- HUD, the Department of Veterans Affairs and the Department of Labor released “Veterans Homelessness Prevention Demonstration (VHPD) Evaluation Final Report” evaluating a program designed by Silber & Associates and the Urban Institute.
- CFPB released report on student loan financing finding that the current collective student loan debt is at $1.2 trillion, the second largest form of consumer debt behind mortgages.
- The Commerce Department released report on consumer spending, which showed that it was largely driven by housing and healthcare.
Tag Archives: housing
A Different Approach to Homelessness
The Christian Science Monitor quoted me in In One California Community, a Different Approach to Homelessness. It reads, in part,
On a sunny morning in the beachfront community of Pacific Palisades, Steven “Boston” Michaud perches confidently on a large dock tie just above the sand. He waves vaguely at the hills above the Pacific Coast Highway, indicating where he sleeps. “It’s up there, but you’ll never see me,” he says, pointing to his own shadow on the ground, “because I’m a shadow and I don’t bother anyone.”
Mr. Michaud is one of about 170 homeless people in Pacific Palisades, an affluent waterfront neighborhood in Los Angeles. Pacific beaches have long been a magnet for the homeless from around the world.
Overall, California experienced the second-largest increase in the number of homeless people (1,786 individuals) among the 50 states this past year, according to the US Department of Housing and Urban Development. As their ranks have swelled, some homeless people have edged out of the shadows and have taken up in tidier areas in the Golden State. That, in turn, has attracted the attention of residents – especially when crimes have occurred.
Even Michaud isn’t as invisible as he says he is. A local supermarket took out a restraining order against him.
But some communities in the state think that too much emphasis has been put on law enforcement to deal with homelessness – and not enough on other approaches that account for the needs of homeless people and try to address the root causes of the problem. These places are thus coming up with a new generation of creative ways to deal with the persistent problem of homelessness. Pacific Palisades, which is trying out a private, philanthropic approach, is one of these communities.
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Private philanthropy in support of community needs is not new, says Mr. Berg of the National Alliance to End Homelessness. But what is new and less common in dealing with homelessness, he says, “is the organized approach to philanthropy at the local level.”
While she applauds the ambition of the effort, Maria Foscarinis, executive director of the National Law Center on Homelessness & Poverty, has concerns about the implications of a privatization approach. “The government’s role is to provide for public needs in critical times,” she says, adding, “This just serves as yet another example of the government stepping away from that role.”
Beyond that, there is the question of who can afford to duplicate the Palisades approach. Raising enough money to hire social services staff is beyond the reach of many communities, says Brooklyn Law School professor David Reiss, who specializes in housing policies. “So it is unlikely that Pacific Palisades is going to start a big trend, but a well-intentioned program could be effective locally, like many other community-based initiatives.”
NINYBY
A propos of yesterday’s post on the great paradox of housing policy — people say that they want restrictive land use policies which limit the construction of new housing at the same time that they say that they want more affordable housing in their communities — I present Exhibit 1: Votes by Community Boards Running Strongly Against de Blasio Affordable Housing Proposals. This document provides evidence that people are strongly opposed to affordable housing in their own communities while bemoaning the lack of affordable housing in nearby communities. This state of affairs is so extreme that it deserves its own acronym, Not in New Yorkers Backyards, or NINYBY.
This document was produced by New York Law School’s CityLand periodical and it discusses a
comprehensive chart tracking every vote taken by community boards citywide on the ZQA and MIH text amendments. On September 21, 2015, the City Planning Commission referred for public review the Zoning for Quality and Affordability (ZQA) and Mandatory Inclusionary Housing (MIH) citywide text amendments. Since the public review process has begun, community boards across the city have met to discuss and vote on each of the two proposals. All 59 New York City Community Boards have until November 30th to vote on two citywide text amendments.
CityLand has created a comprehensive citywide chart that is tracking every community board action taken on ZQA and MIH.
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Thus far, an overwhelming number of community boards have voted against both of these proposals, with MIH doing marginally better than ZQA. Within the boards themselves, the votes have been lopsided, with several recording unanimous votes against. Most Boards have backed up the votes with statements expressing their reasons for opposition. Some Boards that approved the measures included stipulations to the Yes votes.
New York City is never going to even begin to address its affordable housing issue if it does not implement policies like these proposed by the de Blasio Administration. Those who oppose these policies should at least admit that much is true.
