scholarly journals Financing Transit-Oriented Development with Land Values: Adapting Land Value Capture in Developing Countries

2015 ◽  
Author(s):  
Hiroaki Suzuki ◽  
Jin Murakami ◽  
Yu-Hung Hong ◽  
Beth Tamayose
Keyword(s):  
Developing Countries ◽  
Land Values ◽  
Land Value ◽  
Transit Oriented Development ◽  
Value Capture

scholarly journals Understanding the geography of affordable housing provided through land value capture: Evidence from England

Urban Studies ◽  
2021 ◽  
pp. 004209802199889
Author(s):  
Alexander Lord ◽  
Chi-Wan Cheang ◽  
Richard Dunning
Keyword(s):  
Affordable Housing ◽  
Theory And Practice ◽  
Land Values ◽  
Land Value ◽  
Local Planning ◽  
Development Activity ◽  
Value Capture ◽  
Dual Approach ◽  
The Right ◽  
Community Infrastructure

Governments the world over routinely undertake Land Value Capture (LVC) to recover some (or all) of the uplift in land values arising from the right to develop in order to fund infrastructure and public goods. Instruments to exact LVC are diverse but are usually implemented independently. However, since 2011 England has been experimenting with a dual approach to LVC, applying both a tariff-style levy to fund local infrastructure (the Community Infrastructure Levy) and negotiated obligations, used primarily to fund affordable housing (Section 106 agreements). In this article we employ a difference-in-differences (DID) method to identify the interaction of these two instruments available to local planning authorities. We explore the question of whether the Community Infrastructure Levy ‘crowds out’ affordable housing secured through Section 106 planning agreements. In so doing we show that the interaction of these two approaches is heterogeneous across local authorities of different types. This raises questions for understanding the economic geography of development activity and the theory and practice of Land Value Capture.

scholarly journals Affordable Housing Provision in Informal Settlements through Land Value Capture and Inclusionary Housing

2020 ◽  
Vol 12 (15) ◽  
pp. 5975 ◽  
Author(s):  
Bernard Nzau ◽  
Claudia Trillo
Keyword(s):  
Developing Countries ◽  
Real Estate ◽  
Affordable Housing ◽  
Social Inclusion ◽  
Real Estate Market ◽  
Master Plan ◽  
Land Value ◽  
Value Capture ◽  
Inclusionary Housing ◽  
Housing Needs

Public-driven attempts to provide decent housing to slum residents in developing countries have either failed or achieved minimal output when compared to the growing slum population. This has been attributed mainly to shortage of public funds. However, some urban areas in these countries exhibit vibrant real estate markets that may hold the potential to bear the costs of regenerating slums. This paper sheds light on an innovative hypothesis to achieve slum regeneration by harnessing the real estate market. The study seeks to answer the question “How can urban public policy facilitate slum regeneration, increase affordable housing, and enhance social inclusion in cities of developing countries?” The study approaches slum regeneration from an integrated land economics and spatial planning perspective and demonstrates that slum regeneration can successfully be managed by applying land value capture (LVC) and inclusionary housing (IH) instruments. The research methodology adopted is based on a hypothetical master plan and related housing policy and strategy, aimed at addressing housing needs in Kibera, the largest slum in Nairobi, Kenya. This simulated master plan is complemented with economic and residual land value analyses that demonstrate that by availing land to private developers for inclusionary housing development, it is possible to meet slum residents’ housing needs by including at least 27.9% affordable housing in new developments, entirely borne by the private sector. Findings suggest that under a robust public-led governance umbrella, market forces can (1) significantly contribute to fill the financial gap in order to achieve the end of slums by 2050 in coherence with the United Nations Agenda 2030 targets and principles, and (2) increase both affordable and market housing in upgraded neighbourhoods, hence enhancing social inclusion in cities of developing countries.

Defining the ground for land-use-based direct public-value capture in Austria

2020 ◽  
Vol ahead-of-print (0) ◽  
pp. 1-20
Author(s):  
Arthur Schindelegger ◽  
Laura Sidonie Mayr
Keyword(s):  
Land Use ◽  
Land Use Planning ◽  
Land Values ◽  
Land Value ◽  
Legal Analysis ◽  
Recent Discussion ◽  
Value Capture ◽  
The Public ◽  
Planning Decisions ◽  
Key Aspects

The discussion whether and how to capture the increment of land value has been present in academia and politics for decades. Only few countries have established comprehensive systems to calculate land values and introduce a regulatory basis to directly or indirectly capture increments linked to land-use planning decisions for the public good. This article elaborates the potentials of and barriers to implementing a land-use-based direct value-capture mechanism within Austria’s fragmented planning regime. The considerations are built upon an analysis of the existing framework and instruments linked to land value and planning to identify the context of constraints for an additional or replacing instrument. Based on a legal analysis and qualitative expert interviews, key aspects for linking value capture to land-use planning decisions are identified and conclusions drawn based on a recent discussion in Austria.

