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UBC Theses and Dissertations

Urban sprawl as a matter of public policy Megalos, Sophie 1996

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U R B A N S P R A W L A S A M A T T E R O F PUBL IC P O L I C Y by SOPHIE M E G A L O S B . A . , The Univers i ty of Brit ish C o l u m b i a , 1 9 9 0 A T H E S I S S U B M I T T E D IN P A R T I A L F U L F I L M E N T O F T H E R E Q U I R E M E N T S FOR T H E D E G R E E O F M A S T E R OF A R T S in T H E F A C U L T Y OF G R A D U A T E S T U D I E S (Schoo l of C o m m u n i t y and Regional Planning) W e accep t this thes is as con fo rm ing to the required s tandard T H E U N I V E R S I T Y OF BRITISH C O L U M B I A Janua ry 1 9 9 6 ®Sophie M e g a l o s , 1 9 9 6 In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. I further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. The University of British Columbia Vancouver, Canada DE-6 (2/88) A B S T R A C T Current land use pat terns in Nor th A m e r i c a are not s t r ic t ly the result of the operat ion of a free market or expl ic i t c o n s u m e r c h o i c e . Direct and indirect publ ic po l ic ies , operat ing over many d e c a d e s have made l o w dens i ty l iv ing an appeal ing al ternat ive for c o n s u m e r s , the prov iders of hous ing , and those w h o suppor t the f inance of in f ras t ruc ture . A t the local leve l , the pub l ic sec to r admin is te rs an intr icate s y s t e m of land use regulat ions w h i c h impl ic i t ly encou rage l ow dens i ty deve lopmen t and prov ides the essent ia l capi ta l and publ ic in f rast ructure that is necessa ry to suppor t n e w deve lopment . A t the senior leve l , long- term government pol ic ies favour ing h o m e o w n e r s h i p , s ingle- fami ly h o m e s and the au tomobi le have faci l i tated con t inued sp raw l and a rel iance on the au tomob i le . The ex tent of the aggregate impac t of publ ic po l ic ies on urban deve lopmen t pat terns is s ign i f icant . The con t inu ing d ispers ion of g row th in mos t urban areas is c reat ing severe env i ronmenta l s t ress , unpreceden ted traff ic c o n g e s t i o n , and potent ia l ly unsurmountab le f isca l p ressures . A s soc ie ty con f ron ts the s ign i f i cant soc ia l , e c o n o m i c and env i ronmenta l cos t s assoc ia ted w i th d ispersed land u s e s , there is a g row ing c o n s e n s u s that publ ic sec tor pol ic ies w h i c h con t inue to subs id ize unsusta inab le pat terns of deve lopmen t are no longer a f fordab le . In l ight of the above , a cr i t ical re-evaluat ion of publ ic po l ic ies and p rac t i ces is imperat ive by both senior and local gove rnmen ts . ii T A B L E OF C O N T E N T S Abs t rac t ii Table of Con ten t s iii List of Tab les v List of F igures vi A c k n o w l e d g e m e n t s vi i Quota t ion viii 1.0 Introduct ion 1 1.1 Prob lem Sta tement 1 1.2 Thes i s Ob jec t i ves 3 1.3 Rat ional for S tudy 4 1.4 A p p r o a c h and Organ izat ion 4 2 .0 The E c o n o m i c s of L o w Dens i ty Deve lopmen t 7 2.1 Introduct ion 7 2 .2 The Bui ld ing Indust ry 's Perspec t i ve 8 2 .3 The C o n s u m e r ' s Perspec t i ve 10 2 .4 S o c i e t y ' s Perspec t i ve 12 2 .5 S u m m a r y 13 3 .0 Publ ic Po l ic ies Favour ing The Au tomob i l e 15 3.1 Introduct ion 15 3 .2 Au tomob i l e D e p e n d e n c y and Land Use 16 3 .3 H i g h w a y / R o a d w a y Pol ic ies 18 3 .4 Indirect Subs id ies 21 3.4.1 Env i ronmenta l Impacts 21 3 . 4 . 2 Soc ia l Impacts 2 3 3 .5 Gaso l ine and Au tomob i l e Tax Pol ic ies 2 4 3 .6 S u m m a r y 2 8 4 . 0 P o s t - W a r Hous ing Pol ic ies 3 0 4.1 Introduct ion 3 0 4 . 2 F o c u s on N e w Owne rsh i p Hous ing 31 4 . 3 F o c u s on N e w Cons t ruc t i on of S ing le-Fami ly H o m e s 3 2 4 . 4 Mun ic ipa l Infrastructure A s s i s t a n c e and Serv i c ing S tandards . 3 8 4 . 5 S u m m a r y 4 0 5 .0 Deve lopmen t Con t ro l s 41 5.1 Introduct ion 41 5 .2 Zon ing and Deve lopmen t S tandards 4 2 iii 5.3 Park ing 4 4 5 .4 Deve lopmen t C o s t Cha rges 4 8 5 .5 Env i ronmenta l Regu la t ions 5 0 5 .6 Con tam ina ted S i tes Legis lat ion 54 5.7 S u m m a r y 55 6 .0 C o n c l u s i o n 5 6 6.1 Po l i cy Impl icat ions and D i rec t ions for Future Resea rch 5 6 Bib l iography 61 iv LIST OF T A B L E S Table 1 Deve lopmen t C o s t C o m p a r i s o n , Infill v s . S p r a w l 11 Table 2 C o n s u m e r Purchas ing P o w e r Urban v s . Suburban Loca t ion 11 Table 3 Per Househo ld Mun ic ipa l C o s t s A s s o c i a t e d w i th Di f ferent Resident ia l Densi t ies 13 Table 4 C o s t of Gaso l ine Least Expens ive in Nor th A m e r i c a 2 5 Table 5 S ing le -Fami ly Homebu i lders by S ize of N H A Opera t ions , C a n a d a , 1 9 5 5 3 3 Table 6 The Ef f ic ienc ies of Di f ferent Hous ing Forms 4 4 Table 7 Deve lopmen t C o s t Cha rges ( D C C s ) , Per Uni t v s . Square Footage Charge 4 9 v r LIST OF F I G U R E S Figure 1 A v e r a g e Househo ld Size v s . A v e r a g e House S i ze , Nor th A m e r i c a ( 1 9 5 0 - 1991) 7 Figure 2 Dens i ty and Capi ta l Requ i rements , S ing le -Fami ly Home v s . M id -R ise Apa r tmen t 9 Figure 3 O w n e d Veh i c l es by P rov ince , C a n a d a , 1 9 9 0 (in thousands) 17 Figure 4 Infrastructure Capi ta l Ou t l ays , Sta te and Loca l G o v e r n m e n t s , U . S . ( 1 9 6 5 - 1989) 19 Figure 5 Leve ls of Gaso l ine Taxa t i on , Va r i ous Count r ies (in U . S . Dol lars per Litre) 2 6 Figure 6 Hous ing Star ts by T y p e , C a n a d a ( 1 9 4 6 - 1986) 3 4 Figure 7 S ing le -Fami ly Dwe l l i ngs , Conven t i ona l and N H A Loans ( 1 9 5 2 - 1970) 3 5 Figure 8 Mul t ip le -Fami ly Dwe l l i ngs , Conven t i ona l and N H A Loans ( 1 9 5 2 - 1 9 7 0 ) 3 6 Figure 9 C M H C Mun ic ipa l Infrastructure Fund ing v s . S ing le -Fami ly Hous ing Star ts , C a n a d a ( 1 9 6 1 - 1 9 8 0 ) 3 9 Figure 10 Park ing Requ i rements , Supp ly and Ut i l izat ion 4 6 Figure 11 W h e n Ci t ies Over -Requ i re Park ing 4 7 Figure 12 The Env i ronmenta l Benef i ts of Higher Dens i ty Deve lopmen t 5 3 vi A C K N O W L E D G E M E N T S Wh i le I have n o w reached my des t ina t ion , the cha l lenge and exc i tement has been in the journey . I w i s h to thank my fami ly , f r iends and c o - w o r k e r s for keeping me on the right path - y o u k n o w w h o you are. I a lso w i s h to ex tend my s incere grat i tude to p ro fessor A l a n Ar t ib ise for his pat ience and gu idance th roughout the durat ion of th is project and for his d i rect ion dur ing my enro l lment at the S c h o o l . F ina l ly , I w i s h to thank the wonder fu l o f f ice staf f at the S c h o o l for answer ing " just one more ques t i on , " again and again and aga in . vii A l o n g w i th th is s t i cky ques t ion of phys ica l and soc ia l fo rm is the e r roneous belief that our c o m m u n i t y ' s phys ica l fo rm is the result of f ree c h o i c e , the marke t ' s w i s d o m , and the stat is t ica l s u m of our co l lec t ive w i l l . In real i ty, our pat terns of g row th are as m u c h a result of publ ic po l icy and subs id ies , ou tda ted regu la t ions, env i ronmenta l f o r ces , t echno logy , and s imple inert ia as they are a resul t of the invis ible hand of A d a m Smi th . - Peter Ca l thorpe in The Next American Metropolis: Ecology, Community and the American Dream. (New York : Pr inceton Arch i tec tu ra l P ress , 1 9 9 3 ) , p. 10 vii i C H A P T E R O N E Introduct ion 1.1 Prob lem Sta tement P roponen ts of l ow dens i ty l iving argue that the pos t -war exp los i ve d ispersal of urban act iv i t ies in Nor th A m e r i c a is a p roduc t of market -dr iven fo rces (Lev inson and Kumar 1 9 9 4 ; G o r d o n , R i cha rdson , J u n 1 9 9 1 ; Porter 1991 ) . These researchers con tend that the key in f luences on recent pat terns of urbanizat ion have been the inherent Nor th A m e r i c a n desire for l o w dens i ty l iv ing, re in forced by power fu l techno log ica l and e c o n o m i c fo rces tend ing t owa rd w idesp read urban d ispersa l . It is argued that the au tomob i le , the avai labi l i ty of cheap land, r ising real i n comes , inexpens ive cons t ruc t ion me thods and the s ingle- fami ly subd iv i s ion , all operat ing in the con tex t of a free market , have a c c o m m o d a t e d expl ic i t c o n s u m e r cho ice for l o w dens i ty l iv ing. H e n c e , it is market fo rces that dr ive metropol i tan deve lopmen t and ind icate land use and t ranspor ta t ion p re fe rences . Publ ic pol ic ies and publ ic inst i tu t ions are v i e w e d as p lay ing suppor t ing rather than pr incipal roles in in f luenc ing urban deve lopmen t pat terns. There is a t endency in the above model to over look the po l icy ini t iat ives 1 and the inst i tut ional set t ings by w h i c h pat terns of deve lopmen t are es tab l i shed . Urban deve lopmen t , h o w e v e r , does not occu r in the absence of a soc iopo l i t i ca l or inst i tut ional con tex t (Bourne 1992) . Expl ic i t publ ic po l ic ies , as we l l as indirect ones , create the necessa ry cond i t ions for pat terns of deve lopmen t to occu r . A n d , wh i le the publ ic sec to r p lays a s ign i f icant re in forc ing role in shap ing l andscapes by respond ing in a w ide var iety of po l icy arenas to perce ived market d e m a n d and prevai l ing publ ic asp i ra t ions, the aspec t s of cul ture and ideo logy that af fect market cho i ces init ial ly, "are t hemse l ves part ly the result of long- term publ ic po l i c ies " (Pucher 1 9 8 8 : 5 0 0 ) . A s s u c h , publ ic pol icy dec i s ions not only guide deve lopmen t cho i ces but a lso play a key role in f irst creat ing and then d i rect ing those cho i ces (Wi lson 1 9 9 5 ; Di t tmar 1 9 9 5 ; N e w m a n , K e n w o r t h y 1 9 9 2 ; Bourne 1992) . Th is thes is argues that whi le pat terns of urbanizat ion in Nor th A m e r i c a s ince W W II have , in part, been shaped by techno log ica l innova t ions and a var iety of soc ia l and e c o n o m i c f o rces , it is gove rnmen t po l icy at every level w h i c h fac i l i ta tes, suppor ts and subs id izes the d ispers ion of urban g r o w t h . A t the local leve l , the publ ic sec tor admin is ters an intr icate s y s t e m of land use regulat ions w h i c h impl ic i t ly encourage l ow dens i ty deve lopmen t (Ke lbaugh 1992) and prov ides essent ia l capi ta l and publ ic in f rastructure that is necessa ry to suppor t n e w deve lopmen t . A t the senior leve l , gove rnmen t po l ic ies favour ing h o m e o w n e r s h i p , s ingle- fami ly homes (Pucher 1988) and the automobi le (Hanson 1 9 9 2 ; Lee 1989 ) , have p roduced " a more d ispersed 2 set t lement pattern than wou ld have o therw ise e v o l v e d " (Hanson 1 9 9 2 : 6 0 ) . These publ ic po l ic ies , operat ing for over four d e c a d e s in Nor th A m e r i c a , have made l ow dens i ty l iv ing an appeal ing al ternat ive for c o n s u m e r s . A t the same t ime, those same pol ic ies have cont r ibuted to nar rowing the range of a l ternat ives avai lable to mos t c o n s u m e r s . The result has been a t endency for publ ic po l ic ies to re inforce consumer cho i ce for l ow dens i ty l iv ing after f irst present ing l ow dens i ty l iv ing as the mos t rat ional opt ion to c o n s u m e r s . T h u s , theor ies of urban spat ia l p rocesses w h i c h assume that market fo rces domina te , fail to cons ide r the nar row range of a l ternat ives avai lable to c o n s u m e r s and the nature of the p rocess by w h i c h those al ternat ives are d e v e l o p e d . The above parad igm encourages the cont inuat ion of ex is t ing deve lopmen t t rends and makes it even more dif f icult to prov ide c o n s u m e r s w i th v iab le and soc ia l ly respons ib le a l ternat ives (Bourne 1 9 9 2 ; Pucher 1988 ) . A s soc ie ty con f ron ts the s ign i f icant soc ia l , e c o n o m i c and env i ronmenta l cos t s assoc ia ted wi th d ispersed land uses , there is a g row ing c o n s e n s u s that publ ic sec tor pol ic ies w h i c h con t inue to subs id ize unsusta inab le pat terns of deve lopmen t are no longer a f fordable . 1.2 Thes is Ob jec t i ves The purpose of this thes is is to i l lustrate the ex tent to w h i c h gove rnmen t pol ic ies at all levels have w o r k e d together to faci l i ta te, suppor t and subs id ize the d ispers ion of urban g row th in North A m e r i c a dur ing the pos t -war per iod. It 3 is not the intent of th is thes is to examine any one spec i f i c gove rnmen t po l i cy , but rather to look at the aggregate impac t of gove rnmen t po l ic ies in the areas of t ranspor ta t ion , hous ing , and land-use, w h i c h in f luence urban fo rm. A l s o , it is not the intent of this ana lys is to imply that Canad ian c i t ies evo l ved under the same set of c i r c u m s t a n c e s , and to the same end , as A m e r i c a n c i t ies ; the d i f fe rences b e t w e e n the t w o na t ion 's c i t ies have been c lear ly d o c u m e n t e d (Golberg , Me rce r 1986 ) . The a im of this s tudy is to i l lustrate, th rough an ana lys is of the exper ience of the past f i fty years in Nor th A m e r i c a , that publ ic pol ic ies at all levels have p layed a key role in shap ing (and l imiting) c o n s u m e r cho ice in both coun t r ies , albeit in vary ing degrees . Spec i f i ca l l y , the ob jec t ives of this thes is are: 1) to ident i fy the key government pol ic ies in the areas of t ranspor ta t ion , hous ing , and land-use w h i c h have fac i l i ta ted, suppor ted and subs id ized the d ispers ion of urban g row th in Nor th A m e r i c a dur ing the pos t -war per iod ; and 2) to prov ide an ana lys is of h o w the above pol ic ies have w o r k e d together over many decades in Nor th A m e r i c a to make l ow dens i ty l iv ing an appeal ing al ternat ive for c o n s u m e r s and the pr ivate sec tor . 4 1.3 Rat ionale for s tudy The rat ionale for under tak ing th is s tudy is t w o f o l d . First , th is thes is cha l lenges the prevalent v i e w that market fo rces d ic tate urban spat ia l f o rm. A broad o v e r v i e w of past (and current) publ ic pol ic ies in var ious areas , p lac ing them in con tex t w i th one another , wi l l prov ide an insight fu l look at the extent of the aggregate impac t of publ ic pol ic ies on urban deve lopmen t pat terns . S e c o n d , chang ing demograph i cs , l imited resources and severe env i ronmenta l s t ress are c o m m a n d i n g a change to prevai l ing land use pat terns. Soc ie t y can no longer af ford to suppor t publ ic pol ic ies that p romote unsusta inab le pat terns of deve lopmen t and that are no longer re levant to recent demograph ic t rends . A better unders tand ing of the nature of past publ ic po l ic ies , and an a s s e s s m e n t of their long- term impac ts on urban f o rm , shou ld prov ide current po l icy makers w i th improved bas is for future po l icy dec i s i ons . Th is thes is wi l l augment the ex is t ing l i terature regarding the s ign i f icant role of publ ic po l icy in i t iat ives on the evo lu t ion of urban fo rm and cont r ibute to the progress ive d i scuss ion on the env i ronmenta l , e c o n o m i c and soc ia l benef i ts of al ternat ive land use pat terns. 