Michael H. Schill

Polarisation, Public Housing and Racial Minorities in US Cities

Cities in the US have become home to an increasing concentration of poor households, disproportionately composed of racial and ethnic minorities. In the US, poor and minority populations are overrepresented in public housing, mostly located in central cities. Racial and ethnic minorities in American public housing are, for the most part, composed of native-born households whereas in Europe they are more likely to be foreign-born. After a description of this concentration of poor and minority populations in public housing, we examine the effect of public housing on neighbourhood poverty rates in central cities. We construct a longitudinal database (1950-90) for four large cities-Boston, Cleveland, Detroit and Philadelphia—and examine the relationship between the location of public housing and changes in neighbourhood poverty rates. We find that in each city, one or more of the variables relating to the existence of public housing is significantly related to increases in neighbourhood poverty rates in succeeding decades.

Revitalizing inner‐city neighborhoods: New York city's Ten‐Year Plan

Abstract This article examines the impact of New York Citys Ten‐Year Plan on the sale prices of homes in surrounding neighborhoods. Beginning in the mid‐1980s, New York City invested

Nativity Differences in Neighborhood Quality among New York City Households

5.1 billion in constructing or rehabilitating over 180,000 units of housing in many of the citys most distressed neighborhoods. One of the main purposes was to spur neighborhood revitalization. In this article, we describe the origins of the Ten‐Year Plan, as well as the various programs the city used to implement it, and estimate whether housing built or rehabilitated under the Ten‐Year Plan affected the prices of nearby homes. The prices of homes within 500 feet of Ten‐Year Plan units rose relative to those located beyond 500 feet, but still within the same census tract. These findings are consistent with the proposition that well‐planned project‐based housing programs can generate positive spillover effects and contribute to efforts to revitalize inner‐city neighborhoods.

The Condominium versus Cooperative Puzzle: An Empirical Analysis of Housing in New York City

Abstract This article adds to the literature on locational attainment of immigrants by evaluating how immigrant households in New York City compare with native‐born households with respect to neighborhood characteristics. It also examines whether the relationship between immigrant status and neighborhood quality varies by race/ethnicity and place of birth. Overall, foreign‐born households are more likely than native‐born households to live in neighborhoods with less access to medical care, higher rates of tuberculosis, and higher concentrations of poverty. Multivariate analyses reveal that all but one of these disadvantages disappear for foreign‐born households as a group. However, island‐born Puerto Ricans and immigrants—especially Dominicans, Caribbeans and Africans, and Latin Americans—are more likely to reside in lower‐quality neighborhoods than native‐born white households. Equally important, native‐born blacks and Hispanics are also disproportionately disadvantaged relative to native‐born whites, su...

Changing Water and Sewer Finance: Distributional Impacts and Effects on the Viability of Affordable Housing

One of the enduring puzzles of New York City’s housing market is the persistence of cooperatives, despite the prevailing wisdom that condominiums are more valuable. In this article, we examine the theoretical advantages and disadvantages of cooperatives and condominiums and apply these theoretical insights to empirically test whether condominiums have higher valuation. We then use our findings to speculate about why cooperatives remain dominant in New York. In general, theory suggests that the condominium may be a more efficient and desirable housing form, and empirical findings confirm that legal form matters. With one exception, condominiums are more valuable than comparable cooperatives. The exception suggests that, for some owners, the exclusivity that the cooperative offers may be utility maximizing. We speculate that, except for the market segment that seeks exclusivity, the dominance of cooperatives in New York is attributable to transaction costs and collective‐action problems that hinder the conversion to condominium form.

The Role of Cities in Providing Housing Assistance: A New York Perspective

Abstract Usage-based charges finance an increasing share of water and sewer costs in the U.S. The shift has been especially sharp in New York City, where residential users traditionally did not pay usage-based charges. In this article, we examine the impact that a transition to universal metered billing would have on multifamily housing. We find that universal metering would result in large increases in water and sewer bills for many multifamily buildings in low-income neighborhoods. Comparing the predicted increases with the net operating income of landlords in low-income neighborhoods indicates that universal metering might pose a threat to the viability of much affordable housing.

The Use of Rental Housing Assistance by Immigrants in the United States and New York City

An illustrious group of economists contribute to this volume honoring Dick Netzer, the public finance economist well-known for his research on state and local taxation, the provision of urban public services, and non-profit organizations. Following in his tradition, the contributors apply microeconomics to real world problems facing urban areas and use statistical analysis to gain insight into practical solutions.

Comment on Chester Hartman and David Robinson's “evictions: The hidden housing problem"—protection or protraction?

Abstract The large influx of immigrants to the United States and New York City from poorer countries has sparked considerable debate as to whether immigrants are becoming a “public charge” to American society. Most arguments have centered around immigrants’ use of cash assistance programs. This article compares immigrants’ receipt of rental housing assistance with that of native‐born Americans. Bivariate analyses reveal that immigrants, as a group, are no more likely than native‐born households to use any form of rental housing assistance. Indeed, in most instances immigrants are less likely than native‐born households to receive assistance, with two exceptions: immigrants who have been in the United States since 1970 and immigrants from the former Soviet Union in New York City. Multivariate analyses reveal similar results, except that immigrants who have been in the United States since 1970 are no more likely than other immigrants to receive housing assistance when we control for other factors.

Intergovernmental Takings and Just Compensation: A Question of Federalism

Abstract Since the 1960s, judges and legislatures have made it increasingly difficult for landlords to evict tenants even in those instances where tenants have breached their leases. Sometimes, the growth of tenant protections has actually harmed law‐abiding tenants by raising costs to landlords and allowing rule‐breakers to remain in their apartments. Most landlords and tenants should want a system of laws that provides for both fair and efficient eviction procedures. Tenants should be entitled to legal representation when they are threatened with eviction, but their attorneys should not use the legal system to obtain free accommodations for their clients. In the end, efforts to improve the housing of low‐ and moderate‐income households should rely not on setting up impediments to eviction, but rather on increasing tenants’ ability to afford housing and reducing the cost of housing development and operation.

Building Homes, Reviving Neighborhoods: Spillovers from Subsidized Construction of Owner-Occupied Housing in New York City

INTRODUCTION .................................... 830 I. EMINENT DOMAIN AND THE OBLIGATION TO COMPENSATE UNDER CURRENT LAW .................... 833 A. The Power of Eminent Domain ............... 833 B. Compensation For Intergovernmental Takings .. 838 II. JUSTIFYING COMPENSATION FOR PUBLIC CONDEMNEES .......................................... 841 A. Preventing Unfair Distribution of Burdens of Government ............................... 841 1. Preventing Unfair Burdens: History and Precedent ... : ............................ 842 2. Burdens and Benefits ................... 844 3. Prevention of Unfair Burdens as a Rationale for Compensating Intergovernmental Condem nees ... ........................... 847 B. Minimizing Investment Risk ................. 851 1. Compensation, Risk Minimization, and the Private Condemnee ..................... 851 2. Risk Minimization and Intergovernmental T akings .............................. 857 C. Avoiding Fiscal Illusion .................... 859 D. Protection From Political Exploitation ......... 861 1. Private Takings, Just Compensation, and the Evils of Faction ........................ 862