Floodproofing Communities
NYU’s Furman Center has released a Research Brief, Planning for Resilience: The Challenge of Floodproofing Multifamily Housing. The Brief opens,
As sea levels rise and storms become more frequent and severe due to climate change, many urban areas along the coasts and rivers of the United States are facing a flood-prone future. Especially in the older urban areas along the eastern seaboard, there is a significant stock of multifamily housing that will be increasingly at risk. Much of this housing is out of compliance with federal flood-resistant design and construction standards. Some of these buildings have housing units that are out of compliance because, regardless of their age, they were only recently mapped into the floodplain. And, even buildings that have been in the floodplain for longer may be out of compliance with the rules because their construction predated their jurisdiction’s adoption of the standards. (2)
And it concludes,
As the nation’s floodplains expand, the number and types of housing units at risk of flooding also grows. Multifamily housing makes up a larger share of the at-risk housing in the floodplain than was previously understood, and mitigating the risk to this housing and its residents presents unique challenges that local governments must be prepared to face. While there is no easy answer to how to fund the often costly and disruptive retrofit measures needed in these buildings, there are steps that local governments can take to make it easier for buildings to adapt, such as educating owners about risks, providing them with information about retrofit strategies, and helping them finance improvements. Including strategies like these in a long-term resilience plan will make communities stronger and will ensure that multifamily buildings and their residents are not left behind as flood-prone areas adapt. (10)
There is no doubt that this is right. New York City under both Mayors Bloomberg and De Blasio have taken this issue very seriously, but a lot of work remains to be done. And the odds are that the amount of work will only increase with time as sea levels rise higher and higher. Because many other local governments do not have the resources of NYC, they will get their wake up calls the hard way.
Given the broad effects of climate change, resiliency efforts would ideally be led by the federal government. But I don’t see that happening for a long time, probably after an avoidable tragedy on a large scale spurs Congress to action, notwithstanding its ideological commitments.
Friday’s Government Reports Roundup
- The National Housing Conference released its 2015 “Paycheck to Paycheck” report, which reports how the gap between housing and wages has increased.
- The National Bureau of Economic Research released a working paper, Housing Booms and Busts, Labor Market Opportunities, and College Attendance, which reports a correlation between the state of the housing market and college attendance.
- CoreLogic released its August 2015 National Foreclosure Report, showing that, since August 2014, there has been a decrease in the amount of foreclosures.
- Center on Budget and Policy Priorities released “How Housing Vouchers Can Help California’s Rental Crisis”.
Wednesday’s Academic Roundup
- Housing and Mortgages in Transition Economy, John E. Anderson.
- Underwriting Sustainable Homeownership: The Federal Housing Administration and the Low Down Payment Loan, David J. Reiss, Georgia Law Review, Forthcoming.
- Mortgage Refinancing, Consumer Spending, and Competition: Evidence from the Home Affordable Refinancing Program, Sumit Agarwal, Gene Amromin, Souphala Chomsisengphet, Tomasz Piskorski, Amit Seru & Vincent W. Yao, NBER Working Paper No. w21512.
- Stock Prices, Regional Housing Prices, and Aggregate Technology Shocks, Jiro Yoshida.
- Information Diffusion in the U.S. Real Estate Investment Trust Market, Masaki Mori, Journal of Real Estate Finance and Economics, Vol. 51, No. 2, 2015.
- A Neurological Explanation of Strategic Mortgage Default, Michael Joseph Seiler & Eric Walden, Journal of Real Estate Finance and Economics, Vol. 51, No. 2, 2015.
- The City as a Commons, Sheila Foster & Christian Iaione.
- Attempting to Collect on Barred Mortgages, Roger Bernhardt.
Wednesday’s Academic Roundup
- The Effect of Negative Equity on Mortgage Default: Evidence from HAMP PRA, Therese C. Scharlemann & Stephen H. Shore, Office of Financial Research Working Paper No. 15-06.
- Housing Tax Reform and Foreclosure Rates, Richard Dusansky & Firas Zebian, Journal of Real Estate Finance and Economics, Vol. 51, No. 3, 2015.
- Price Jump Risk in the US Housing Market, Robert I. Webb, Jian Yang & Jin Zhang, Journal of Real Estate Finance and Economics, 2015 Forthcoming.
- Statutory Right of Redemption and the Selling Price of Foreclosed Houses, Bruce L. Gordon & Daniel T. Winkler, Journal of Real Estate Finance and Economics, Vol. 51, No. 3, 2015.
- Revealing the Rapist Next Door: Property Impacts of the Sex Offender Registry, Susan Yeh, International Review of Law and Economics, Forthcoming; George Mason Legal Studies Research Paper No. LS 15-06; George Mason Law & Economics Research Paper No. 15-24.
- An Investigation into Sentiment-Induced Institutional Trading Behavior and Asset Pricing in the REIT Market, Prashant Das, Julia Freybote & Gianluca Marcato, Journal of Real Estate Finance and Economics, Vol. 51, No. 2, 2015.
- Leveraged Bubbles, Oscar Jorda, Moritz Schularick & Alan M. Taylor, CEPR Discussion Paper No. DP10781.