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Do Housing Rehabs Pay Their Way? 4 3 3 Exhibit 1 diagrams the relationship between CDC housing rehab activities and their fiscal, economic, and social benefits and costs. CDC programs receive subsidies from local governments (which are fiscal costs in this analysis). The CDCs use these local government funds, combined with fiinds from other sources including national organizations and sale of completed housing products, to rehabilitate housing. This activity generates social and economic impacts. These economic impacts in turn generate fiscal (on -budget) benefits, which are used to Offset fiscal costs. The relationship of fiscal benefits and costs, expressed in a ratio, is a primary indicator of fiscal efficiency. Moving from the fiscal dimension on top of Exhibit 1 through the economic and toward the social dimension on the bottom, quantification of the benefit -cost factors becomes increasingly more difficult. Question marks next to the economic Exhibit 1 I CDC Housing Rehabilitation Programs and Social, Economic and Fiscal Flows Costs (Exhibit 3) 1) Administrative 2) Building in Kind 3) Mortgages/Loans/Grants 4) Infrastructure 5) Property Tax Abatement 6) Technical Expertise s Benefits (Exhibit 3) 1) Construction Income Tax 2) Direct Property Tax FISCAL 3) Indirect Property Tax 4) Loan Repayment 5) Material Sales Tax 6) New Occupant Income Tax 7) New Occupant Sales Tax ECONOMIC Benefits (Exhibit 8) l) Job Creation 2) Minority Contractors 3) Economic Impacts 4) Retail/Material Sales 5) Increased Property Value Cost (?) Benefits 1) Providing low-income households with affordable housing 2) Improved quality of housing & satisfaction SOCIAL 3) Increased home equity/ access to credit market 4) Benefits of homeownership on the family Lj' 5) Improved Neighborhood stability Cost (?) J R E R I Vol. 25 No. 4 — 2003 13