CMM Economic Development & Housing 5 — Questions and Answers
Question 1: What is the primary purpose of a 'Housing Needs Assessment' in municipal planning?
- To determine the market value of all residential properties for tax assessment purposes
- To quantify current and projected housing supply gaps, affordability issues, and demographic demand across income levels (Correct answer)
- To identify properties suitable for demolition under urban renewal programs
- To evaluate the performance of existing public housing authorities
Correct answer: To quantify current and projected housing supply gaps, affordability issues, and demographic demand across income levels
A Housing Needs Assessment analyzes population trends, income distribution, housing costs, and vacancy rates to identify gaps between housing supply and the needs of current and future residents.
Question 2: Which approach to homelessness prevention has shown the strongest evidence base and is now promoted as a best practice by HUD?
- Treatment-first model requiring sobriety before housing placement
- Housing First model providing immediate permanent housing without preconditions (Correct answer)
- Shelter-based transitional housing with mandatory service participation
- Rapid rehousing combined with mandatory employment training programs
Correct answer: Housing First model providing immediate permanent housing without preconditions
The Housing First model places individuals experiencing homelessness into permanent housing immediately without preconditions and then provides voluntary supportive services, showing significantly better long-term housing stability outcomes.
Question 3: A municipality's comprehensive plan calls for 'transit-oriented development' (TOD). Which characteristic best describes a TOD?
- Single-family residential development located along major highway interchanges
- Higher-density, mixed-use development concentrated within walking distance of transit stations (Correct answer)
- Employer-sponsored commuter programs that reduce single-occupancy vehicle trips
- Dedicated bus rapid transit lanes through existing suburban commercial corridors
Correct answer: Higher-density, mixed-use development concentrated within walking distance of transit stations
TOD concentrates higher-density, mixed-use development within a quarter to half-mile radius of transit stations to maximize ridership, reduce car dependency, and support walkable communities.
Question 4: The Low-Income Housing Tax Credit (LIHTC) program is administered at the state level by which type of agency?
- State Departments of Commerce
- State Housing Finance Agencies (HFAs) (Correct answer)
- Local Public Housing Authorities (PHAs)
- HUD Regional Field Offices
Correct answer: State Housing Finance Agencies (HFAs)
The IRS allocates LIHTC credits to State Housing Finance Agencies, which then competitively award them to developers according to each state's Qualified Allocation Plan (QAP).
Question 5: A city wants to measure the return on investment of its economic development incentives. Which metric calculates the total public cost per net new job created?
- Economic Multiplier Effect
- Cost per Job (Correct answer)
- Net Present Value (NPV) of Tax Revenues
- Jobs-to-Housing Ratio
Correct answer: Cost per Job
Cost per job is a standard economic development metric that divides the total public investment (grants, abatements, infrastructure) by the number of net new jobs to evaluate incentive efficiency.
Question 6: Under the Fair Housing Act, which of the following is considered a protected class?
- Income level
- Familial status (Correct answer)
- Educational attainment
- Employment status
Correct answer: Familial status
The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, disability, and familial status (having children under 18), with many states and localities adding additional protected classes.
Question 7: A city manager is evaluating a proposed downtown revitalization plan. What does 'placemaking' refer to in economic development?
- The legal process of establishing municipal boundaries and annexing surrounding land
- A collaborative process of designing and activating public spaces to strengthen community identity and economic vitality (Correct answer)
- The financial modeling process used to project economic impacts of development projects
- The zoning variance process that allows non-conforming uses in downtown districts
Correct answer: A collaborative process of designing and activating public spaces to strengthen community identity and economic vitality
Placemaking is a people-centered approach to the planning, design, and management of public spaces that leverages local community assets to create vibrant destinations that attract investment and strengthen community identity.
CMM Economic Development & Housing 5
What is the primary purpose of a 'Housing Needs Assessment' in municipal planning?