Historical Designation and Residential Property Values

The State of California enacted the Mills Act in 1976. This act allowed local municipalities the option of setting up a historical designation program. The main feature of the program was to allow the owners of historical buildings a reduction in their property taxes in return for an agreement to not alter the exterior facade of the designated building. The extent of the property tax deduction runs anywhere from 40 – 80 percent. This means that for a $1,000,000 house, the tax benefits may run to$8,000 per year. Theory suggests that the value of this tax benefit should be fully capitalized into the price of the home. The degree to which it is not may suggest the cost to the homeowner for agreeing not to alter the building. This paper uses hedonic regression analysis to estimate the value of historical designation to single family residences in the City of San Diego.

Land Use Modification in an Urban Setting

Conflicting land uses are an integral aspect of planning and development in an urban environment. This paper examines the methodology used in evaluating the economic impact associated with changing the zoning designation of land from industrial to commercial use. The case study is a 20-acre parcel within the City of San Diego, California. Originally zoned as industrial property, at the time of the study, the site housed a small warehouse operation that employed some six to eight employees with an annual payroll of $280,000. Some political and community activists were hoping for the development of the parcel into a manufacturing operation with a large number of high wage jobs. The non-profit Jacobs Foundation bought the site with the intention of developing the property into commercial and office space. One of the conditions imposed by the City of San Diego in considering the request for rezoning the space was a comprehensive economic impact analysis. This paper identifies the methodology employed in the impact analysis and provides some of the highlights of the study. There were several reasons to conclude that the development of the site into an industrial development with a large number of jobs was unlikely. The property is located near a flood zone and within a residential neighborhood with limited transportation avenues. Furthermore, the site is only 20 acres, and isolated from other manufacturing hubs. Finally, the overall number of jobs is trending downward for both the United States as a whole as well as in San Diego. In evaluating the benefits from the rezoning, the author estimates that in addition to the infusion of jobs and expenditures resulting from the construction aspect of the project (360 jobs and$50 million), the development of the site as commercial/office space will eventually support an estimated 1790 jobs with an annual payroll of almost $50 million. Sales revenue in the proposed development is forecast to exceed$25 million annually. In both the construction and operation of Market Creek Plaza, the Jacobs Foundation worked to assure local access to jobs and training opportunities. These benefits are more difficult to quantify, but are probably of even greater importance to the community. In addition, the study demonstrates that the study area was under-served in terms of food stores and other retail shops. It is estimated that at least $60 million of spending on retail sales by study area residents was occurring outside of the study area. A significant portion of this spending, and the subsequent tax dollars, were benefiting municipalities other than the City of San Diego. The proposed development will serve to fill this void. The City of San Diego accepted the economic impact analysis along with other detailed analyses, and approved the change in zoning. The development is complete and has been cited throughout the United States for it success

Historical Designation and Residential Property Values

The State of California enacted the Mills Act in 1976. This act allowed local municipalities the option of setting up a historical designation program. The main feature of the program was to allow the owners of historical buildings a reduction in their property taxes in return for an agreement to not alter the exterior facade of the designated building. The extent of the property tax deduction runs anywhere from 40 – 80 percent. This means that for a $1,000,000 house, the tax benefits may run to$8,000 per year. Theory suggests that the value of this tax benefit should be fully capitalized into the price of the home. The degree to which it is not may suggest the cost to the homeowner for agreeing not to alter the building. This paper uses hedonic regression analysis to estimate the value of historical designation to single family residences in the City of San Diego

Historic Designation and Residential Property Values

The State of California enacted the Mills Act in 1972. This act allows local municipalities the option of setting up a historic designation program. The main feature of the program is to allow the owners of historic buildings a reduction in their property taxes in return for an agreement to not alter the exterior façade of the designated building. This paper uses hedonic regression analysis to estimate the impact of the historic designation on the value of single-family residences in the City of San Diego. The results suggest that the designation creates a 16 percent increase in housing value. This is higher than the capitalization of the property tax savings would suggest, implying market value in the historic designation itself. The Mills Act represents an innovative approach to historic structure management and may provide guidance to governments elsewhere in the U.S. as well as internationally when designing historic preservation programs.historic designation; housing values; hedonic model

Ownership of Residential Rental Property in Regional Housing Markets

Previous studies have demonstrated the role that income tax incentives to landlords play in the determination of market rental rates. Landlords typically receive benefits from accelerated depreciation on real assets that are usually appreciating. The value of this tax benefit depends both on the depreciation schedule as well as the landlord's marginal tax rate. Changes in income tax law in the 1980's dramatically affected both of these factors. In 1980, the top federal marginal tax rate was 70%, and rental housing could be depreciated on a double-declining balance over 20 years. The Economic Recovery Tax Act of 1980 reduced the top marginal tax rate significantly. Changes were made in 1984 that altered the depreciation schedule so that rental property could be depreciated more rapidly. The Tax Reform Act of 1986 reformed the depreciation schedule so that rental property had to be depreciated over 27 years: a significant change for landlords. In addition, the top federal marginal tax rate was reduced to 33 percent. The main direction of the changes in the federal tax code in the 1980's was to decrease the tax advantages associated with rental property. Decreases in the top marginal tax rate reduced the value of tax write-offs, while increases in the length of time required for depreciation reduced the amount of depreciation taken each year. This paper examines the impact that these changes had on the rental housing market by looking at the changes in the relative cost of renting over the years 1986-1990

