Property value impacts of foreclosed housing acquisitions under uncertainty

Value-focused thinking for community-based organizations: objectives and acceptance in local development

“…In the latter approach, however, the primary focus is modeling uncertainty, structuring preferences, objectives and attributes to help individual decision makers choose among alternatives (Dyer and Keisler 2012); examples of relevant applications include Armacost et al (1994) and Johnson (2005). While recent published work on decision modeling for housing has focused on elaboration of specific social objectives arising from engagement with community partners (Johnson et al 2012(Johnson et al , 2013, there has been less attention paid to the way in which certain objectives are chosen to incorporate into prescriptive models, nor to the relationship these objectives may have with underlying organizational values. It is this approach in which we position our present inquiry.…”

“…Larger and more controlled studies would help to confirm our preliminary findings and validate measures. Within the CDC/housing domain, our future work will aim to reconcile the objectives identified here with quantifiable foreclosure acquisition value models from other paradigms, e.g., strategic value (Johnson et al 2012) and property value impact (Johnson et al 2013). As discussed above, adapting these results to other CBOs would require more detail, identifying additional objectives for other types of CBOs and enriching the technology acceptance story by accounting for their organizational characteristics and uses.…”

Decision modeling for foreclosed property acquisition by community development corporations in the United States

“…Estimating the social return from the acquisition and redevelopment of a foreclosed property is clearly difficult. Johnson et al (2013) highlight this challenge, and develop a measure validated by some CDCs, which is based on the impact of the acquisition of a foreclosed property on the appreciation of the value of nearby properties. More formally, the PVI measure is defined as the expected impact on proximate property values from a given foreclosure.…”

“…The PVI measure is directly related to the geographical location of a property and its proximity to other properties and amenities. This measure can easily be calculated for each foreclosed property through a Markov chain based procedure described by Johnson et al (2013). Although any social return measure can be used when implementing the decision models, we utilize the PVI values to represent the social returns from the acquisition of a foreclosed property in our empirical analysis.…”