy entrepreneurs have used the idea to reframe problems in these various policy areas and promote reforms.     

More than bricks and sticks: Five components of community development corporation capacity

Abstract

Community development researchers, practitioners, and funders have recently begun to emphasize the need for community development corporations (CDCs) to build capacity. However, the practice of using the term capacity without carefully defining it allows for a wide range of meanings to be assigned to the term and hinders efforts to study and measure it. Capacity is often defined narrowly in terms of housing production, oversimplifying a complex concept and process.

To remedy this shortcoming, we create a framework that views capacity more broadly by dividing it into five components: resource, organizational, programmatic, network, and political. We believe that this more concrete way of thinking about capacity will be particularly useful to practitioners, funders, and policy makers. We apply our definitions to CDCs, particularly those that work with local intermediaries called community development partnerships (CDPs), in order to better understand the role of CDPs in the process of building capacity.     

Affordability and mortgage design: Permanent buydowns and buyups

Abstract

A simulation model that mirrors the actual practices of lenders in setting qualification requirements for mortgage loans is used to assess the impact of permanent buydowns and buyups on the maximum sale price that buyers can afford. Buydowns are reductions in the coupon rate traded off against higher discount points; buyups are the reverse. Although buydowns have little effect on afford ability, buyups can have significant effects. Their potential is largely unrealized, however, because of the call risk to lenders of loans carrying premiums. The authors propose a “discount recovery” provision, which would be similar to a prepayment penalty except that the payment upon prepayment would be tied to the amount of the discount foregone by the lender. This would protect lenders against call risk, giving them every reason to offer buyups as a way of expanding demand.