BBC Viewpoint January 2003

• Description: BBC Viewpoint January 2003
• State: CO
• Date: 1/27/2003
• Title: BBC Viewpoint January 2003
• Water Supply Pro - Doc Type: Publication

Page 6 BBC VIEWPOINT • January 2003 • BBC Redearch & Coddulting
Ensuring Fair Housing for All
Not too long ago, it was
legally permissible for lenders to
make loan decisions based on the
racial homogeneity of a neigh-
borhood. A landlord could refuse
to rent to a single woman with a
child. Real estate agents could
show clients houses only in
neighborhoods where they
would be "comfortable."
Then the Fair Housing Act
was adopted and those activities
became illegal. The Act —
enacted in 1968 and amended in
1988 — prohibits discrimina-
tion in the sale, rental and
financing of housing on the basis
Debunking thf
When Colorado land use deci-
sions meet public finance issues,
the conventional wisdom is sim-
ple — maximize retail develop-
ment and avoid residential
growth.
Retail development produces
sales tax revenue, the Holy Grail
of government resources. Resi-
dential development, on the
other hand, has an unfortunate
tendency to produce residents,
who in turn demand expensive
public services and generally
complicate the lives of public
officials. When contemplating
this situation, most local govern-
ments arrive at the same conclu-
sion: "our town is unusually
well suited for retail develop-
ment, but unfortunately, new
residential growth is perhaps
better suited for the town next
door."
Given this reality, why would
any local government accept res-
idential development and why
does BBC continuously advise
public sector clients to accept a
balance of residential and com-
mercial development?
There's no question that sales
tax is the engine driving Col-
orado municipal governments.
The question is how to attract
of race, color, national origin, sex,
disability, religion and familial
status.
End of story, right?
Wrong. Because these activi-
ties are illegal does not mean
they do not occur.
Discrimination in housing per-
sists for a number of reasons:
ignorance of fair housing rights
on the part of victims and viola-
tors, disobedience of the law by
housing professionals and lack of
enforcement of the Act, among
others. There are also perfectly
legal activities occurring in many
communities that may not
Retail Myth
more of it. The answer requires a
deeper look at the origins of new
sales tax and the recognition that
one cannot live by shopping
malls alone, or a corollary princi-
ple — it takes a village to pro-
duce retail sales (see chart).
Without residences ( "roof
tops" in developer jargon) new
retail tends to simply cannibalize
sales that already exists. The
addition of a new grocery store
next to an existing grocery store
produces only modest additional
sales and a lot of new automobile
traffic — not a particularly effec-
tive formula for community
health. New sales are only cre-
ated by new residents and busi-
nesses, additional spending by
existing residents and businesses,
or additional spending by resi-
dents and businesses from other
communities. In order to grow
the retail pie, new retail must
diversify a community's offerings
and thus stem current sales leak-
age or conversely, attract new
sales from a broader market area.
It is certainly tempting to
maintain an apparently practical
policy that promotes retail while
resisting residential. Unfortu-
nately, communities that have
aggressively engaged this policy
intend to restrict rights to fair
housing choice, but do so nonethe-
less.
Communities around the coun-
try have increasingly been con-
cerned about fair housing rights as
the supply of affordable housing
has dwindled and the future hous-
ing needs of aging populations
have come into focus. There has
also been regulatory pressure to
address fair housing issues: the
U.S. Department of Housing and
Urban Development (HUD)
requires an examination of fair
housing as a condition for receiv-
ing federal housing and commu-
Distribution
of White
Residents in
Marion County,
Indiana
in 2000
Legend
are beginning to see its flaws.
Retail doesn't stand still. For
example, the primary source of
Boulder's considerable financial
strength, Crossroads Mall, is now
an antiquated and largely shut-
tered facility. The downturn of
Crossroads is largely due to rapid
residential growth along the
Highway 36 corridor and the
accompanying retail competition.
Ultimately, retail will follow
rooftops, and Boulder's long stand-
ing barriers to residential growth
left them vulnerable to retail
migration.
A second complication in the
nity development funds.
In 2002, BBC helped the
City of Indianapolis — which
has a history of struggling with
fair housing issues — identify
barriers to fair housing choice
within the city and its nine
townships.
The study revealed that
racial lines drawn in the past
are difficult to erase. In Indi-
anapolis, as in many cities, the
location where one lived was
once determined as much by
skin color as financial where-
withal and preferences. The
legal boundaries that in the
past mandated where residents
lived in Indianapolis have been
eliminated. But, as shown in
the accompanying graphic,
minorities continue to be con-
centrated in the central city,
while whites have settled in
more suburban areas.
Our study also showed that
the economic growth experi-
enced in the past decade broad-
ened the housing opportunities
of minorities in Indianapolis.
Census data show that the con-
centrations of African- Ameri-
cans living in the central city
declined between 1990 and
2000, while the proportions
living in areas outside of the
central city increased.
However, we found that the
protected classes continue to
face barriers to fair housing
choice in terms of accessing
credit for home mortgages and
home improvement loans.
"all retail strategy" is that retail
developers understand the situ-
ation and know that communi-
ties are willing to subsidize
their presence. As the demand
for retail has increased and as
attractive sites have decreased,
the public side of the typical
"public private partnership"
has grown. It turns out that
developers can run spreadsheets
too, and now it may cost as
much to attract desirable retail-
ers, as communities can receive
in benefits from their presence.
So how should communities
respond? Retail still matters
Origins of New Sales Tax Revenues
And, the study showed that
discriminatory activities related
to housing remain a problem.
The most common reason for
filing complaints about fair
housing discrimination is race.
