CMM Economic Development & Housing 4 — Questions and Answers
Question 1: Under the Americans with Disabilities Act (ADA) and Fair Housing Act, newly constructed multifamily housing must include which accessibility feature in ground-floor units?
- Elevator access to all floors
- Accessible routes, wide doorways, and adaptable bathroom designs (Correct answer)
- Dedicated accessible parking spaces within 10 feet of each entrance
- Full wheelchair-accessible bathrooms in every unit
Correct answer: Accessible routes, wide doorways, and adaptable bathroom designs
The Fair Housing Act requires that new multifamily buildings with four or more units include accessible entry routes, 32-inch clear doorways, and adaptable bathroom designs to allow for future modification.
Question 2: A city uses Tax Increment Financing (TIF) to fund infrastructure in a redevelopment area. The 'increment' refers to what?
- The increase in sales tax revenue generated by new businesses in the district
- The growth in property tax revenues above the baseline assessed value when the TIF was established (Correct answer)
- The federal match contribution to local infrastructure investment
- The percentage increase in property values required before TIF funds are released
Correct answer: The growth in property tax revenues above the baseline assessed value when the TIF was established
TIF captures the increase in property tax revenue (the 'increment') above the frozen base value when the district was created and uses it to repay bonds financing redevelopment infrastructure.
Question 3: What is 'affirmatively furthering fair housing' (AFFH), as required of HUD grantees?
- Ensuring that all new housing developments are located in economically disadvantaged areas
- Taking proactive steps to overcome patterns of segregation and foster inclusive communities (Correct answer)
- Requiring that 20% of all new housing units be designated as affordable
- Prohibiting municipal governments from enacting rent control ordinances
Correct answer: Taking proactive steps to overcome patterns of segregation and foster inclusive communities
AFFH requires HUD grantees to proactively analyze fair housing issues in their communities and take meaningful actions to address segregation, concentrated poverty, and unequal access to opportunity.
Question 4: Which economic development strategy focuses on growing businesses already located in the community rather than recruiting outside firms?
- Foreign Direct Investment (FDI) attraction
- Business Retention and Expansion (BRE) (Correct answer)
- Cluster-based economic development
- Free Trade Zone designation
Correct answer: Business Retention and Expansion (BRE)
Business Retention and Expansion (BRE) programs focus on supporting existing local businesses through visits, technical assistance, and removing barriers to growth, since existing businesses create the majority of new jobs.
Question 5: A municipality is analyzing its 'economic base.' What distinguishes 'basic' industries from 'non-basic' industries in this analysis?
- Basic industries are government-owned; non-basic industries are privately owned
- Basic industries export goods and services outside the local economy, bringing in external dollars; non-basic industries serve local demand (Correct answer)
- Basic industries are those receiving municipal tax incentives; non-basic industries do not
- Basic industries employ more than 50 workers; non-basic industries employ fewer
Correct answer: Basic industries export goods and services outside the local economy, bringing in external dollars; non-basic industries serve local demand
Economic base theory distinguishes basic industries (which export and import outside dollars) from non-basic industries (which recirculate local dollars), with basic industries driving overall regional growth.
Question 6: A city is experiencing rapid gentrification in a historic neighborhood. Which policy tool is specifically designed to help long-term low-income residents remain in the neighborhood as housing costs rise?
- Upzoning the neighborhood to increase housing supply
- Community Land Trust (CLT) development (Correct answer)
- Tax Increment Financing for infrastructure improvements
- Business Improvement District formation
Correct answer: Community Land Trust (CLT) development
Community Land Trusts permanently remove land from the speculative market and provide long-term affordable housing by retaining ownership of the land while selling or renting structures to income-eligible residents.
Question 7: When evaluating a proposed economic development incentive package, a city manager should require a 'but-for' analysis. What does this determine?
- Whether the project complies with federal environmental regulations
- Whether the project would proceed without the public incentive (Correct answer)
- Whether the proposed jobs pay above-median wages
- Whether the developer has adequate financing in place
Correct answer: Whether the project would proceed without the public incentive
A 'but-for' analysis determines whether a project would have occurred without public incentives, ensuring that public subsidies are only provided when truly necessary to make a project feasible.
CMM Economic Development & Housing 4
Under the Americans with Disabilities Act (ADA) and Fair Housing Act, newly constructed multifamily housing must include which accessibility feature in ground-floor units?