Community Development Working Papers

In a new Community Development Working Paper from the Federal Reserve Bank of San Francisco, author Kevin Leichner examines New Markets Tax Credit (NMTC) performance during the Great Recession and provides recommendations for maintaining deal flow to support the NMTC project pipeline and overcome financing gaps. Between 2002 and 2009, the Federal government allocated $26 billion worth of NMTC to support community development projects. Based on new data from the respondents to a Winter 2010 Center for Community Development Investments survey as well as three case studies, NMTC stakeholders are finding their NMTC portfolios are outperforming other investments. At the same time, however, their responses also indicate that the Congressional expansion of the program, with larger annual allocations, may exceed the ability of the NMTC industry to provide high-quality investor-backed projects. As a consequence, investor demand for the tax credits has been falling, resulting in lower investor pay-ins and reduced impact in low-income communities. Based on survey responses, case studies, and industry literature, the paper concludes with recommendations for strengthening the program and stimulating demand.

California’s housing market has been severely affected by the foreclosure crisis. The state’s high foreclosure rate has also contributed to neighborhood destabilization in many communities, resulting in negative spillover effects such as price declines and increased crime and blight. In light of these rapid changes in the housing landscape, this report provides a current “snapshot” of California’s housing market in the wake of the foreclosure crisis. It presents historical trends as well as current data on foreclosures, home prices, and affordability, and also considers the state’s future housing needs. Given the state’s sheer size and dramatic regional variation, the report also digs down into conditions at the regional and county level. The study hopes to inform stakeholders from across the state and help in the development of a strategic response to the drastic changes that have taken place in California’s housing market over the past few years.

After almost a decade of strong price appreciation, the housing market fell into a steep decline in 2007. By 2008, foreclosure filings on owner-occupied homes were surpassing record levels. Due to the housing downturn, fewer renters may aspire to own a home, which could have lasting implications for neighborhoods and household asset building. This study analyzes the impact of the housing downturn on renters’ intent to purchase a home, their perceptions of the risks and benefits of homeownership, and their interest in information and advice concerning homeownership.