1.4 A p p r o a c h and Organ izat ion This s tudy is d iv ided into six chap te rs . Fo l low ing th is in t roduc t ion , Chapter T w o examines the e c o n o m i c s of l ow dens i ty deve lopmen t f rom the perspec t i ves of the deve loper , the c o n s u m e r and soc ie ty as a w h o l e . It is 5 demons t ra ted that whi le the e c o n o m i c s favour sp raw l f rom both the deve lope r ' s and the c o n s u m e r ' s pe rspec t i ve , sp raw led deve lopmen t imposes a var iety of negat ive external i t ies (uncompensa ted costs) on soc ie t y . Chap te r Three ident i f ies and d i s c u s s e s the key publ ic po l ic ies over the last f i fty years w h i c h have favoured the automobi le . These inc lude di rect government expend i tu res for the cons t ruc t i on , ma in tenance and operat ion of h i g h w a y s , as we l l as gasol ine and automobi le tax po l ic ies that mainta in the cos t of automobi le use and ownersh ip in Nor th A m e r i c a relat ively l o w . A l s o identi f ied and d i s c u s s e d are the s ign i f icant soc ia l and env i ronmenta l cos t s that are impl ici t in auto use s u c h as water and air po l lu t ion, e x c e s s no ise , des t ruc t ion of farmland and loss of life and property damage due to veh ic le acc iden ts . Chap te r Four d i s c u s s e s the role of federal pos t -war hous ing po l ic ies on the g row th of the suburban l i festyle and e c o n o m y . Federal hous ing pol ic ies w h i c h f o c u s s e d primari ly on ownersh ip and the s ing le- fami ly h o m e , prov ided the necessa ry cond i t ions for prevai l ing pat terns of deve lopmen t to o c c u r . A s regulators of the bank ing indust ry , lenders of publ ic money and d i rect insurers of mor tgages , federal gove rnmen ts became an important part of the f inancia l s t ructure of the Nor th A m e r i c a n hous ing indust ry . Add i t iona l l y , spec ia l incent ives and f inancia l aids to the resident ial cons t ruc t i on indust ry and the prov is ion of subs id i zed s e w e r and water inf rastructure to munic ipa l i t ies , faci l i tated large-sca le deve lopmen t on the urban f r inge. 6 Deve lopmen t con t ro ls and their impact on local land use are d i s c u s s e d in Chapter F ive . Wh i le it is recogn ized that land use regu la t ions, for the mos t part , prov ide s o u n d gu ide l ines for deve lopmen t , m a n y have the un in tended c o n s e q u e n c e of encourag ing and promot ing l ow dens i ty land use . These inc lude the prac t ice of s ing le-use zon ing , excess i ve deve lopmen t s tandards , rigid env i ronmenta l po l ic ies and munic ipa l p rac t ices and pol ic ies relat ing to park ing . Add i t iona l l y , conven t iona l me thods of f inanc ing in f rast ructure contr ibute to sca t te red deve lopmen t pat terns by push ing deve lopmen t out to areas whe re inf rastructure cos t s are l owes t . Chap te r S ix c o n c l u d e s that publ ic pol ic ies operat ing over many decades in North A m e r i c a have made l ow dens i ty l iv ing an appeal ing al ternat ive for c o n s u m e r s and prov iders of hous ing and suppor t ing in f rast ructure. It is sugges ted that a cr i t ical re-evaluat ion of publ ic po l ic ies and p rac t i ces is imperat ive by both senior and local gove rnmen ts if w e are to m o v e t o w a r d s more sus ta inab le pat terns of deve lopment . Adop t i ng a s y s t e m of per fo rmance measures as part of eve ry land use po l i cy is p roposed as a me thod of determin ing the e f fec t i veness of a p roposed pol icy in ach iev ing its s ta ted goals over t ime. 7 C H A P T E R T W O The E c o n o m i c s of L o w Dens i ty Deve lopmen t 2.1 Introduct ion Emerg ing demograph ic pat terns in C a n a d a and the Uni ted S ta tes sugges t that there is an increas ing demand for smal ler hous ing unit s i zes in a w ider var iety of hous ing t ypes . Wh i le t radi t ional nuc lear fami l ies were the dominan t market segmen t in the early pos t -war yea rs , today s ing les , s ing le-parents , non-fami ly coup les and sen iors represent s ign i f icant n iche marke ts . Ironical ly, wh i le househo ld s ize in Nor th A m e r i c a has dec reased by an average of 2 5 % s ince 1 9 5 1 , the average f loor area of n e w Canad ian and A m e r i c a n h o m e s has more than tr ipled and n o w e x c e e d s 2 , 0 0 0 s q . ft (UDI 1990) (Figure 1). 8 FIGURE 1 Average Household Size vs. Average House Size (North America, 1951 - 1991) square leet number ol people Compiled from: Census Canada, Household Data 1951 - 1991 ; Masnick, George and Mary Jo Bane. The Nation's Families. Boston: Auburn House Publishing, 1980 :19 ; UDI. Discussion Paper on Homeownership Affordability. Vancouver: Urban Development Institute, 1990:6 9 In many commun i t i es ac ross C a n a d a and the Uni ted S ta tes the suburban hous ing indust ry has been bui ld ing increas ing ly larger h o m e s for smal ler househo lds . Th is has cont r ibu ted to dec l in ing urban dens i t ies and s p r a w l . Despi te prevai l ing demograph ic t rends , h o w e v e r , deve lopers con t inue to build large s ing le- fami ly homes in the suburbs whi le largely ignor ing the needs of a s igni f icant segmen t of the market . 2 .2 The Bui ld ing Indust ry 's Perspec t ive A s T o m Sargent notes in "Infill in the Marke tp lace : A l te rna t i ves to S p r a w l " , " the entire bui ld ing industry is inst i tut ional ized to suppor t sp raw l fo rms of deve lopmen t " (Sargent 1 9 9 4 : 3 ) . Wh i le deve lopers , f inanc iers and others pro fess iona l ly invo lved in urban real estate markets are beg inn ing to realize that al ternat ive fo rms of deve lopmen t can be prof i table, there is still a re luc tance f rom the pr ivate sec tor to venture into untes ted marke ts . Sargent exp la ins that suburban deve lopers are typ ica l ly favoured over infill deve lopers by f inance compan ies and nat ional sou rces of fund ing because of the f ewer r isks invo lved in th is t ype of deve lopment . Unl ike urban infill deve lopers w h o mus t commi t cons iderab ly more money to a project for a substant ia l ly longer per iod of t ime, suburban deve lopers are able to respond to changes in the marke tp lace by phas ing their pro jects (Figure 2). For examp le , in a suburban se t t ing , a deve loper wi l l t yp ica l ly bui ld severa l mode l homes and use t hem to market the entire project. Add i t iona l homes are built as the mode ls are so ld off. Fur thermore , suburban deve lopers general ly con tend w i th less 10 ne ighbourhood res is tance s ince n e w deve lopmen t is simi lar in charac te r to ex is t ing deve lopmen t (ie. l ow dens i ty , s ingle- fami ly homes) and a qu icker munic ipa l approva l p rocess (Sandborn 1995 ) . Subu rban deve lopers a lso wi l l l ikely not have to deal w i th any site con tamina t ion and var ious addi t ional requ i rements that s tem f rom the urban set t ing (ie. s t ruc tured park ing , code requ i rements , demol i t ion requi rements) . F IGURE 2 Density and Capital Requirements (Single-Family Home vs. Mid-Rise Apartment) Source: Urban Development Institute. Back to the Future: Re-Designing Our Landscapes With Form, Place and Density. Vancouver: Urban Development Institute, 1994:24. 1 1 Deve lopers assume that the market wi l l c h o o s e the larger house because it of fers c o n s u m e r s the m a x i m u m inves tment for their a l lowab le month ly mor tgage (see sec t ion 2 .3) . In add i t ion, mos t n e w suburban s ing le- fami ly home cons t ruc t ion is largely geared t oward the ' t rade-up ' market . In order to at t ract this market , deve lopers bel ieve that they must prov ide p rospec t i ve buyers w i th a greater square foo tage than that of their p rev ious (or t raded-up) h o m e . T h u s , " the e c o n o m i c s f rom a deve lope r ' s perspec t ive remain ove rwhe lm ing l y in . favour of s p r a w l , and may expla in w h y the supp ly -dr iven hous ing p roduc t ion s y s t e m ignores n e w marke ts " (Sargent 1 9 9 4 : 4 ) . 2 . 3 The C o n s u m e r ' s Perspec t i ve E c o n o m i c s a lso favour sp raw l f rom the c o n s u m e r ' s pe rspec t i ve . Wh i le it is recogn ized that there wi l l a l w a y s be househo lds w h i c h c h o o s e rental a c c o m m o d a t i o n , h o m e o w n e r s h i p is general ly perce ived by soc ie ty as prov id ing greater stabi l i ty and better secur i ty of tenure than rent ing. For mos t peop le , buy ing a home is an inves tment . A n d , s ince h o m e o w n e r s h i p is genera l ly perce ived by soc ie ty in the popular press to be a ' g o o d ' i nves tment , people tend to buy more hous ing than they need (Dowal l 1 9 8 6 ) . Table 1 i l lustrates that (for the reasons ment ioned in sec t ion 2.2) the cos t per square foot of house is cons iderab ly less in suburban loca t ions . T h u s , a c o n s u m e r w i th a househo ld i ncome of $ 6 0 , 0 0 0 is able to pu rchase 5 0 0 s q . ft. more house in a suburban locat ion than is poss ib le in an urban locat ion for 12 the same month ly mor tgage (Table 2). Wh i le house size is a key cons ide ra t i on , it is a c k n o w l e d g e d that many other qual i ty of life i ssues are invo lved in the purchase of a home . Even w h e n t ranspor ta t ion (driving) cos t s are cons ide red , the suburban locat ion is still pe rce ived to be more economica l l y favourab le . Th is is because the cos t s c lose ly related to the operat ion and t r ip-making of an automobi le (fuel, o i l , ma in tenance and parking) accoun t for only be tween 2 0 percent to 4 0 percent of all c o m m u t i n g cos t s (Li tman 1991 ) . Incent ives s u c h as free park ing at the w o r k p l a c e makes dr iv ing an at t ract ive al ternat ive for mos t c o m m u t e r s (Wachs 1981 ) . A n d , s ince mos t people o w n an au tomob i le , they tend to cons ider the c o s t of dr iv ing a ' sunk c o s t ' and therefore not re levent , w h e n mak ing-a cho i ce about whe re to l ive. Nor do c o n s u m e r s have to pay d i rect ly for the true c o s t of roads and h i g h w a y s that are prov ided by the publ ic sec to r , or for the env i ronmenta l impac ts of their dr iv ing (ie. pol lut ing the air is free) ( G V R D 1 9 9 3 ; G V R D 1 9 9 2 ; C i ty of V a n c o u v e r 1990 ) . 13 T A B L E 1 * Development Cost Comparison Infill vs. Sprawl Development Costs (Per FAR** s.f.) Infill Sprawl Land $15 - 2 0 + $ 8 - $ 1 2 Site Preparat ion $5 - 10 + $5 - $ 1 0 + Hard C o s t s $ 6 0 - 6 5 $ 4 5 - 5 5 Park ing $15 - 18 $0 Sof t C o s t s $ 3 2 - 37 $ 2 0 - 2 6 C o n t i n g e n c y (5%) $ 6 - 7 $4 - 5 SUBTOTAL $133-157 $82 - 108 Profi t (15%) $ 2 0 - 2 3 $ 1 2 - 1 6 Marke t ing $ 1 0 - 1 1 $6 - 8 TOTAL COST $163 - 191/s.f. $100 - 132/s.f. * While costs for Table 1 are for the Bay Area, CA, USA, the relationships are similar for most urban areas. * "Floor Area Ratio (FAR), square foot (s.f.) Source: Tom Sargent. "Infill in the Marketplace: Alternatives to Sprawl . " in On The Ground V . 1 , No. 1, Fall (1994):3 T A B L E 2 * Consumer Purchasing Power Urban vs. Suburban Location Annual Income: $60,000 ($20,000 down) Urban Location Suburban Location Month l y Mo r tgage $ 1 , 2 0 0 $ 1 , 2 0 0 Dwel l ing C o s t $ 1 7 9 , 0 0 0 - $ 2 1 0 , 0 0 0 $ 1 6 0 , 0 0 0 - $ 2 1 1 , 0 0 0 Dwelling Size 1,100 s.f. 1,600 s.f. * While costs for Table 2 are for the Bay Area, CA, USA, the relationships are similar for most urban areas. Source: Tom Sargent. "Infill in the Marketplace: Alternatives to Sprawl . " in On The Ground V . 1 , No. 1, Fall (1994):4 14 2 .4 S o c i e t y ' s Perspec t i ve C o m p a r e d w i th more c o m p a c t deve lopmen t , sp raw led deve lopmen t imposes greater negat ive external i t ies on soc ie ty - that is - u n c o m p e n s a t e d c o s t s ( C M H C 1 9 9 5 ; Ke lbaugh 1 9 9 2 ; Hanson 1 9 9 1 ; L i tman 1 9 9 1 ; V a n der R y n , Ca l tho rpe 1 9 8 6 ; R E R C 1974 ) . One of the mos t inf luential s tud ies on this sub ject is the C o s t of S p r a w l , (1974) by the Real Estate Research Corpora t ion . S ta ted in the mos t general f o rm, the main f ind ing of th is comprehens i ve s tudy is " for a f i xed number of househo lds , sp raw l is the mos t expens ive form of resident ia l deve lopmen t in te rms of e c o n o m i c cos t s - part icular ly for that port ion of total c o s t s w h i c h is l ikely to be borne by local g o v e r n m e n t s " (RERC 1 9 7 4 : 1 7 ) . Higher dens i t ies , on the other hand , make more ef f ic ient use of in f rast ructure, publ ic se rv i ces and inst i tu t ions. Ano the r s tudy quoted by Todd L i tman in "Transpor ta t ion E f f i c iency : A n Econom ic A n a l y s i s " reveals that munic ipa l serv ic ing cos t s are less expens i ve for higher dens i ty commun i t i es than lower dens i ty commun i t i es . Tab le 3 summar i zes the var ious per househo ld munic ipa l cos t s assoc ia ted w i th a range of resident ia l densi t ies (based on a pro to typ ica l commun i t y of 1 ,000 uni ts hous ing 3 , 2 6 0 res idents and 1 ,200 s tudents) . The cos t of prov id ing munic ipa l se rv i ces at 4 . 5 units to the acre is 37 percent less than at one unit per f ive ac res . The extra cos t s are due to " the ext ra road , s e w a g e and uti l i ty cos t s not borne by the c o n s u m e r , result ing f rom automobi le induced s p r a w l " (Li tman 1 9 9 1 : 2 2 ) . In "U rban S p r a w l : Land Use and Econom ic C o s t s " Kev in K o s o w s k i refers to a s tudy by the Cent re for Urban Stud ies at Rutgers Univers i ty in N e w J e r s e y . 15 K o s o w s k i no tes : The s tudy pegged cap i ta l c o s t s at tr ibutable to s p r a w l deve lopmen t pat terns in N e w J e r s e y at $ 1 . 3 bil l ion over 2 0 years for roads , wa te r , sewe r and schoo l faci l i t ies. Add i t iona l operat ing and ma in tenance cos t s of $ 4 0 0 mil l ion annual ly were also l inked to sp raw l deve lopment . Cap i ta l ized at current bo r row ing rates, these annual operat ing and ma in tenance cos t s t ranslate into an addi t ional $7 - $8 bi l l ion pr ice tag for sp raw l over 2 0 years . ( K o s o w s k i 1994 :5 ) T A B L E 3 Per Household Municipal Costs Associated with Different Residential Densities Rural Sprawl Rural Cluster Medium Density High Density Units/Acre 1:5 1:1 2.67:1 4.5:1 S c h o o l s $ 3 , 2 3 3 $ 3 , 1 9 9 $ 2 , 3 2 3 $ 2 , 2 8 9 Roads $ 1 1 0 $55 $ 3 8 $ 2 6 Uti l i t ies $ 7 0 9 $ 3 5 5 $ 2 6 0 $ 2 4 0 TOTALS $4,052 $3,069 $2,621 $2,555 Source: Todd Litman. "Transportation Efficiency: An Economic Analysis." Theses. University of Washington, 1991:13. The re lat ionship be tween dens i ty and the cos t of hard se rv i ces (water-supp ly , sani tary s e w e r s and s to rm drainage) has been exp lored to a large extent in the l i terature, w i th s tud ies dat ing back to the 1 9 5 0 s (Slack 1 9 9 3 ; C l a w s o n 1971 ) . In genera l , denser deve lopmen ts are cons idered to be more cos t e f fec t ive for both munic ipal i t ies and the pr ivate sec to r , wh i le sp raw l pat terns of deve lopmen t pose a s igni f icant burden on soc ie ty . H o w e v e r , whi le s tud ies s h o w that the c o s t of hard 16 serv ices dec reases w i th increased dens i ty , there is very little empir ica l ev idence to suppor t this re lat ionship for sof t se rv i ces ( recreat ion, po l i c ing , soc ia l se rv i ces and educat ion) (S lack 1 9 9 3 ) . 