HOUSING ECONOMICS AND FINANCE

Assignment: Housing Economics and Finance



Assignment: Housing Economics and Finance

Introduction

This paper will be discussing notes that will be written to support the orhganization internal training session. This session will be conducted to train group of middle managers that are newly recruited. This will provide these managers about the working of Nivrana housing group.

An Overview of the Economic and Public Policy Context as It Relates to Housing

An analysis of the housing market need to recognize the role played a central state. Government policies, at both national and local, to some extent affect the supply and demand for housing, even if, among the many policies that fall within the boundaries of the welfare state, the very housing policies have been those who have probably had the least successful (Coombes & Raybould, 2005: 32). The theoretical arguments that can justify public involvement based on considerations of efficiency and equity. The market allocates resources efficiently only if they hold up the assumptions of perfect information, the perfect competition and absence of market failures such as externalities, property public or returns to scale. It is not the case in the housing market. The allocation determined by market forces alone is inefficient and inequitable.

The State can then intervene with regulatory policies and expenditures with tax- monetary transfers, but also producing and allocating housing resources (CLG, 2007c: 58). The public housing policies by their nature take its characters of selective programs, i.e. where the audience determines the beneficiaries and the value of the service, or any cost-sharing, through a means testing to ensure compliance with the criteria of efficiency and equity horizontal and vertical. Among the welfare services and products offered at public - National and local - the location of public housing to subsidized rent is a more sustainable approach to housing policy selectively (CLG, 2007a: 41).

An Explanation of the Trends in Capital and Revenue Funding in Respect of Local Authorities and RSLs

The process of transformation and evolution of Italian local finance has had a general effect on the world of local, affecting the financial strategies and, more generally, their way of "doing finance". Until the mid-90s, in fact, for the finance function in local authorities is meant the use of long-term loans offered by the intermediary institutions represented by the Deposits and Loans Fund, and, in the event of unavailability of the latter, those offered by other lenders (Dynarski & Sheffrin, 1985: 195).

So the financing of investments in the public sector took place mainly using their own internal sources (income tax, tax revenue and receipts from current transfers), which was added if the same is not proved sufficient resources harvested by the Fund (revenue from power-on loan ). The activities related to the financing of investments was limited and therefore required no special skills, having to mainly test the existence of its own resources or from transfers to be dedicated to capital expenditures and seek to conclude, where necessary, of the mortgage (Edel & Sclar, 1974: ...