1. Housing Affordability

2. Libertarian Explanation Readings: Housing and Urban Development, Not in My Backyard, Removing Barriers to Affordable Housing (1991) (Heritage Foundation review of this study)Not in My Backyard, Removing Barriers to Affordable Housing (Heritage Foundation review of this study) Protecting Your Property From Stupid "Smart Growth" Socialists by Edwin Feulner (May 8, 2005)Protecting Your Property From Stupid "Smart Growth" Socialists by Edwin Feulner (May 8, 2005) Organized Theft: Sustainable Development, Smart Growth and Kelo by Tom DeWeese (July 3, 2005)Organized Theft: Sustainable Development, Smart Growth and Kelo by Tom DeWeese (July 3, 2005) "Cutting edge California retreats to old, failed ideas" by Thomas Sowell "Sanity in 'Frisco" by Thomas Sowell Government Created Scarcity: California's "Affordable" Housing Problem by Thomas Sowell (December 4, 2003)Government Created Scarcity: California's "Affordable" Housing Problem by Thomas Sowell (December 4, 2003) Housing Hurdles: The Solution? by Thomas Sowell (February 5, 2004) Counting the Costs of Government Regulation of Land Development by Thomas Sowell (April 7, 2004)Counting the Costs of Government Regulation of Land Development by Thomas Sowell (April 7, 2004) Easy Money In California by Thomas Sowell (April 18, 2005) San Mateo County and The Environmental Protection Racket by Thomas Sowell (May 30, 2005)San Mateo County and The Environmental Protection Racket by Thomas Sowell (May 30, 2005) "America’s Worst Urban Program" by Steven Malanga

3. Libertarian Governmental Regulations that increase cost of housing and reduce supply Building Codes Restrictive Zoning Environmental restrictions on building Urban Growth boundaries Rent Control High property taxes and fees on new development

4. Liberal explanations for lack of affordable housing Restrictive zoning –fueled by racism and fear of crime and unequal schooling schools Lack of governmental investment in public housing Predatory lending Mortgage and insurance redlining Energy inefficient building Inefficient land use: suburban sprawl Gentrification

5. Building Codes Safety Codes: Mandating Fire Sprinklers, Stairway codes Cast-iron plumbing Electrical conduit Environmental Codes R-value codes for windows and insulation; appliance codes (water heater). {will save money in the long run; but raise initial costs}

6. Building Codes Other: –restrictions on manufactured housing –Siding and exterior restrictions (Chicago: Concrete block exterior prohibited)Concrete block exterior prohibited

7. Building codes Model building codes adopted either statewide or by local ordinance (with modifications) International Building Code International Building Code National Electrical Code International Energy Conservation Code National Association of Home Builders opposes many codes, favors voluntary codes.

8. Zoning Restrictions on multi-family housing (Oak Brook) Lot-size requirements Single-use zoning over large areas Limits on building height (stories) Solutions: Anti-snob zoning laws; New Urbanism zoning, DeregulationLimits on building height (stories)

9. Environmental Regulations Wetlands protection Endangered species regulations Energy – efficient building codes Critique: San Mateo County and The Environmental Protection Racket by Thomas Sowell (May 30, 2005)San Mateo County and The Environmental Protection Racket by Thomas Sowell (May 30, 2005)

10. Urban Growth Boundaries Liberal justification: more efficient land use, better transportation, reduces suburban sprawl, preserves farmland Libertarian critique: limits development, increases costs

11. Rent Control Liberal justification: prevents gentrification, unaffordable rent increases. Libertarian critique: Restricts rent increases, based on inflation rate (usually, just current tenants). When applied to just current tenants, requires restrictions on eviction. Discourages new development, decreases supply of housing. Discourages maintenance.

12. Rent control… "Cutting edge California retreats to old, failed ideas" by Thomas Sowell"Cutting edge California retreats to old, failed ideas" by Thomas Sowell

13. Policy Designed to provide affordable housing Restrictive zoning: Anti-snob zoning laws: permits developers of low income housing to appeal zoning decisions. Mortgage\insurance Redlining: Fair Housing Laws Predatory lending: Illinois HB 4050 – Traditional Mortgage regulation

14. Policy Designed to provide affordable housing see: Government housing policiesGovernment housing policies Investment in low income housing: –Public Housing, –Housing Vouchers –Low Income Housing Tax Credit Other policies (mostly middle class): –Mortgage interest deduction –Home sale income tax deduction –FHA mortgage insurance