Author : Thomas PlaHovinsak
Publisher :
ISBN 13 :
Total Pages : 153 pages
Book Rating : 4.:/5 (99 download)
Book Synopsis Three Essays on Housing Policy and Inequality by : Thomas PlaHovinsak
Download or read book Three Essays on Housing Policy and Inequality written by Thomas PlaHovinsak and published by . This book was released on 2016 with total page 153 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first chapter examines issues of vertical inequity in property assessment across Massachusetts. Several previous studies claim to identify bias in the assessment of housing value for the purposes of property taxes. This chapter highlights some problems with the methodologies used in many of those studies and provides an alternative framework for finding minimum values for assessor error and bias. Using data from the Massachusetts' Office of Geographic Information, we build off previous studies in three ways. First, we briefly explain why the errors-in-variables problem can cause biased estimates of vertical inequity in property assessment and how previous solutions to this problem are based on misleading assumptions. Second, we show that a method based on hedonic price estimates using property-level observables can provide a lower bound for the extent of assessor error and bias for Massachusetts towns. Third, we explore if there are differences in vertical inequity across towns in Massachusetts. Our results show that more than 23.3 percent of the variance in the difference between assessment and sale price across Massachusetts is due to assessor error, and that several property-level and town-level features can explain assessor bias. Furthermore, high-value properties across the state are the ones most likely to be under-assessed regardless of whether or not they are located in a high-income town. The second chapter studies the aftermath of the Mount Laurel decisions and the role of the Council on Affordable Housing. In the wake of the Mount Laurel decision in the mid-1980s, the Council on Affordable Housing (COAH) was created by the NJ state legislature to implement new affordable housing requirements across the state. If NJ municipalities volunteered to fall under COAH's jurisdiction, they would agree to build their affordable housing obligation. In return, the municipality would receive legal protection from exclusionary zoning lawsuits and have the ability to engage in a Regional Contribution Agreement (RCA), a process in which a municipality could pay another municipality to build up to 50 percent of the paying municipality's affordable housing obligation. Using data from the New Jersey Department of Community Affairs, reports generated by COAH, as well as decennial census data, I investigate three questions of interest: 1) What types of municipalities volunteered to come under COAH's jurisdiction? 2) Is there a pattern to compliance rates when examining the construction of new affordable housing? 3) What types of municipalities engaged in an RCA, and is there a pattern of "rich" municipalities sending their affordable housing allotment to "poor" municipalities? I find that those municipalities with the greatest perceived threat of potential litigation were the ones most likely to join COAH as well as fulfill at least some of their affordable housing obligation, although compliance rates were generally low throughout the time period examined. I also find a clear pattern of higher-income municipalities sending affordable housing units to lower-income municipalities, preventing economic integration within high-income municipalities and undermining the original intent of the Mount Laurel decision. The third chapter examines the results of a pilot study with Habitat for Humanity. Homeownership has remained an important aspect of U.S. policy and popular culture for decades. While some studies have attempted to prove the existence of benefits associated with homeownership, often called the "homeownership effect," few studies have been able to separate benefits stemming from housing itself as opposed to neighborhood effects, and few studies have devoted their attention to homeownership-focused programs. In a pilot study using survey data collected from applicants to the U.S.-based housing charity Habitat for Humanity, I employ a quasi-experimental design to compare perceived changes in the lives of those who were selected into the Habitat for Humanity housing program to those who applied for housing but were denied. In addition, since the recipients of Habitat houses remain in the same general area as their original residence, I am able to focus on the three joint benefits of the Habitat for Humanity program: becoming a homeowner, upgrading the quality of one's residence, and receiving a positive wealth transfer. I find that, in comparison to denied applicants, Habitat homeowners report more positive changes in their overall life, including their economic situation, their children's education, and their level of community engagement. I also find that the participating Habitat for Humanity affiliates were more likely to select those who were married and those with a high school level into the housing program. Based on these findings, I believe that more research into homeownership-focused programs is warranted.
