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Mortgage-interest tax deduction cuts on the table

Urbanism doesn’t get a lot of breaking news (that is, unless Eric Fidler’s prediction pans out), but this might be an exception: the WSJ is reporting that Obama’s (bipartisan?) deficit commission is considering cutting the mortgage-interest tax deduction.  The reports are all very speculative, but it looks like they’re definitely not considering eliminating the tax break entirely.  While most libertarians have advocated eliminating the tax break (and in fact all tax breaks) completely and adjusting the general tax rates to make the measure revenue-neutral, it looks like this (along with cuts to the child tax credit, among others) is a cost-saving measure. As I discussed earlier today, the tax credit is just one of many highly regressive government advantageous to wealthy homeowners – the vast majority of Americans don’t even itemize their tax returns, and therefore don’t benefit at all from the tax break.  Still, in spite of its regressiveness, it’s enormously popular among voters. Leaving aside considerations of whether the savings should be used to pay down the deficit or to lower marginal rates, any move to limit this deduction would be a good thing for urbanism.  While the American ideal of the homeowner involved in a positive way in their community and schools is prevalent, I fear that the greater effect of increasing homeownership above the market equilibrium is to encourage NIMBYism by making people look at their home, rather than their wider community, as their biggest asset.  Furthermore, it puts people in the awkward position of desiring a rise in cost for one of life’s most essential needs, which clearly played a large role in the policies that led up to the subprime crash. While this proposed change is certain to encounter fierce resistance from America’s real estate industry and wealthy, entrenched suburban interests, it is only a […]

Midnight links

1. Cap’n Transit weighs in on the ARC debate, and shows that Chris Christie is more interested in shifting resources to his suburban constituents than to cutting spending. Here’s the best part: Editorial board member: What’s the difference between a gas tax hike and a fare hike, besides who it lands on? Christie: That’s the difference. 2. The Los Angeles Times profiles Donald Shoup. I liked this part: Shoup depends on his bicycle for much of his mobility. He freely confesses, however, that when behind the wheel of his silver 1994 Infiniti J30, he often circles the block looking for a free parking space. “I don’t like paying for parking,” he says with a shrug. 3. Matt Yglesias notes DC’s second-only-to-NYC office rents, and blames them on the city’s absurd height restriction.  I’m happy that Yglesias is interested in urbanism, but it doesn’t really appear like he reads/interacts with the wider planning blogosphere (I stand corrected).

The inanity of airport connectors

Despite my issues with how new transit projects are implemented in America today, I’m generally happy to see them built. Even though they’re flawed, heavily-subsidized government creations, they make upzoning more palatable and can later be sold off and privately managed. There’s a lot I’d do differently, but on net I think most new transit projects are a step, however imperfect, in the direction of market urbanism. But there’s at least one form of transit that I can almost never get behind: the airport connector. The airport connector is a special beast of a rail-based transit system that’s a relatively recent phenomenon outside of transit-dense regions like Western Europe and Japan. So manifestly wasteful that it generates more animosity towards mass transit than it does riders, it’s a project that only politicians and unions could love. Unlike more integrated networks where the airport is just one station on an otherwise viable route (like Philadelphia’s Airport Line or DC’s proposed Silver Line), airport connectors generally serve only the airport and one local hub. With no purpose other than to get people in and out of the airport, they provide neither ancillary transit benefits nor TOD opportunities.  Oftentimes they don’t even reach downtown, acting instead like glorified park-and-rides. The most egregious example in the US would have to be BART’s proposed Oakland Airport Connector. The rail line will extend for a little more than three miles, replacing what is now a bus routes.  The $3 fare will double, along with the half billion dollars that it will cost the government. Like the current bus route, it will only connect Oakland’s airport to the nearest BART station with no intermediate stops. It’s opposed by transit activists, who would rather convert the bus into a dedicated BRT lane and spend the rest of the half billion […]

Hell freezes over, or: the one in which I agree with Randal O’Toole’s argument over Shoup’s

