Financing Economic Development and Housing
Studies financing tools and program models to support and promote local economic development and housing. Overview of public and private capital markets and financing sources helps illustrate market imperfections that constrain economic and housing development and increase race and class disparaties. Explores federal housing and economic development programs as well as state and local public finance tools. Covers policies and program models. Investigates public finance practice to better understand how these finance programs affect other municipal operations. Students taking graduate version complete additional assignments. Limited to 25.
Fall 2016 · Financing Economic Development
This course focuses on the tools and programs available to economic development practitioners to address capital needs for businesses and economic development projects. It provides an overview of private capital markets and financing sources to understand capital market imperfections that constrain economic development, business accounting, financial statement analysis, federal economic development programs, and public finance tools. The course covers policies and program models, including revolving loan funds, guarantee programs, venture capital funds, bank holding companies, community development loan funds and credit unions, micro-enterprise funds, and the Community Reinvestment Act. The objective of this course is to provide students with a comprehensive overview of economic development finance practice in the United States, and to develop a knowledge base and skills to either be a development finance practitioner, or apply economic development finance approaches to other fields of planning and community development.
Readings
- Required Text
- [SEI] = Seidman, Karl F. Economic Development Finance . Sage, 2005. ISBN: 9780761927099.
- [SEI] Chapter 1, pages 3–7.
- Malpezzi, Stephen. “Local Economic Development and its Finance” in White, Sammis B., and Zenia Z. Kotval. Financing Economic Development in the 21st Century . Routledge, 2012. ISBN: 9780765627834.
- [SEI] Chapter 1, pages 7–19.
- [SEI] Chapter 2.
- [SEI] Chapter 3.
- Pages 25–44, 51–74 in Anthony, Robert Newton, David F. Hawkins, Kenneth A. Merchant, Liyan Wang, and Meijie Du. Accounting: Text and Cases . Irwin/MrGraw-Hill, 1999. ISBN: 9780073379593.
- [SEI] Chapter 4.
- WEEK: 6 · READINGS: [SEI] Chapter 5.
- WEEK: 7 · READINGS: [SEI] Chapter 6, pages 111–123.
- [SEI] Chapter 7.
- WEEK: 9 · READINGS: [SEI] Chapter 6, pages 123–132.
- [SEI] Chapter 15, pages 341–354.
- [SEI] Chapter 15, pages 348–361.
- Detroit Downtown Development Authority. “RE: Events Center Project - Bond Authorizing Resolution.” 2014.
- Kildee, Dan. 2004. “The Genesee County Land Bank Initiative.” Flint, MI: Genesee County Land Bank.
- La Franchi, Deborah. “New Markets Tax Credits: A Growing String of Successes Across the Country.” Economic Development Journal 9, no. 4 (2010): 5–13.
- M-1 Rail News. “M-1 Rail Finalized New Market Tax Credit Funding for Detroit Streetcar Project.” December 23, 2014.
- [SEI] Chapter 14.
- State Small Business Credit Initiative. “A Summary of States’ Quarterly Reports.” U.S. Department of the Treasury. March 2016.
- [SEI] Chapter 8.
- [SEI] Chapter 9.
- Newburger, Robin. “After the Financial Crisis: The Roles and Responsibilities of Banking Institutions in Financing Community Economic Development” in White, Sammis B., and Zenia Z. Kotval. Financing Economic Development in the 21st Century . Routledge, 2012. ISBN: 9780765627834.
- JP Morgan Chase & Co. “Invested In Detroit’s Future: Two Years In.” 2016.
- [SEI] Chapter 10, Chapter 17, pages 406–410.
- Rutgers University Center for Urban Policy Research. “EDA RLFs: Planning, Local Structural Change, and Overall Performance.” 2002.
- [SEI] Chapter 11.
- Freear, John, and Jeffrey E. Sohl. “Angles on Angels and Venture Capital: Financing Entreprenurial Ventures” in White, Sammis B., and Zenia Z. Kotval. Financing Economic Development in the 21st Century . Routledge, 2012. ISBN: 9780765627834.
- NGA Center for Best Practices. “Issue Brief: State Strategies to Promote Angel Investment for Economic Growth (PDF).” February 14, 2008. Pages 5–10.
- [SEI] Chapter 12.
- [SEI] Chapter 13.
- [SEI] Chapter 16 and pages 427–433.
- Dierkers, Greg, Sue Gander, and Devashree Saha. “State Clean Energy Financing Guidebook.” Environment, Energy & Transportation Division, National Governor’s Association Center for Best Practices. January 2011.
- WEEK: 21 · READINGS: No readings
- WEEK: 22 · READINGS: No readings
- [SEI] Chapter 17.
- [SEI] Chapter 18.
- Robinson, Kelly. “Structured Finance for Economic Development Loan Funds.” Newark, NJ: Rutgers University Cornwall Center for Metropolitan Studies. Paper presented at the 2001 Annual Conference of the Association of Collegiate Schools of Planning.
- WEEK: 25 · READINGS: No readings
- [SEI] Chapter 19.
Prerequisites & course information
Subject meets with 11.137 Prereq: None G (Spring) 3-0-9 units
Sources
- Course catalogue ↗2026–2027
- MIT OpenCourseWare ↗Fall 2016
- MIT OCW readings ↗
- MIT OCW calendar ↗
- MIT OCW syllabus ↗
- Historical MIT OpenCourseWare offering. Named reading entries and schedule topics are automatically extracted from the linked source pages.