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The Impact of Statewide Inclusionary Land Use Laws on the Supply and Distribution of Housing for Lower Income Households Author: Spencer M. Cowan Dissertation School: University of North Carolina at Chapel Hill Pages: 147 Publication Date: August 2002 Availability: Access Number: 10755 Abstract: This research studies inclusionary development statutes adopted in three New England states. The laws are intended to reduce suburban exclusion and increase the supply of affordable housing by inducing developers to build affordable housing as an integral part of residential projects. The research examines whether the laws have resulted in the creation of more affordable housing in exclusionary suburbs. The first part of the research uses OLS regression to compare the change in the rate of production of affordable housing in exclusionary municipalities between 1980-89, the baseline period, and 1994-98, the study period. The treatment group is municipalities in Connecticut and Rhode Island. Those two states enacted their laws in 1990-91. The control group is municipalities in Massachusetts and New Hampshire. The dependent variable is the difference between the rate of affordable housing produced and, as a percent of all housing permitted, before and after the laws went into effect. The second part of this research uses the relative distribution method to examine the longer-term effects of the laws. This part compares the distribution of values and rents two different ways, using exclusionary municipalities in Massachusetts, which enacted its exclusionary development law in 1969, as a reference distribution, with municipalities in Connecticut, New Hampshire, and Rhode Island providing the comparison distributions. The first compares the distribution of the value/rent for units produced between 1970 and 1990, a contemporaneous interstate comparison. The second compares the value/rent distribution in each state as of 1970 with the distribution in 1990, a longitudinal interstate comparison, to determine how they changed and then compares those changes. The first part of the research produced the result predicted for the laws. The increase in the rate of affordable housing production was significantly greater in the treatment group. The second part provided evidence that the impact may be lasting. Between 1970 and 1990, the rental housing stock in exclusionary municipalities in Massachusetts changed in ways that are apparently different from what occurred in similar municipalities in the other three states. |
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