Document text
0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Since You Asked: Southern Oregon electric companies started in 1800s ... New Mexico rancher renounces federal grazing contract at Bundy event ... Local farms captured in words and color ... Since You Asked: Southern Oregon electric companies started in 1800s ... New Mexico rancher renounces federal grazing contract at Bundy event ... Local farms captured in words and color ... FROM THE COUNCIL From the Council: Inclusionary zoning won't fix housing problem Comment By Daniel Bunn MailTribune.com By Daniel Bunn Posted Jan. 24, 2016 at 12:01 AM By Daniel Bunn Posted Jan. 24, 2016 at 12:01 AM » Social News On Feb. 1, the state Legislature will convene in Salem for a mad-dash, 35-day session. As initially proposed, these “short sessions” were to address minor issues that arose between the traditionally longer biennial sessions. The allure of writing new laws and regulations has proved too strong, however, and now businesses, citizens and local governments brace for full policy changes whenever Salem is in action. The flurry of activity that is expected next month is well-intentioned, but more regulation isn’t always the answer and certainly isn’t always the best answer. One of the issues on the horizon that Salem will likely send down to local governments is the removal of a ban on inclusionary zoning. This is an excellent opportunity to trace legislative and regulatory intent to reality. Simply put, inclusionary zoning covers a multitude of government land-use tools based on the economic status of who will occupy the land in question. The most common example is a mandatory set-aside of a certain percentage of private land for affordable housing, but techniques can extend to reduced or waived fees for low-income housing or through other creative mechanisms. As a conservative, I am generally in favor of devolving power and decision-making authority to local government, but would have a difficult time voting for some of the allowed actions because of how they affect private property rights. The driving force behind this discussion is the inadequate supply of affordable housing, and I predict that much of the debate will center around the perceived lack of supply and how to force an increase through regulation. This is disappointing for two reasons. First, framing the debate as a supply shortage ignores the much more important other half of the equation: Why is demand for affordable housing so high? We have an income inequality issue in this state as well as a myriad of problems with education. I suspect these two issues are linked. We have a problem with skilled youth leaving to find employment prospects beyond entry-level service jobs. Addressing these problems is far more difficult than talking about the supply of affordable housing, however progress in education reform and economic development will provide exponentially superior results. The second reason for disappointment is that policy discussions in government often focus too narrowly on a proposed regulation. This is not a new phenomenon, especially for government. The economist Henry Hazlitt superbly described what good economic analysis is in "Economics in One Lesson." The lesson, which every public policymaker should commit to heart, is: “The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.” Continuing with the example of inclusionary zoning, while artificially increasing the supply of affordable housing will doubtless benefit certain segments of the community, those gains will come at least partially at the expense of other parts of society. If one-third of land must be devoted to affordable housing, then the supply of land for middle-class housing will be artificially constrained, which increases prices. If charges and fees are waived for certain types of housing, they must be raised for everyone else, either through explicit increases or through indirect costs felt by everyone as the level of service decreases. I am not against efforts to supply affordable housing, but I am acutely aware that government regulation works as a subsidy. This is an important fact to understand because subsidies are Band-Aids, not permanent solutions to societal problems. If subsidies could solve income inequality, then Venezuela would be a utopia, not an economic basket case. Oregon has created subsidy after subsidy over the past 20 years while failing to cure our core problems. This is a tragedy. If the Legislature lifts the inclusionary zoning ban, I will encourage the City Council to consider it as a specialty tool in our government toolbox while understanding that it is not a panacea. Oregon is facing difficult challenges, but we cannot regulate our way out of macroeconomic problems. It would be a disservice for the Legislature to characterize extra zoning regulation, an increase in the minimum wage or a gross receipts tax as solutions to the emerging two-class system in Oregon. Patting themselves on the back for such legislation and going home without addressing the truly critical issues facing Oregon would be the 21st century equivalent of bread and circuses. Daniel Bunn represents Ward 4 on the Medford City Council. The views expressed in this piece are the individual's and do not necessarily represent the opinions or positions of the City Council. By Daniel Bunn MailTribune.com By Daniel Bunn Posted Jan. 24, 2016 at 12:01 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2016 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501