Marc T. Smith

Impact Fees and the Price of New Housing: An Empirical Study

Development exactions in the form of impact fees are being used increasingly by local governments to fund the cost of providing public services necessitated by growth and development. This paper presents the results of an empirical study designed to ascertain the extent to which impact fees are capitalized into the price of new, single-family dwellings. On June 3, 1974, the city of Dunedin, located in Pinellas County, Florida, began assessing impact fees of

Loan delinquency in community lending organizations: Case studies of neighborworks organizations

1,150 against all new, single-family construction. Using data on 5,839 new home sales in Dunedin and three other cities in Pinellas County from 1971-1982, it was found that builders were able to pass forward the total cost of impact fees to new home buyers. However, the price differential due to impact fees for new dwellings in Dunedin compared to the price of new dwellings in the other three cities disappeared after approximately six years. This is explained by the nature of the fee structure in Dunedin, adjustments in factor costs, increases in the price of housing in competing cities, and unrealized expectations regarding the benefits to be provided by impact fee collections. Copyright American Real Estate and Urban Economics Association.

Florida's Affordable Housing Needs Assessment Methodology

Abstract This article reports on qualitative data gathered through interviews conducted in 1996 with key leadership and staff from 13 community lending organizations. Loan servicing and collection procedures within the organizations were examined. Findings suggest that several organizational factors of nonprofit lenders are related to their loan delinquency rates: social networks, business culture, funding sources, composition of the board and loan committees, staff structure, loan intake, and collection tools. The study also finds that the nonprofit sectors institutional environment and its partnership with the private sector in a mutually beneficial process influence the loan delinquency rate. More specifically, active participation of local bankers in NeighborWorks1 loan committees, diverse funding sources (from both the public and private sectors), and a diffusion of business practices through dense social networks are related to NeighborWorks’ loan servicing and collection policy and procedures. The...

Market Effects of Office Development Linkage Fees

Abstract To facilitate the preparation of updates to the housing elements of comprehensive plans, and to focus more on affordable housing, the Florida legislature revised Chapter 163 of the Florida Statutes in 1993, establishing a uniform methodology and data source for housing elements. This paper describes the methodology that has been developed in response to that mandate, the data sources used to create a statewide housing data resource, and also the obstacles to achieving a methodology for use in all jurisdictions. The data sources and methods used to make estimates and projections for all communities in Florida can be applied in other states.

The Impact of Energy Efficient House Construction on Homeownership Costs: A Comparative Study in Gainesville, Florida

Abstract In many cities, developers may be unable to pass office development linkage fees to either former landowners or tenants. Potential tenants will not accept exaction fees if they are sensitive to rental increases and if they can move to alternate locations. A survey of office users in the Philadelphia central business district shows the extent of user mobility. A financial analysis using Philadelphia data indicates that linkage fees substantially reduce developer returns when office users are mobile. As a result, such fees eventually curtail development. Before they implement linkage fee programs, therefore, cities should consider the sensitivity of demand for office space and the likelihood that developers can survive with lower profit margins.

Transfer programs and aggregate household formations

The goal of this study was to determine whether the Energy Star home program, as implemented in Gainesville, Florida, is reducing energy use and therefore costs relative to other homes and the extent of the savings. Analysis of Energy Star qualified houses found the savings were appreciable and statistically significant. The indicated energy savings for the average Energy Star household were

Low Income Housing Tax Credits: Does targeting limit their use to high income counties?

180 per year, which was capitalized to indicate a value increase of the average housing unit of

Development Exactions: Winners and Losers

4,500 and the ability to afford a mortgage of

Housing Programmes and the Role of Housing Planners in Florida

2,255 more than in the absence of the energy savings. The financial implications of these savings suggest that affordable housing policy needs to factor in continuing ownership costs in addition to the cost of the structure (the “first cost”) associated with purchasing a home. If the operating costs can be reduced, then the ability of a household to afford homeownership is improved.

Comment on Kathryn P. Nelson's "Whose Shortage of Affordable Housing?"

The number of households in the United States increased by over fifty percent in the 1960s and 1970s, nearly double the rate of population growth. Part of the increase is explained by the movement of large cohort groups of the population into prime household-forming age categories, but higher headship rates also contribute. Age-specific headship rate increases result from non-demographic factors, and this paper focuses on the role of government transfer payment programs. Specifically considered are Social Security, Aid to Families with Dependent Children, and Food Stamps. These programs are found to have accounted for as many as 4 million net household formations between 1961 and 1984. The findings have implications for expected households formations in the 1990s.