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06-08-2016 Workshop Packet
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06-08-2016 Workshop Packet
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4 3 4 Simons, Magner and Baku <br />and social costs indicate that specification of these factors is sketchy: others may <br />develop the model further by delineating them. <br />The research approach has its limitations. First, all the feedback effects among <br />the three dimensions have not been studied. The main economic impacts such as <br />increased property values, retail sales and income from jobs have been translated <br />into the corresponding fiscal benefits. However, no attempt was made to generate <br />impacts beyond the initial turn (e.g., no multiplier effect has been calculated). <br />This probably serves to understate the benefits from rehabs. On the other hand, <br />many marginal fiscal costs for services (police, fire, etc.) have been assumed to <br />be zero because infill housing uses existing carrying capacity. This would tend to <br />understate the costs from new residents in rehab units. For the purpose of the <br />study, it is assumed that these omissions generally offset each other. Also, not all <br />economic effects (e.g., minority contractors) have direct fiscal impacts, and some <br />impacts, such as jobs, may have political or social benefits that are not calculated <br />here. Second, although social benefits may be as important as the fiscal or <br />economic benefits, the availability and quantification of pertinent data are much <br />more challenging. Thus, their evaluation has been excluded from this study. This <br />study employs a straightforward fiscal impact approach, instead of sophisticated <br />input-output models. <br />The main findings are that rehabbed units do indeed provide substantial benefits <br />to the Ideal economy. From a fiwal impact Standpoint, units returned about $0.55 <br />for every local government dollar invested. In addition, economic; benefits such as <br />increased property values anal tax base and construction and pel inanenvt jobs were <br />created and sustains -d by the program_ <br />Prior Studies of CDCs Non -housing Community Services <br />Some studies have attempted to quantify the benefits and costs of the community <br />services offered by CDCs other than those pertaining to housing investment. <br />Typically, CDCs also address human needs, such as drug addiction counseling, <br />substance abuse and crime prevention. Three of these studies are described below. <br />Concerning health services, there are several methodologically sound cost -benefit <br />studies on drug -addiction treatments. Using data from three outpatient drug-free <br />programs in Philadelphia during 1996-1997, French, Salome, Sindelar and <br />McLellan (2002) conclude that total economic benefit was greater than total <br />economic cost at the three outpatient not -for profit programs. Their study, using <br />per -client benefit and cost estimates over a seven-month follow-up period, <br />concludes that the net benefit estimates ranged from $1,939 (lower bound) to <br />$14,307 (upper bound), with a benefit -cost ratio ranging from $9 to $56. The <br />major factor contributing to the benefit side of the equation turned out to be <br />reduction in the number of days the individual was engaged in illegal activities <br />($1,576), followed by money spent on drugs ($1,020) and days of inpatient <br />14 <br />
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