Estimating the local economic impacts of HOPE VI

Abstract

This study identifies and measures the demonstrable changes to local political economies that can be reasonably attributed to HOPE VI redevelopments. It examines the extent to which the developments have contributed to increases in surrounding property values, decreases in serious crimes, additional regional economic activity, and changes in local tax revenues. It weighs these benefits against the public costs associated with the program. Despite the expenses associated with HOPE VI, the redevelopments generate significant net social welfare benefits. In most cases, the collective tenant and neighborhood benefits exceed the net public costs of redevelopment. In addition, the redevelopments spark additional regional economic activity and contribute to an increase in the local tax base. HOPE VI's effects are far from uniform, however, and depend on the location of the redeveloped property, the characteristics of project funding, the strength of the local real estate market, and the presence of other development pressures.