3 ms·

I don't think so. A "standard" project is one that complies with zoning regulations and keeps the nutty neighbors happy (which often requires concessions far be

I don't think so. A "standard" project is one that complies with zoning regulations and keeps the nutty neighbors happy (which often requires concessions far beyond zoning limits). So we're not talking about market control, we're talking about government policy. Governments set zoning rules. Not markets. Just because markets are involved, doesn't mean that a phenomena is fundamentally a product of a free market.

anamax 16y ago
We're only talking about govt wrt zoning. A "non-standard project" that is seeking funding by definition meets the relevant zoning because no one borrows money to build something that zoning forbids. When a lender says offers different terms for different zoning-legal projects, that's the market.
- MichaelSalib 16y ago
  A "non-standard project" that is seeking funding by definition meets the relevant zoning because no one borrows money to build something that zoning forbids. This is incorrect. Developers seek variances for various zoning restrictions all the time. And doing so effects financing decisions because a project that requires variances may face substantial delays.
  - anamax 16y ago
    > This is incorrect. Developers seek variances for various zoning restrictions all the time. Variances are part of the zoning process. > And doing so effects financing decisions because a project that requires variances may face substantial delays. No one lends construction money before zoning is satisfied, regardless of how it's satisfied. You seem to disagree, so how about an example of a lender providing construction money before there was good reason to believe that construction would be allowed. Yes, lenders may think that some projects are more likely to be approved and the reasons for approval may be political, but that just means that lenders consider the outcome of political processes, not that they're making decisions for political reasons. Absent something like CRA, lending decisions are based on predicted return on investment. Can the borrowers make the payments? The greater the risk, the higher the interest rate.

anamax 16y ago

We're only talking about govt wrt zoning. A "non-standard project" that is seeking funding by definition meets the relevant zoning because no one borrows money to build something that zoning forbids. When a lender says offers different terms for different zoning-legal projects, that's the market.

MichaelSalib 16y ago
A "non-standard project" that is seeking funding by definition meets the relevant zoning because no one borrows money to build something that zoning forbids. This is incorrect. Developers seek variances for various zoning restrictions all the time. And doing so effects financing decisions because a project that requires variances may face substantial delays.
- anamax 16y ago
  > This is incorrect. Developers seek variances for various zoning restrictions all the time. Variances are part of the zoning process. > And doing so effects financing decisions because a project that requires variances may face substantial delays. No one lends construction money before zoning is satisfied, regardless of how it's satisfied. You seem to disagree, so how about an example of a lender providing construction money before there was good reason to believe that construction would be allowed. Yes, lenders may think that some projects are more likely to be approved and the reasons for approval may be political, but that just means that lenders consider the outcome of political processes, not that they're making decisions for political reasons. Absent something like CRA, lending decisions are based on predicted return on investment. Can the borrowers make the payments? The greater the risk, the higher the interest rate.