Vocabulary Flashcards
(168 cards)
1
Q
What is Absolute Advantage?
A
An economy has an absolute advantage over another when it can produce more of a product due to having more resources.
Absolute advantage does not consider efficiency or opportunity cost.
2
Q
What is an Ad Valorem Tax?
A
A tax levied on the value of the taxed item, such as local property taxes.
It is based on the assessed value of property.
3
Q
Define Adaptive Reuse.
A
The rehabilitation of old property for a new purpose.
4
Q
What does AFDC stand for?
A
Aid to Families with Dependent Children, which provides income assistance to low-income families.
5
Q
What has replaced AFDC?
A
TANF, Temporary Assistance to Needy Families.
6
Q
What is Amortization?
A
The liquidation of a debt via a specified schedule of payments.
7
Q
What is an Anchor or ‘Key’ Tenant?
A
The most important tenant in a development project, often the largest, whose lease is crucial for financing and attracting other tenants.
8
Q
What is Affordable Housing?
A
Housing that consumes no more than 30 percent of household income.
9
Q
What is an Angel Investor?
A
An investor who provides equity investment to start-up businesses.
10
Q
Define Assessed Valuation.
A
The monetary worth of a property for taxation purposes.
11
Q
What are Assets?
A
Business property acquired at a measurable cost, related to business operations.
Includes fixed assets.
12
Q
What does BOT stand for?
A
Build, Operate and Transfer.
13
Q
What is a Bankable person?
A
A person who can qualify for a loan at a commercial lending institution.
14
Q
What is a Base Industry?
A
Industries that sell or export products outside the community, bringing new dollars into the local economy.
15
Q
Define Benchmarking.
A
Quantifiable measures of economic competitiveness and quality of life collected regularly to measure a region’s economic status.
16
Q
What is a Bond?
A
A certificate of debt issued by a government or corporation, guaranteeing payment of the original investment plus interest.
17
Q
What are Bond Banks?
A
State-level agencies that assist local governments in acquiring capital financing through debt issuance.
18
Q
Define Bond Rating.
A
An estimation of the relative creditworthiness of a corporation or governmental unit.
19
Q
What are Brownfields?
A
Commercial or industrial sites that are abandoned or under-utilized, with real or perceived environmental contamination.
20
Q
What is a Business Assistance Center?
A
A one-stop center for streamlining local permitting, licensing, and fee payment processes.
21
Q
What is Business Climate?
A
The attitude of a local government toward business, including labor force attitudes and local business networks.
22
Q
What is a Business Incubator?
A
An entity that nurtures young companies until they become viable, providing affordable space and support.
23
Q
What are Business Improvement Districts (BIDs)?
A
Legally defined entities formed by property and business owners for capital or operating improvements.
24
Q
What is Business Recruitment and Attraction?
A
The approach to entice companies to relocate or establish a new branch in a locality.
25
What is Business Retention?
Systematic efforts to keep local companies content at their current locations.
26
What does CBD stand for?
Central Business District.
27
What is CDBG?
Community Development Block Grants, aimed at community development projects and expanding housing opportunities.
28
What is a CDC?
Community Development Corporation, typically non-profit organizations that support economic development.
29
What does CDFI stand for?
Community Development Financial Institution.
30
What is CHAS?
Comprehensive Housing Affordability Strategy, a five-year housing plan required for federal housing funds.
31
What is a CHDO?
Community Housing Development Organization, a nonprofit housing provider eligible for federal funds.
32
What is a CRO?
Community Reuse Organization, overseeing the transition of a Department of Energy facility to civilian use.
33
Define Capacity Building.
Developing the ability of community organizations to design economic development strategies.
34
What is Capital?
Property or wealth from which income is derived, expressed in terms of money.
35
What are Capital Costs?
Costs of investment in major physical improvements, infrastructure, and equipment.
36
What is Cash Flow?
A statement showing total cash receipts and disbursements for a specific period.
37
What are Clawbacks?
Punitive steps taken against firms that break contracts for local incentives.
38
What is Comparative Advantage?
Economic advantage gained by one area over another due to more efficient production of a particular product.
39
Define Competitive Niche.
A market where a business or economic region performs well.
40
What does CERCLA stand for?
Comprehensive Environmental Response, Compensation and Liability Act.