Synergizing Land Value Capture and Transit-Oriented Development: A Study of Bengaluru Metro

2021 ◽  
Author(s):  
Jaya Dhindaw ◽  
Sree Kumar Kumaraswamy ◽  
Surya Prakash ◽  
Radha Chanchani ◽  
Amartya Deb
Keyword(s):  
Private Property ◽  
Specific Reference ◽  
Land Value ◽  
Transit Oriented Development ◽  
Value Capture ◽  
The Real Estate ◽  
Property Owners ◽  
The Government ◽  
Financing Strategy ◽  
The City

The Government of Karnataka and Bangalore Metro Rail Corporation Limited are exploring ways to offset the heavy economic burden of expanding the metro rail transit network in Bengaluru. Land value capture (LVC) is a public financing strategy that can recover a portion of the real estate value that development along the metro corridor generates for private property owners. Deployed effectively, LVC can help fund the growth of mass transit and allied infrastructure. Several LVC mechanisms are under consideration in Bengaluru, but are yet to be implemented. Inherent shortcomings in planning, policy, and institutional frameworks prevent the market from optimizing the benefits of transit-oriented development (TOD), which in turn negatively impacts LVC. In this practice note, we first evaluate and assess the potential for TOD and LVC to evolve in tandem with specific reference to the Bengaluru metro and, second, posit strategies and recommendations to reorient policies to leverage TOD as an opportunity for LVC, and vice versa. Our learnings are illustrated through case studies of two typical metro stations – an inner-city neighborhood and an upcoming area in the periphery of the city.

scholarly journals Rapid transit, transit-oriented development, and the contextual sensitivity of land value uplift in Toronto

Urban Studies ◽  
2017 ◽  
Vol 55 (10) ◽  
pp. 2197-2225 ◽  
Author(s):  
Christopher Higgins ◽  
Pavlos Kanaroglou
Keyword(s):  
Latent Class ◽  
Urban System ◽  
Land Values ◽  
Land Value ◽  
Rapid Transit ◽  
Transit Oriented Development ◽  
Transit Accessibility ◽  
Catchment Areas ◽  
Impact Area ◽  
Contextual Sensitivity

Rapid transit projects that increase accessibility should result in a localised land value uplift (LVU) benefit for locations near stations. A rich history of research has tested this hypothesis, generally operationalising transit accessibility by proxy through distance from a transit station. However, a growing body of research has also demonstrated LVU effects from transit-oriented development (TOD) as individuals sort themselves into locations that best match their preferences and willingness to pay. Considering the interdependence of transportation and land use in the urban system, we argue that these benefits create a spatial bundle of TOD goods around transit stations and hypothesise that households are willing to pay a premium for locations in more transit-oriented station catchment areas. Utilising latent class analysis, we quantify station area TOD submarkets. Next, interactions between these submarkets and station proximity in spatial hedonic regressions reveal that TOD is capitalised into land values in Toronto, though the maximum amount and spatial impact area of this capitalisation differs by TOD context.

scholarly journals Challenge of capturing socially generated land values: principle versus practicality

2020 ◽  
Vol 91 (6) ◽  
pp. 621-641
Author(s):  
Colin Jones ◽  
Mark Stephens
Keyword(s):  
Land Values ◽  
Land Value ◽  
Value Capture ◽  
Successful Approach

This article provides a review of past attempts to harness the uplift in land values arising from granting planning permission to better understand the current difficulties of the use of land-value capture. The scheme has been the most successful approach to date, but the theoretical fundamentals are fudged and there are substantial policy variations between localities: a victory of practicality over principle. We argue that a tax on development value would be more effective whilst maintaining the principles of taxing socially generated land values.

scholarly journals 10 Questions to Ask About Planning, Financing and Implementing Transit Oriented Development Strategies

2021 ◽  
Author(s):  
Christopher Moon ◽  
Albert Amos ◽  
Prerna Vijaykumar Mehta ◽  
Luana Betti ◽  
Henrique Evers
Keyword(s):  
Affordable Housing ◽  
Environmental Sustainability ◽  
Management Strategies ◽  
Land Values ◽  
Land Use Regulation ◽  
Transit Oriented Development ◽  
Complete Streets ◽  
Value Capture ◽  
Wide Range ◽  
Infrastructure Investments

Transit-Oriented Development (TOD) strategies can improve connectivity between housing and employment centers, green spaces, and community facilities by supporting both local environmental sustainability objectives, through more efficient use of land, and “complete” streets, by creating safer infrastructure for pedestrians and bicyclists, leading to potential modal shifts. Enabling conditions for TOD may include changes in land-use regulation and other statutory provisions to create an integrated regulatory framework. TOD requires robust stakeholder engagement and institutional coordination during planning and implementation. Financing mechanisms cities have used to fund TOD include Land Value Capture, a strategy based on expected increases in land values due to infrastructure investments. These mechanisms have been used to generate revenues such as Tax Increment Financing (TIF) and a wide range of taxes and fees. Cities should be aware of the potential negative impacts of TOD, such as displacement and gentrification. Effective and inclusive TOD strategies should be accompanied by land management strategies that mitigate these impacts, including having policies in place to ensure the preservation and expansion of affordable housing. There is typically a lag of at least 5 to 10 years before the economic and financial impacts of TOD investments are fully realized, thus requiring the need for patient capital, well-structured deals and financial instruments, and proper governance.

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