Loan Modifications: What Works
We use a unique dataset that combines data on loan, borrower, property, and neighborhood characteristics of modified mortgages on properties in New York City to examine the determinates of successful modifications. From November 2007 through March 2011, over 2.1 million mortgages were modified in the United States, and policymakers have heralded such modifications as a key to addressing the ongoing foreclosure crisis. This dataset includes both HAMP modifications and proprietary modifications. The analysis builds upon a prior paper in which the determinants of loan modifications were examined.
Determinants of the Incidence of Loan Modifications
Loan modifications ensure that borrowers avoid foreclosure and save their credit record. These modifications are also beneficial to the neighborhoods in which these borrowers reside, preventing vacancies and high rates of turnover. This analysis looks at loan delinquency and repayment plan data from New York City borrowers to provide the strongest predictors of modifications or liquidation of property. In this paper, we answer key questions about loan modifications, including how the identity, property or neighborhood of the borrower affects the likelihood of receiving a modification. We also look at the role of residential segregation, as well as the identity of the loan’s servicer as an influence on variations in borrower access to loan modifications.
Siting, Spillovers, and Segregation: A Re-examination of the Low Income Housing Tax Credit Program
As of the end of 2005, the Low Income Housing Tax Credit (LIHTC) program had allocated $7.5 billion in federal tax credits and supported the development of more than 1.5 million units. A growing number of advocates and observers worry that the LIHTC program, by failing to monitor the siting of developments and, more directly, by giving priority to developers building housing in high-poverty areas, is furthering poverty and racial concentration. Yet, many community development organizations see the tax credit program as a central tool in their efforts to revitalize these high-poverty, urban neighborhoods. In this chapter, the authors try to inject some empirical evidence into this debate by examining the extent to which the tax credit program may have contributed to poverty concentration as well as to neighborhood revitalization.
The Impact of Supportive Housing on Surrounding Neighborhoods: Evidence from New York City
This study on the neighborhood impacts of supportive housing examines the effects that 123 supportive housing developments across New York City’s five boroughs have had on surrounding property values over an 18-year period.
The Benefits of Business Improvement Districts: Evidence from New York City
This study is the first large-scale study of the impact of Business Improvement Districts on commercial property values. The report explores what these findings mean and how they can be used to better understand the role these organizations play in local economic development.
The Condominium v. Cooperative Puzzle: An Empirical Analysis of Housing in New York City
One of the enduring puzzles of New York City’s housing market is the persistence of the housing cooperative, despite the prevailing wisdom that condominiums are more valuable than cooperatives. In this article, we examine the theoretical advantages and disadvantages of cooperatives and condominiums, and apply these theoretical insights to empirically test whether there is a price premium attributable to condominium housing. We then use our findings to speculate as to why the cooperative form remains dominant in New York City and whether its dominance is likely to continue in the future. The empirical analysis is based on hedonic models of house values and uses rich data on apartments sold in New York City between 1984 and 2002.
The Effect of Community Gardens on Neighboring Property Values
Cities across the United States that have considerable vacant land are debating whether to foster community gardens on that land, while cities with land shortages are debating when to replace gardens with other uses. Meanwhile, many cities are looking for new ways to finance green spaces. Little empirical evidence about the neighborhood impacts of community gardens is available, however, to inform the debate or to help cities design financing schemes. This paper estimates the impact of community gardens on neighborhood property values, using rich data for New York City and a difference-in-difference specification of a hedonic regression model. We find that gardens have significant positive effects, especially in the poorest neighborhoods. Higher quality gardens have the greatest positive impact.
The Impact of Low Income Housing Tax Credit Housing on Surrounding Neighborhoods: Evidence from NYC
In this report, we examine the neighborhood impact of low income housing tax credit developments in New York City, where 42,077 units of LIHTC housing were newly constructed or rehabilitated between 1987 and 2003.
The Impact of Business Improvement Districts on Property Values: Evidence from New York City
Our paper aims to fill this gap by examining the impact of BIDs on commercial property values in New York City. With the largest pool of BIDs in the country, New York is an ideal study site. Its 55 BIDs encompass a broad range of budget sizes, services and locations. This large and diverse set of BIDs, together with the city’s tremendous size and diversity of neighborhoods, allows us to examine the impact of BIDs in very different types of areas, including both very high-density office districts and more suburban-style, retail strips. Thus, we can gain some insight into the underlying mechanisms through which BIDs influence property values and the circumstances under which BIDs may be a useful tool for local economic development. Further, the diversity of BID and neighborhood types offers the opportunity to examine the robustness of our findings, and gauge the extent to which the lessons learned can be generalized and applied to other cities and circumstances.
Does Federally Subsidized Rental Housing Depress Neighborhood Property Values?
Few communities welcome subsidized housing, with one of the most commonly voiced fears being reductions in property values. Yet there is little empirical evidence that subsidized housing depresses neighborhood property values. This paper estimates and compares the neighborhood impacts of a broad range of federally-subsidized, rental housing programs, using rich data for New York City and a difference-in-difference specification of a hedonic regression model.