Urban Research Associates / The impact of a housing allowance system in the city of Madison and Dane County, Wisconsin
II. Experimental housing allowance programs, pp. 16-21
17 possible. This discussion is intended to inform the reader as to the experiments' areas of concern and the methodology employed. The Supply (Market) Exeriment This phase of the EHAP investigation is of particular interest to the Madison study because of the similarity of the region investigated (Green Bay, Wisconsin) and the questions addressed. Unfortunately, since it was instituted in June of 1974 and will last until 1984, results are scanty. A second site, South Bend, Indiana, which did not begin enrollment until December of 1974 and is less applicable to the Madison SMSA, will not be examined in any detail. This phase of the-experiment is being carried out by the Rand Corporation of Santa Monica, California. Their assignment is to pro- vide reliable and credible answers to four clusters of questions about the effects of a national housing allowance program: 1. Supply responsiveness. How willitthe suppliers of housing services--landlords, developers, and homeowners--react when allowance recipients attempt to increase their housing con- sumption? Specifically, what mix of price increases and housing improvements will result? How long will these res- ponses take to work themselves out to a steady state? How will the responses differ by market sector? 2. Behavior of market intermediaries and indirect suppliers. How will mortgage lenders, insurance companies, and real estate brokers respond to an allowance program? Will their policies help or hinder the attempts of allowance recipients to obtain better housing and those of landlords to improve their properties? What happens to the availability, price, and quality of building services and of repair and remodeling services? What seem to be the reasons for changes in insti- tutional or industrial policies? 3. Residential mobility and neigahborhood change. In their attempts to find better housing (or better neighborhoods), will many allowance recipients relocate within the metropolitan area? What factors influence their decisions to move or to stay? What types of neighborhoods will the movers seek and succeed in entering? Do moves by allowance recipients set in motion a chain of moves by nonrecipients--either into neighborhoods vacated by recipients or out of neighborhoods into which recipients have moved?
This material may be protected by copyright law (e.g., Title 17, US Code).| For information on re-use see: http://digital.library.wisc.edu/1711.dl/Copyright