I never thought the day would come, but I actually find myself taking issue with Donald Shoup’s recent criticism of the Cato Institute (which Randal O’Toole works for) and its own DC headquarters’ employee parking program. While I agree with Shoup’s more general critique of Cato’s stance on transportation and land use issues, and consider him to be the greatest urbanist since Jane Jacobs, his attack on Cato for giving its employees free parking appears to me to be misdirected. The gist of his argument is that since Cato offers free parking to its employees and neighboring NPR (both on Massachusetts Ave. in DC) charges its workers for parking, NPR is taking the “free market” approach and Cato is taking the “free parking” approach. But I don’t see how this comports with Shoup’s broader research, which focuses on parking policies of governments and not private (well, sort of) entities like NPR and Cato. Corporations are allowed to take a command-and-control approach to their operations and still be considered “free market institutions” as long as they are competing in a free market, and in fact some of the most successful ones are (Facebook, for example, is still run as Mark Zuckerberg’s own personal fiefdom). Now of course, Cato is not operating in a free market when it comes to parking. It likely was forced to build some amount of parking by law, and even if it wasn’t, the influence of neighboring areas’ land use policies looms large on a single building like Cato’s. There’s also the issue of employer-provided parking as a fringe benefit not being taxed, which Shoup mentions. He then suggests that Cato offer a parking cash-out program, whereby they pay employees who choose not to park the cash equivalent of the spot, which Cato doesn’t appear to currently […]

No ARC without TOD

A lot of fuss has been made by urbanists about how important the ARC transit tunnel under the Hudson is to curbing sprawl in North Jersey, but frankly I’m not convinced that more commuter rail into Manhattan is the cure for what ails New Jersey. The state’s fundamental problem is its reliance on two cities outside its borders for providing jobs to its people, and it’s used the existence of New York and Philadelphia as excuses to remain a sprawled, suburban oasis in the middle of a dense Northeast Corridor, which can’t continue once it runs out of land and money. Commuter rail in post-WWII America has never quite lived up to transit activists’ hopes, and the NJ Transit service and the ARC tunnel will be no different. Instead of viewing suburban train stations as smaller versions of city stations, locals like to think of them as their own personal portals into downtown business districts. Suburbanites don’t want transit-oriented development – they want lots of parking so they have access to the station, since most of them don’t live within walking distance.  Increased density and less parking might benefit future residents who would move in to new developments, but they don’t show up to zoning board meetings and don’t get a vote. As an example of how many towns waste their transit, I grew up in Bryn Mawr, a suburb of Philadelphia, and a town which has better transit access than the Upper East Side. It’s part of a string of towns collectively known as the “Main Line,” after the train tracks that run through the area, there’s a light rail line that runs south of the main commuter line, and there are a few bus lines (both SEPTA buses and private college shuttles) that connect the towns. Despite its […]

Sunday links

1. Planners in the Twin Cities have decided to “back away from the age-old compact in which the state tries to keep pace with suburban expansion” (i.e., they’re canceling new outer road projects) and add toll/bus lanes to highways in the inner metro area. Republican governor and business on one side, Republican voters on the other – we’ll see who wins. 2. Philadelphia and Washington, DC try (and mostly fail) to account for and sell off their vacant plots. 3. While DC’s “impervious area charge” that finances for the sewer system makes sense in theory, it does seem a bit inefficient to mandate that people and businesses build parking, and then charge them a fee on something they might not even have wanted to build in the first place. I guess it’s better than California’s solution. 4. NYT architecture critic Nicholas Ouroussoff rails against the NYC Planning Department’s decision to cap Jean Nouvel’s planned Midtown skyscraper at 1,050 feet (he wanted to build it 200 feet higher) and what he views as a mentality that “risks transforming a living city into an urban mausoleum.” According to the planning commissioner, the design was rejected since it failed to live up to the Empire State Building’s grandeur, which it would have rivaled in size.

Friday links

1. Miller-McCune (what a bad name for a magazine) has an article about a possible VMT tax, and points out that more fuel-efficient vehicles will lead to less gas tax revenue. 2. Streetsblog has an extremely unflattering profile of Republican nominee for NY Governor Carl Paladino. He made a name for himself politically by detolling a major highway near where he was a real estate developer, and has continued to oppose new tolling projects throughout the state. He’s promising to cut the gas tax rate, and apparently once said, “It’s time we started looking at parking as a public service.” I should note that his Democratic opponent Andrew Cuomo ain’t no slouch when it comes to encouraging sprawl – Wayne Barrett at the Village Voice fingered his tenure as HUD Secretary as one of the “starting points for the mortgage meltdown.” 3. Paul Barter at Reinventing Parking has a guest post about parking reform in Bogotá that was concurrent with their much-vaunted TransMilenio BRT system, and he promises us more about it in the future. 4. Quoteth the Los Angeles Times: “At least 120 municipalities [in California] — nearly one in three with active redevelopment agencies — spent a combined $700 million in housing funds from 2000 to 2008 without constructing a single new unit, the newspaper’s analysis of state data shows. Nor did most of them add to the housing stock by rehabilitating existing units.” 5. Vancouver learns the hard way that luxury public housing is a bad idea. You could call it inclusionary zoning at its finest.