2 .5 S u m m a r y Whi le the e c o n o m i c s favour sp raw l f rom both the deve lope r ' s and the c o n s u m e r ' s pe rspec t i ve , sp raw led deve lopmen t imposes a var ie ty of negat ive external i t ies (uncompensa ted costs) on soc ie ty . Y e t , soc ie ty con t inues to suppor t p rac t ices and pol ic ies that p romote unsusta inab le pat terns of deve lopmen t . The d ispers ion of urban g row th in Nor th A m e r i c a , h o w e v e r , is not s imply " the result of the operat ion of an unfet tered market act ing to e n h a n c e econom ies in c o m m u t i n g , to encourage overal l e c o n o m i c e f f i c iency and to a c c o m m o d a t e expl ic i t c o n s u m e r c h o i c e " (Bourne 1 9 9 2 : 5 1 0 ) . Expl ic i t publ ic po l i c ies , as wel l as indirect ones , operat ing over many d e c a d e s have made l ow dens i ty l iv ing an appeal ing al ternat ive for both c o n s u m e r s and the prov iders of hous ing and suppor t ing in f rast ructure. A n d , whi le recent demograph ic c h a n g e s sugges t that there is an increas ing d e m a n d for a w ider var iety of cho i ces in hous ing t ypes than wha t is current ly of fered by t radi t ional suburban resident ial d e s i g n , publ ic pol ic ies cont inue to suppor t and faci l i tate sp raw l pat terns of deve lopmen t . The fo l low ing Chapte rs descr ibe h o w the publ ic sec to rs in both C a n a d a and the Uni ted S ta tes have p layed a key role in re inforc ing consumer cho i ce for l o w dens i ty l iv ing after f irst present ing l o w dens i ty l iving as the mos t rat ional op t ion . 17 C H A P T E R T H R E E Publ ic Pol ic ies Favour ing the Au tomob i l e 3.1 Introduct ion The rise of the w ide -sp read use of the au tomobi le in Nor th A m e r i c a has been faci l i tated and but t ressed th roughout North A m e r i c a by publ ic po l ic ies . The Greater V a n c o u v e r Regional Distr ic t (1993) , Pol lut ion Probe (1991) , Hanson (1992) , L i tman (1991) , Topp (1991) and other indiv iduals and organ iza t ions have i l lustrated empir ica l ly that automobi le use in North A m e r i c a has been sys temat i ca l l y subs id ized by the publ ic sec to r in a w a y that p romotes l ow dens i ty land use . L o w densi ty land use , in turn , encou rages automobi le dependen t l i festy les. Th is v i c ious dynamic p rocess helps to d iscourage al ternate t ravel m o d e s s u c h as t ransi t and b icyc l i ng , further re inforc ing a dependence on the au tomob i le . Publ ic po l ic ies w h i c h have favoured the automobi le inc lude d i rect government expend i tu res for the cons t ruc t i on , ma in tenance and operat ion of h i g h w a y s , as we l l as gaso l ine and automobi le tax po l ic ies that main ta in the c o s t of automobi le use and owne rsh ip in North A m e r i c a relat ively l ow . A n d , wh i le 18 automobi le users pay on ly part of the c o s t s , publ ic po l icy has not required dr ivers to bear the s ign i f icant soc ia l and env i ronmenta l cos t s that impl ic i t ly arise f rom the use of the au tomob i le . Those cos t s are in the fo rm of wa te r and air po l lu t ion, e x c e s s no ise , des t ruc t ion of farmland and loss of life and proper ty damage due to vehic le acc iden ts . The fo l low ing Chapte r d i s c u s s e s the key publ ic po l ic ies w h i c h have favoured the automobi le dur ing the last f i fty years . 3 .2 Au tomob i l e D e p e n d e n c y and Land Use Dur ing the early part of th is cen tu ry , the g rowth of the c i ty had been in f luenced mainly by publ ic t ranspor ta t ion . Real estate deve lopmen t concen t ra ted around transi t l ines a long w h i c h people moved and l ived. The fabr ic of urban areas tended to be compr i sed of mixed uses in c lose prox imi ty to one another . O n c e such pat terns of deve lopmen ts were es tab l i shed , they sus ta ined the s y s t e m of t ranspor ta t ion w h i c h helped p roduce them (Leo, 1977 ) . The in t roduct ion of motor t ranspor t into the urban env i ronment f reed deve lopment f rom the locat ional cons t ra in ts of t ransi t l ines and radical ly al tered the fo rm of the c i ty by great ly increas ing the radius of t rave l . No longer w a s deve lopment restr ic ted to transi t l ines but spread easi ly into the s p a c e s b e t w e e n them. The automobi le he lped to d i f fuse the c o m p a c t n e s s of the c i ty , br inging about a n e w pat tern of urban deve lopment . Under the in f luence of the au tomob i le , densi t ies dec reased as emp loymen t and hous ing d ispersed ac ross the l andscape . The automobi le opened up vas t n e w areas for urbanizat ion and made it poss ib le for 19 people to live m u c h further f rom their p lace of work . W i t h the aid of the pr ivate automobi le and gove rnmen t funded roads and h i g h w a y s , more people we re able to subst i tu te longer tr ips to less expens ive hous ing located in the outsk i r ts of the ci t ies in w h i c h they w o r k e d for shorter t r ips and more cos t l y cent ra l -c i ty loca t ions . In the Un i ted S ta tes , 8 6 percen t of the popu la t ion g r o w t h s ince 1 9 5 0 has occur red in suburban areas of large metropol i tan regions whe re the pr imary mode of t ravel has been the automobi le (Ross 1991 ) . In 1 9 9 1 , the pr ivate au tomobi le w a s used for more than 8 5 percent of work t r ips, an increase of 1 5 percent s ince 1 9 6 0 (Ross 1 9 9 1 ) . Add i t iona l l y , there has been a substant ia l inc rease in the number of A m e r i c a n househo lds o w n i n g three or more au tomob i les (Ross 1991 ) . A l t hough Canad ian c i t ies have tradi t ional ly been more c o m p a c t and have benef i ted f rom higher i nves tmen ts in publ ic t ransi t than A m e r i c a n c i t ies (Go ldberg , Me rce r , 1986 ) , they too have exper ienced rapid g row th in suburban areas s ince W W II, and are becoming more dependen t on the use of the automobi le (Fowler 1 9 9 2 ; Bourne 1989) . In 1 9 9 0 , more than 8 3 % of Canad ian househo lds o w n e d a veh i c le , and one in four househo lds o w n e d more than one automobi le ( T A C 1991) (Figure 3). A recent s tudy by Bourne reveals that " the n e w [Canadian] urban fabr ic is more decent ra l ized and less dense ly deve loped than fo rmer ly " (Des Ros ie rs 1 9 9 2 : 1 4 ) . The number of au tomobi le c o m m u t e r s in the Greater V a n c o u v e r Regional Distr ic t is current ly g row ing at t w i c e the rate of the increase in popula t ion ( G V R D 1 9 9 2 : 2 ) . T o d a y , more than 12 mil l ion au tomobi les t ravel C a n a d a ' s roads - one for near ly every t w o Canad ians (SOE Fac t Shee t , N o . 9 3 - 1 , 1993 ) . 2 0 FIGURE 3 Owned Vehicles by Province Canada, 1990 (in thousands) (OOO'S) NF PE NS NB QC ON MB SK AB BC households with ggg households with one vehicle more than one vehicle Sou rce: Household Facilities and Equipment, 1990, Statistics Canada, catalogue 64-202 21 3.3 H i g h w a y / R o a d w a y Pol ic ies N e w m a n and Kenwor thy have demons t ra ted in Ci t ies and A u t o m o b i l e Dependence (1989) that there is a s t rong relat ionship b e t w e e n road supp ly and d ispersed land use . Their wo rk reveals that Nor th A m e r i c a n c i t ies , des igned largely w i th an automobi le or iented t ranspor ta t ion s y s t e m , are s ign i f icant ly less dense and have up to four t imes as much roadway than c o m p a c t European ci t ies in w h i c h automobi le use is res t r ic ted. Wh i le not ing that the ev idence may be i nconc lus i ve , Pucher (1988) sugges t s that the ex tens ive road s y s t e m in the Uni ted S ta tes is due to the in tensive suppor t of r oadway cons t ruc t ion by the A m e r i c a n publ ic sec tor . Simi lar ly , M o o r e et al (1983) d i s c u s s the " m a s s i v e commi tmen t to motor veh ic le t ranspor ta t ion" by the Canad ian publ ic sec to r (47). In Bui ld ing Ci t ies That W o r k (1992) , Fow le r i l lustrates the ex tent of local publ ic expend i tu res on h i g h w a y s and roads in North A m e r i c a by compi l ing data on t w o k inds of munic ipa l spend ing : capi ta l expenses and operat ing e x p e n s e s . Capi ta l expenses invo lve expend i tu res for bui ld ing n e w roads and buy ing land for t ranspor tat ion cor r idors . Operat ing expenses are used to mainta in the ex is t ing s y s t e m , s u c h as repair ing of potho les and c lear ing st reets of dirt and s n o w . Fow le r ' s message is loud and c lear : "Nor th A m e r i c a n ' s were spend ing bi l l ions of dol lars to build and mainta in c i ty s t ree ts . . . " (33). Wh i le local gove rnmen ts prov ided mos t n e w roads and h i g h w a y s needed to a c c o m m o d a t e automobi le t rave l , it w a s senior government po l ic ies w h i c h of fered the incent ives for w idesca le inves tment in s u c h in f rast ructure. In C a n a d a , for 22 examp le , prov inc ia l grants were Met ropo l i tan To ron to ' s s e c o n d mos t impor tant source of revenue , after the local real property and bus iness tax (Leo, 1 9 7 7 ) . The provinc ia l cont r ibut ion to M e t r o ' s share of total local revenue inc reased f rom 17 percent in 1 9 5 4 to 21 percent in 1 9 5 8 (Leo 1982 ) . Subsequen t inc reases cont inued th roughout the 1 9 6 0 ' s and beyond (Leo 1982 ) . A s ign i f icant part of this prov inc ia l cont r ibu t ion in the 1 9 5 0 ' s , w a s a grant to cove r half of the c o s t of bui ld ing and mainta in ing roads (Cass , Desjard ins, 1956 ) . Dur ing the same t ime, the Prov ince of Bri t ish C o l u m b i a "bore the entire responsib i l i ty for h i g h w a y cons t ruc t ion in eight of the ten Lower Ma in land area munic ipa l i t ies" (Leo, 1 9 8 2 : 2 0 ) . The U . S . federal road bui ld ing p rogram, mos t notab ly the Interstate S y s t e m , prov ided perhaps the greatest incent ive for local gove rnmen ts to c o m m i t to the automobi le . Federal funds for h i ghway bui lding have of ten been made avai lable on 9 0 - 1 0 match ing fo rmu las , whe reby the local gove rnmen t need on ly commi t 10 cen ts to rece ive 9 0 cen ts more for n e w cons t ruc t ion (Meyer , G o m e z - l b a n e z 1981 ) . The federal gove rnmen t also helped the s tates to f inance pr imary and seconda ry urban and rural roads at a 5 0 - 5 0 ratio (Leavit t , 1970 ) . Figure 4 s h o w s the infrastructure capi ta l ou t lays for state and local gove rnmen ts b e t w e e n 1 9 6 5 to 1 9 8 9 . On a per cap i ta bas is , average annual expend i tu res for h i g h w a y s s ince 1 9 6 5 have con t inuous ly and s ign i f icant ly su rpassed those for t rans i t , s e w e r s and water comb ined (Netzer 1992 ) . 2 3 FIGURE 4 Infrastructure Capital Outlays, State and Local Governments, U.S. (1965 - 1989) 200-(Incl highways,transit,sewers,water) Other (unctions Y7A Highways Source: Dick Netzer, "Do We Really Need a National Infrastructure Policy?" Journal of American Planning Association 58:2, Spring (1992):141 2 4 Senior U . S . gove rnmen t pol ic ies created incent ives for e x c e s s i v e n e w cons t ruc t ion by o f ten l imit ing the appl icat ion of h ighway -use r t axes to h i ghway capi ta l expend i tu res rather than for ma in tenance of ex is t ing in f rast ructure and other non-cap i ta l t ranspor ta t ion related purposes (Netzer 1 9 9 2 ; Fo rkenb rock , 1 9 8 4 ; M e y e r , G o m e z - l b a n e z 1981 ) . Subsequen t l y , the nature of U . S . t ranspor ta t ion inves tments were fuel led primari ly by me thods of f inanc ing rather than by c o n s u m e r t ranspor ta t ion needs . For examp le , the earmark ing of federal h ighway aid for cer ta in t ypes of t ranspor ta t ion pro jects , s u c h as the Interstate H ighway S y s t e m , c reated further incent ive to build these faci l i t ies rather than prov ide an oppor tun i ty for local gove rnmen t to invest in a t ranspor ta t ion s y s t e m more appropr iate to its needs (Leavit t 1970 ) . In S u p e r h i g h w a y Super H o a x , Leavi t t desc r ibes the Uni ted S ta tes ' mass i ve commi tmen t to the au tomob i le : In 1 9 5 7 the h i ghway program rece ived $1 bil l ion in federal f unds . From then on th rough 1 9 6 5 , the amoun t f luc tuated at a round $2 bil l ion year ly . In 1 9 6 6 , it j umped to $3 bi l l ion, and by 1 9 6 9 , the program rece ived $5 bi l l ion. . . the 1 9 6 8 H i g h w a y A c t w a s able to prov ide for a total of $21 bil l ion for roads th rough 1974. . . In con t ras t , the 1 9 6 9 federal m a s s transi t budget w a s only $ 1 7 5 mil l ion for the entire coun t ry . (Leavitt 1 9 7 0 : 6 4 ) A s i l lustrated above , the government p lays an important role in prov id ing the necessary h i g h w a y / r o a d w a y inf rastructure for au tomobi le use . Direct gove rnmen t expend i tures for the cons t ruc t i on , ma in tenance and operat ion of h i g h w a y s and 2 5 local roads over the last f i f ty years has faci l i tated the g row th of the automobi le as the dominant mode of t ranspor ta t ion . The unpreceden ted expans ion of roads and h i ghways dur ing the pos t -war per iod has pr iv i leged l o w dens i ty deve lopmen t by making inexpens ive land on the urban fr inge more access ib l e . 3 .4 Indirect Subs id ies Or ig inal ly , it w a s thought that the e c o n o m i c and soc ia l benef i ts o f fered by automobi les ou twe ighed the c o s t s . A s s u c h , the t radi t ional publ ic po l icy app roach relating to the prov is ion of automobi le-or iented inf rastructure w a s a ' supp l y - s i de ' app roach . G o v e r n m e n t s inves ted heavi ly in the creat ion of n e w h i g h w a y s and roads in an effort to meet increas ing d e m a n d . Roads and assoc ia ted inf rastructure were perce ived by users as ' f ree g o o d s ' , and as s u c h , t ranspor ta t ion habi ts and cho i ces bore little re lat ionship to the true cos t of a g iven trip (Best 1 9 9 2 ) . Simi lar ly , the publ ic po l ic ies that have gu ided t ranspor ta t ion inves tmen ts of the past decades have concen t ra ted on faci l i tat ing personal mobi l i ty , pay ing little at tent ion to the external impac ts of dr iv ing: the s ign i f icant env i ronmenta l and soc ia l cos t s that are impl ici t in automobi le use . These cos t s are in the fo rm of water and air po l lu t ion, e x c e s s no ise , conges t i on , des t ruc t ion of fa rmland and loss of life and proper ty damage due to veh ic le acc iden ts . Wh i le mos t researchers a c k n o w l e d g e the ex is tence of external c o s t s assoc ia ted w i th automobi le use , these cos t s are di f f icult to measure and even more di f f icult to conver t into monetary te rms. The methodo log ies used to es t imate 2 6 external cos t s rely largely on sub ject ive j udgements , mak ing them cont rovers ia l (Hanson , 1 9 9 2 ) . No tw i t hs tand ing , the s ign i f icant env i ronmenta l and soc ia l impacts of dr iv ing have been wel l d o c u m e n t e d ( D o w n s , 1 9 9 3 ; H a n s o n 1 9 9 2 ; L i tman 1 9 9 1 ; Leavi t t 1 9 7 0 ) . 