Housing

Question 1

Urban development action grant

Answer 1

Created in 1977 to supplement private investment. It also provided federal grants to leverage private capital for development projects, including housing, that wouldn’t be feasible without the subsidy.

Question 2

Community development block grant

Answer 2

Established in the Housing and Community Development Act of 1974. It was designed to simplify federal aid and increase local discretion in the use of funds. Most of the money went to activities benefitting low and moderate income families. There was no requirement for local matching funds. It required a Housing Assistance Plan that requires municipalities to state housing need, housing condition, community goals, where housing will be provided.

Question 3

Section 8 (Rent Supplement)

Answer 3

It was established under the Housing and Community Development Act of 1974. It provided rent supplements and broadened the way private housing could
be subsidized.

Question 4

Difference between UDAG and CDBG

Answer 4

CDBG was locally allocated whereas UDAG was awarded at the central HUD office by national competition

Question 5

1982 President’s Commission on Housing

Answer 5

Basically stated that housing was a state and local responsibility and advocated for concentrating federal aid towards housing allowance, rather than construction subsidy. Recommended less federal intervention in housing finance, more concentration on land use regulatory reform primarily at the state and local levels, and elimination of tax policies that subsidized housing through federal tax deductions.

The President’s Commission on Housing didn’t provide a status of housing need

Question 6

Federal Reserve System

Answer 6

Regulates and provides credit to federally chartered member banks

Question 7

Federal Home Loan Bank

Answer 7

Provides credit and regulates federal savings and loan associations, which have been the principal source of mortgage credit

Question 8

Government National Mortgage Association (GNMA)

Answer 8

Buys mortgages backed by FHA and VA insurance, pools them, and issues securities based on those mortgages

Question 9

Two national study groups in 1968 that evaluated nation’s housing

Answer 9

The Presidents Committee on Urban Housing (Kaiser’s) and National Commision on Urban Problems (Douglas)

Question 10

Findings by the President’s Committee on Urban Housing and National Housing on Urban Problems

Answer 10

They found that there needed to be more affordable housing (26 million over the course of 10 years) and that there needed to be more subsidies to help with this effort.

Question 11

Housing and Community Development Act of 1974

Answer 11

Created CDBG program and Section 8 Housing and the Workable Program for Community Development (which led to the increase in master plans and planning commisssions)

Question 12

Federal Deposit Insurance Corporation and Federal Savings and Loan Insurance Corporation

Answer 12

Insure deposits in federally chartered institutions, safeguarding depositors savings against possible bank failure

Question 13

Federal National Mortgage Association

Answer 13

Buys and holds mortgages including conventional ones

Question 14

Federal Home Loan Mortgage Corporation

Answer 14

Packages mortgages from its member institutions and sells securities

Question 15

Tax Reform Act 1986

Answer 15

Made rental housing less attractive as an investment and reduced the use of tax exempt revenue bonds for financing housing

It also reduces tax rates that made all deductions, credits, and tax shelters less valuable

Question 16

Housing and Community Development Act 1980

Answer 16

Expanded federal aid to low and moderate income housing programs

Question 17

Housing Development Grant (1983)

Answer 17

Made grants specifically for housing projects; this was a national competition.

Question 18

National Affordable Housing Act (1991)

Answer 18

This was the first major housing act in a decade. Consolidated all remaining federal housing programs and required a Comprehensive Housing Affordability Strategy (CHAS). CHAS was a prerequisite for states and some local governments and needed to be certified by HUD to get money.

Addressed housing, supportive services, homelessness, poverty, economic development, community development

Question 19

Omnibus Budget Reconciliation Act (1993)

Answer 19

Empowerment Zones and Enterprise Communities. Authorized HUD and Department of Agriculture to designate. Communities have great flexibility in use.

