Financing New Urbanism
Over the last two decades, only a few New Urbanism projects have been built. These include Laguna West in California, Kentlands in Maryland, and Celebration in Florida. The question that arises is whether current lending and investment practices constrain NU developments. Leading developers, equity investors and lenders agree that NU projects are more costly and complex (therefore riskier) than conventional planned communities. Unless a project can generate sufficiently high cash flows in the early years it will not be perceived as financially viable. Neither Fannie Mae nor Freddie Mac currently plays a significant role in financing or securitization of mortgage debt on NU projects. NU developers could ease their financial burden by creating relationships with long-term equity players, such as pension funds and endowments. Documenting NU development over a full real estate cycle should help lower the level of perceived risk.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://zell-lurie-center.wharton.upenn.edu/working.html
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:wop:pennzl:369. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.