3.4.1 Env i ronmenta l Impacts Au tomob i l es and their assoc ia ted inf rastructure negat ive ly af fect the env i ronment in many w a y s . The air and water pol lut ion impac ts of dr iv ing are potent ia l ly eno rmous . Au tomob i l es are a major sou rce of ca rbon m o n o x i d e , n i t rogen ox ides and volat i le organ ic c o m p o u n d s ; three air po l lu tants that cause damage to human hea l th , deter iorat ion to phys ica l s t ruc tu res , and agr icul tural losses (Smith 1 9 9 3 ; M c E a c h e r n 1 9 9 1 ; L i tman 1991) . The det r imenta l e f fec ts of automobi le em iss ions are mos t p ronounced in urban cent res whe re automobi le use is concen t ra ted . Ironical ly, it is of ten people w h o wa lk , c yc l e and use publ ic t ranspor tat ion w h o have to con tend w i th these immediate e f fec ts of au tomobi le use . In addi t ion to cont r ibut ing to air po l lu t ion, emiss ions are a s ign i f icant sou rce of wa te r pol lu t ion and ac id rain (Hanson 1 9 9 2 ; L i tman 1 9 9 1 ) . Road sal t assoc ia ted w i th s n o w and ice remova l , and leaked motor oil w a s h off road su r faces and further cont r ibute to the pol lut ion of our water resou rces , w i th c o n s e q u e n t loss in aquat ic life and recreat ion oppor tun i t ies . The inf rastructure required by au tomob i les is c o n d u c i v e to the al terat ion of e c o s y s t e m s . H i g h w a y cons t ruc t i on , paved r o a d w a y s and park ing faci l i t ies create 27 hydro log ic c h a n g e s s u c h as al tered dra inage pat terns, f lood ing and reduced perco lat ion (Li tman 1 9 9 1 ) . Th is may cause soi l e ros ion and lands l ides to occu r more f requent ly around roads and br idges. Roads may also interfere w i th the movemen t (migrat ion patterns) of wi ld l i fe and reproduct ion s i tes of birds by d iv id ing o the rw ise und is turbed land. Final ly, expand ing motor veh ic le inf rastructure con t inues to c o n s u m e product ive farmland at an a larming rate. In addi t ion to the above conce rns related to the au to ' s use , equal ly s igni f icant are the env i ronmenta l s t resses related to the au tomob i l e ' s manufac tu re and d i sposa l . A var ie ty of non renewab le resources are used in the p roduc t ion of motor veh ic les , inc lud ing s tee l , i ron, a luminum and copper . The ex t rac t ion , smel t ing and ref in ing of these mater ia ls may result in land d i s tu rbances , leach ing and the release of var ious pol lu tants . Fur thermore, an eno rmous amoun t of energy goes into the manufac tu re of an automobi le . It has been es t imated that the amount of energy required to p roduce an automobi le is equ iva lent to the energy conta ined in b e t w e e n 2 , 0 0 0 to 3 , 1 0 0 L of gasol ine (or the amoun t of fuel c o n s u m e d by 1 6 , 0 0 0 to 2 6 , 0 0 0 km of driving) (Smith 1 9 9 3 ) . The d isposa l of au tomob i les and their c o m p o n e n t s a lso g ives rise to a var iety of env i ronmenta l c o n c e r n s . For examp le , con taminan ts in w a s t e motor oil (such as var ious metals) may enter the env i ronment th rough improper d i sposa l me thods ; old air cond i t ioners may release ch lo ro f luo rocarbons (CFSs) w h i c h cont r ibu te to s t ra tospher ic ozone deplet ion and g lobal w a r m i n g ; and the s tock pi l ing of old t i res presents the danger of con tamina te emit t ing f i res. 2 8 Sign i f i cant ly , gove rnmen t po l icy has not required au tomobi le users to pay the true cos t of energy required by the automobi le (Li tman 1991 ) . External i t ies assoc ia ted w i th the ex t rac t ion , p rocess ing and dist r ibut ion of oil and pet ro leum produc ts cont r ibu tes to the des t ruc t ion of natural habi tat , air and wa te r po l lu t ion, hazardous mater ia l generat ion and the deplet ion of non- renewab le energy resources (Litman 1991 ) . Ke lbaugh (1992) s tates that "p robab ly the least obv ious government subs idy is that part of our de fense budget used to mainta in secure sou rces of o i l " (16). 3 . 4 . 2 Soc ia l Impacts Whi le the env i ronmenta l impac ts of dr iv ing are potent ia l ly e n o r m o u s , the soc ia l impac ts are equal ly subs tan t i ve . Au tomob i l e d e p e n d e n c y and assoc ia ted land use pat terns d i scou rage , or great ly lower the qual i ty of a l ternat ive t ravel opt ions in mos t commun i t i es . The reduct ion in mobi l i ty op t ions for non-dr ivers tends to have the greatest impact on the poor , the e lder ly , the hand i capped and others w h o are not able to dr ive. Th is segmen t of soc ie t y , es t imated at 2 5 percent or more of the popula t ion (Li tman 1 9 9 1 ) , ul t imately bears the major c o s t s of other peop les ' mobi l i ty . Past ef for ts to improve t ranspor ta t ion equi ty have f o c u s s e d mainly on publ ic po l ic ies w h i c h have promoted universal au tomobi le owne rsh ip (Litman 1 9 9 1 ) . Cr i t i cs of s u c h pol ic ies note that un iversal au tomobi le ownersh ip is unatta inable w i thou t large-scale env i ronmenta l degradat ion and the des t ruc t ion of urban areas (Rober ts , J a m e s 1990 ) . Simi lar ly , d i rect subs id ies to publ ic t ransi t as 2 9 an al ternat ive t ravel mode are superseded by even greater subs id ies to automobi le use , s u c h as f ree park ing and relat ively l o w fuel c o s t s . C o n s e q u e n t l y , non-dr ivers indirect ly pay for many of the subs id ies necessa ry to min imize the c o s t of dr iv ing. Fur thermore, the nature of au tomobi le t echno logy is s u c h that it imposes grave negat ive external i t ies on both people and proper ty . These external i t ies take the form of acc ident - re la ted injuries, deaths and property d a m a g e . S ign i f i cant ly , the w ide -sp read use of the automobi le in commun i t i es ac ross North A m e r i c a and the resul tant land use pat terns has p rompted an increase in conges t ion on urban and suburban roads (Downs 1 9 9 3 ; Cerve ro 1 9 8 8 ) . A s d i scussed earlier in th is chapter , the tradi t ional publ ic po l icy app roach t owa rd al leviat ing conges t i on has been to invest heavi ly in the creat ion of n e w h i g h w a y s and roads. It is ev ident , h o w e v e r , that t ranspor ta t ion pol ic ies that rely on publ ic resources to bui ld our w a y out of the conges t i on prob lem (ie. bui ld ing capac i t y for peak demand) represent an ineff ic ient use of publ ic resources ( D o w n s 1993 ) . Creat ing road capac i t y for peak t ravel t imes (ie. ' rush hour ' ) means spend ing a relat ively large amoun t of money for the d i rect benef i t of relat ively f e w peop le . A s traff ic conges t i on inc reases , so do the impac ts on soc ie ty . These impac ts are in the fo rm of lost le isure t ime, inc reased day- to -day s t ress and dec l in ing worke r product iv i ty (Cervero 1991 ) . In "U rban Trave l Behav iour as the O u t c o m e of Publ ic P o l i c y " (1988 ) , Pucher states that " the fai lure of publ ic po l i cy to internal ize those [external] c o s t s th rough surcharges on automobi le use means that r oadway cons t ruc t i on and auto use have 3 0 been impl ic i t ly subs id ized by the amoun t of this underp r i c ing . . . " (515) . Had publ ic pol icy taken into cons idera t ion the external cos t s of t ranspor ta t ion i nves tmen ts that are born by soc ie ty as a w h o l e , it is quest ionab le whe the r the major i ty of automobi le- re la ted inves tmen ts over the past decades cou ld have been just i f ied. A full accoun t ing of the d i rect subs id ies the automobi le rece ives , inc lud ing the env i ronmenta l and soc ia l c o s t s it imposes on soc ie ty , w o u l d prov ide a c learer unders tand ing of the ex tent of the publ ic s e c t o r ' s mass i ve c o m m i t m e n t to the automobi le . The above app roach has been r e c o m m e n d e d by the B . C . Round Table (1994) , the Greater V a n c o u v e r Regional Distr ic t (1994) , the Canad ian Urban Institute (1994) and numerous other bodies that have s tud ied th is i ssue . 3 .5 Gaso l ine and Au tomob i l e Tax Pol ic ies A r o u n d the w o r l d , taxat ion of both gasol ine and automobi le owne rsh ip have been used as a means of in f luenc ing automobi le use and dr ivers ' behav iour (Pucher 1988) . Canad ian and U . S . gove rnmen t pol ic ies have encouraged automobi le ownersh ip by mainta in ing the cos t of energy in C a n a d a and the U . S . relat ively l ow compared to other coun t ies of the wor ld ( N e w m a n , K e n w o r t h y 1 9 8 9 ; Pucher 1 9 8 8 ; Renner 1988) (Table 4) . 31 T A B L E 4 Cost of Gasoline Least Expensive in North America Coun t r y A v e r a g e Gaso l ine Pr ice/L i t re ( 1 9 7 8 ) * ( 1 9 8 7 ) * T a x e s on Gaso l ine as Percen t of Pre- tax Pr ice ( 1 9 7 8 ) * ( 1 9 8 7 ) * Uni ted S ta tes 0 . 1 8 0 . 2 5 2 3 4 5 C a n a d a 0 . 1 9 0 . 3 7 41 5 6 W e s t G e r m a n y 0 . 4 6 0.61 1 3 8 Swi tzer land 0.51 0 . 6 8 1 7 0 France 0 . 5 6 0.81 1 7 0 3 1 7 S w e d e n 0.41 0 . 6 6 1 0 8 1 3 3 Nether lands 0 . 5 0 0 . 8 0 1 5 6 2 4 5 Belg ium 0 . 5 0 0 . 6 9 1 6 3 178 Italy 0 . 5 9 0 . 9 9 2 4 5 2 8 5 Aus t r i a 0 . 4 8 0 . 7 5 1 1 7 1 5 0 Great Britain 0 . 3 2 0 . 6 3 1 0 0 1 7 8 Denmark 0 . 5 0 0 . 9 9 178 3 5 5 *in 1988 U.S. dollars Source: John Pucher. "Urban Travel Behaviour As The Outcome of Public Policy: The Example of Modal-Split in Western Europe and North America." Journal of the American Planning Association 54 Autumn (1988):24. 3 2 It is ev ident f rom Figure 5 that s u c h pr ice d i f fe rences are the result of del iberate taxat ion po l ic ies , and not f rom var iances in the real cos t of pe t ro leum. Pr ice has a d i rect e f fect on gaso l ine c o n s u m p t i o n , w h i c h in tu rn , in f luences deve lopment pat terns. A persuas ive s tudy of internat ional fuel pr ices by S h a c k s o n (1979) has s h o w n that " in count r ies hav ing expens ive fue l , annual c o n s u m p t i o n per registered veh ic le w a s much lower than consump t i on in count r ies hav ing cheaper f ue l " ( W a c h s 1 9 8 1 : 2 4 4 ) . Fur thermore, N e w m a n and K e n w o r t h y (1989) have demons t ra ted that count r ies w i th lower rates of fuel c o n s u m p t i o n , in genera l , tend to have higher dens i t ies than count r ies where c o n s u m p t i o n rates are greater. In ef fect , Nor th A m e r i c a n gaso l ine tax pol ic ies have s k e w e d c o n s u m e r cho i ce t owa rds higher c o m m u t e d i s tances and lower pr iced suburban hous ing . 3 3 FIGURE 5 Levels of Gasoline Taxation Various Countries (in U.S. Dollars per Litre) Source: John Pucher. "Urban Travel Behaviour As The Outcome of Public Policy: The Example of Modal-Split in Western Europe and North America." Journal of the American Planning Association 54 Autumn (1988):513. Inexpensive fuel has been a major cont r ibutor to the dec reas ing propor t ion of income per cap i ta a l located to t ranspor ta t ion in North A m e r i c a b e t w e e n the end of W W II and the oil cr is is of 1 9 7 3 - 1 9 7 4 (Wachs 1981 ) . B e t w e e n 1 9 5 5 and 1 9 7 0 , the average real pr ice of gaso l ine in the U . S . fell by 13 percent , and the pr ice per thousand ga l lons of gaso l ine had dec reased f rom 6 .6 percent of U . S . med ian income to 3 .6 percent (Al tshuler 1 9 7 9 : 1 2 4 ) . Simi lar ly , for the Prov ince of Ontar io in C a n a d a b e t w e e n 1 9 6 0 and 1 9 7 5 t ranspor t expend i tu res as a f rac t ion of 3 4 househo ld i ncome dec reased by roughly . 5 % annual ly , and b e t w e e n 1 9 5 3 and 1 9 7 5 the percen tage of fami ly i ncome necessa ry to pu rchase 7 0 0 ga l lons of gasol ine fell f rom 6 . 7 % to 3 . 7 % (Moore et al (1983) . Dec l in ing t ranspor ta t ion cos t s have resul ted in more d ispersed urban deve lopmen t and p rompted the adopt ion of a l o w dens i ty resident ial l i fe-style in Nor th A m e r i c a . Despi te a h is tory of a l ow relat ive rate of taxat ion on gaso l ine in C a n a d a and the Uni ted S ta tes , publ ic pol ic ies to increase tax rates have yet to be ini t iated as a means to curtai l au tomobi le use . Th is is due to the w idesp read v i e w that the demand for gaso l ine is insensi t ive to higher pr ices. Higher p r i ces , t hus , might not encourage a reduct ion in the demand for au tomobi le t ravel but rather only impose a monetary hardsh ip on l ow - i ncome househo lds . A s a result , even smal l pr ice increases in the gaso l ine tax have proven to be pol i t ical ly un feas ib le . The above v i e w , h o w e v e r , has been cha l lenged by a number of researchers and economis t s (Meyer , Gomez - l banez 1 9 8 1 ; W a c h s 1 9 8 1 ; A l tshu le r 1979 ) . Whi le ev idence sugges t s that gasol ine consump t i on is a f fec ted only moderate ly by pr ice changes in the shor t run (say, one to f ive years) , over the longer term consumers have more oppor tun i t ies to avo id higher fuel pr ices by tak ing the n e w pr ices into a c c o u n t w h e n mak ing their dec is ions about whe re to l ive. Th is sugges ts that any f inanc ia l p rob lems caused by high energy pr ices wi l l d imin ish o v e r t i m e (Meyer , G o m e z - l b a n e z 1981 ) . Fur thermore, c o m p a r i s o n s a m o n g count r ies w h i c h have long had higher gaso l ine pr ices as a matter of publ ic po l i cy , and the Uni ted S ta tes w h i c h has histor ical ly had lower gaso l ine p r ices , indicate 3 5 that over the long run higher fuel pr ices do in fact in f luence t ranspor ta t ion c h o i c e s ( N e w m a n , K e n w o r t h y 1 9 9 2 ; Pucher 1988 ) . Simi lar ly , d iverse wor ld -w ide tax rates for n e w au tomob i les have in f luenced automobi le owne rsh ip in vary ing degrees (Pucher 1988 ) . In the U . S . , whe re automobi le owne rsh ip has sys temat ica l l y been the h ighest in the w o r l d , the average sa les tax for a n e w med ium s ized automobi le is only f ive percent (Pucher 1988 ) . Th is con t ras ts w i th 3 3 percent in F rance , 4 7 percent in the Nether lands and up to 186 percent in Denmark (Pucher 1 9 8 8 ) , whe re levels of au tomobi le ownersh ip have tradi t ional ly been lower . T h u s , gove rnmen t po l ic ies have made automobi le owne rsh ip in the above count r ies more expens ive than in Nor th A m e r i c a by del iberate ly impos ing higher t axes on n e w au tomob i les . A l o n g w i th higher rates of gaso l ine taxa t ion , th is has been a cont r ibut ing fac tor t o w a r d s curtai l ing au tomobi le use and ownersh ip in these count r ies . 