Dr. Richard Green, Director of the USC Lusk Center for Real Estate, is quoted in the June 1, 2009 edition of California Planning & Development Report
Cities Cut, Delay Development Fees
California Planning & Development Report
By Paul Shigley
...The recession and slack development activity have caused about 10 cities and counties to reduce their development impact fees, while more jurisdictions have delayed collecting fees until new buildings are ready to occupy. Some interest groups regard the fee deferrals as helpful in generating local activity. But whether fee reductions are similarly stimulative is dabatable...
...The City of Fremont has cut fees and this month is likely to approve fee deferrals as well, according to Planning Director Jim Schwob. The fee deferral "seems to be something more people are interested in because you don't have to finance the impact fees. From what we hear from the development community, that might be more effective" than fee reductions, he said.
Schwob's finding would not surprise Richard Green, director of the University of Southern California Lusk Center for Real Estate. "Giving away tax incentives or reducing fees in the short-run - I'm not convinced from the academic literature that's a very effective strategy," Green said. With housing prices "less than it costs to build a house," why try to spur new housing construction?...
(Editor's note: The following link to the source article may only be available for a few days following the publication of this article, or it may only be available for a fee. Please contact the source publication for more information about retrieving the full text of this article.)
June 1, 2009