41
What is a Consolidated Plan?
A plan that combines all planning, application, and performance requirements for various federal grants.
42
What is Cost-Benefit Analysis?
A method for evaluating the profitability of alternative uses of resources.
43
What is Cost Effective Analysis?
Compares alternative projects to determine the least costly way to achieve goals.
44
What is Council-Manager government?
A city government form where administrative authority is given to a professional manager hired by the elected council.
45
What are Deed Restrictions?
Clauses in a deed limiting future uses of the property.
46
What is a Deferred Loan?
A type of loan where payment is postponed until a later date, potentially becoming a grant if conditions are met.
47
Define Depreciation.
A decrease in value through age, wear, or deterioration.
48
What is a Development Authority?
An agency independent of city government with special powers, such as eminent domain.
49
What is a Discount Rate?
The rate the Federal Reserve charges member banks for inter-bank loans.
50
What is an Easement?
The right to use the property of another, granted explicitly or earned by implication.
51
What is an Economic Base?
Classifying productive activity into basic industries and service industries.
52
What is Economic Base Analysis?
A study focusing on a locality’s economy and the importance of exports.
53
What is the Economic Development Administration (EDA)?
An agency created to alleviate unemployment and diversify the economy.
54
What does Economically Disadvantaged mean?
A person in a family receiving cash welfare payments or below the poverty level.
55
What is Econometric Modeling?
A qualitative method for analyzing the impact of a proposed action on the economy.
56
What are Economies of Scale?
The phenomenon where the average cost of production declines as more of the product is produced.
57
What is an Edge City?
A newly emerged city on the edge of an existing city, serving as a work and shopping center.
58
Define Elasticity.
The proportion representing the impact on one factor by a percentage change in another.
59
What is Eminent Domain?
The authority to take private property for public use with compensation.
60
What is the Empowerment Zones/Enterprise Communities Initiative?
A program providing federal tools for localities to alleviate poverty.
61
What are Enterprise Zones?
Designated areas eligible for special treatment and incentives to attract private investment.
62
What is an Entitlement Community?
A community eligible to receive annual CDBG funds for revitalization and affordable housing.
63
What is an enterprise zone?
A designated area to attract private investment, defined by size and economic distress criteria set by state guidelines.
## Footnote
States can limit the number and type of enterprise zones.
64
Who is eligible to receive annual CDBG funds?
Entitlement communities, including local governments with 50,000 or more residents, central cities of metropolitan areas, and urban counties with populations of at least 200,000 (excluding entitled cities).
## Footnote
CDBG stands for Community Development Block Grant.
65
What is the purpose of Entrepreneurial Training?
To provide guidance on business basics such as accounting and financing to improve new business success rates.
## Footnote
Common training methods include workshops, one-on-one counseling, and self-study.
66
Define externality.
A side effect of production or consumption that is not paid for, such as pollution from oil refining or benefits from road construction.
## Footnote
Pollution is a negative externality; road construction can be a positive externality.
67
What is Fair Market Value?
The estimated worth of a property determined by a certified appraiser, reflecting the price it could be sold for in a competitive market.
68
What are fiscal impacts?
The direct and indirect costs incurred and revenues received by local governments from land use and other decisions.
69
What is a 501(c)(3)?
Approval from the IRS granting federal income tax exemption to nonprofit organizations, making donations to them tax-deductible.
70
What is a 501(c)(6)?
Approval from the IRS granting federal income tax exemption to business leagues focused on improving business conditions, not for profit.
## Footnote
Examples include trade associations.
71
Define Flex Space.
Flexible use space that can accommodate different types of production such as manufacturing, office, or service.
72
What are front-end costs?
Capital required at early stages of a development project, including land, plans, construction materials, and labor.
73
What is gap financing?
A loan that bridges the gap between a project's mortgage loan and expenses incurred during construction.
74
What is a General Fund?
The portion of a municipal budget devoted to basic administrative functions, including non-earmarked funds.
75
What are Limited Tax G.O. Bonds?
Tax-exempt bonds secured by revenue from a fixed rate against taxable property, not requiring voter approval in some states.