3 .6 S u m m a r y Long- term publ ic inves tments in inf rastructure for the au tomobi le have p roduced a s t rong d e p e n d e n c y re lat ion. Wh i le one might argue that user charges have f inanced the cos t of h i g h w a y s and that automobi le users are not subs id ized in the aggregate (Meyer , G o m e z - l b a n e z 1981 ) , recent s tud ies have revealed that user charges do not cove r all gove rnmen t expend i tu res on roads (Hanson 1 9 9 2 ; L i tman 1 9 9 1 ; Pucher 1 9 8 8 ) . Th is underpr ic ing of automobi le use th rough publ ic subs id ies resul ts in t ranspor ta t ion cos t s to be perce ived by dr ivers as lower than they w o u l d 3 6 be w i thout subs id ies . Th is , in tu rn , en t ices automobi le users to dr ive more (farther and/or longer) than they w o u l d if they had to pay the full cos t s of au tomobi le use , resul t ing in the over -use of r o a d w a y s and other automobi le- re la ted in f rast ructure. A t the same t ime, over -use of automobi le- re la ted inf rastructure prec ip i ta tes improvements in the s y s t e m , s u c h as bui ld ing more h i g h w a y s . M o r e h i g h w a y s generate addi t ional traff ic to fill t hem up (Lee 1989) . The ul t imate conc lus i on is " the over -prov is ion of [automobi le-related] t ranspor ta t ion in f rast ructure relat ive to wha t it w o u l d be if user fees ex is ted to capture more or all of the d i rect c o s t . . . " (Hanson 1 9 9 2 ; 6 2 ) . Ano the r e f fect of underpr iced dr iv ing has been the dec l ine of a l ternat ive modes of t ranspor ta t ion . A s land use pat terns and soc ia l habi ts adjust to ref lect the subs id ies assoc ia ted w i th automobi le use , non-au tomot ive fo rms of t ranspor t become less v iable and consequen t l y rece ive less capi ta l i nves tment . P roponen ts of low dens i ty l iv ing wi l l t ranslate th is to mean that the market has dec ided on the automobi le as the best answe r to urban t ranspor ta t ion . In do ing s o , they fail to cons ider both the l imited range of cho i ce avai lable to c o n s u m e r s and the p rocess by w h i c h h i g h w a y s c a m e to domina te t ranspor ta t ion in the f irst p lace . For mos t peop le , the au tomobi le has b e c o m e the only feasib le a l ternat ive. 37 C H A P T E R F O U R Post - W a r Hous ing Pol ic ies 4.1 Introduct ion Dur ing the per iod be tween 1 9 4 5 and 1 9 6 5 , w h e n pos t -war pat terns of deve lopment we re mos t dec is ive ly s h a p e d , the federal gove rnmen ts of both C a n a d a and the Uni ted S ta tes es tab l ished a var iety of po l ic ies w h i c h fuel led the g rowth of the suburban l i festyle and e c o n o m y . Federal p rograms for hous ing and munic ipa l ass i s tance in the deve lopmen t of s e w a g e and wa te r in f rast ructure prompted the rise of p lanning as a f ixture of local gove rnmen t (Hanchet t , 1994 ) . New ly c reated p lanning depar tments not only prov ided munic ipa l i t ies w i th the means to serv ice land for g r o w t h , but also sat is f ied the federal g o v e r n m e n t ' s requirement for p lanning d o c u m e n t s demonst ra t ing local need as a prerequis i te for federal fund ing . A c c e s s to s u c h fund ing w a s of ten cond i t iona l upon the accep tance of des ign regulat ions s u c h as m in imum street w id ths and lot s izes in n e w deve lopmen ts - regulat ions w h i c h of ten encouraged l o w dens i ty deve lopmen t (Sou thwor th , B e n - J o s e p h 1 9 9 5 ; Hanche t t , 1 9 9 4 ; M o o r e et al 1 9 8 3 ) . The prov is ion of inexpens ive and readi ly avai lable credi t fac i l i ta ted the g r o w t h of the resident ial cons t ruc t i on industry w h i c h enabled bui lders to prov ide subu rban s ingle-3 8 fami ly h o m e s on a large sca le ( C h e c k o w a y 1980 ) . F inal ly , the prov is ion of loan guarantees a l l owed f inancia l inst i tut ions to part ic ipate in the resident ia l hous ing market like never before. The nature of pos t -war federal pol ic ies were s u c h that they at t racted cer ta in t ypes of p layers to the dec is ion mak ing p rocess . The co l lec t ive dec i s ions of f inancia l inst i tu t ions, bui lders and others pro fess iona l ly c o n c e r n e d w i th urban real estate marke ts , i n f l uenced , faci l i tated and suppor ted by publ ic po l i c ies , p rov ided the necessa ry cond i t i ons for prevai l ing pat terns of deve lopmen t to o c c u r . 4 . 2 F o c u s on N e w O w n e r s h i p Hous ing Out of the depress ion of the 1 9 3 0 ' s , and the severe hous ing shor tages of the late 1 9 4 0 ' s , w a s born the s y s t e m of government aid for hous ing . It w a s bel ieved that by d iver t ing capi ta l f l ow into the hous ing market and the urban infrastructure suppor t ing it, gove rnmen ts cou ld "p revent a return to severe depress ion cond i t i ons " (Fowler 1992 ) . T h u s , both in the C a n a d a and the Uni ted S ta tes , federal hous ing p rog rammes func t ioned as an e c o n o m i c lever to s t imulate the nat ional e c o n o m y by channe l l ing capi ta l into homebu i ld ing . A pr imary f o c u s of these hous ing p rograms w a s on encourag ing and faci l i tat ing h o m e o w n e r s h i p , of ten to the exc lus ion of other t ypes of hous ing p rograms. Federal gove rnmen ts became an impor tant part of the f inanc ia l s t ructure of the North A m e r i c a n hous ing indust ry . A s regulators of the bank ing indust ry , lenders of publ ic money and di rect insurers of mor tgages , federal gove rnmen ts 3 9 encouraged more people to go into debt to pu rchase their o w n h o m e s by lower ing carry ing charges th rough long- term indeb tness . By the 1 9 6 0 ' s , " res ident ia l debt represented the largest s ingle c o m p o n e n t of the f inancia l s t ruc ture of both C a n a d a and the Uni ted S ta tes (Fowler 1 9 9 2 ) . G o v e r n m e n t s made mor tgage money readi ly avai lable by guarantee ing loans and thus min imiz ing the risk for la rge-sca le investors in the hous ing indust ry . In C a n a d a , the federal gove rnmen t under took t w o ini t iat ives in the mid-1 9 4 0 ' s that s ign i f icant ly in f luenced the Canad ian hous ing indust ry over the next ten years : the Nat ional Hous ing A c t (NHA) w a s passed in 1 9 4 4 and the Cent ra l (now " C a n a d a " ) Mo r tgage and Hous ing Corpora t ion ( C M H C ) w a s es tab l i shed in 1 9 4 6 to admin is ter the N H A ( C M H C 1989) . C M H C con t inued the pr incip le of joint lending that w a s es tab l i shed by the Domin ion Hous ing A c t of 1 9 3 5 w h e r e b y approved lenders and C M H C together made loans of up to 8 0 percent of lending va lue avai lable for n e w ownersh ip hous ing . These loans were shared 7 5 pe rcen t / 25 percent by the lenders and C H M C , respec t ive ly , w i th an interest rate subs idy built into C H M C ' s share . ( C M H C 1 9 8 9 : 1 1 ) In 1 9 5 4 , amendmen ts to the N H A in t roduced the C H M C ' l oan - i nsu rance ' s y s t e m . This gave C M H C the mandate to insure the mor tgage loans made by approved lenders thereby guarantee ing repayment shou ld o w n e r s defaul t . For the f irst t ime, it w a s n o w poss ib le for char tered banks to invest their funds in hous ing , prov id ing an even greater sou rce of funds for mor tgage loans. Simi lar ly , the U . S . Hous ing A c t of 1 9 3 4 also prov ided a tw in s y s t e m of insurance for the home f inanc ing market . First, the Federal Sav i ngs and Loan 4 0 Insurance Corpora t ion (FSLIC) insured saver -depos i to rs against bank fai lure (Mi tchel l 1985 ) . Th is took the risk out of depos i t ing money into commerc ia l banks and at t racted funds to mor tgage lending inst i tut ions. S e c o n d , the Federal H o u s n g Admin is t ra t ion (FHA) insured lending inst i tut ions against the defaul t of bo r rowers by guarantee ing long- term mor tgage rates (Mi tchel l 1 9 8 5 ) . Th is encou raged the part ic ipat ion of commerc ia l banks in mor tgage f inanc ing and helped homebuye rs bor row on less s t r ingent mor tgage te rms : lower d o w n paymen t , l ower con t rac t terms and lower interest rates. 4 . 3 F o c u s on N e w Cons t ruc t i on of S ing le-Fami ly H o m e s Nor th A m e r i c a n gove rnmen t pol ic ies to encourage h o m e o w n e r s h i p have prompted l o w dens i ty suburban deve lopmen t by emphas iz ing n e w cons t ruc t i on of s ingle- fami ly h o m e s . Spec ia l incent ives and f inancia l aids to the resident ia l cons t ruc t ion industry fac i l i ta ted a g row th in the number of large bui lders w h o took advantage of m a s s p roduc t ion and prefabr icat ion me thods to real ize rapid cons t ruc t ion and higher hous ing p roduc t ion . T h u s , la rge-sca le , s ing le- fami ly deve lopments became a dominan t character is t ic of the suburban l andscape . C a n a d a ' s hous ing industry in the m i d - 1 9 4 0 s w a s charac te r i zed as "an industry in its i n fancy " ( C H M C 1 9 8 9 : 1 8 ) , c o m p o s e d mainly of a large number of smal l -sca le homebu i lde rs . A t the t ime, conce rn w a s exp ressed over the e f f i c iency of the homebu i ld ing industry to meet the cha l lenges of prov id ing af fordable s ingle-fami ly homes to meet both the hous ing back log c reated by the depress ion and the 41 requi rements of pos t -war g r o w t h . Sen ior gove rnmen t w a s cr i t ical of the homebui ld ing industry for not at ta in ing " the techno log ica l matur i ty of other b ranches of the cons t ruc t i on industry that p lanned and built modern skysc rape rs and erected bu i ld ings" ( C H M C 1 9 8 9 : 1 9 ) . It w a s bel ieved that the h igh cos t of hous ing w a s the result of high cons t ruc t ion cos t s due to an ou tda ted ' hammer -and-na i ls ' indust ry . Gove rnmen t po l ic ies , therefore, a imed to encourage a mass -product ion hous ing industry w i th an emphas is on ef f ic ient p roduc t ion me thods . W i th the help of gove rnmen t po l ic ies , the pos t -war decade s a w a rapid rise in the number and expans ion in the size of homebui ld ing f i rms in C a n a d a ( C M H C 1989) . Wh i le smal ler bui lders still domina ted the homebu i ld ing indust ry , large (100 or more houses /year ) and med ium (25 to 9 9 houses /year ) b e c a m e impor tant p roducers of N H A - f i n a n c e d homes by the m i d - 1 9 5 0 s (Table 5). T A B L E 5 Single-Family Homebuilders by Size of NHA Operations, Canada, 1955 Number of Units Completed Under the NHA in 1955 Number of Builders (Percent) Number of Units Completed (Percent) 1-6 units 4 2 6 7 -24 units 3 6 2 2 2 5 - 9 9 units 17 3 3 1 0 0 or more uni ts 5 3 9 TOTAL 100 100 Source: C M H C , The Housing Industry: Perspective and Prospective, Working Paper One, 1989 :22 . 4 2 Large f i rms a c c o u n t e d for 3 9 percent of the total p roduc t ion of N H A -f inanced homes in 1 9 5 5 , w i th the average large bui lder bui ld ing 171 h o m e s . Dur ing the decade of the 1 9 6 0 ' s , the average large bui lder built b e t w e e n 1 7 0 to 2 2 5 N H A f inanced h o m e s per year . Dur ing the f irst four years of the 1 9 7 0 s , the market share of large N H A bui lders exceeded 4 0 percent . Produc t ion of s ing le- fami ly homes in C a n a d a expanded rapidly in the ear ly pos t -war yea rs . M o r e than three out of four homes built in the late 1 9 4 0 s were s ingle- fami ly h o m e s ( C M H C 1 9 8 9 : 6 ) . Figure 6 s h o w s that , w i th on ly the excep t ion of the late 1 9 6 0 s , s ingle- fami ly homes domina ted hous ing star ts be tween 1 9 4 6 and 1 9 8 6 . In 1 9 9 0 , despi te the fac t that near ly half of all househo lds cons i s ted of one or t w o peop le , s ingle- fami ly h o u s e s a c c o u n t e d for 5 3 . 4 % of all dwe l l i ngs on w h i c h cons t ruc t ion began (Government of C a n a d a 1991) . 4 3 FIGURE 6 Housing Starts by Type Canada, 1946-1986 Thousands of Units 300 240 180 120 60 0 Source: CMHC, The Housing Industry: Perspective and Prospective, Working Paper One, 1989:6. Figures 7 and 8 s h o w the percen tage of N H A and conven t iona l loans i ssued be tween 1 9 5 2 and 1 9 7 0 for both s ingle- and mult i - fami ly dwe l l i ngs , respec t ive ly . N H A loans ove rwhe lm ing l y suppor ted the cons t ruc t ion of s ing le- fami ly h o m e s up to about 1 9 6 3 , even whi le conven t iona l loans tended to favour mul t ip le- fami ly dwe l l ings dur ing the same t ime. 44 FIGURE 7 Single-Family Dwellings Conventional and NHA Loans (1952-1970) Percent 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 Date — NHA Loans — * ~ Conventional Loans Source: David Bettison. The Politics of Canadian Urban Development. Edmonton: University of Alberta Press, 1975:156 FIGURE 8 Multiple Family Dwellings Conventional and NHA Loans (1952 - 1970) Percent 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 Date — NHA Loans —<— Conventional Loans Source: David Bettison. The Politics of Canadian Urban Development. Edmonton: University of Alberta Press, 1975:156. 45 A s in C a n a d a , the avai labi l i ty of inexpens ive f inanc ing and the home mor tgage insurance di rect ly in f luenced the g rowth of the cons t ruc t i on industry in the Uni ted S ta tes dur ing the pos t -war per iod and created the mos t ambi t ious suburban iza t ion plan in the history of the Coun t ry (Sou thwor th , B e n - J o s e p h 1995 ) . These incent ives p rompted a s ign i f icant increase in both the number of large bui lders and the number of s ing le- fami ly houses built by t h e m . In "La rge Bui lders , Federal Hous ing P rog rams , and P o s t w a r Subu rban i za t i on " , C h e c k o w a y (1980) documen ts the many advan tages af forded to large bui lders by senior gove rnmen t : He [the large builder] appl ied government f inancia l aids and hous ing research to his work . Gove rnmen t research laborator ies coope ra ted w i th large bui lders to make a d v a n c e s in mater ia ls and equ ipment , in land deve lopmen t and site p lann ing, and in faster and less cos t l y me thods . ( C h e c k o w a y 1 9 8 0 : 2 5 ) C h e c k o w a y fur ther i l lustrates h o w F H A po l icy d iver ted mor tgage m o n e y overwhe lm ing ly into n e w s ingle- fami ly suburban hous ing : In 1 9 4 9 C o n g r e s s increased the amoun t that cou ld be insured under the F H A home mor tgage p rogramme to $6 bi l l ion. In 1 9 5 0 C o n g r e s s increased the F H A mor tgage insurance author izat ion by $ 2 . 2 5 bi l l ion, amended F H A sa les hous ing p rogrammes to prov ide incent ives for p roduc t ion of three and four bed room houses , l iberal ized F H A te rms on loans for manu fac tu red houses and large-scale resident ia l cons t ruc t i on , es tab l ished a n e w F H A programme for h o m e s in suburban and out ly ing areas , and reduced the low-rent publ ic hous ing author izat ion 7 5 , 0 0 0 units for the year . In 1951 C o n g r e s s inc reased the F H A mor tgage insurance author izat ion by $ 1 . 