Housing Intervention

Question 1

Reasons for public policy interventions?

Answer 1

1. Producers are not responsive to market demand
2. Insure minimum housing consumption
3. Redistribute wealth through housing
4. Address market externalities -
   S. Stabiles on grow economy
5. Establish rules of the market place
   7.

Question 2

Government interventions in markets include

Answer 2

1. Building better legal regulatory and institutional infrastructure
2. Eepending financial resources
3. Modifying legal and regulatory frameworkto shift market activity

Question 3

In order to design housing subsidies we need to?

Answer 3

1. Identify problems individuals face in improving their housing situation
2. Identify type of subsidy incentives that could fix the issue
3. Understand constraints to the expansion of housing finance systems

Question 4

What policy used for

Answer 4

1. Overcoming market efficiencies
2. Poor housing qualify
3. Insufficient volume of new and low incone construction
4. Stimulating economic growth
5. Insuffereen investment in urban upgrading and renewal

Question 5

Why not just serve the low income or middle income
,

Answer 5

• If middle income is not served by formal market they’ll take low income subsidy’s for the pair
• ## Middle income subsidy only and hope housing will trickle down does not serve low income housing need

Question 6

What is a subsidy

Answer 6

. An incentive by the government to encourage producers or consumers to do somethingthat they would not do by lowering their opportunity cost

Question 7

Subsidy policy will always be faced with?

Answer 7

1. Limited public resource constraints
2. Identify and prositise beneficiaries
3. Difficulty reforming programs once implemented

Question 8

Two types of housing finance

Answer 8

1 consumer subsidy to increase affordable by giving access to finance and helping pay for minimum acceptable income
2. Subsidy to improve efficiency of housing finance

Question 9

What is breadth vs depth and its problems

Answer 9

To many households chasing to few subsidies
- poor location
- poor targeting
-poor physical quality
- creation of low income concentrations
- inability to lend downstream

Question 10

Location based subsidies?

Answer 10

Encourage investment in an area
Leverage community input
Capitalization of subsidies in property value giving rise to gentrification
Development in wrong places leading to abandonment

Question 11

Supply side subsidies?

Answer 11

• Attached to house
• decrease value of rent
• direct ( public supply of houses
• indirect ( rent control, regulations and standards, subsidies to developers and social housings institutions)

Question 12

Demand side subsidies?

Answer 12

Attached to the household
Increase income
Direct ( income supplement)
Indirect (tax concessions and housing vouchers)

Question 13

What is housing finance

Answer 13

Tools that enable households access to housing in the short term while paying it back in the long term and the money that developers use to build houses and then sell to buyers