Capitalization of the Benefits of Mortgage Revenue Bond Financing: Lessons from Empirical Research
- 38 Downloads
In recent years, a series of studies have investigated the extent to which sellers of homes raise the selling prices if the buyers have financing from mortgage revenue bond (MRB) funds. By raising the price, an individual seller captures the benefits of MRB financing that are intended for the buyer.1 These studies have concluded that some or all of these benefits are misallocated, at the expense of the intended population of moderate-income home buyers, to the financial gain of the sellers.
KeywordsTarget Area Selling Price Sales Price Fair Market Hedonic Price Model
Unable to display preview. Download preview PDF.