Value capture

Value capture is a type of public financing that recovers some or all of the value that public infrastructure such as transit generates for private landowners. The concept may also be applied more generally to methods of capturing the value gain that result from upzoning or any change in the environment that is not attributed to actions of the landowner -- this is also called Land value tax.

 

Lisa Schweitzer (2/9/18): 
"Since we are with BS827 setting up special districts around transit stations anyway, we should set up them up special assessment districts, use the transit-value and up-zone value in land appreciation to derive revenues to put into a fund for: a) rental vouchers; b) school districts with new student need from the new developments and c) transit operations and support."

 

Schweitzer, Lisa. "What I’d fix about SB827, aka that white paper has sooooooo been written already."  02/09/2018. 
https://lisaschweitzer.com/2018/02/09/what-id-fix-about-sb827-aka-that-white-paper-has-sooooooo-been-written-already/. 

SOOOOOOoo is there any info on the value capture strategy of which you speak?
Yes! Yes there is! It has been bigily studied and described! It’s been implemented I places. It’s been evaluated. There’s this big huge lineup of reports from researchers at the University of Minnesota.
[Value Capture for Transportation Finance There’s this discussion The Man Himself David Levinson writing for CityLab. This friendly brief from APTA! This friendly informer from the High Speed Rail Advocacy folks. This nice summary paper from an open access journal. This nifty book from the Transportation Research Board (a secret Illuminati organization if there ever was one) This awesome report from Brookings. This cool study on TOD Value Capture in Massachusetts. This little blurb from Smart Growth California folks at SCAG who have a really helpful discussion of tools that may be used in California! This fantastic report from the Lincoln Land Institute. That has a GREAT submission from Mr. Windfalls for Wipeouts Himself, Dean J. Misczynski, who fist published (brilliantly) about this particular topic in 1978. From FHWA here. We might, for example, just tweak this approach a bit. Some private consultants have been working on this VERY IDEA in affordable housing! OH BOY OH BOY IT’S GOT ITS OWN WIKIPEDIA PAGE!! (A little light; David L, go fix it. ) New York City is eyeballing it. And of course, the very nice VTPI Report from Jeffery J. Smith and Thomas A. Gihring, which is a GIGANTICALLY LARGE annotated bibliography.

 

 

Cites:

George, Henry. Progress and Poverty. 1879. http://www.econlib.org/library/YPDBooks/George/grgPPCover.html.

Manville, Michael, Paavo Monkkonen, and Michael Lens (2017). "A better way to solve the housing crisis—tax land, not development." LA Times, JUL 19, 2017. http://www.latimes.com/opinion/op-ed/la-oe-manville-monkonnen-linkage-fee-20170719-story.html.

on EIFDs (Enhanced Infrastructure Funding Districts): 
Kaufman, Rachel. "New California Financing Twist Could Help L.A. River Makeover." Next City. FEBRUARY 5, 2015.
https://nextcity.org/daily/entry/new-california-funding-tool-eifd-financing-la-river-makeover. 

 

References

• Goldman, Michael. "An Affordable Housing Platform for Seattle." The Urbanist, October 17, 2017.
  https://www.theurbanist.org/2017/10/17/affordable-housing-platform-seattle/
  "3. Capture land capital gains by charging a fee on development so that it scales with the value of the land. Then put those fees into non-profit housing development."
   
• Wikipedia. "Value capture." accessed 9 Feb 2018. https://en.wikipedia.org/wiki/Value_capture.