Urban Policy

Racial Dynamics of Subprime Mortgage Lending at the Peak

Racial Dynamics of Subprime Mortgage Lending at the Peak
Faber, Jacob W. 2013. “Racial Dynamics of Subprime Mortgage Lending at the Peak.” Housing Policy Debate, 23(2): 328-349.

Faber, Jacob William
04/24/2013

Subprime mortgage lending in the early 2000s was a leading cause of the Great Recession. From 2003 to 2006, subprime loans jumped from 7.6% of the mortgage market to 20.1%, with black and Latino borrowers receiving a disproportionate share. This article leveraged the Home Mortgage Disclosure Act data and multinomial regression to model home-purchase mortgage lending in 2006, the peak of the housing boom. The findings expose a complicated story of race and income. Consistent with previous research, blacks and Latinos were more likely and Asians less likely to receive subprime loans than whites were. Income was positively associated with receipt of subprime loans for minorities, whereas the opposite was true for whites. When expensive (jumbo) loans were excluded from the sample, regressions found an even stronger, positive association between income and subprime likelihood for minorities, supporting the theory that wealthier minorities were targeted for subprime loans when they could have qualified for prime loans. This finding also provides another example of an aspect of American life in which minorities are unable to leverage higher class position in the same way as whites are. Contrary to previous research, model estimates did not find that borrowers paid a penalty (in increased likelihood of subprime outcome) for buying homes in minority communities.

Stuck in Place: Urban Neighborhoods and the End of Progress toward Racial Equality

Stuck in Place: Urban Neighborhoods and the End of Progress toward Racial Equality
University of Chicago Press

Sharkey, P.
04/01/2013

In the 1960s, many believed that the civil rights movement’s successes would foster a new era of racial equality in America. Four decades later, the degree of racial inequality has barely changed. To understand what went wrong, Patrick Sharkey argues that we have to understand what has happened to African American communities over the last several decades. In Stuck in Place, Sharkey describes how political decisions and social policies have led to severe disinvestment from black neighborhoods, persistent segregation, declining economic opportunities, and a growing link between African American communities and the criminal justice system.

As a result, neighborhood inequality that existed in the 1970s has been passed down to the current generation of African Americans. Some of the most persistent forms of racial inequality, such as gaps in income and test scores, can only be explained by considering the neighborhoods in which black and white families have lived over multiple generations. This multigenerational nature of neighborhood inequality also means that a new kind of urban policy is necessary for our nation’s cities. Sharkey argues for urban policies that have the potential to create transformative and sustained changes in urban communities and the families that live within them, and he outlines a durable urban policy agenda to move in that direction.

 

Winner of the Mirra Komarovsky Book Award, Eastern Sociological Society.

Winner of The American Publishers Award for Professional and Scholarly Excellence (PROSE Award) in Sociology and Social Work. ​

Duet of the commons: Impact of street cleaning on household car usage in New York City

Duet of the commons: Impact of street cleaning on household car usage in New York City
Journal of Planning Education and Research, 33, 1, 34-48. doi: 10.1177/0739456X12459360

Guo, Z and P Xu
03/05/2013

This article explores the concept of “public commons” and its relationship with travel decisions under a unique setting: street cleaning in the New York City area. Using a natural experimental design, it investigates the impact of street cleaning on car usage for five hundred randomly selected households. Street cleaning encourages car usage for households without off-street parking and discourages car usage for households with off-street parking. The net effect is an increase of vehicle miles traveled by 7.1 percent, at least 27 percent of which is not a mere redistribution from non-street-cleaning days.

Hong Kong and Other World Cities

Hong Kong and Other World Cities
In Aging in Hong Kong: A comparative perspective. pp. 5 - 30. Woo, J (ed.) Springer Publishing Company

Rodwin, VG.
01/01/2013

With population aging and increasing urbanization, it is important to examine the quality of life of older people living in cities, in particular world cities. However, few comparative studies of world cities examine their health, long-term care systems, or the characteristics of their older populations. To assess how well world cities are addressing the challenges associated with aging populations, it is helpful to review comparable data on the economic and health status of older persons, as well as the availability and use of health, social, and long-term care services. By extending the work of the “CADENZA: A Jockey Club Initiative for Seniors” Project and the World Cities Project, this chapter compares three world cities—Hong Kong, New York City, and London. The three world cities are similar in the size and proportion of their older populations, but the characteristics of older people and the health and long-term care systems available to them differ in significant ways. These comparisons reveal how Hong Kong, New York City, and London are responding to a rapidly aging population. They should be valuable to other cities that face the challenges of population aging.

What Can We Learn About the Low Income Housing Tax Credit By Examining the Tenants?

What Can We Learn About the Low Income Housing Tax Credit By Examining the Tenants?
Housing Policy Debate.

Horn, Keren and Katherine O'Regan
01/01/2013

Using tenant-level data from 18 states that represent almost 40% of all Low-Income Housing Tax Credit units, this article examines tenant incomes, rental assistance, and rent burdens to shed light on key questions about our largest federal supply-side affordable housing program. Specifically, what are the incomes of the tenants, and does this program reach those with extremely low incomes? What rent burdens are experienced, and is economic diversity within developments achieved? We find that approximately 45% of tenants have extremely low incomes, and the overwhelming majority of such tenants also receive some form of rental assistance. Rent burdens are lower than that for renters with similar incomes nationally but generally higher than that presumed for housing programs of the U.S. Department of Housing and Urban Development. Rent burdens vary greatly by income level and are lowered by the sizable share of owners who charge below federal maximum rents. Finally, we find evidence of both economically diverse developments and those with concentrations of households with extremely low incomes.