When will New Jersey reverse its sprawling ways?

by Stephen Smith New Jersey has always been an odd state – it’s the most densely populated of the fifty, and yet it lies just outside of the core of both of its metro areas (Philadelphia and New York). North Jersey does have a formidable number of mid-sized cities, but the biggest – Newark – is a posterchild for urban neglect, and New Jersey’s urban areas play a tepid second fiddle to their much larger counterparts across the Delaware and the Hudson. New Jersey’s appeal lies undeniably in its suburbs, which are connected by a network of government-built roads and enabled by anti-density development rules. Despite New Jersey’s predilection for sprawl, the New York Times reports that the state may literally be running out of horizontal space. A Rutgers study claims that around the middle of the 21st century New Jersey will become the first state to develop all its unprotected land development trends remain unchanged. The NYT article then claims that denser redevelopment is on the rise and cites a few of anecdotes as evidence, but frankly I’m not convinced that the state is very reform-minded when it comes to its density-limiting regulations. Even among the examples given by the Times we see the limits of reform: a 217-unit luxury rental apartment building near the Morristown NJ Transit station – an area that was supposedly rezoned as a “Transit Village Core” a decade ago – was only allowed to go forward after the developer agreed to build 722 new parking spaces. On a more general level, New Jersey’s experiment with zoning reform in the ’70s and ’80s has been severely disappointing in terms of liberalization. Researcher James Mitchell used decisions handed down around the same time by both the Pennsylvania and New Jersey Supreme Courts to compare the effects on […]

New York City links

There are a couple of NYC-related links that I’ve been saving up, so here they are: 1. Stephen Goldsmith, former mayor of Indiannapolis and NYC’s new deputy mayor, appears to be interested in privatizing New York City’s parking meters in order to balance the city’s budget. We’re more interested in the extent to which it will raise parking prices closer to a market rate, but wary of the city locking in parking policy and therefore not being able to experiment with more radical reforms down the road. 2. Bruce Ratner’s new Lower Manhattan apartment building, designed by Frank Gehry, with studios starting at $3,000/mo., is receiving an affordable housing tax abatement. 3. Comptroller John Liu’s task force on “what the city can and should demand from developers of publicly subsidized projects” has collapsed in a series of public resignations and dissensions. Fortunately, it looks like a potentially lethal beast has been slain: In a letter to the task force co-chairs, four dissenters wrote that the task force’s recommendations would create “additional red tape and bureaucracy and ultimately waste taxpayer funds on a new set of city-funded consultants.” “In today’s increasingly competitive environment, a proposal like this would make New York a more difficult place to do business and to build,” the four dissenting task force members wrote in a letter reviewed by the Journal. 4. The Gotham Gazette discusses the city’s Economic Development Corporation, which should ring a bell for anyone interested in NYC real estate. The article claims that it’s the most significant planning entity in New York City, and that its rise has come on the back of inclusionary zoning and public-private initiatives. A lot of this is includes affordable housing mandates (usually about 20%) within otherwise private buildings, which the Gotham Gazette says are included in most […]

Zoning blighted Manhattanville before Columbia did

Something that always annoyed me about discussions of the state of Manhattanville and Columbia’s blight study is the fact that they usually leave out restrictive zoning as the original sin. We’re certainly no fans of eminent domain or Columbia’s plans for the West Harlem neighborhood, and while people are right to point out that Columbia’s neighborhood acquisitions and plans are key drivers of the further decline of the neighborhood, it would be stretching the truth to say that the neighborhood’s blight is entirely Columbia’s fault. The fact is that even before Columbia descended upon the neighborhood, its zoning classification just wouldn’t allow it to be a nice place. What else would you expect from an area that’s zoned mostly for industrial and manufacturing uses and is inhabited mostly by storage companies and auto repair shops? And the neighborhood organizations themselves weren’t doing the best job selling the alternatives. While their plan included some upzonings, it also would have hobbled the area with the onerous restrictions that are all too common throughout the city. There was an emphasis on preservation of the status quo, with some light industry retained. Inclusionary zoning and community benefits agreements would have driven up the cost of development further. They also took the stance that parking in the area was “insufficient” and “inadequate,” and called for “affordable municipal parking.” Clearly not being familiar with the work of Donald Shoup, they argued that “limited parking cause[s] drivers to circle blocks looking for on-street parking.” Again, while we’re no fans of eminent domain or Columbia’s heavy-handed tactics, it’s important to remember how difficult it is to do things “the right way,” and how much time and money is necessary to get plots of land rezoned. NYU, which doesn’t have the blight excuse for its Lower Manhattan acquisitions, is […]

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