Economic, Community, and Partner Effects
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Habitat for Humanity of Greater Charlottesville Economic, Community, and Partner Effects Terance J. Rephann, Ph.D. Center for Economic and Policy Studies December 2014 2 HABITAT FOR HUMANITY OF GREATER CHARLOTTESVILLE ECONOMIC, COMMUNITY, AND PARTNER EFFECTS Terance J. Rephann, Ph.D. Center for Economic and Policy Studies Weldon Cooper Center for Public Service University of Virginia December 2014 Copyright © 2014 by the Rector and Visitors of the University of Virginia P.O. Box 400206 Charlottesville, VA 22904 (434) 982-5522 • FAX: (434) 982-5524 • TDD: (434) 982-HEAR Website: www.coopercenter.org/ Richmond 11 South 12th Street, Suite 225 Richmond, VA 23219-4035 (804) 371-0202 • FAX: (804) 371-0234 • TDD: (804) 982-HEAR Southwest One College Avenue Wise, VA 24293 (276) 328-0133 • FAX: (276) 328-0233 • TDD (540) 328-0191 ii TABLE OF CONTENTS List of Tables ............................................................................................................................................iv List of Figures ........................................................................................................................................... v Acknowledgements .................................................................................................................................vii Executive Summary .................................................................................................................................. 1 Introduction ............................................................................................................................................... 7 Section 1. Habitat Housing Market, Program, Partner and Housing Characteristics .............................. 9 Service Area Housing Market Characteristics and Trends ............................................................... 9 Habitat Program Features ............................................................................................................... 11 Habitat Partner and Housing Characteristics .................................................................................. 14 Section 2. Local Economic Impacts ........................................................................................................ 21 Economic Impact Methodology ...................................................................................................... 21 Habitat Financial and Employment Data ........................................................................................ 22 Habitat Economic Impact Results ................................................................................................... 25 Section 3. Property Value Effects ........................................................................................................... 31 Affordable Housing Effects on Neighborhood Property Values ..................................................... 31 Hedonic Property and Difference in Difference Analyses .............................................................. 33 Data ................................................................................................................................................. 35 Results ............................................................................................................................................. 36 Section 4. Partner Outcomes ................................................................................................................... 45 Homeownership, Housing and Household Outcomes .................................................................... 45 Low-Income Homeowner Outcomes .............................................................................................. 49 Habitat for Humanity Homeowner Outcomes ................................................................................ 50 Habitat Survey ................................................................................................................................ 51 Section 5. Other Benefits ........................................................................................................................ 57 Fiscal Benefits ................................................................................................................................. 57 Environment .................................................................................................................................... 57 Housing Affordability ..................................................................................................................... 59 Foreclosure Cost Avoidance............................................................................................................ 59 Displacement Cost Avoidance ........................................................................................................ 59 References ............................................................................................................................................... 63 Appendix A. Habitat Partner Survey Form ............................................................................................ 69 iii LIST OF TABLES Table 1.1 Percentage of Households with Housing Costs 30 Percent or More of Household Income in Past 12 Months.................................................................................................................10 Table 1.2 Criticisms of Affordable Housing Programs and Habitat Program Features ...........................15 Table 1.3 Characteristics of Habitat Partners Compared to Service Area Population .............................16 Table 1.4 Characteristics of Habitat for Humanity Build Census Tracts to Service Region ...................19 Table 2.1 Habitat Expenditures by Function, 2013 ..................................................................................23 Table 2.2 Habitat Employee and Volunteer Statistics by Function, 2013 ................................................25 Table 2.3 Habitat Local Expenditures by Function and IMPLAN Sector ...............................................26 Table 2.4 Habitat Employment, Labor Income, and Total Industrial Output Impacts by Function.........27 Table 2.5 Habitat Employment, Labor Income, and Total Industrial Output Impacts by Industry .........28 Table 2.6 Habitat State and Local Tax Revenue Impacts by Function ....................................................29 Table 3.1 Determinants of Affordable Housing Effects on Local Property Values .................................33 Table 3.2 Hedonic Regression Variable Definitions ...............................................................................36 Table 3.3 Logit Regression Variable Definitions .....................................................................................36 Table 3.4 Regression Results for Alternative Hedonic Regression Models ............................................37 Table 3.5 Regression Results for Logit Propensity Score Regressions by Distance ...............................39 Table 3.6 Regression Results for Alternative Specifications ...................................................................40 Table 3.7 Regression Results for Alternative Distances ..........................................................................42 Table 4.1 Habitat Partner Survey Respondent Characteristics ................................................................52 Table 4.2 Habitat Partner Quality of Life Changes, Percentage of Total, Mean Scaled Response, and P-value ...........................................................................................................................53 Table 4.3 Habitat Partner Housing Costs, Before and After, Percentage of Total ...................................55 Table 4.4 Habitat Partner Leadership, Education, and Employment Changes, Percentage of Total .......55 Table 4.5 Habitat Partner Public Assistance Utilization, Before and After, Percentage of Total ............55 Table 4.6 Ordered Logit Regression for Habitat Family Improvement ...................................................56 Table 5.1 Before and After Tax Assessment Values of Sunrise Park, 2010 and 2014 .............................58 iv LIST OF FIGURES Figure 1.1 Habitat for Humanity of Greater Charlottesville Service Area ................................................9 Figure 1.2 Housing Prices, Charlottesville Metropolitan Area, Virginia, and United States, 1983-2014 .................................................................................................................................. 11 Figure 1.3 Habitat Homes Constructed by Year ......................................................................................17 Figure 1.4 Geographical Distribution of Habitat Homes in Service Area by Census Tract ....................18 Figure 1.5 Geographical Distribution of Habitat Homes in City of Charlottesville ................................18 Figure 2.1 Economic Impact Diagram .....................................................................................................22 Figure 3.1 Property Value Impact by Distance from Habitat Home ........................................................44 Figure 4.1 Homeownership and Housing Attributes and Related Household Outcomes ........................46 Figure 4.2 Habitat Partner Ranked Average Quality of Life Changes, Scale From Least to Most (3=No Change) ..........................................................................................................54 v vi ACKNOWLEDGEMENTS