Urban Mobility in the 21st Century

Urban Mobility in the 21st Century
The Furman Center for Transportationan and

Moss, Mitchell L. and Hugh O'Neil
11/12/2012

Between 2010 and 2050, the number of people living in the world’s urban areas is expected to grow by 80 percent – from 3.5 billion to 6.3 billion. This growth will pose great challenges for urban mobility – for the networks of transportation facilities and services that maintain the flow of people and commerce into, out of and within the world’s cities.

Addressing the challenge of urban mobility is essential – for maintaining cities’ historic role as the world’s principal sources of innovation and economic growth, for improving the quality of life in urban areas and for mitigating the impact of climate change. It will require creative applications of new technologies, changes in the way transportation services are organized and delivered, and innovations in urban planning and design.

This report examines several aspects of the challenge of urban mobility in the twenty-first century – the growth of the world’s urban population, and changes in the characteristics of that population; emerging patterns of urban mobility; and changes in technology design and connectivity.

 

 

Do Federally Assisted Households Have Access to High Performing Public Schools?

Do Federally Assisted Households Have Access to High Performing Public Schools?
Poverty & Race Research Action Council

Ellen, Ingrid Gould and Horn, Keren Mertens.
11/01/2012

A family’s housing unit provides more than simply shelter. It also provides a set of neighborhood amenities and a package of local public services, including, most critically, a local school. Yet housing and education policymakers rarely coordinate their efforts, and there has been little examination of the schools that voucher holders or other assisted households actually reach. In this project we describe the elementary schools nearest to households receiving four different forms of housing assistance in the country as a whole, in each of the 50 states, and in the 100 largest metropolitan areas.We compare the characteristics of these schools to those accessible to other comparable households. We pay particular attention to whether voucher holders are able to reach neighborhoods with higher performing schools than other low-income households in the same geographic area.

 

In brief, we find that assisted households as a whole are more likely to live near low-performing schools than other households. Surprisingly, Housing Choice Voucher holders do not generally live near higher performing schools than households receiving other forms of housing assistance, even though the voucher program was created, in part, to help low-income households reach a broader range of neighborhoods and schools. While voucher holders typically live near schools that are higher performing than those nearest to public housing tenants, they also typically live near schools that are slightly lower performing than those nearest to households living in Low Income Housing Tax Credit (LIHTC) and Projectbased Section 8 developments and lower performing than those nearest to other poor households.

Transport, the Environment and Security: Making the Connection

Transport, the Environment and Security: Making the Connection
Edward Elgar Publishing, Ltd.

Zimmerman, Rae
09/30/2012

Effective means of transport are critical under both normal and extreme conditions, but modern transport systems are subject to many diverse demands. This path-breaking book uniquely draws together the typically conflicting arenas of transport, the environment and security, and provides collective solutions to their respective issues and challenges.

From a primarily urban perspective, the author illustrates that the fields of transportation, environment (with an emphasis on climate change) and security (for both natural hazards and terrorism) and their interconnections remain robust areas for policy and planning. Synthesizing existing data, new analyses, and a rich set of case studies, the book uses transportation networks as a framework to explore transportation in conjunction with environment, security, and interdependencies with other infrastructure sectors. The US rail transit system, ecological corridors, cyber security, planning mechanisms and the effectiveness of technologies are among the topics explored in detail. Case studies of severe and potential impacts of natural hazards, accidents, and security breaches on transportation are presented. These cases support the analyses of the forces on transportation, land use and patterns of population change that connect, disconnect and reconnect people from their environment and security.

The book will prove a fascinating and insightful read for academics, students, and practitioners across a wide range of fields including: transport, environmental economics, environmental management, urban planning, public policy, and terrorism and security.

Residential Mobility and the Reproduction of Unequal Neighborhoods

Residential Mobility and the Reproduction of Unequal Neighborhoods
Cityscape: A Journal of Policy Development and Research, 2012. Volume 14, Number 3

Sharkey, P.
09/01/2012

Housing assistance policy has shifted away from project-based assistance toward tenantbased assistance. This shift in approach reflects a common assumption that, if families have the option to find homes on their own in the private market, they will seek out better quality homes in racially diverse neighborhoods with lower levels of poverty. This article presents evidence to qualify this assumption by highlighting the limits of residential mobility in reducing, in any substantive way, the degree of racial and ethnic inequality in urban America. Two empirical observations form the basis of the argument. The first observation is that residential mobility typically serves to reproduce urban inequality instead of disrupting it. The second is that urban inequality is resilient: even when individuals or families make moves that disrupt patterns of racial and ethnic inequality, the changes such moves induce are undermined by system-level processes that serve to reproduce inequality in the urban landscape. As a result, changes in families’ neighborhood environments arising from residential mobility are often temporary and are diluted by subsequent changes occurring around families. The article concludes with a discussion of implications for housing assistance policy.

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