06-08-2016 Workshop Packet - Laserfiche WebLink

Home Browse Search

Do Housing Rehabs Pay Their Way? 435 medical care ($891). These results, however interesting, are not directly comparable to the findings in this study because they address fiscal as well as economic impacts, while this study is restricted to fiscal impacts only. In an attempt to estimate the net benefit resulting from five different substance abuse treatments, Daley et al. (2000) focus on addicted pregnant women. Using data from 439 pregnant women who entered publicly funded treatment programs in Massachusetts between 1992 and 1997, the study concludes that, depending on the treatment strategy, the net benefit ranged from $3,972 (detoxification modality) to $32,772 (residential treatment). Thus, the benefit: cost ratio is greater than one. Again, this study provides economic rather than purely fiscal impact analysis. Robertson, Grimes and Rogers (2001) undertook a cost -benefit analysis of various community-based services aimed at reducing crime and delinquency, and compared the results with more traditional intervention techniques. The study uses data from two intervention strategies: intensive supervision and monitoring, and intensive outpatient counseling with cognitive behavioral therapy. Although the first intervention technique does not yield a significant net benefit, the result of the regression model indicates that the second intervention technique produced a net benefit of $1,435 in justice system expenditure per youth offender served for the sample period. Thus, the benefit:cost ratio is greater than one. Again, this study provides economic rather than purely fiscal impact analysis. While three of the four analyses provided in these studies of social services show a positive benefit:cost ratio (benefits exceed costs), they cannot be directly compared to this study because they address economic and fiscal ratios, whereas the analysis in this study is purely focused on fiscal impacts. Further, even though expenditures in areas other than housing may generate larger returns to society than housing rehabilitation, CDC organizations exist to develop their geographically defined service area. Housing is a basic need and a large part of their constituents' household budget. Since most CDCs operate in inner-city neighborhoods with limited income profiles, typically a great need exists there. Also, housing development shows tangible evidence of improvement of the service area. CDCs are motivated to engage in housing related activities, and rehab housing has the smallest equity requirements for these often cash -starved organizations. While the theoretical value of the equimarginal principle is recognized, CDCs really have little choice but to engage in rehab housing activity. Literature Review: CDC Housing Investment A prior examination of the fiscal impacts of rehab housing does not exist in the urban affairs or urban economics literature. However, several articles have explored housing subsidy programs offered by cities. For instance, Koven and Koven (1993) found tax abatement strategies in Des Moines, Iowa to be successfiul in attracting middle and upper income residents to the city. However, this article JRER I Vol. 25 I No. 4 — 2003 -15