Publications

  • 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 Impact of the Capital Markets on Real Estate Law and Practice

    Over the past twenty years, the real estate markets of the United States have been swept by enormous change. A sector of the economy that had long been resistant to change, real estate has been and is continuing to be transformed by the process of securitization on both the debt and equity side. Just twenty years ago, the vast majority of single family residential mortgage loans were provided by local banks or savings and loan associations that held the debt in their portfolios until maturity or prepayment. Today, most single family mortgage debt is sold into the secondary mortgage market and converted into securities. Ten years ago, mortgage loans for commercial properties were largely originated and held by commercial banks, pension funds or insurance companies. In recent years, with the exception of the meltdown of the commercial mortgage-backed securities market in the summer of 1998, the proportion of commercial loans that were securitized rapidly grew. Just six or seven years ago, real estate investment trusts (REITs) were commonly thought of as the investment entity that crashed and burned in the 1970s. In the last two or three years, however, REITs have increasingly come to be seen as a dominant, if not preeminent ownership vehicle in many real estate markets throughout the nation.

  • The Importance of Using Layered Data to Analyze Housing: The Case of the Subsidized Housing Information Project

    The Furman Center for Real Estate and Urban Policy recently developed a new database through its Subsidized Housing Information Project (SHIP). The SHIP database combines more than 50 disparate data sets to catalogue every privately owned, publicly subsidized affordable rental property developed in New York City with financing and insurance from the U.S. Department of Housing and Urban Development (HUD), HUD projectbased rental assistance, New York City or State Mitchell-Lama financing, or the federal Low-Income Housing Tax Credit Program. The pooling and layering of data, as well as
    combining the data with other local housing and neighborhood information, in databases like the SHIP allow for a clearer understanding of the existing affordable housing stock and enable practitioners to more effectively target resources toward the preservation of affordable housing.

  • The Latest Legislative Reform of the 421-a Tax Exemption: A Look at Possible Outcomes

    This report explores the possible impacts of the new 421-a legislation on residential development in New York City’s neighborhoods. The legislation has set in motion three possible outcomes; the outcome should be determined in December 2016. Through financial modeling, this study details the effect each outcome will have on production of housing in different parts of the city. We find that the expiration of the 421-a benefit would likely lead to a disruption in the supply of housing by market rate builders, while a revised program without any increase in construction costs could result in the development of more rental units in many parts of the city compared to what the existing 421-a program would have created.

  • The Latest Reform Proposal for the 421-a Program

    This report analyzes the potential impact of the most recent reform proposal for the 421-a program on housing development in New York City, which is currently under consideration by the New York State Legislature. In evaluating the proposal, the report finds that the proposed 421-a program’s increase in tax exemption exceeds the additional affordable housing benefit by $2.6 to $5.7 million for a 300-unit building. The report also finds that the higher tax break for developers may support a 10-18% rise in hard construction costs without affecting long-term financial returns.

  • The Legal Salience of Taxation

    Many tax enforcement regimes incorporate taxpayer-initiated administrative procedures for adjusting tax liabilities. Using a novel dataset, this article examines the property tax appeals process in New York City and finds that the salience of the property tax (its visibility or prominence to taxpayers) has a large effect on the probability of appealing. I find that differences in salience across property owners, unwittingly induced by government policy and private actors, effectively shifts the property tax burden toward certain mortgagors, who are more likely to be racial minorities, foreign-born, and working families with children.

  • The Low Income Housing Tax Credit and Racial Segregation

    This paper addresses a critical but almost unexamined aspect of the Low Income Housing Tax Credit (LIHTC) program—whether its use (and in particular, the siting of developments in high poverty/high minority neighborhoods), is associated with increased racial segregation. Using data from HUD and the census, supplemented with data on the racial composition of LIHTC tenants in three states, we examine three potential channels through which the LIHTC could affect segregation: where LIHTC units are built relative to where other low income households live, who lives in these tax credit developments, and changes in neighborhood racial composition in neighborhoods that receive tax credit projects. The evidence on each of these channels suggests that LIHTC projects do not contribute to increased segregation, even those in high poverty neighborhoods. On net, we find that increases in the use of tax credits are associated with declines in racial segregation at the metropolitan level.

  • The Outlook for the Metropolitan Area

    Much of the discourse about regional and local economic development strategies in the United States over the past twenty-five years has looked like a search for general rules. Very few such rules have emerged, in part because—like all policy debates—there have been large inputs of ideology and self-interest, as well as professional inquiry, but in part because the appropriate strategies really are time- and place-specific.

    • Date: February 1997
    • Research Area(s):
    • Publication Type: Articles
    • Publication: Economic Policy Review of the Federal Reserve Bank of New York, 3(1), pp. 93-111
  • The Potential Costs to Public Engagement of HUD’s Assessment of Fair Housing Delay

    In January 2018, the U.S. Department of Housing and Urban Development (HUD) announced that it would extend the deadlines by which local governments and public housing authorities receiving federal housing and urban development funds must submit Assessments of Fair Housing (AFHs), and allow jurisdictions to continue to file Analysis of Impediments (AIs) instead. HUD justified the delay by noting that of the first 49 AFH initial submissions, HUD initially did not accept 35% of the submissions. Many observers, however, believed that the initial submissions were superior to the AIs they replaced. To evaluate one important aspect of the AFH and AI processes, the NYU Furman Center compared the public engagement involved in the AIs and AFHs filed by 19 of the 28 jurisdictions who were first to file under the new AFH requirements. The authors find that the public engagement processes used under the AFH requirement were much more robust than the most recent AIs the jurisdictions had filed along five distinct dimensions: the number of opportunities for public engagement; the inclusiveness of those opportunities; the provision of data for assessing public engagement; documentation and consideration of the public input; and existence of cross-jurisdictional or cross-sector engagement.

  • The Price of Resilience: Can Multifamily Housing Afford to Adapt?

    This report explores the challenges of retrofitting New York City’s existing multifamily rental buildings to be more resilient to future storms. After summarizing our key findings, we provide background about the current regulatory requirements existing building owners who wish to retrofit must navigate. We then discuss the results of a design workshop the Furman Center convened in January 2014 with the help of our partners at the New York Chapter of the American Institute of Architects (AIANY) and Enterprise Community Partners.