城市經(jīng)濟學課件：Housing Policy

HousingPolicy

Introduction:HousingPolicyLow-IncomeHousingPolicy:$30billionperyearPublichousing,subsidizedprivatehousing,vouchersCommunitydevelopmentprogramssupportlocaleffortsHigh-incomeHousingPolicy:$66billionperyearformortgagesubsidy15-215-3FeaturesofPublicHousingAbout1.3millionhouseholds;budgetarycostabout$7billionManagedbylocalhousingauthoritiesRentnogreaterthan30%ofrecipientincome15-415-5WhataretheBenefitsofPublicHousing?Recipientvalue=$200(twothirdsofmarketvalue)Productioncost=2x$540=$1,080Budgetarycost=$840=$1,080productioncost-$240rentBangperbuck=$200/$840=0.2415-6SubsidiesforPrivateHousingSection236&Section8-ProjectBasedTenantpays30%ofincomeasrent(R)Fairmarketrent(F)determinedbycostorprevailingrentGovernmentpaysownersubsidy:S=F-RExample:Income=$800;F=$500;S=$500-$240=$260Productionefficiencyofsubsidizednewhousing:median=0.7515-7TaxCreditsforInvestmentsinAffordableHousingAnnualtaxcredit=9%ofcostattributabletolow-incomehousingTaxcreditsfor10years;restrictionsinforcefor15yearsRentrestricted:maximumrent=30%ofqualifyingincome20/50test:20%ofresidentshaveincome≤50%ofmedianincome40/60Test:40%ofresidentshaveincome≤60%ofmedianincome15-8EffectsofTaxCreditsUsedinprojectsthatproduced700,000unitsby1999Taxrevenuesacrificed=$3.5billionperyearEach$1.00generated$0.62ofhousingDiPasqualeetal:higherproductionefficiency:Costgapis14%to19%15-9TextTextText15-10FactsonDisplacementEffectsSubsidiesreducedemandforunsubsidizeddwellingsandpriceDecreaseinquantityfromreducedincentivetomaintainandslowerfilteringInlongrun,bestestimateisone-for-onecrowdingoutNoevidencethatlow-incometaxcreditprogramincreasedtotalsupply15-11HousingVouchers:IntroductionVouchers(likefoodstamps)allowrecipientstochooseRecipientmustoccupydwellingmeetingminimumstandardFacevalue=Fairmarketrent-0.30?IncomeFairmarketrent=45thpercentileofrentinmetropolitanarea15-1215-13HouseholdResponsetoVoucherVoucherpreferredoverpublichousingbecauseitprovidesmoreoptionsBangperbuckofvoucher=$1(versus0.24forpublichousing)15-1415-1515-1615-17VouchersandPricesinRelatedSubmarketsFasterfilteringfrommediumtomoderate:decreaseinsupplyofmediumSlowerfilterfrommoderatetolow:decreaseinsupplyoflowEstimatesofpriceeffectsofvouchersIncreasepriceby16%overall;impliesalowsupplyelasticity(≤0.38)Smallerincreaseinpriceformiddle-incomehousing(3.2%)Nomeasurableeffectonpriceofhigh-incomehousing15-18PortableVouchers:MovingtoOpportunitySomerecipientsgivenvoucherstobeusedinlow-povertyareasResults:MobileresidentsMovedtoareaswithlesspoverty,crime,segregation,andbetterschoolsChildren:fewerbehaviorproblems,lesscrime,betterschoolperformanceAdults:Nodifferencesinemploymentorpublicassistance15-19CommunityDevelopmentandUrbanRenewalDozensofCommunityDevelopmentprogramsMandates:Eliminateblight,renewoldareas,newcentersofeconomicactivityUrbanRenewal(1949-73)Displacedlow-incomeresidentsReplacedbyhigh-incomeresidents,publicfacilities,commercialoperations15-20RecentCommunityDevelopmentProgramsCommunityDevelopmentBlockGrants(CDBG):$4.7billionHousing(40%),publicworks(20%),economicdevelopment(13%),publicservices(10%)RecentprogramsprovidemoreflexibilityforlocalgovernmentsHomelessfunds(McKinney)Renovateordemolishpublichousing(HOPEIV)Preservelow-incomehousing(HOME)15-21HomelessnessDefinitionofhomelesspersonSleepsoutside,inplacesnotintendedforsleepingOrsleepsinhousingsheltersProblemsofhomeless:loweducation,prisontime,druguse,mentalillnessElasticity(homelessness,rentonlow-qualityhousing)=1.2515-2215-23HousingPolicy:SupplyversusDemandPoliciesSupply:Morecostlythanprivatehousing;limitsrecipients'optionsDemand:Increasepricesforrecipientsandnon-recipientsBestpolicydependsonmetropolitanareaDemandpolicysuperiorifelasticityofsupplyoflow-incomehousingishighRelativelyElastic:SmallpriceeffectsofvouchersRelativelyInelastic:LargepriceeffectofvouchersSupplypolicies:Focusonpreservationofexistingsupply--rehabilitationFlexiblegrantswouldallowlocalgovernmentstopickbestpolicy15-24FeaturesoftheMortgageSubsidyTaxbreakreducestaxrevenueby$66billionDeductmortgageinterestfromgrossincome;subsidyrate=marginaltaxrateHouseholdbenefitincreaseswithincomeSubsidyrateincreaseswithincome:15%,28%,31%,..Housingconsumption&mortgageinterestincreaseswithincomeAbout2/3ofbenefittohouseholdswithincome>$100,00015-2515-26MortgageSubsidy&HomeOwnershipAssumptionsabouthousingIdenticalrockhouseswithmarketvalue=$100,000ZeromaintenancecostAnnualrent=$8,000=$100,000?8%interestrateEffectofswitchfromrentertoowner-occupierPay$8,000inmortgageinterestinsteadof$8,000rentDeduct$8,000mortgageinterestfromincomeWithmarginaltaxrate=0.28,incometaxdropsby$2,24015-27BiasTowardOwnershipSubsidydecreasescostofownershiprelativetorentingEliminatebiasbyeliminatingdeduction?Eliminatingbiasbyhavingownerdeclareimputedrentalincome(IRI)IRI:MoneythatcouldbeearnedbyrentingdwellingtosomeoneelseBedrockexample:$8,000=annualrent15-28RationaleforMortgageSubsidy?Neighborhoodeffects?Communitystabilityfromownership?Whataboutlow-incomehouseholds?15-29FeaturesofRentRegulationRent