Effectiveness of RCA Institutions to Limit Local Externalities: Using Foreclosure Data to Test Covenant Effectiveness

Groves, Jeremy; Rogers, William H.

doi:10.3368/le.87.4.559

Cited by 24 publications

(15 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Beyond 40 neighbors, the RSS is increasing. A spatial weight matrix with 20 near neighbors is higher than most we found in the literature (Pace, 1998;Anselin and Lozano-Gracia, 2008;Rogers, 2010;Groves and Rogers, 2011) and beyond what appraisers are required to use in establishing values (Fannie Mae, 2015).…”

Section: Resultsmentioning

confidence: 70%

“…Discounted recent foreclosures can lower the perceived and appraised value of neighboring homes. Most of the results clustered around a 1 percent lower sale price for each nearby foreclosure (Immergluck and Smith, 2006;Schuetz, Been, and Ellen, 2008;Harding, Rosenblatt, and Yao, 2009;Leonard and Murdoch, 2009;Rogers and Winter, 2009;Rogers, 2010;Campbell, Giglio, and Pathak, 2011;Groves and Rogers, 2011;Hartley, 2014). One study by Lin, Rosenblatt, and Yao (2009) estimated that each foreclosure liquidation can depress shortrun property values of homes within a half mile as much as 8.7 percent in down markets and 5 percent in up markets.…”

Section: Literaturementioning

confidence: 99%

See 1 more Smart Citation

Land Bank 2.0: An Empirical Evaluation

Whitaker

Fitzpatrick

2015

Journal of Regional Science

View full text Add to dashboard Cite

ABSTRACT. In 2009, Cuyahoga County, Ohio (Cleveland and 58 suburbs), established a land bank to acquire low-value properties, mitigate blighted housing, and slow the decline of property values. This empirical study evaluates the effectiveness of the land bank by estimating spatially corrected hedonic price models using sales near the land-bank homes. The land bank reduces the negative externalities of the properties it acquires. Its largest impact is the preservation of equity in unsold homes. We also estimate the recovered value for homes sold during the study period and the property tax revenue that may have been forgone, absent the land bank.

show abstract

Section: Resultsmentioning

confidence: 70%

Section: Literaturementioning

confidence: 99%

Land Bank 2.0: An Empirical Evaluation

Whitaker

Fitzpatrick

2015

Journal of Regional Science

View full text Add to dashboard Cite

show abstract

“…Discounted recent foreclosures can lower the perceived and appraised value of neighboring homes. Most of the results clustered around a one percent lower sale price for each nearby foreclosure (Immergluck and Smith, 2006;Schuetz et al, 2008;Leonard and Murdoch, 2009;Harding et al, 2009;Rogers and Winter, 2009;Hartley, 2010;Rogers, 2010;Campbell et al, 2011;Groves and Rogers, 2011). One study by Lin, Rosenblatt, and…”

Section: Literaturementioning

confidence: 99%

Land Bank 2.0: An Empirical Evaluation

Fitzpatrick

Whitaker

2014

Working Paper (Federal Reserve Bank of Cleveland)

View full text Add to dashboard Cite

In 2009, Cuyahoga County, Ohio, which contains Cleveland and 58 other municipalities, created the Cuyahoga County Land Reutilization Corporation. This land bank was established to acquire low-value properties, mitigate blighted housing, help stabilize neighborhoods, and slow the decline of property values. As of September 2013, the land bank had acquired 3,405 properties and demolished 1,853 structures. This empirical study evaluates the effectiveness of the land bank by estimating spatially corrected hedonic price models using sales near the land bank homes. In the six months before they are purchased by the land bank, the distressed properties are estimated to lower the sale price of nearby homes (within 500 feet) by 5.2 percent. The negative externality from the distressed properties decreases to 4.4 percent once the land bank takes possession. A vacant lot created by a land-bank house demolition reduces the values of nearby homes by 2.4 percent. By reducing the negative externalities of distressed properties, the land bank has recovered about $3.8 million in value for homes sold during the study period. We estimate that tax collections were $3.2 million higher than they otherwise would have been. The land bank's largest impact takes the form of preserved value for homes that did not sell during the study period, and we estimate this to be approximately $156 million.

show abstract

“…Similarly, one might expect the net present value of the stream of benefits and costs generated by SLGOs to become capitalized into home sales prices. Four studies (Groves and Rogers ; Hughes and Turnbull ; Rogers ; Scheller ) find that homeowner associations positively affect property values, in St. Louis, Missouri; Baton Rouge, Louisiana; Greeley, Colorado; and Tallahassee, Florida, respectively. An additional study of St. Louis County, however, failed to find evidence that homeowner associations affect property values (Groves ).…”

Section: Collective Action and Property Values In Urban Neighborhoodsmentioning

confidence: 99%

Institutional Analysis of Neighborhood Collective Action

Craw

2016

Public Administration Review

View full text Add to dashboard Cite

Sublocal governance organizations may provide a way for some urban neighborhoods to stabilize and improve property values. Recent advances in collective action theory, spatial statistical methods, and data availability now make it possible to more directly evaluate the effects of these organizations. The analysis combines geocoded assessor ' s data and data from a survey of neighborhood and homeowner associations to analyze a model of prices of single-family homes in Little Rock, Arkansas, from 2012 to 2016. The results show that neighborhood and homeowner associations both have significant positive effects on neighborhood property values relative to unorganized neighborhoods and that the effect of neighborhood associations is at least as large as that of homeowner associations. Moreover, the results indicate that neighborhood association structure mediates the effect on property values, although this is not the case for homeowner associations.

show abstract

Effectiveness of RCA Institutions to Limit Local Externalities: Using Foreclosure Data to Test Covenant Effectiveness

Cited by 24 publications

References 32 publications

Land Bank 2.0: An Empirical Evaluation

Land Bank 2.0: An Empirical Evaluation

Land Bank 2.0: An Empirical Evaluation

Institutional Analysis of Neighborhood Collective Action

Contact Info

Product

Resources

About