Question 20

Two traditional local government functions affecting housing

Answer 20

Provision of utilities and determination of land use

Question 21

Housing’s three interrelated components

Answer 21

Supply, Demand, Finance

Supply - includes all housing stock, new construction, labor, industry, and services needed to maintain the supply

Demand - determined by the number and characteristics of consumers of housing services, ownership patterns, and market behavior

Finance - significantly affects the supply and demand

Question 22

Characteristics of housing supply

Answer 22

Vast majority of housing is provided by the private sector

Private ownership is widely dispersed (65% of all
Units are privately owned)

Basic unit of measurement for housing supply is housing unit, which may be a single family house, apartment, or condo

Question 23

US census classified housing units by certain characteristics

Answer 23

Tenure (occupant Or renter)

Housing type (Single family, multi family)

Size (most important measure is the number of bedrooms)

Cost

Question 24

Basic unit of housing consumption

Answer 24

Household - the demand of households determine in large where housing units will be located in relation to population

Question 25

Housing demand is influenced by these two factors

Answer 25

Location and cost

Question 26

Housing Vacancy

Answer 26

Housing vacancy is an important housing indicator because it indicates the degree of choice available. Too high of vacancy rate can be a problem for owners trying to sell or rent Too low can force prices up Vacancies between 4-5 percent are usually considered healthy 17% of US population moved annually, mainly to a different unit in the same area 60% of all movers stay in the same you the and 80% stay in the same state

Question 27

Filtering

Answer 27

Refers to the process involving a chain of moves: housing trickles down if it becomes available to lower income families and it trickles up if it is occupied by a higher income family

Question 28

Overall financing of housing

Answer 28

Short term loans for construction of new housing Long term mortgages for completed and existing housing Mortgage insurance for protecting the loans Secondary mortgage markets providing liquidity and investment opportunities

Question 29

Housing is counter cyclical

Answer 29

Fluctuations in housing construction are largely attributed to fluctuations in financial market. When the economy is booming, housing construction tends to decline, when the economy is in decline, housing construction is likely to increase before other areas of economic activity do so

Question 30

Goals for housing: community life

Answer 30

Objective of housing policy is the provision and maintenance of safe , sanitary, satisfactory housing together with efficiently and economically organized community families to support it. Should be protected from fire, hazards, weather, crime Zoning, subdivision control, and building and housing codes are means of managing housing and its development

Question 31

Goals for housing: social and equity concerns

Answer 31

Every community should provide safe, satisfactory housing opportunities for all households at costs they can afford without regard to income race religion national origin family structure or disability There should be an aIm to address subpar housing for the poor, those unable to find housing, and those that are discriminated against

Question 32

Goals for housing: stability of production

Answer 32

Housing production should be stabilized to reduce fluctuations in construction, ensure predictable supply of new units, Provide steady employment, reduce Inflationary trends, and direct a reliable Flow of credit into the industry

Question 33

Goals for housing: design and environment quality

Answer 33

Housing should be designed to accommodate household needs, optimize the quality of life, use land and resources efficiently, create minimal Adverse impact on the natural environment

Question 34

Housing need versus housing demand and supply

Answer 34

Housing need is a social or evaluated concept Supply and demand are economic terms Before needs can be determined, housing standards need to be established

Question 35

8 standards of adequacy that can be used to evaluate housing in a community

Answer 35

``` Cost relative to income, condition, Crowding, Design, Choice (household should be able to select housing unit suitable to its needs), Community facilities, Environmental factors, Control ```

Question 36

Housing market analysis

Answer 36

Projects the number of housing units required at some future time

Question 37

Housing market area

Answer 37

Determine the boundaries of the market area is the first step in market analysis Housing market area serves as the basis for compiling all data Market area is an interdependent economic geographic and social entity within which all housing units are potentially competitive

Question 38

Three factors determining future demand for housing

Answer 38

Change in the number and composition of households. Change in the number of vacant units Change in the existing supply of housing

Question 39

Rent control

Answer 39

Sometimes viewed as a solution to the high housing costs that can result from Too few vacancies. In practice, it can discourage the building of additional units - units that would increase the supply, provide more vacancies, result in better housing prices

Question 40

Steps in housing market analysis

Answer 40

Collect and analyze population data > Collect and analyze housing data > Determined average annual demand

Question 41

Elements in a housing policy plan

Answer 41

Identify issues Father and analyze data Setting program objectives Implementing plans

Question 42

Average size of a house has grown significantly over the past 30 years

Answer 42

National Association of Homebuilders found that homes have increased in size. The average American house size has more than doubled since the 1950s. It now stands at 2,349 square feet.

Question 43

HOME Investment Partnerships Program

Answer 43

Authorized by Cranston- Gonzalez National Affordable Housing Act 1990 that was a federal block grant that provided funding to states and localities to be used exclusively for affordable housing activities to benefit low income households