Four the Future - Housing

• Hailey council repeals affordable housing rules
  Source: Idaho Statesman; October 13, 2010
  Summary: In a report mentioned in my Foundations of Planning class last quarter, the resort town of Hailey, Idaho, repealed its affordable housing requirement due to fear of litigation. Prior to the repeal, 20% of new subdivisions were required to be deed-restricted community housing. This is a tool used nationwide. Annexations and planned developments will still have the requirement.
  Opinion: The comments on the article are telling. One person wants a reduction in all regulations (Somalia-style, apparently). Another (sarcastically, I hope) calls for "your kind" to live elsewhere, and just drive into town to "do our yard work, teach our children and protect us from fires and criminals." I could not have said it better. There's no better way to make a disgruntled working class by banishing them to the sticks each night.
  
• CNU and NTBA's Reform of Fannie Mae, Freddie Mac and related housing programs
  Source: Congress for the New Urbanism; December 17, 2010
  Summary: Fannie Mae and Freddie Mac, the two federally chartered secondary mortgage agencies are implicated in the housing bubble. Part of the meltdown was precipitated by the distortionary effects of HUD, Fannie, and Freddie’s policies of limiting the amount of non-residential space included in mixed use developments. Mixed use developments have held their value, yet remain substantially excluded from the secondary mortgage market. Fannie Mae allows projects to be up to 20% non-residential; Freddie Mac allows 25%. HUD’s capital program restricts imputed non-residential rent to 20%. The Congress for the New Urbanism and the National Town Builders Association propose to raise these limits to 50%. This would allow the market to determine the mix, rather than federal policy.
  Opinion: When these loans are ineligible for the secondary mortgage market, banks must carry the note and they become unable to resell them in an efficient manner. And while I do believe that banks should be required to retain a portion of the project risk (after all, if they have no skin in the game, they can do whatever they want and have proven they will), I can see how these limitations could limit the availability of funding for mixed use projects. Alternatively, it could cause the residential uses to be exclusively high-rent in order to make the retail space a small percentage of the overall cost. Either way, it is bad for cities and causes sprawl through federal housing policy.
  
• Tiny house movement thrives amid real estate bust
  Source: Yahoo! News; November 29, 2010
  Summary: Despite of the housing crisis, or perhaps because of it, one sector of the housing market is booming: that of the "tiny house." Tiny houses can be as small as the 89 square foot house mentioned in the article, but entire families can live in a 500 square foot house. They invite a comparison to trailers, but these are built with higher quality materials. They range in cost from $20,000 to $50,000.
  Opinion: You can visit the tiny house blog at tinyhouseblog.com. This concept could be useful for accessory dwelling units (also known as granny flats). Basically, you’d put this in your backyard, and you’d have a room for another (tiny) family. This allows the community to grow without sprawling further. The back of the envelope calculation ($25,000, 20-year, 6% loan) is only $179.11/month, which is affordable for all but the most destitute. And R. Buckminster Fuller would be proud (I’ll explain that statement in a later post!) This is unlikely to become a large segment of the housing market, but jurisdictions should be prepared to deal with them.
  
• Homeownership stays at the lowest level in a decade
  Source: USA Today; November 2, 2010
  Summary: Prior to the Clinton and Bush administrations, home ownership rate was level at about 64%. Upon the deregulation of the investment banks, home ownership rose to 69% in 2004. With foreclosures and weak demand, home ownership has now dropped to 66.9%, the lowest since 1999. Housing vacancy is now at 18.8 million units, or 14% of all housing.
  
  
  A man rides a horse by an abandoned home in Las Vegas. Spencer Platt, Getty Images
  
  Opinion: This statistic would tend to indicate that we still have a bit lower to go to return to the levels before the unwise deregulation of investment banks. But, note, that the small percentage increase caused a massive increase in the cost of home ownership and shenanigans on the part of casino owners…I mean bankers. The increase in the ownership percentage was clearly not worth the worldwide pain being suffered now. Please let it be a lesson.
  

Four the Future - November 1

A special Four: these are some of the goings-on we talked about in Dr. Zovanyi's "Fundamentals of Planning" class.

• Biodiversity Conference Starts in Japan
  Source: New York Times; October 18, 2010
  Summary: Delegates to the United Nations conference on biodiversity will be discussing issues ranging from climate change to economic exploitation of developing nations by drug companies. The world is experiencing extinction at a rate 100 to 1000 times greater than average due to human activities.
  Opinion: Again, these are critical issues, but there is likely to be little movement because the developed countries will want to protect the profits of multinational corporations despite overwhelming evidence that our activities are unsustainable.
• [VIDEO] Stretched To The Limits: Still driving to qualify after the housing crisis
  Source: Blueprint America; October 22, 2010
  Summary: Despite continued foreclosures and abandoned neighborhoods, developers in the Phoenix suburbs continue to lure people out to the edge. Meanwhile, this is a story about a family who thought they were pursuing the "American Dream," but instead ended up upside-down in their mortgage. They find themselves waking their kids up at 4 AM to be able to have time to commute 120 miles to their jobs and childcare, dependent on their single remaining car, and so far away from transit that a local developer laughs at the prospect.
  Opinion: People did not realize they were getting themselves into these situations. Who should they be able to trust? Can it be planners, perhaps, to help them think through these situations before they are stuck? We should consider whether standard mortgages be limited by the amount of money it costs to commute and the cost of the increased infrastructure costs directly attributable to sprawl. Maybe, then, people would realize that houses out in the sticks are cheap because it is very expensive to live there.
  
• Public Housing Repairs Can’t Keep Pace With Need
  Source: New York Times; October 24, 2010
  Summary: The federal government is not keeping up with the maintenance of public housing projects. Nationwide, 150,000 housing units have been lost due to the failure to care for them. In New York City, the maintenance backlog is three years long.
  Opinion: They can give a whole lot of money to Wall Street, but cannot fix the holes in the walls of public housing. *shakes head*
  
• Seattle's proposed tree rules prompt opposition
  Source: Seattle Post-Intelligencer; October 24, 2010
  Summary: The city of Seattle’s trees inspired the nickname "Emerald City," but newly proposed rules would allow property owners to cut down trees without a permit. They are considering these rules at the same time that city policy calls for an increase in the tree canopy. Staff decided that a permit system would be too cumbersome. Instead, they will require tree credits for replacement of downed trees.
  Opinion: Michael P. Brooks, author of Planning Theory for Practitioners proposes the "feedback strategy" in which planners offer alternatives as fodder for people to which to react as a way to gauge public opinion. If that is what happening here, they are certainly going to get a great deal of feedback! I wonder, by the way, how the city will know that a tree needs to be replaced if a permit isn’t necessary to remove it. Trees provide critical (and free!) services like soil retention and storm water mitigation that replacement will not remedy. How will they deal with that?