Limited Tax General Obligation (LTGO) bonds are a type of municipal bond where the issuer's ability to raise taxes to repay debt is limited. This means that the issuer cannot increase taxes beyond a predetermined rate or amount, even if they face financial difficulties. LTGOs are considered riskier than unlimited GO bonds, as bondholders have less assurance of repayment if the issuer struggles financially. LTGOs are sometimes referred to as "councilmanic" bonds or non-voted debt because they can be issued by a vote of the legislative body without a voter referendum.
76
What are Unlimited Tax G.O. Bonds?
Tax-exempt bonds secured through taxes levied without limitations to repay principal and interest, used for public works.
Unlimited Tax General Obligation (UTGO) bonds are a type of municipal bond where the issuer (a government entity) pledges to repay the bondholders with the full taxing authority of the municipality, without a specific limit on the tax rate. This means the municipality can increase property taxes to cover debt service if necessary. UTGO bonds are backed by the full faith and credit of the issuer, meaning the government pledges to use its taxing power to repay the debt.
77
Who is a General Partner?
Co-owner of a venture liable for all debts and obligations, managing the partnership and making binding decisions.
78
Define gentrification.
The migration of middle-class residents into deteriorating areas, potentially revitalizing them but displacing lower-income families.
79
What are Geographic Interface Systems (GIS)?
Computer programs integrating social, economic, and demographic information and mapping for various analyses.
80
What is the HOME Investment Partnership Program?
A program providing grants to states and local governments to implement local housing strategies for low-income households.
81
What is HUD?
The U.S. Department of Housing and Urban Development, responsible for national housing policy and community development programs.
82
Define hard costs.
Bricks and mortar costs of development, including contractor fees and overhead.
83
What are holding costs?
Costs of owning land or property during the pre-development stages of a project.
84
What is a Housing Development Corporation (HDC)?
A private, multifamily housing corporation providing technical assistance and funding for housing developments.
85
What is a Housing Finance Agency (HFA)?
State agencies responsible for financing housing and administering subsidized housing programs.
86
What are impact fees?
Fees required to cover infrastructure costs due to the expected impact of a development project.
87
What are incentives in economic development?
Benefits offered to firms for industrial attraction, retention, or expansion, such as tax abatements and job training.
88
Define Industrial Development Bonds.
Bonds used to finance the acquisition or construction of manufacturing facilities and equipment.
89
What is an Industrial Park?
A specified area of land zoned for industrial use with covenants and restrictions for occupants.
90
What are Industrial Revenue Bonds?
Bonds that provide lower-cost financing for real property improvements or construction.
91
What are Industry Clusters?
Geographic concentrations of related businesses that are targeted for future planning and marketing.
92
What are Infrastructure Banks?
Public-targeted lending facilities that mobilize funds for infrastructure projects.
93
What are Investor Networks?
Networks that match potential investors with start-up firms needing capital.
94
What is land banking?
A program that preserves industrial space by acquiring and holding land until development proposals arise.
95
Define Local Development District.
A multi-jurisdictional organization designated by the Appalachian Regional Commission for various functions.
A Local Development District (LDD) is a multi-county planning organization that facilitates community-based, regionally driven economic development. They are often referred to as Area Development Districts (ADDs), Councils of Governments (COGs), or Regional Planning and Development Commissions. LDDs work with local leaders, elected officials, and business representatives to develop and implement economic development strategies
96
What are Local Reuse Authorities?
Agencies overseeing the transition of military facilities to civilian use.
97
What is a Location Quotient?
The percentage of local employment in a specific industry compared to national employment in the same industry.
98
What are Localization Economies?
Conditions where costs decrease for firms in a specific industry as total industry output increases.
Localization economies refer to the benefits that businesses gain from being located near other firms in the same industry. These benefits are often associated with the presence of specialized inputs, infrastructure, and knowledge spillovers. In essence, localization economies arise from the concentration of similar businesses in a specific area
99
Define Low-Income.
A household income at or below 80% of the median income in a metropolitan area, as defined by HUD.
100
What is the Low-Income Housing Tax Credit?
A tax credit for investors to develop and preserve affordable multifamily rental housing for low-income households.
101
What is a Low-Income Neighborhood?
A neighborhood where at least 51% of households have incomes at or below 80% of the median income.
102
What is a Matching Grant?
A grant equal to the amount expended by the grantee on a project, incentivizing additional spending.
