Community Development Research Briefs

Postsecondary educational expenses and student loan balances have been trending steadily upward, but persistent unemployment and weak economic conditions have created an alarming new trend of rising student loan defaults. This Brief examines broad trends in student borrowing in the Federal Reserve’s 12th District, with an emphasis on students from low- and moderate-income households. The rise of student borrowing has important community development implications as it directly impacts the present and future financial well-being of LMI individuals.

Everyone knows the old real estate adage that the three most important factors in determining the value of a given property are location, location, and location. This is to say that place matters; a neighborhood confers a bundle of amenities to its residents that are specific to that geography. This bundle can include proximity to parks, small-scale retail offerings, high quality schools, and a variety of transportation options, as well as low crime rates and clean air. These amenities are arranged in a variety of configurations across space, and most households determine which aspects are most important to them, and then choose their neighborhood accordingly.

Within the Federal Reserve’s 12th District, over 4 million families and individuals received the Earned Income Tax Credit (EITC) for tax year 2007, totaling over $8 billion in credits. In this Research Brief, we examine trends in EITC usage across the 12th District, and look at how the EITC and tax time provide a unique opportunity to link lower-income households to financial services and other asset building.

Transit-oriented development (TOD) can provide households with more opportunities and choices. Ideal TOD communities are mixed-use neighborhoods with good-quality public transit that connect people of a variety of incomes to a wide range of economic, social, and educational opportunities. TODs incorporate access to human services such as child care facilities, fresh food stores, health care facilities, and cultural and educational institutions within a short walking distance of transit. Families living in transit areas can significantly reduce the time and cost spent on their daily commute to work, and the other trips required for their daily chores, allowing for more disposable income and leisure time. Compact and pedestrian-oriented environments also generate demonstrated public health benefits by reducing obesity and preventing related health problems. This special report explores how CDFIs can be utilized to provide financing for TOD projects.