June 18th, 2008
From the Daily Camera:
County Housing Mandates Dangerous Step in Wrong Direction
By Jessica Peck Corry & Kate Melvin
While a June 12th decision by the Boulder County Commission targets wealthy landowners, its negative impact will extend far beyond the rich.
Commissioners voted Thursday to impose regulations, set to go into effect in August, that will limit prospective homebuilders to 6,000 square feet before they will be required to purchase “development credits” for additional square feet from neighboring property owners who choose to build smaller properties. Essentially, this plan creates a secondary market similar to carbon credits sold on a national level for pollution abatement.
And while at first glance, it may be tempting to support a plan that encourages smaller homes during a time of serious and real concerns about our energy dependence on other countries, the new regulation is problematic for a multitude of reasons.
First, the policy will have a harmful impact on the environment. Already, thousands of workers commute to Boulder to work every day, many of them doing so because they can’t afford Boulder’s expensive housing market—made ever more costly due to a housing supply artificially limited by a multitude of building and regulatory mandates.
While the average Colorado home that sold in May did so for $117,200, a Boulder home sold in the same month set back the median buyer $355,700. Now, wealthy homeowners or those with large families may join the ranks of commuters choosing to live in neighboring counties friendly to property rights.
The 6,000 square foot cap isn’t just limited to a home—but also includes any garages, basements, or storage areas located on an individual property. The County Commission is touting this plan as one that will benefit smaller homeowners because they will be able to sell off extra “development credits” to landowners who wish to build houses over 6,000 square feet.
In basic economics, this is called redistribution of wealth. In political terms, this is called class warfare. Commissioners have also failed to consider the negative impact on the county’s property tax revenue. Affluent homeowners pay taxes that subsidize other, smaller properties. When prospective property owners flock to other counties, they will take their tax dollars with them.
And finally, there is the Fifth Amendment to the U.S. Constitution, which guarantees property owners just compensation when their property is taken. While Boulder officials have becoming increasingly willing in recent years to impose incredible regulatory burdens, including obscene limits under various historic designations and lot merging, on property owners only seeking to improve their homes, there comes a point when, even in Boulder, people say they’ve had enough.
Based on dozens of comments posted on the Boulder Daily Camera’s Web site by Friday afternoon, residents have hit their limit, with many expressing embarrassment about the decision, and one writing that he was “waiting to see a communist flag fly about the Boulder County Courthouse”.
Commissioner Ben Pearlman proudly proclaimed a socialist mantra during Thursday night’s meeting. “The greatest legacy of this project may be allowing people to choose to keep small houses for the benefit of themselves and the rest of their community,” he said.
But where is the choice?
While it may be politically convenient to go after wealthy property owners, the question remains: Who will Pearlman and his fellow commissioners take on next? The poor and middle class can’t afford to live in Boulder and the affluent are being ushered out.
Jessica Peck Corry serves as the director of the Independence Institute’s Property Rights Project (www.PropertyRightsProject.org) and Kate Melvin serves as PRP’s research assistant.