103
What is a Mayor-Council system?
A city government system separating legislative and executive power, varying from strong to weak mayoral authority.
104
Define Microenterprise.
A small business operated by an individual, often from home, such as carpenters or daycare providers.
105
What are Microloans?
Very small, short-term unsecured loans for individuals without credit history or collateral.
106
What is the Minority Businesses Development Agency (MBDA)?
An agency offering financial and technical assistance to minority entrepreneurs, established in 1969.
107
What is Moderate Income?
A definition of family income as a percentage of an area's median income, varying by program.
108
What are Mortgage Revenue Bonds (MRBs)?
Bonds issued to finance permanent mortgages on housing, secured by specific real property.
109
Define Multiplier.
A quantitative estimate of the impact of a project in terms of dollars, jobs created, or demand.
110
What is the Multiplier Effect?
The process of job or income generation from a new or expanding business, accounting for local spending.
111
What is a Neighborhood Development Organization (NDO)?
A community-based organization accountable to residents, focused on neighborhood economic development.
112
What does NIMBY stand for?
Not in My Backyard, describing local opposition to development projects.
113
What is a Neighborhood?
A designated geographic location within the boundary of a local government, not encompassing the entire area.
114
What is Net Operating Income?
Revenue less operating expenses, also referred to as operating cash flow.
115
What is Net Present Value?
The value today of the total discounted future income stream of a development project.
116
What is the North American Development Bank?
An international organization financing environmental infrastructure projects under NAFTA.
117
What is the North American Industry Classification System (NAICS)?
The industrial classification code system for categorizing industrial establishments.
118
What are One-Stop Business Service Centers?
Facilities that streamline licensing and permitting processes for businesses starting or expanding.
119
What is Opportunity Cost?
The revenue forgone by choosing one use of money over another, such as investing instead of saving.
120
What is an Overall Economic Development Plan (OEDP)?
A plan identifying economic development problems and opportunities at the city or county level.
121
Define Penturb.
An independent, smaller metro area located far from a major metropolitan area.
122
What is Product Cycle Theory?
A theory describing how products are developed by small firms and then mass-produced by larger companies.
123
What is Public Infrastructure Extension?
Extension of public infrastructure to meet the needs of new or expanding firms.
124
What are Public Works Trust Funds?
Funds used by states to provide loans for infrastructure projects, supporting self-sufficiency and planning.
125
What is a Recoverable Grant?
A no-interest loan that must be repaid to the lender who made the grant.
126
What is a Resource Audit?
A process for inventorying available resources or competencies in a region for strategic planning.
127
What is a Revolving Loan Fund (RLF)?
A pool of funds recycled through successive loans to businesses, replenished by borrower repayments.
128
What is Risk Management?
Strategically protecting against financial losses in ventures with uncertain outcomes.
129
What is Seed Capital?
Equity money supplied by entrepreneurs and their networks to help launch a company.
130
What is Secondary Financing?
A loan secured by a second mortgage or other financing techniques beyond equity and first-mortgage debt.
131
What is the Section 7(a) Loan Program?
SBA's primary business loan program providing loan guarantees to assist small businesses.
132
What is Section 8?
A federal rent subsidy program providing monthly rental assistance to low-income individuals in private housing.
133
What are Section 108 Loan Guarantees?
Guarantees providing front-end financing for large-scale physical development projects to eligible city agencies.
134
What is the primary business loan program provided by the SBA?
7(a) Loan Program
## Footnote
Provides loan guarantees to lenders for financial help to small businesses with special requirements.
135
What does Section 8 provide assistance for?
Monthly rental assistance to low-income individuals living in privately owned units
## Footnote
Rents must be within HUD limits and units must meet HUD Housing Quality Standards.
136
What is the purpose of Section 108 Loan Guarantees?
Provide front-end financing for large-scale physical development projects
## Footnote
Eligible communities can borrow against their CDBGs to finance economic development projects.
137
What does the Section 504 Loan Program finance?
Major fixed assets that promote business growth and job creation
## Footnote
Loans are available through Certified Development Companies (CDCs).
138
What is Shift-Share Analysis used for?
To examine a local area’s basic industries in terms of their growth and decline
## Footnote
Relative to national or regional trends.
