Details

Title	Creating a Housing Crisis: How Government Makes Housing Unaffordable in the Denver Metropolitan Area
Highlights	Lengthy permitting processes can increase housing costs.   Streamlining the permitting process by implementing time limits or providing one-stop permitting can reduce building costs.                       Regulations such as impact fees, open space requirements, and urban-growth boundaries exclude non-homeowners and benefit homeowners.   Revising the zoning code with a focus on housing affordability can reduce segregation.                       Excessive impact fees can unfairly increase housing costs.                         Urban-growth boundaries can increase housing costs.   The author suggests the Denver Regional Council of Governments focus on housing affordability instead of urban-growth.                       Open space requirements can increase housing costs.   Open space requirements should focus on recreation areas, wildlife, and watersheds, not controlling growth.                       Zoning regulations such as impact fees, open space requirements, and urban-growth boundaries can exclude non-homeowners and benefit homeowners.   Revising the zoning code with a focus on housing affordability can reduce segregation.
Description	Stephen Hackman, of the Independence Institute, claims in this report that policies of the government of Denver, Colorado have created a housing market with a lack of affordable housing. The author cites other fast growing cities, such as Atlanta and Phoenix, which have median housing prices less than Denver. The author also states that claims of scarce land causing housing prices to rise are unfounded, since there is plenty of land available. Instead, he cites regulations on new construction that have created a gap between prices and building costs. In particular, he claims that zoning obstacles, urban-growth boundaries, open space requirements, and impact fees all have unintended consequences of increasing housing prices. In addition, these policies can act as segregation instruments, since they can exclude non-homeowners from purchasing a home and benefit those who already own a home. Inclusionary zoning, while producing affordable housing, drives up costs for everyone else. The author recommends streamlining the regulatory process to reduce the length of time of the permit process. This can be accomplished by implementing a time limit and providing one-stop permitting. He also suggests that the Denver Regional Council of Governments make housing affordability a high priority and focus less on urban-growth boundaries. The author suggests that open space requirements focus on recreation areas and wildlife/watershed protection, instead of controlling urban growth. Impact fees should be lowered to cover actual costs not covered by residential and property taxes. Finally, Hackman suggests that inclusionary zoning should be eradicated, since it does more harm than good.
Publication Date	2004
Organization	Independence Institute
Web Location	http://i2i.org/articles/10-2004.pdf

Notice: The contents of this record reflect the views of the author and/or promulgating municipality, and should not be construed as representing the views or policies of the U.S. Department of Housing and Urban Development or U.S. HUD's Office of Policy Development and Research. No attempt has been made by U.S. HUD or its contractors to verify the accuracy, currency, or validity of the record contents presented herein.