5 bi l l ion, author ized loans to faci l i tate the produc t ion of prefabr icated houses and major c o m p o n e n t s for n e w h o u s e s , ... and further reduced the publ ic 4 6 hous ing author izat ion to 5 0 , 0 0 0 units for the year . In 1 9 5 3 C o n g r e s s increased the F H A mor tgage insurance author izat ion by $ 1 . 5 bi l l ion, l iberal ized F H A te rms on loans for n e w o w n e r - o c c u p i e d h o m e s and in suburban areas , and further reduced the publ ic hous ing author izat ion to 3 5 , 0 0 0 uni ts for the year and subsequen t yea rs . The H o u s i n g ac t of 1 9 5 4 increased all F H A mor tgage insurance author izat ions by another $ 1 . 5 bi l l ion, l iberal ized the amoun ts and te rms of F H A sa les hous ing mor tgages , and es tab l ished another F H A mor tgage insurance p rogramme for s ing le- fami ly dwe l l ings in suburban and out ly ing a reas . " ( C h e c k o w a y 1 9 8 0 : 3 1 - 3 2 ) Be tween 1 9 5 0 and 1 9 7 0 , two- th i rds of all n e w hous ing uni ts in the U . S . were located pr imari ly outs ide the centra l c i t ies , the ove rwhe lm ing major i ty of w h i c h we re s ing le- fami ly h o m e s (Tobin , 1976 ) . In 1 9 6 5 , over 6 8 percen t of all n e w hous ing uni ts in metropol i tan areas were s ingle- fami ly h o m e s , of w h i c h 61 percent were located outs ide the centra l c i ty (Tobin 1976 ) . In the ear ly 1 9 7 0 s , s ingle- fami ly dwe l l i ng units made up about 5 5 percent of total uni ts be ing built. By 1 9 8 7 , the percen tage reached 7 0 . 6 (Fowler 1 9 9 2 : 5 5 ) . S ing le- fami ly h o m e o w n e r s h i p in the Uni ted S ta tes has been fur ther ass is ted by s igni f icant h o m e o w n e r tax benef i ts that began in the early 1 9 4 0 s , w h e n personal i ncome tax rates we re ra ised to help pay for WWII (Aaron 1 9 7 2 ) . H o m e w o n e r s we re n o w able to deduc t interest paymen ts on a mor tgage and local property t axes f rom persona l i ncome for federal tax pu rposes . Not on ly did these incent ives encou rage taxpaye rs to buy rather than rent h o u s i n g , but they a lso st imulated addi t ional hous ing consump t i on by enabl ing h o m e o w n e r s to buy larger lots and houses than w o u l d o therw ise be des i red or p rac t i ca l . 4 7 4 . 4 Mun ic ipa l Infrastructure A s s i s t a n c e A n d Serv ic ing S tandards S ince the m a s s produc t ion of houses required large t rac ts of land , senior government po l ic ies made inexpens ive land on the urban fr inge avai lable for large-sca le deve lopmen t th rough subs id ized s e w e r and water in f rast ructure (Figure 9). Th is has been c i ted as a major in f luence on urban g row th both in C a n a d a and the Uni ted S ta tes (Bourne 1 9 9 2 ; Pucher 1 9 8 8 ; Counc i l on Env i ronmenta l 'Qua l i t y 1976 ) . In "The Impacts on Land Use of C M H C Mun ic ipa l Infrastructure A s s i s t a n c e , 1961 to 1 9 8 0 " (1984) , B i rcham and Bon descr ibe the magn i tude of Canad ian federal in f rastructure ass i s tance to munic ipa l i t ies : Be tween 1961 and 1 9 8 0 , three munic ipa l in f rastructure ass i s tance programs loaned over t w o bil l ion dol lars and granted an addi t ional $ 7 5 0 mil l ion for the cons t ruc t ion of munic ipa l s e w a g e and wa te r projects to al leviate pol lut ion and promote resident ia l cons t ruc t i on (B i rcham, Bon 1984 :1 ) In s u m m a r y , C M H C munic ipa l in f rastructure ass i s tance w a s subs tan t ia l . C M H C loans subs id ized about one-th i rd of mun ic ipa l capi ta l expend i tu res on s e w e r a g e , and water and grants paid d i rect ly for a lmos t one- tenth of s u c h expend i tu res . (B i rcham, Bon 1 9 8 4 : 3 9 ) The s tudy further reports that C M H C favoured the a l locat ion of f unds to projects serv ic ing n e w deve lopmen t in n e w or predominant ly n e w areas rather than serv ic ing for infill or redeve lopment . A n d , in the absence of local land-use p lanning or con t ro ls , " C M H C inf rast ructure p rograms tended to f inance sca t te red urban set t lement , and e x c e s s i v e urban deve lopmen t on rural r esou rces " (Birchan and Bon 1 9 8 4 : 9 2 ) . 4 8 FIGURE 9 CMHC Municipal Infrastructure Funding vs. Single-Family Housing Starts, Canada (1961 - 1980) millions oi $ Thousands oi Units 250 200 150 200 H 150 100 100 CMHC Loans & Grants — S F Housing Starts Compiled from: CMHC, The Housing Industry: Perspective and Prospective, Working Paper One, 1989:6; Paul Bircham and Wayne Bond, The Impacts on Land Use of CMHC Municipal Infrastructure Assistance, 1961 - 1980. Ottawa: Lands Directorate, 1984:3. Simi lar to C M H C ' s p rac t i ces in C a n a d a , the F H A es tab l i shed ' m i n i m u m requi rements and des i rab le s tanda rds ' for n e w deve lopmen t in the Un i ted S ta tes as a measure to secure its inves tments against r isk. A c c e s s to federa l fund ing w a s condi t ional upon the a c c e p t a n c e of des ign regulat ions w h i c h of ten encou rage l o w densi ty deve lopmen t - s tandards that were also the foundat ion for loca l gove rnmen t subd iv i s ion regu la t ions. In "S t ree t S tandards and the S h a p i n g of S u b u r b i a " (1995 ) , S o u t h w o r t h and B e n - J o s e p h i l lustrate h o w F H A m in imum 4 9 s tandards and des ign regulat ions set the s tandard for pos t -war deve lopmen t . The F H A preferred curv i l inear street pat terns, cu l -de -sacs and cour ts over the t radi t ional grid s y s t e m , and prescr ibed deve lopmen t s tandards that were e x c e s s i v e l y above those found in ex is t ing ne ighbourhoods . 4 . 5 S u m m a r y By d iver t ing cap i ta l f l o w into the hous ing market and the urban infrastructure suppor t ing it, federal pol ic ies at t racted cer ta in t ypes of p layers to the dec is ion mak ing p r o c e s s . The co l lec t ive dec is ions of f inancia l inst i tu t ions, bui lders and others pro fess iona l ly conce rned w i th urban real estate marke ts , i n f l uenced , faci l i tated and suppor ted by pub l ic po l i c ies , p rov ided the n e c e s s a r y cond i t i ons for prevai l ing pat terns of deve lopmen t to occu r . The N H A in C a n a d a and the F H A in the Uni ted S ta tes fos tered a secure econom ic foundat ion for the cons t ruc t ion of t housands of n e w s ing le- fami ly h o m e s on inexpens ive , underdeve loped land at the per iphery of metropol i tan areas . A n d , in light of g row ing inner-c i ty d is inves tment (also as a matter of po l icy ) , l o w dens i ty l iving presented itself as the mos t logical cho i ce to c o n s u m e r s . 5 0 C H A P T E R FIVE Deve lopmen t Cont ro ls 5.1 Introduct ion Land use regulat ions in North A m e r i c a ref lect evo lv ing c o m m u n i t y at t i tudes regarding the use of land and the r ights of indiv idual proper ty o w n e r s ve rsus the protect ion of the c o m m u n i t y as a who le . It is impor tant to note that the key d i f ference b e t w e e n C a n a d a and the Uni ted S ta tes is that A m e r i c a n s have property r ights en t renched in the Cons t i t u t i on , whi le substant ia l debate over th is in C a n a d a has meant that const i tu t iona l ly property r ights are not legal ly guaranteed as a r ight, accord ing to mos t l awye rs . In both C a n a d a and the Uni ted S ta tes land use , zon ing and bui lding c o d e s are des igned and admin is tered w i th little co-ord ina t ion and of ten con t rad ic to ry o u t c o m e s . Wh i le land use regulat ions for the m o s t part prov ide sound gu ide l ines for deve lopmen t , many impl ic i t ly encourage l o w dens i ty deve lopment . Loca l gove rnmen t pol ic ies relat ing to zon ing typ ica l ly limit loca t ions for higher dens i ty hous ing and require relat ively large m in imum lot s izes for s ingle-fami ly hous ing (Ke lbaugh 1992 ) . S u c h po l ic ies , coup led w i th s t r ingent 51 deve lopment s tandards and park ing requi rements d i scourage the ef f ic ient use of land. Sca t te red deve lopmen t pat terns are further encou raged by conven t i ona l methods of f inanc ing inf rastructure that do not ref lect the real cos t of prov id ing serv ices to n e w deve lopmen t . Wh i le local gove rnmen t pol ic ies have the greatest impac t upon the d i rect ion and rate of urban g row th (C lawson 1971 ) , senior gove rnmen ts a lso exe rc i se a number of impor tant responsib i l i t ies that af fect urban deve lopmen t pat terns . In addi t ion to the genera l federal pos t -war pol ic ies relat ing to hous ing and t ranspor ta t ion desc r ibed in earl ier Chap te rs , federal gove rnmen ts impose env i ronmenta l rest r ic t ions on deve lopmen t th rough a var ie ty of s ta tu tes and o rd inances . S ince s u c h pol ic ies are admin is tered by var ious d isparate agenc ies and may apply d i rect ly to spec i f i c t racts of land or may be loca l ized to spec i f i c areas, they of ten do not represent the best interests of the region as a w h o l e . 5.2 Zon ing and Deve lopmen t S tandards Zon ing is a power fu l p lanning tool avai lable to local gove rnmen ts to regulate deve lopmen t th rough the prescr ip t ion of land uses , dens i t ies and bui ld ing he ights . The tradi t ional app roach in p lanning over the last f i fty years , has been to separa te incompat ib le land uses in order to avo id haphazard land deve lopmen t pat terns and the negat ive external i t ies they c reate . S u c h a concep t w a s der ived f rom the c o m m o n prac t ice in many industr ia l ized c i t ies of locat ing hous ing next to dirty and noisy fac tor ies and other nox ious uses . Th is con t inues even though many urban 52 cent res ac ross Nor th A m e r i c a have rep laced heavy industry w i th c leaner , more high techno logy manu fac tu r ing . A s neotradi t ional is t p lanners agree, mos t loca l zon ing stil l separa tes hous ing f rom jobs (Cal thorpe 1993 ) . In fac t , the not ion of s ing le-use zon ing " h a s been carr ied to s u c h an ex t reme that even di f ferent t ypes and dens i t ies of hous ing are kept str ict ly w i th in their o w n d iscre te d is t r i c ts " (Kelbaugh 1 9 9 2 : 5 0 ) . The separa t ion of d is t r ic ts and land uses resul t ing f rom the zon ing p rocess encourages pat terns of deve lopmen t that are was te fu l and expens i ve to main ta in . Huge cos t s and land requi rements are imposed on munic ipa l i t ies as the dup l ica t ion of in f rastructure is required to serv ice both the home and the w o r k p l a c e (Cal thorpe 1 9 9 3 ; Ke lbaugh 1 9 9 2 ) . A n d , s ince single uses s u c h as shopp ing cen t res , of f ice parks and resident ia l c lus ters tend to be inaccess ib le f rom e a c h other excep t by au tomobi le , a s ign i f icant amoun t of munic ipa l land is reserved to faci l i tate the automobi le - land that cou ld be used to generate m u c h needed tax do l la rs , preserved as open s p a c e , or used for env i ronmenta l ly f r iendly act iv i t ies s u c h as urban fa rming . S imi lar ly , n e w deve lopmen t must of ten fo l l ow str ict deve lopmen t s tandards or subd iv is ion o rd inances that relate to m in imum street w id th and right of w a y , m in imum lot s izes and m in imum house s izes . They we re adop ted f rom nat ional s tandards deve loped dur ing the pos t -war per iod to improve the sa fe ty , e f f i c iency , health and pr ivacy of commun i t i es . T o d a y , cr i t ics w o u l d argue that deve lopmen t s tandards have " e v o l v e d into a r ig id, over -eng ineered a p p r o a c h " that result in 53 deve lopmen ts " that of ten are unrespons ive to their users and their geograph ic con tex ts (Sou thwor th and B e n - J o s e p h 1995 ) . Ext raord inary w ide s ide-yard se tbacks and s t reets , or large t racts of open space c o n s u m e s land at an eno rmous rate and represents an inef f ic ient use of land resources . Table 5 c o m p a r e s the e f f ic ienc ies of di f ferent hous ing f o rms . A n acre of land used for s ing le- fami ly dwe l l i ngs h o u s e s 6 househo lds at 7 , 2 6 0 s q . ft. of land per househo ld . A t o w n h o u s e deve lopmen t on the same acre of land w o u l d house three t imes as many househo lds than the s ingle- fami ly deve lopmen t . A n apar tment deve lopmen t w o u l d prov ide an even more ef f ic ient use of the same land parce l , hous ing f i f ty- f ive househo lds . Increased dens i t ies , in tu rn , w o u l d faci l i tate a more ef f ic ient use of the ex is t ing open s p a c e s ince side se t -back requi rements and other land-ex tens ive s tandards relat ing to land deve lopmen t are reduced (of c o u r s e , a i rspace is a lso better ut i l ized). S imi lar ly , typ ica l cove rage , f rontage and se t -back requ i rements of subd iv is ions tend to " reduce the bui ldable port ion of a lot to a f rac t ion of its actua l s ize, mak ing deve lopmen t of smal l parce ls un l ike ly" (Campol i 1 9 9 4 : 1 4 ) and leaving subs tanda rd lots underdeve loped s imp ly because they c a n n o t sa t i s fy the zon ing requi rement . S u c h s tandards may push deve lopmen t out to the urban fr inge where it is o f ten easier for a deve loper to meet zon ing requ i rements and consumers are wi l l ing to subs id ize the longer c o m m u t e w i th inc reased hous ing af fordabi l i ty. A l t h o u g h more and more commun i t i es are beg inn ing to realize the benef i ts of fered by innovat ive neo-tradi t ional and t ransi t -or iented deve lopmen t 5 4 guide l ines, out -dated zon ing and unreal is t ic deve lopmen t s tandards con t inue to suppor t l ow dens i ty land uses in many urban cent res ac ross Nor th A m e r i c a . T A B L E 6 The Efficiencies of Different Housing Forms Housing Form Single-Family Dwelling Town Housing Apartments Uni ts per acre 6 18 5 5 Typ ica l unit s ize in g ross s.f. 2 , 4 0 0 1 ,600 1 ,200 Built out s ize per acre 1 4 , 4 0 0 s.f. 2 8 , 8 0 0 s.f. 6 6 , 0 0 0 s.f. Floor space ratio . 3 3 .66 1.52 Ave rage persons per dwe l l ing 3 .3 2 .2 1.8 Bui ld ing area per person 7 2 7 s.f. 7 2 0 s.f. 6 6 7 s.f. Land used per person 2 , 2 0 0 s.f. 1 .089 s.f. 4 4 0 s.f. Land used per househo ld 7 , 2 6 0 s.f. 2 , 4 2 0 s.f. 7 9 2 s.f. Source: Urban Development Institute. Back to the Future: Re-Designing Our Landscapes With Form, Place and Density. 