139
What services does Site Location Assistance provide?
Assistance in locating sites for new, expanding, and relocating businesses
## Footnote
Includes providing information on sites and organizing visitation programs.
140
What is the mission of the Small Business Administration (SBA)?
Aid, counsel, assist, and protect the interests of small business concerns
## Footnote
SBA was founded in 1953.
141
What are Small Business Investment Companies (SBIC)?
Privately owned for-profit investment firms that make venture capital investments in small businesses
## Footnote
They use their own capital plus borrowed funds with an SBA guarantee.
142
What does Smart Growth refer to?
Efficient use of all available assets
## Footnote
Involves efficient land use, full use of urban services, and detailed design.
143
What are Soft Costs?
Development costs for various services
## Footnote
Includes architecture and engineering fees, construction interest, loan fees, etc.
144
What is Soft Debt?
Capital provided in the form of a loan with contingent payment on available cash flow
## Footnote
Typically provided by a public sector entity with liberal repayment terms.
145
What are Special Assessment Districts?
Areas designated for tax purposes on a different scale than the rest of the jurisdiction
## Footnote
Property may be taxed differently based on public expenditure benefits.
146
What do Special Assessment Funds account for?
Costs of a project benefiting a specific group of properties
## Footnote
Assessed to individuals in the special assessment fund.
147
What are Special Improvement Districts?
Mechanisms where local businesses and/or residents voluntarily pay an additional tax
## Footnote
Funds are used for local improvements.
148
What are Special Revenue Funds?
Funding from sources that specify money for a certain use
## Footnote
Example: revenue from a special tax district for infrastructure improvements.
149
What is a Subsidy?
Funds provided generally by the government in the form of a grant
## Footnote
Reduces development costs or supports ongoing operations.
150
Define a Suburb.
Communities outside of city borders that depend on or maintain a link to the central city.
151
What is the Superfund program?
See Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).
152
What is Sustainable Development?
Development that does not destroy or deplete natural resources
## Footnote
Ensures a better living environment contributing to quality of life.
153
What is SWOT Analysis used for?
Assessing a community’s Strengths and Weaknesses, Opportunities and Threats
## Footnote
Factors that can be changed and those that cannot.
154
What is Tax Abatement?
Exemption or reduction of local taxes for a specific period.
155
What are Tax Incentives?
Tax relief measures to attract businesses or help local businesses expand
## Footnote
Includes tax exemptions, credits, or abatements.
156
What is Tax Increment Financing?
Funding for redevelopment using increases in taxes generated by the redevelopment
## Footnote
Requires state and local enabling legislation.
157
What does Technical Assistance include?
Aid with grant applications, training staff, and marketing
## Footnote
Aimed at providing services small businesses typically cannot afford.
158
What is Transitional Housing?
Shelter for homeless individuals and families for periods of six months to two years
## Footnote
Designed to help residents progress toward self-sufficiency.
159
Define Underemployed.
Persons qualified for higher-skilled jobs than they currently hold or only able to find part-time work.
160
What are Umbrella Bonds?
Low-cost financing for small projects not qualifying for normal revenue bond programs
## Footnote
Proceeds are used as loans for acquisition of land, buildings, etc.
161
Define Unemployed.
Civilians not employed but available and actively seeking work within the past four weeks.
162
What is Venture Capital?
Investment made with the potential for substantial returns, typically in growing enterprises
## Footnote
Subject to considerable risk and uncertainty.
163
What does Very-Low-Income refer to?
Households earning 50 percent or less of the median income for a family of the same size
## Footnote
As determined by HUD guidelines.
164
What is a Voucher?
A government payment used to pay a portion of a household's housing costs.
165
What is the Workforce Investment Act?
Federal government’s effort to adapt the workforce training system to current economic conditions
## Footnote
Includes decentralizing decision-making and adapting training to local growth patterns.
166
What are Worst Case Housing Problems?
Unsubsidized, very low-income renter households with severe housing problems
## Footnote
HUD submits an annual report on these problems.
167
What does Zoning refer to?
Geographic designations of land by categories of use, such as residential or commercial.
168
What is a Zoning Ordinance?
Legislation that maps and designates various zones and their respective land uses
## Footnote
Regulation must be enabled by state legislation.
