RICHMOND, Va., July 11 /PRNewswire/ -- The Federal Reserve Bank of
Richmond and the Richmond Local Initiatives Support Corporation (LISC) today
released the results of a comprehensive study of Richmond's redevelopment
investment practices during a breakfast discussion at the Richmond Bank. The
recent study, commissioned by the Richmond Bank, analyzed efforts by the City
of Richmond and LISC to direct investment resources to specifically targeted
neighborhoods for maximum impact. The study reveals some insights into this
unusual practice and provides new approaches for conducting research into this
aspect of redevelopment investment.
"Anyone who has even a passing acquaintance with community development
has seen abundant evidence of things that have been done to try and enhance
economic outcomes," said Bank President Jeffrey M. Lacker. "What is surprising
is the scarcity of well-grounded research that is focused on outcomes and the
effect on people's actual well-being. ...This study represents a significant
step in that direction."
The study centers on the City of Richmond's Neighborhoods in Bloom (NiB)
project. As part of its NiB policy, the city targeted federal Community
Development Block Grant funds, Home Investment Partnership funds, capital
improvement funds and other resources to carefully chosen neighborhoods. At
the same time, Richmond LISC directed its housing investment subsidies (lines
of credit, loans and grants) to the same neighborhoods. Both the City of
Richmond and LISC tracked their investments by household and neighborhood,
which produced a rich and unique data set. This data set, which includes five
years of investments, was pivotal in enabling researchers to go beyond
anecdotal information and conduct rigorous analysis to determine the impact of
targeting funds.
The study was co-authored by George Galster, Hilberry Professor of Urban
Affairs and Interim Dean of Wayne State University in Detroit, John Accordino
of Virginia Commonwealth University and Peter Tatian of The Urban Institute in
Washington, D.C. The authors used an adjusted interrupted time series (AITS)
model to analyze the data and found that:
* Housing prices in targeted NiB areas appreciated almost 10 percent
faster than the citywide average.
* A spill over affect in adjacent neighborhoods showed an increase in
housing prices at a rate of 5.3 percent faster than the citywide
average.
* The most significant home price impacts occurred at a threshold
investment of about $20,000 per housing block when invested annually
for five years.
"Even relatively uncompetitive, disadvantaged neighborhoods can be
revitalized if public and private investments are predictable, sustained and
spatially targeted to achieve thresholds," Galster remarked to an audience of
about 100.
Event speakers also included Greta J. Harris, Richmond LISC senior program
director; L. Douglas Wilder, mayor for the City of Richmond; and James E.
Ukrop, chairman Ukrop Markets Inc./First Market Bank and chairman emeritus of
LISC.
For a complete copy of the study, call Community Affairs at 804-697-8447.
The study also is available in .pdf format in the Community Affairs section of
the Federal Reserve Bank's public Web site at
http://www.richmondfed.org/community_affairs/topical_essays_and_resources/repo
rts/nib_research.cfm.
The Richmond LISC has posted an educational summary about the NiB project
on their Web site at http://www.lisc.org/richmond/index.php
SOURCE Federal Reserve Bank of Richmond
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Related links:
http://www.rich.frb.org
http://www.lisc.org/richmond/index.php
CONTACT:
Dan Tatar, Community Affairs Officer,
+1-804-697-8463, or Laura Fortunato, Communications-Media
Relations, +1-804-697-8196, both of the Federal Reserve Bank of
Richmond, or Chris Lowrie, External Affairs Officer of the Local
Initiatives Support Corporation, +1-804-649-0548
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