1994:38 5.3 Park ing Urban fo rm and t ravel cho i ces can be clear ly t raced to publ ic po l icy dec is ions (Wi l lson 1 9 9 5 ; H a n s o n 1 9 9 2 ; Pucher 1 9 8 8 ; W a c h s 1 9 8 1 ) . The 55 pract ices and po l ic ies of local gove rnmen t relat ing to park ing over the last f ive decades have encou raged and faci l i tated automobi le use and s p r a w l . The w idesp read prov is ion of free or subs id ized park ing s p a c e cont r ibu tes to the e x c e s s i v e use of the au tomob i le . Mun ic ipa l gove rnmen ts of ten permit curbs ide park ing at a l o w pr ice , or even for f ree, and subs id ize publ ica l ly o w n e d lo ts . A recent pub l icat ion on land-use pat terns by the Urban Deve lopmen t Institute notes that "by assuming that people wi l l dr ive to and f rom all ac t iv i t ies , the need for large st reets and park ing lots is a self- ful f i l l ing p r o p h e c y " (UDI 1 9 9 4 : 8 6 ) . Add i t iona l l y , mun ic ipa l gove rnmen ts typ ica l ly use zon ing b y l a w s to mandate deve lopers to prov ide more park ing spaces than they w o u l d o the rw ise c h o o s e or is necessa ry (Shoup 1 9 9 5 ; F rankena 1982 ) . S ince excess i ve park ing requ i rements burden n e w deve lopmen t mos t in areas where dens i ty and land c o s t s are h ighest , deve lopers wi l l seek inexpens ive land in out- ly ing areas for larger pro jects where sur face park ing cou ld be prov ided at a much lower cos t than that of a more centra l locat ion. T h u s , s u c h pol ic ies not only s u c c e e d in push ing deve lopmen t out to low-densi ty areas, but they also cont r ibute to l o w dens i ty land use by reserv ing a large amount of land resource to the s torage and operat ion of the au tomob i le . One case s tudy f rom O a k l a n d , Cal i forn ia s h o w e d h o w , as a result of the e x c e s s i v e local park ing requ i rements , the number of dwe l l ing units per acre in n e w deve lopmen ts fel l by 3 0 percent (Smi th 1 9 6 4 ) . Th is w a s due to deve lopers bui ld ing f e w e r but larger h o m e s , s ince add ing a dwe l l ing unit required another park ing s p a c e , but enlarging a dwe l l ing unit did not. 56 Whi le l o w dens i ty resident ial deve lopmen ts devo te s ign i f icant land area to the au tomob i le , it is suburban of f ice and retail deve lopmen ts w h i c h "br ing the amount of s p a c e devo ted to the cars to c o m i c p ropor t ions" (Fowler 1 9 9 2 : 1 0 ) . North A m e r i c a n zon ing c o d e s typ ica l ly require be tween 3 .0 and 5 .0 park ing s p a c e s per 1 ,000 g ross square feet of o f f ice bui lding area (Wi l lson 1 9 9 5 ) . In a typ ica l suburban of f ice project , park ing lots average 3 5 0 square feet per s p a c e ( including ais les and d r i veways) (Cervero 1991 ) . There is an average of 1 ,400 square feet of park ing prov ided for every 1 ,000 square feet of bui ld ing s p a c e : th is t rans la tes to 4 0 percent more land used for sur face park ing than the footpr int of a one s tory of f ice bui ld ing (Cervero 1 9 9 1 ) . A typ ica l suburban shopp ing deve lopmen t wi l l cons is t of a co lossa l forty acres of park ing sur round ing a mere 1 3 0 , 0 0 0 square feet, or t w o ac res , of retail deve lopmen t (Fowler 1992 ) . Wi l l son (1995) has demons t ra ted in "Subu rban Park ing Requ i remen ts " that suburban of f ice park ing is oversupp l ied by a fac tor of a lmost t w o (Figure 10). He further argues that w h e n park ing supp ly e x c e e d s d e m a n d , it tends to be t reated like a cos t l ess g o o d . Marke t pr ices canno t be sus ta ined ; and because park ing is free to the motor is t , so lo dr iv ing is e n c o u r a g e d . The resul t ing increase in automobi le use c o n s u m e s more energy and inc reases traf f ic conges t i on and air po l lu t ion. A t the same t ime, high m in imum park ing requi rements lower dens i ty and land va lues , help ing to estab l ish an urban fo rm and t ranspor ta t ion s y s t e m or iented to automobi le use . (Wi l lson 1 9 9 5 : 3 4 ) 57 The above noted c o n s e q u e n c e s of e x c e s s i v e m in imum park ing po l ic ies are v isual ly expressed by Figure 1 1 . C lear ly , the e f fec ts of munic ipa l park ing requi rements on urban fo rm are se l f - re in forc ing and lead to automobi le-or iented urban des ign . F IGURE 10 Park ing Requ i rements , Supp l y and Ut i l izat ion Source: Richard Wil lson, "Suburban Parking Requirements: A Tacit Policy for Automobile Use and Sprawl . " Journal of the American Planning Associat ion. 61 :1 , Winter (1995):33 58 FIGURE 11 When Cities Over-Require Parking High Parking Requirements A, Parking Supply Exceeds Demand No Market Prices for / Parking / Lower Site Density Commuters / Park Free I j Lower Land Value More Auto \ Commuting \ ^ / Perception That Generous *—. Parking Supply ^y Is Required ^ ^ ^ ^ " ^ Low Density, Auto-Oriented Urban Form Traffic Congestion, Air Pollution, and Energy Consumption Consequences Social Equity Consequences y^ Automob i le-Oriented / Site Design Source: Richard Willson, "Suburban Parking Requirements: A Tacit Policy for Automobile Use and Sprawl." Journal of the American Planning Association. 61:1, Winter (19951:35 5.4 Deve lopmen t C o s t Cha rges Whi le senior gove rnmen t grants to local gove rnmen ts have been dec reas ing over the years and tax inc reases are di f f icul t to impose on local res iden ts , local governments have had to f ind al ternat ive w a y s to f inance the expans ion of inf rastructure as part of a c c o m m o d a t i n g n e w g r o w t h . A s s u c h , deve lopmen t cos t charges (DCCs) are increas ing ly being used to pay for 'hard s e r v i c e s ' s u c h as roads, wa te r supp l y , s e w a g e t reatment and park acqu is i t ion . In s o m e jur isd ic t ions, D C C s have also been expanded to cove r cos t s for ' so f t s e r v i c e s ' s u c h as 59 rep lacement hous ing , hosp i ta ls , l ibraries and daycare faci l i t ies. Depend ing on the nature and appl icat ion of D C C s , they can cont r ibu te s igni f icant ly to l ow dens i ty deve lopmen t pat terns in severa l w a y s . For examp le , an uneven dist r ibut ion of D C C s ac ross a metropol i tan area encou rages n e w deve lopment to o c c u r in the munic ipa l i ty w i th the l owes t rates (UDI 1 9 9 4 ; Frank, Rhodes 1987 ) . Tak ing into cons idera t ion all c o s t s , a deve loper is wi l l ing to pay a certa in pr ice for land . If the pr ice of fered to l andowners is not e n o u g h , l andowners wil l hold land off the market unti l land pr ices inc rease. Depend ing on market cond i t i ons , the deve loper may then cons ider bui ld ing in a ne ighbour ing c o m m u n i t y where D C C s are lower . Th is is l ikely to occu r in a fal l ing real es ta te market . In a r ising market , c o n s u m e r s are wi l l ing to pay all f l ow- th rough c o s t s at a p remium. Deve lopmen t C o s t Cha rges that are levied on a per unit or lot bas i s , as is c o m m o n in many local ju r isd ic t ions, a lso d iscourage c o m p a c t deve lopmen t pat terns. Under s u c h a s y s t e m , deve lopers wi l l typ ica l ly seek to max im ize f loor areas s ince there is no incent ive to build smal ler uni ts , or "opt to bui ld hous ing for the higher end of the s ing le- fami ly market (large homes on large lots) w h e r e fees can be absorbed more easi ly as a propor t ion of sa les p r i ce" (HUD 1 9 9 1 : 2 - 1 1 ) . T h u s , a deve loper pays lower fees if a l ow dens i ty deve lopmen t is cons t ruc ted (Table 6). On the other hand , D C C s charged on a square foo tage bas is (based on size of unit) w o u l d a l low deve lopers greater f lexibi l i ty in h o w the a l lowab le f loor area is d is t r ibu ted. For examp le , a greater d ivers i ty of hous ing fo rms wi l l l ikely result in a typ ica l subd iv i s ion , rather than fewer but larger h o m e s . 6 0 T A B L E 7 Development Cost Charges (DCCs) Per Unit vs. Per Square Footage Charge Implications For 160 acre development 4 Units Per Acre 12 Units Per Acre Unit y ie ld 6 4 0 1 ,920 (300% higher) D C C s at $ 1 0 , 0 0 0 per unit $ 6 . 4 mil l ion $ 1 9 . 2 mil l ion (300% higher) D C C s at $ 4 . 8 0 per square foot of bui ld ing $ 7 . 6 8 mil l ion $ 9 . 2 mil l ion (120% higher) Source: Urban Development Institute. Back to the Future: Re-Designing Our Landscapes With Form, Place and Density. 1994:33 Fur thermore , s ince D C C s do not promote e f f i c iency in the use of in f rast ructure, there is no incent ive for deve lopers to bui ld c lose to ex is t ing se rv ices . The current s t ructure of D C C s is s u c h that "it does not va ry local ly accord ing to the real c o s t of prov id ing inf rastructure at di f ferent loca t ions for dif ferent t ypes of deve lopmen t " (Wakeford 1 9 9 0 : 2 0 1 ) . It has been sugges ted that D C C s shou ld instead ref lect the marginal cos t s of prov id ing se rv i ces to n e w deve lopment (ie. vary ing rates w i th the d is tance f rom the cent re of se rv ice provision) (Wakeford 1 9 9 0 : 2 0 0 ) . Final ly, it has been sugges ted that D C C s compe l munic ipa l i t ies to over inves t in the prov is ion of se rv i ces by impos ing more e laborate and more land ex tens ive deve lopment s tandards than w o u l d o therw ise have been poss ib le or des i rab le under t radi t ional f inanc ing m e c h a n i s m s (UDI 1994 ) . The engineer ing and planning 61 s tandards that n e w deve lopmen t must fo l l ow dif fer f rom the serv ic ing of older commun i t i es in a number of w a y s . For examp le , older ne ighbourhoods typ ica l ly have nar rower st reet , in tersect ions w i th a t ighter turn ing rad ius, less ex tens ive landscap ing requ i rements and other phys ica l features that cont r ibu te to more c o m p a c t commun i t i es . Wh i le n e w deve lopmen t shou ld ' pay its fair s h a r e ' , it appears that the current p iecemea l app roach of admin is ter ing D C C s is cont r ibut ing to sca t te red deve lopment and the inef f ic ient use of in f rast ructure. Future in f rast ructure inves tments mus t be based on f inanc ing methods that can d i rect pos i t ive land use pat terns. 5 .5 Env i ronmenta l Regu la t ions Pro tec t ion of the env i ronment has b e c o m e a g row ing c o n c e r n in Nor th A m e r i c a and w o r l d w i d e . G o v e r n m e n t s at all levels impose env i ronmenta l restr ic t ions on deve lopmen t th rough var ious s ta tu tes and o rd inances . S o m e t i m e s , h o w e v e r , ef for ts to protect the env i ronment have the un in tended c o n s e q u e n c e of encourag ing and p romot ing low-dens i t y land use (HUD 1 9 9 1 ; N e l s o n , 1 9 8 8 ) . S o m e fo rm of exc lus i ve agr icul tural zon ing in order to pro tec t fa rm land f rom convers ion into other uses has been adopted in severa l p rov inces and s ta tes (Lyon 1983) . Large- lot (ie. up to 4 0 acres) for rural resident ial pu rposes coup led w i th an array of gove rnmen t p rograms des igned to encourage farming act iv i ty have been cr i t ic ized for p romot ing was te fu l land-use pat terns. S u c h publ ic po l ic ies have the 62 unant ic ipated c o n s e q u e n c e s of encourag ing hobby farming or part- t ime farming in fr inge areas wh i le d i sp lac ing more in tense deve lopmen t to the edges of agr icul tura l zones (Thompson 1 9 8 1 ) . A n Env i ronmenta l Impact Rev iew (EIR) has b e c o m e an impor tant and required step in the deve lopmen t p rocess . H o w e v e r , the mos t c o m m o n change required of deve lopers as a result of EIRs is to reduce dens i t ies (Carr, Duens ing 1983 ) . Th is requi rement is based on the assumpt ion that lower dens i t ies w o u l d cause fewer un favourab le env i ronmenta l impac ts s ince less deve lopmen t wi l l occu r . Wh i le th is may be the case for a part icular deve lopmen t s i te , over the long term the entire region may suffer negat ive env i ronmenta l impac ts " a s deve lopmen t that w a s not a l l owed on the site may s imply occu r on other , perhaps less appropr iate and less regulated si tes in the same market a rea " (Carr, Duens ing 1 9 8 3 : 1 7 ) . In tu rn , the ef fect of spread ing out deve lopmen t at ve ry l o w dens i t ies is automobi le d e p e n d e n c y and the resul tant air pol lut ion and w a s t e of land for roads and park ing lots (Sandborn 1995 ) . Figure 12 i l lustrates the env i ronmenta l benef i ts of higher dens i t y deve lopmen t . In Si te P lann ing and C o m m u n i t y Des ign for Grea t Ne ighbourhoods , (1993) Ja rv i s notes that w h e n c lus ter ing is permi t ted, homes are des igned on smal l homes i tes and on that por t ion of the land parcel that can be deve loped w i th the least d i s tu rbance . A t the same t ime, deve lopers realize s ign i f i cant sav ings because shorter roads and util ity ex tens ions are required to serve c lus tered h o m e s . By sca l ing the roads appropr ia te ly , deve lopers cont ro l or e l iminate th rough traf f ic , c reat ing a safe and comfor tab le env i ronment for res ident ia l deve lopmen t . (Jarv is 1 9 9 3 : 1 5 ) 6 3 Fur thermore, a recent s tudy by C a n a d a Mor tgage and Hous ing Corpora t ion (1995) conc luded that c o m p a c t deve lopmen t featur ing higher resident ia l dens i t ies , a mix of hous ing t ypes and land uses is more c o s t e f fect ive over the longe- term for the publ ic sec tor as we l l as for the pr ivate sec tor . The Nat ional A s s o c i a t i o n of Homebu i lders es t imated that c o m p a c t deve lopmen t c a n reduce the c o s t of deve lopmen t and publ ic faci l i t ies by as m u c h as 6 0 - 7 0 percent ( N A H 1 9 8 6 ) . Simi lar ly , s ta tu tes a imed at regulat ing we t lands and preserv ing endangered spec ies general ly do not take land use issues into accoun t (HUD 1 9 9 1 ) . In the Uni ted Sta tes we t l ands regulat ions have been cr i t ic ized for not d i f ferent iat ing be tween "c r i t i ca l " and "eco log ica l l y low-va lue w e t l a n d s " (HUD 1 9 9 1 ) . S u c h a d is t inct ion might permit the deve lopmen t of a low-va lue we t l ands for the purpose of mainta in ing c o m p a c t regional deve lopmen t pat terns. Add i t i ona l l y , w h e n env i ronmenta l p ro tec t ion agenc ies restr ict deve lopmen t though t to be damag ing to the surv iva l of a s p e c i e s , "sur roundab le bui ldable land b e c o m e s more sca rce and , therefore more e x p e n s i v e " push ing deve lopmen t out to less e x p e n s i v e s i tes (HUD 1 9 9 1 : 2 3 ) . T h u s , env i ronmenta l agenc ies that are s ing le- issue or ien ted , or s imply react ive to spec i f i c deve lopmen t p roposa ls , tend to hinder the deve lopmen t of sound land use pol ic ies that w o u l d o therw ise benef i t the env i ronmenta l we l l being of the region as a w h o l e . 6 4 FIGURE 12 The Environmental Benefits of Higher Density Development common open space common open space Source: Frederick D. Jarvis. Site Planning and Community Design for Great Neighbourhoods. Washington, D .C : Home Builder Press, 1993:14-15. 