Industrial, Tax and Low Income housing Issues and Trends

We discussed several issues such as industrial market, low income housing, taxes and governmental trends and issues. First of all, we discussed about recent issues on providing low income housing or affordable house which contains several controversial issues, especially, as one of the article note that some developers who plan to develop down town Dallas and who try to apply for funding through HUD are turned down by the Dallas government. Actually, federal government support providing low income housing, in order to stimulate this policy, federal government also provide fund that can be used to developing affordable houses, but some cases, as we discussed in class, local governments afraid having low income housing area because they have prejudice that low income neighborhood may increase crime rate and opposite influence on city aesthetics. Moreover, in administrative stand point, local government require every single documentation whether fund is using intended purpose or not, naturally, this confirmation process is necessary to regulate unintended use of particular fund, however excessive application of stringent low may make matter even more complicated and may hamper providing low income housing.
One of issue that takes my attention was “social obligation” that is related to redevelopment. If the local government or developers decide to redevelop low income housing area, several issues may occurs, especially, original community supported by low income neighborhood has to be broken down and individual family has to be relocated somewhere other place even if sudden amount of relocation expanse is awarded.

Tax issues are also provocative. Recently, a lot of state governments are struggling with budget shortage because of economy downturn. Increased numbers of small business shut down and declining job creation make matter even worse than ever before, in the same context, local government are seeking new source of taxation in order to narrow down budget deficit. As we discussed in the class, the government aim of seeking new source of taxation may be understandable, however the wrong tax police may lead critical side effect on local economy. In San Francisco, tenants would have to pay commercial rent taxes when they rent commercial or retail space. In my perspective, this tax police may increase tax revenue in the short term, but consequently small business owners in San Francisco would rather moving out their business to somewhere other place than doing their business on this tax police, and overall tax revenue on this region will be significantly decrease in the long term