This is true in Indianapolis, as
well as nationwide.
Finally, one of the largest bar-
riers to fair housing choice iden-
tified in the study was ignorance
— of the law, of one's rights,
and of what to do if discrimina-
tion is experienced.
Cities and states have come a
long way in providing fair hous-
ing opportunities for citizens.
Eliminating fair housing barri-
ers requires solid research to
identify the most serious issues,
a well- crafted plan to address
the top needs, and a continuing
evaluation of progress. BBC will
continue to assist communities
with the very important job of
ensuring fair housing choice for
all residents.
Heidi Aggeler, Jim Carpen-
ter and Tom Pippin direct
BBC's housing practice and
are currently conducting fair
housing studies for Lake
County, Indiana and the cities
of Las Cruces and Las Vegas.
Heidi andJen Garner recently
completed a statewide survey
in Colorado to assess citizens'
knowledge of fair housing law
and measure the types and fre-
quency of housing discrimina-
tion.
because communities cannot col-
lect sales tax without a point of
sale. However, old strategies of
saying no to residential and yes
to retail are shortsighted. Com-
munities must encourage resi-
dential, but in locations and
with designs that minimize ser-
vice costs and allow new resi-
dents to shop locally. Of equal
importance is a focus on reduc-
ing the burden of residential
development, using strategies,
such as impact fees and good
development design. Together,
this multi - pronged strategy is
more effective, sustainable and
financially viable than the tradi-
tional "retail only" approach to
land use policy.
Ford Frick, Jim Carpenter
and Tom Pippin collectively
have over 40 years of experience
in land use, market and fiscal
analyses for both public and
private clients. In 2002, BBC
represented clients in over a
dozen states involving issues of
how land use regulation and
growth management strategies
influence the fiscal well being
of local communities.
0 to 25%
-
26 to 50%
-51
to 75%
-
76%+
are beginning to see its flaws.
Retail doesn't stand still. For
example, the primary source of
Boulder's considerable financial
strength, Crossroads Mall, is now
an antiquated and largely shut-
tered facility. The downturn of
Crossroads is largely due to rapid
residential growth along the
Highway 36 corridor and the
accompanying retail competition.
Ultimately, retail will follow
rooftops, and Boulder's long stand-
ing barriers to residential growth
left them vulnerable to retail
migration.
A second complication in the
nity development funds.
In 2002, BBC helped the
City of Indianapolis — which
has a history of struggling with
fair housing issues — identify
barriers to fair housing choice
within the city and its nine
townships.
The study revealed that
racial lines drawn in the past
are difficult to erase. In Indi-
anapolis, as in many cities, the
location where one lived was
once determined as much by
skin color as financial where-
withal and preferences. The
legal boundaries that in the
past mandated where residents
lived in Indianapolis have been
eliminated. But, as shown in
the accompanying graphic,
minorities continue to be con-
centrated in the central city,
while whites have settled in
more suburban areas.
Our study also showed that
the economic growth experi-
enced in the past decade broad-
ened the housing opportunities
of minorities in Indianapolis.
Census data show that the con-
centrations of African- Ameri-
cans living in the central city
declined between 1990 and
2000, while the proportions
living in areas outside of the
central city increased.
However, we found that the
protected classes continue to
face barriers to fair housing
choice in terms of accessing
credit for home mortgages and
home improvement loans.
"all retail strategy" is that retail
developers understand the situ-
ation and know that communi-
ties are willing to subsidize
their presence. As the demand
for retail has increased and as
attractive sites have decreased,
the public side of the typical
"public private partnership"
has grown. It turns out that
developers can run spreadsheets
too, and now it may cost as
much to attract desirable retail-
ers, as communities can receive
in benefits from their presence.
So how should communities
respond? Retail still matters
Origins of New Sales Tax Revenues
And, the study showed that
discriminatory activities related
to housing remain a problem.
The most common reason for
filing complaints about fair
housing discrimination is race.
This is true in Indianapolis, as
well as nationwide.
Finally, one of the largest bar-
riers to fair housing choice iden-
tified in the study was ignorance
— of the law, of one's rights,
and of what to do if discrimina-
tion is experienced.
Cities and states have come a
long way in providing fair hous-
ing opportunities for citizens.
Eliminating fair housing barri-
ers requires solid research to
identify the most serious issues,
a well- crafted plan to address
the top needs, and a continuing
evaluation of progress. BBC will
continue to assist communities
with the very important job of
ensuring fair housing choice for
all residents.
Heidi Aggeler, Jim Carpen-
ter and Tom Pippin direct
BBC's housing practice and
are currently conducting fair
housing studies for Lake
County, Indiana and the cities
of Las Cruces and Las Vegas.
Heidi andJen Garner recently
completed a statewide survey
in Colorado to assess citizens'
knowledge of fair housing law
and measure the types and fre-
quency of housing discrimina-
tion.
because communities cannot col-
lect sales tax without a point of
sale. However, old strategies of
saying no to residential and yes
to retail are shortsighted. Com-
munities must encourage resi-
dential, but in locations and
with designs that minimize ser-
vice costs and allow new resi-
dents to shop locally. Of equal
importance is a focus on reduc-
ing the burden of residential
development, using strategies,
such as impact fees and good
development design. Together,
this multi - pronged strategy is
more effective, sustainable and
financially viable than the tradi-
tional "retail only" approach to
land use policy.
Ford Frick, Jim Carpenter
and Tom Pippin collectively
have over 40 years of experience
in land use, market and fiscal
analyses for both public and
private clients. In 2002, BBC
represented clients in over a
dozen states involving issues of
how land use regulation and
growth management strategies
influence the fiscal well being
of local communities.