65 / 5.6 Con tamina ted S i tes Legis lat ion In l ight of the s ign i f i cant e c o n o m i c rest ructur ing that has been occu r r i ng over the last four d e c a d e s , urban centre ac ross Nor th A m e r i c a are fac ing a major cha l lenge in deal ing w i th no longer ut i l ized industr ial s i tes . Star t ing in the 1 9 5 0 s , w h e n industr ies began to move out of centra l c i t ies , abandoned proper t ies and empty lots have s ince rep laced once important industr ial ac t iv i ty . T o d a y , it is es t imated that t h o u s a n d s of ac res of inact ive and derel ict industr ia l lands lie in wha t have b e c o m e pr ime d o w n t o w n real estate loca t ions . A s s u c h , it has been recogn ized that the s u c c e s s f u l reuse of these lands prov ide both an important oppor tun i ty to revi tal ize c i t ies and help to reduce the demand for ou twa rd deve lopment (Black 1 9 9 4 ; F P T 1994 ) . A l o n g w i th old bu i ld ings and rail fac i l i t ies, h o w e v e r , industr ies re locat ing to the suburbs , all too o f ten , leave behind ' con tamina ted l a n d ' . In an effort to p romote and faci l i tate the c lean up of these s i tes, spec ia l federa l legis lat ion w a s passed in the Uni ted S ta tes in 1 9 8 0 (Black 1994 ) , and more recent ly in C a n a d a . In add i t ion, severa l s ta tes and p rov inces have passed their o w n l a w s , further comp l i ca t ing an a l ready c o m p l e x p r o c e s s . The V a n c o u v e r - b a s e d Urban Deve lopmen t Institute (UDI) has p layed a major role in assess ing Br i t ish C o l u m b i a ' s recent legis lat ion on Con tam ina ted S i t es : Bill 2 6 . A s out l ined in a letter to the Min is t ry of Env i ronment (Oct . 2 0 , 1 9 9 4 ) , UDI ' s c o n c e r n s regarding the P r o v i n c e ' s con tamina ted s i tes legis lat ion are simi lar to those vo i ced by A m e r i c a n cr i t ics of s u c h leg is la t ion. Present po l ic ies govern ing the remediat ion of s i tes , impedes reuse in t w o 6 6 w a y s . First, the s tandards for c leanup are so v igo rous that in mos t c a s e s the cos t s of c lean ing up k n o w n con tamina t ion exceed the va lue of the site for the mos t p roduc t i ve reuse poss ib le (Black 1994 ) . S e c o n d , l a n d o w n e r s , b u s i n e s s e s , lenders and even munic ipa l i t ies can be held l iable for the entire cos t of c lean ing up si tes regard less of w h o did the con tamina t ing (Sa lvesen 1 9 9 3 ) . Th is imposes s igni f icant r isks for eve ryone invo lved in the re -deve lopment p rocess and d i scou rages n e w inves tment in s u c h s i tes . Further, wh i le s o m e munic ipa l i t ies wou ld like to have deve lopers c lean up con tamina ted s i tes , other munic ipa l i t ies prohibit the m o v e m e n t of soi l th rough their jur isd ic t ion. Instead, n e w industr ia l deve lopment is fo rced to locate in low- or non-r isk suburban or rural areas whi le centra l ly loca ted ' b r o w n f ie ld ' ( ' contaminated ' ) s i tes remain v a c a n t or underut i l i zed. N e w industr ial deve lopmen t in the urban f r inge, in tu rn , requires n e w inves tmen ts in in f rast ructure. Exper ience in the Uni ted S ta tes over the last 15 years has s h o w n that ex is t ing po l ic ies govern ing con tamina ted s i tes have not w o r k e d (Black 1 9 9 4 ) . Whi le var ious federa l agenc ies are spend ing bi l l ions of tax dol lars to encourage the revi tal izat ion of dep ressed inner c i ty areas, federal pol ic ies are d i scou rag ing those w h o o therw ise might invest in s u c h areas. The redeve lopment of former cent ra l c i ty industr ia l lands of fers s ign i f icant oppor tun i t ies for c i t ies to c rea te c o m p a c t n e w commun i t i es or to comp le te ex is t ing commun i t i es . C lear ly a re -assessmen t of the legislat ion in th is area is necessa ry to ach ieve desi rable resu l ts . 67 5.7 S u m m a r y Deve lopmen t s tandards were or iginal ly craf ted to improve the sa fe ty , e f f i c iency , heal th and pr ivacy of commun i t i es . Ye t , " w h a t began as v i s ionary des ign w i th val id mot iva t ions has evo lved into a r ig id, over -eng ineered a p p r o a c h " (Sou thwor th , B e n - J o s e p h 1 9 9 5 : 7 8 ) . Ironical ly, wh i le deve lopmen t today is subject to more zon ing , d e s i g n , park ing and env i ronmenta l regulat ions than ever before , an analys is of recent pat terns of deve lopmen t w o u l d sugges t that our commun i t i es are fac ing increas ing cha l lenges relat ing to their soc ia l , env i ronmenta l and e c o n o m i c we l l -be ing . Add i t iona l l y , current senior government po l ic ies regarding the use of former industr ial s i tes have st i f fened a t tempts at redeve lopment of s u c h s i tes , encourag ing deve lopers to build on prist ine land at the urban f r inge. L o w dens i ty land use is further exaspera ted by the uncoord ina ted app roach of admin is ter ing D C C s at the local leve l . It appears that n e w app roaches to land-use managemen t are required if w e are to make susta inab le pat terns of deve lopmen t a real i ty. 6 8 C H A P T E R SIX C o n c l u s i o n 6.1 Po l icy Impl icat ions and Di rec t ions for Future Research This paper a rgues that current land use pat terns in Nor th A m e r i c a are not str ict ly the result of the operat ion of a free market or expl ic i t c o n s u m e r c h o i c e , but d i rect o u t c o m e s of past publ ic po l ic ies and inves tment dec i s i ons . A t the senior level , long- term gove rnmen t po l ic ies favour ing h o m e o w n e r s h i p , s ing le- fami ly homes and the automobi le have faci l i tated con t inued sp raw l and a re l iance on au tomobi les . A t the same t ime, local gove rnmen ts prov ide the essent ia l capi ta l and publ ic in f rast ructure that is necessa ry to suppor t n e w deve lopmen t . The cont inuat ion of prevai l ing land use pat terns is further en t renched by an intr icate sys tem of land use regulat ions that "have b e c o m e deep ly e m b e d d e d in engineer ing and des ign p rac t i ce , as wel l as in the legal and even f inancia l s t ruc tu res that suppor t deve lopmen t " (Sou thwor th , B e n - J o s e p h 1 9 9 5 : 7 8 ) . S u c h publ ic po l ic ies operat ing over many d e c a d e s in Nor th A m e r i c a have made l ow dens i ty l iv ing an appeal ing al ternat ive for c o n s u m e r s and the prov iders of hous ing and suppor t ing inf rastructure. 6 9 For near ly f ive d e c a d e s publ ic pol ic ies have been s teer ing us d o w n the h i ghway of s p r a w l . For near ly f ive d e c a d e s soc ie t y has responded acco rd ing l y . Deve lopers built s p r a w l ; c o n s u m e r s bought s p r a w l ; f inancia l inst i tu t ions f i nanced s p r a w l ; p lanners p lanned for s p r a w l ; eng ineers des igned s p r a w l ; and pol i t ic ians campa igned on s p r a w l . Our soc ie ty has been inst i tut ional ized to suppor t sp raw l fo rms of deve lopmen t to the point where al ternat ive urban fo rms are v i e w e d as ' unmarke tab le ' , ' unpro f i tab le ' , ' techn ica l l y imposs ib le ' , 'po l i t ica l ly un feas ib le ' , and s imply 'no t a good househo ld i nves tmen t ' . The cur rent land use s y s t e m is based on a parad igm that no longer w o r k s . There are n e w parad igms to exp lore s u c h as urban v i l lages, comp le te commun i t i es , t ransi t -or iented des ign and other proc la imed susta inab le fo rms of urban deve lopment . H o w e v e r , soc ie ty must f irst change the th ink ing behind the current land use s y s t e m w h i c h in f luence prevai l ing pat terns of urban deve lopmen t . Even though more and more deve lopers are beg inn ing to real ize that al ternat ive fo rms of deve lopmen t can be prof i table, many are stil l re luctant to venture into un tes ted marke ts . Regulatory barr iers, onerous mun ic ipa l requi rements and str ic t lending prac t ices based on outda ted pe rcep t ions , all perpetuate current pat terns of deve lopment . Incent ives to c o n s u m e r s in a var ie ty of fo rms re inforce c o n s u m e r cho i ce for l ow dens i ty l iv ing after f irst p resent ing l ow dens i ty l iv ing as the mos t rat ional op t ion . Publ ic po l icy can play an impor tant role in help ing to break the above pat tern by remov ing barr iers and creat ing s t rong incent ives for the pr ivate sec to r to prov ide a better range of a l ternat ives for 7 0 c o n s u m e r s . Th is w o u l d result in more susta inab le land use dec i s i ons over t ime. Concur ren t l y , po l icy makers mus t remove the subs id ies of fered to l o w dens i t y deve lopment th rough var ious pol ic ies in the areas of t ranspor ta t ion , hous ing and land use , w h i c h in f luence urban fo rm. Th is cou ld be done by emp loy ing pr ic ing mechan i sms that capture the true cos t s of s u c h deve lopment . Wh i le more commun i t i es th roughout Nor th A m e r i c a are beg inn ing to apply pr ic ing pol ic ies to the use of the automobi le , on the who le , this has been a s l o w init iative to da te . There has been even less progress in s u c h app roaches to land use p lann ing. It w o u l d be usefu l for commun i t i es to deve lop an agenda for pr ic ing mechan i sms w h i c h cou ld be appl ied to n e w deve lopmen t based on cr i ter ia that meets regional land use goa ls . For examp le , munic ipa l permi ts fees (ie. rezon ing , deve lopment , bu i ld ing, demol i t ion) , park ing s tandards , and deve lopmen t c o s t charges cou ld be de te rmined based on the relat ive loca t ion , dens i t y , and fo rm of a p roposed hous ing deve lopmen t , and its prox imi ty to publ ic t ranspor ta t ion , se rv i ces and jobs . Th is w o u l d encourage infill over low-dens i ty deve lopmen t . Under th is app roach , a deve loper w o u l d have to cons ider the soc ia l and env i ronmenta l cos t s as part of the total cos t of their deve lopment . S ince deve lopers w o u l d then pass on these cos t to c o n s u m e r s , they w o u l d have to take the added c o s t s into accoun t w h e n mak ing their dec i s ions about whe re to l ive. Concur ren t l y , pr ic ing m e c h a n i s m s cou ld be appl ied to ex is t ing deve lopmen t for publ ic se rv i ces to capture the subs id ies inherent in l ow dens i ty l iv ing. It is recogn ized that wh i le th is is a pol i t ical ly cha l leng ing app roach to land use p lann ing, the potent ia l benef i ts of this 71 approach sugges t that further research on th is matter needs to be under taken . Add i t iona l l y , an interd isc ip l inary approach to land use p lanning is requi red. Urban des igners , p lanners and engineers can explore co-ord ina ted app roaches to deve lop n e w zon ing , deve lopmen t and park ing s tandards that better ref lect the soc ia l , env i ronmenta l and e c o n o m i c real i t ies of today . There is an oppor tun i ty for all levels of gove rnmen t to w o r k together to ensure a better co-ord ina t ion of po l ic ies , espec ia l l y those relat ing to the env i ronment , and t ranspor ta t ion and infrastructure i nves tmen ts . Further, senior gove rnmen ts have a cha l lenge to wo rk wi th f inancia l inst i tut ions in the creat ion of lending p rograms for unconven t iona l fo rms of deve lopmen ts that meet susta inab le land use cr i ter ia and regional land use ob jec t ives . A re -assessmen t of legis lat ion relat ing to con tamina ted s i tes is cr i t ical by senior gove rnmen ts if urban redeve lopment ini t iat ives on former industr ia l s i tes are to b e c o m e a real i ty. Final ly, local gove rnmen ts have an obl igat ion to wo rk w i th all s takeho lders invo lved in the land use s y s t e m in the preparat ion of f inanc ing methods for in f rast ructure inves tments that wi l l result in pos i t ive land use pat terns. Overa l l , p lanners are wel l pos i t ioned to ass is t in br inging these g roups together and in forming a research agenda to f o c u s key po l ic ies . M u c h cou ld be gained f rom adopt ing a s y s t e m of ' pe r fo rmance m e a s u r e s ' as part of every publ ic po l icy . Per fo rmance measures , based on both sub jec t ive and object ive cr i ter ia, w o u l d aid po l icy makers in determin ing the e f fec t i veness of a p roposed po l icy in ache iv ing its s ta ted goa ls over t ime. For examp le , s u p p o s e the goal of a p roposed po l icy may be to ach ieve commun i t y benef i ts s u c h as improved 72 qual i ty of l i fe, reduced traf f ic c o n g e s t i o n , lower t axes for in f rast ructure and improved env i ronmenta l qual i ty . In the a b s e n c e of a s y s t e m of pe r fo rmance measures , h o w can w e determine the e f fec t i veness of the p roposed po l icy in ach iev ing its s ta ted goa ls over t ime? H o w wi l l w e k n o w if w e are at least heading in the right d i rec t ion? Whi le the posi t ive e f fec ts of emp loy ing pe r fo rmance measures on a regular bas is in the pr ivate sec tor have been wel l d o c u m e n t e d , they are c o n s p i c u o u s l y underut i l ized as a means of determin ing po l icy e f fec t i veness in the realm of publ ic po l i cy . C lear ly , more research in this area is requ i red. To ach ieve the des i red parad igm shif t in the land-use s y s t e m ser ious cons idera t ion mus t be g iven to gove rnance s t ruc tures that "p reserve substant ia l local author i ty - but w i th in a f ramework that compe l s local gove rnmen ts to act respons ib ly to meet a rea-w ide n e e d s " ( D o w n s , 1 9 9 3 : 1 0 ) . In s u c h a f r amework , local gove rnmen ts w o u l d not only be respons ib le for prepar ing c o m p r e h e n s i v e plans for their o w n future deve lopmen t , but they w o u l d a lso have to meet cer ta in cri teria prescr ibed by a regional govern ing body . S u c h cr i ter ia shou ld be deve loped w i th the input of all a f fec ted local jur isd ic t ions and " w o u l d en fo rce a w ide r soc ia l respons ib i l i ty " th roughou t a region (Downs 1 9 9 3 : 1 0 ) . The Greater V a n c o u v e r Regional D is t r i c t ' s "L ivab le Reg ion S t ra tegy " presents s u c h an app roach to st rategic p lanning ( G V R D 1993 ) . In c o n c l u s i o n , the ac t ions (and inact ions) of the publ ic sec to r shou ld not be underes t imated . The ex ten t of the impac t in the aggregate of pub l ic po l i c ies on urban deve lopmen t pat terns is s ign i f icant . The cont inu ing d ispers ion of g row th in 7 3 most urban areas is creat ing severe env i ronmenta l s t ress , unpreceden ted traff ic conges t i on , and potent ia l ly unsurmountab le f isca l p ressures . Cur ren t ly , there is a g row ing c o n s e n s u s that publ ic sec tor pol ic ies w h i c h con t inue to subs id ize unsusta inab le pat terns of deve lopmen t are no longer af fordable or soc ia l ly accep tab le . In l ight of the above , a cr i t ical re-evaluat ion of publ ic po l ic ies and prac t ices is imperat ive by both senior and local gove rnmen ts . A ba lanced app roach to land use p lanning that resul ts in pos i t ive land use d i rec t ives shou ld be a c o m m o n goal of all s takeho lders in the commun i t y . 74 B I B L I O G R A P H Y A a r o n , Henry J . Shel ter and Subs id ies : W h o Benef i ts f rom Federa l Hous ing Po l i c ies . W a s h i n g t o n , D . C . : The Brook ings Insti tute, 1 9 7 2 . A lb rech t , et a l . "Reconc i l i ng Land Use Goa l s and Env i ronmenta l Pro tec t ion P o l i c y . " Land Use in Trans i t ion . W a s h i n g t o n , D . C . : Urban Land Insti tute, 1 9 9 3 : 2 0 - 2 5 . A l tshu le r , A l a n , et a l . 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