Ownership of Residential Rental Property in Regional Housing Markets

Previous studies have demonstrated the role that income tax incentives to landlords play in the determination of market rental rates. Landlords typically receive benefits from accelerated depreciation on real assets that are usually appreciating. The value of this tax benefit depends both on the depreciation schedule as well as the landlord's marginal tax rate. Changes in income tax law in the 1980's dramatically affected both of these factors. In 1980, the top federal marginal tax rate was 70%, and rental housing could be depreciated on a double-declining balance over 20 years. The Economic Recovery Tax Act of 1980 reduced the top marginal tax rate significantly. Changes were made in 1984 that altered the depreciation schedule so that rental property could be depreciated more rapidly. The Tax Reform Act of 1986 reformed the depreciation schedule so that rental property had to be depreciated over 27 years: a significant change for landlords. In addition, the top federal marginal tax rate was reduced to 33 percent. The main direction of the changes in the federal tax code in the 1980's was to decrease the tax advantages associated with rental property. Decreases in the top marginal tax rate reduced the value of tax write-offs, while increases in the length of time required for depreciation reduced the amount of depreciation taken each year. This paper examines the impact that these changes had on the rental housing market by looking at the changes in the relative cost of renting over the years 1986-1990.

2014 Causes Count: The Economic Power of California\u27s Nonprofit Sector

Causes Count describes, in economic terms, the stunning size, variety, activities and impact of California’s large and diverse nonpro t sector. The research was conducted by The Caster Family Center for Nonprofit and Philanthropic Research at the University of San Diego and was guided by an advisory panel of more than 30 leaders throughout California. This study synthesizes multiple sources of data to generate the most complete picture of the power of California’s nonprofit sector to date. The research identifies and documents trends in the financial health of nonprofits, employment, volunteerism, foundation grantmaking, and civic engagement, as well as provides insight into what may be in store for California’s nonprofit sector in the future.https://digital.sandiego.edu/npi-stateofnpca/1001/thumbnail.jp

Admission Test Scores and Colleges’ Retention Rates

Most higher education institutions eliminated standardized test requirements for applicants following the COVID-19 pandemic. The impact of college admission criteria on college student retention has been the subject of extensive research in higher education. This literature suggests that admission criteria play a significant role in influencing student retention rates. However, the impacts of test-optional admissions procedures have been relatively understudied. Using a dataset of admissions requirements, institutional profiles, measures of collegiate success, financial aid, and demographics of full-time, first-year students at public or not-for-profit private 4-year institutions for the 2021-2022 academic year, we find that, of the different criteria used in admission policies, required or recommended letters of recommendation and graduation rates combined have an impact on college retention rates. Required or recommended admission test scores positively increase retention rates, albeit not robustly

Site-specific relationships between algal biomass and floating photovoltaic solar energy in human-made bodies of water

Eutrophication and climate-driven warming are degrading aquatic ecosystems by promoting harmful algal and cyanobacterial growth, while global decarbonization efforts are intensifying land-use conflicts for renewable energy. Floating solar photovoltaic (FPV) systems—solar panels installed on human-made waterbodies—offer a potential solution, yet their effects on algae and water quality remain poorly understood. We assessed algal biomass and water quality beneath FPVs and in open water at four FPV-hosting ponds across the United States, spanning a range of FPV coverage levels, trophic states, climates, and bathymetry. Sampling occurred twice daily across all seasons from 2021 to 2022. Results showed minimal overall differences in phycocyanin, chlorophyll-a, dissolved oxygen, pH, conductivity, and temperature between FPV-covered and open-water areas, though some site-specific trends emerged. At one mesotrophic site (4.8% coverage), chlorophyll-a and phycocyanin were significantly lower beneath FPVs in multiple seasons, with up to 80% reductions in chlorophyll-a observed in spring. In contrast, at a eutrophic site (22% coverage), chlorophyll-a was occasionally higher beneath FPVs, while two mesotrophic sites with high coverage (60–71%) showed no consistent differences. Dissolved oxygen and temperature exhibited limited site-specific variations but no consistent trends across FPVs. Overall, within-pond differences in algal biomass and water quality between FPV-covered and open-water areas were largely minimal, underscoring the need for further research with more FPV sites, before–after control–impact designs, and high-frequency monitoring to better understand FPV–algae interactions and potential water quality benefits