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Re: E-M:/ Fwd: New Tax Rules Could Keep More Homeowners in Cities



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Enviro-Mich message from "Eric K. Lawson" <lawson@publicpolicy.com>
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This might be only tangentially relatated, but does anyone know if there
has been any movement around here to use "Location efficient mortgages?"  

If you haven't heard about these, they are essentially mortgages with lower
interest rates for homes bought in urban centers.  The logic here is that
suburb residents spend considerably more on transportation (~$350 / month
by one estimate) than their urban counterparts.  Thus, urban residents
should be a lesser risk for lenders.  The hope is that this will create a
market incentive to encourage redevelopment of the urban landscape.  It is
also a step to begin accounting for some of the many hidden costs of
suburbanization.

Anyway, if any of you have any further info on this or would just like to
continue a dialogue on land use disparities in MI please drop me a note or
send it to the list.

--ekl


At 08:14 AM 8/19/97 -0400, you wrote:
>-------------------------------------------------------------------------
>Enviro-Mich message from Davedbike@aol.com
>-------------------------------------------------------------------------
>
>This may be old news to some, but thought it worth passing along.  I believe
>Rep. Earl Blumenaur (sp), Portland, OR, worked to get this done in Congress.
> 
>
>Dave DeRight
>Kazoo
>---------------------
>Forwarded message:
>From:	Warren.Nielsen@SANTAFE.CC.FL.US (Warren Nielsen)
>Sender:	CNU@LSV.UKY.EDU (Congress on New Urbanism)
>Reply-to:	CNU@LSV.UKY.EDU (Congress on New Urbanism)
>To:	CNU@LSV.UKY.EDU (Multiple recipients of list CNU)
>Date: 97-08-18 15:33:49 EDT
>
>        New Tax Rules Could Keep More Homeowners in Cities
>
>        By Neal R. Peirce
>
>        Saturday, August 16, 1997; Page E01
>        The Washington Post
>
>        Neither the press nor real estate moguls seem to have noticed.
>        But inner cities could reap a harvest of residential investment
>        from a provision of the new budget-tax law that virtually
>        repeals the capital gains tax on the sale of personal homes.
>
>        But the initial idea of doing away with the housing capital
>        gains tax didn't come from homeowners associations, real estate
>        brokers or any of the normal suspects.
>
>        The originator, instead, was Thomas Bier, head of the housing
>        policy research center at Cleveland State University.
>
>        Through years of meticulous probing of people's house-to-house
>        moves, Bier assembled statistical evidence showing that the 1951
>        vintage tax law virtually forced movers with accumulated house
>        value to look away from the city, to buy "up and out" to more
>        expensive housing on the suburban fringe.
>
>        Even beyond factors such as crime and schools, Bier has argued
>        for years: "This single federal policy virtually dictates
>        central city decline, and eventually inner-ring suburban
>        decline, because it creates an extremely strong push toward more
>        expensive homes."
>
>        The federal tax law's just one factor, of course. Bier's the
>        first to note that most states, through massive subsidies for
>        suburban ring roads and connectors, new water systems, sewers
>        and schools, continue to finance suburban growth and
>        discriminate against their established towns and cities.
>
>
>        c Copyright 1997 The Washington Post Company
>
>        The complete article can be found  for the next two weeks at:
>        http://www.washingtonpost.com/wp-srv/WPlate/1997-08/16/039l-0816
>        97-idx.html Jim Wamsley
>        jwams@erols.com
>
>
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