2011 Policy Summit

2011 Federal Reserve Bank of Cleveland Policy Summit

Housing, Human Capital, and Inequality

June 9–10, 2011

Agenda 

 

Thursday, June 9

 
WELCOME

Ruth Clevenger, Vice President & Community Affairs Officer, Federal Reserve Bank of Cleveland

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LUNCH & KEYNOTE SPEECH

 

OPENING SPEECH

Introduction of keynote speaker:
Sandra Pianalto, President & CEO, Federal Reserve Bank of Cleveland

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Keynote speaker:
Janet Yellen, Vice Chair, Federal Reserve Board of Governors

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OPENING DAY PLENARY

 

THE GROWTH OF INEQUALITY IN THE U.S.

This opening plenary examined the broad patterns of inequality in the United States, focusing on issues of income inequality, human capital investments, and the impact on neighborhoods. Plenary participants presented a high-level overview of their research and policy work in these areas, followed by a moderated discussion that addresses several key questions: What contributed to the growth in inequalities? What are the implications of the rise in economic inequality for individuals, neighborhoods, and society in general?  And, what types of policies are appropriate and effective in addressing the problems associated with inequality?

Moderator:
Mark Sniderman, Executive Vice President & Chief Policy Officer, Federal Reserve Bank of Cleveland

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Speakers:
David Autor, Professor and Associate Chair, MIT Department of Economics

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Robert Sampson, Henry Ford II Professor of the Social Sciences at Harvard University & Visiting Scholar, Russell Sage Foundation

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Richard Burkhauser, Professor, Cornell University

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CONCURRENT SESSION A

 

Research A1: SUBSIDIES FOR LOW-INCOME HOUSING

This session examined the structure of the Low Income Housing Tax Credit and other subsidies, and assessed the impact that these have on housing for low-income households. The session also examined the cost of such programs to tax-payers.

Moderator:
Matthew Freedman, Assistant Professor, Cornell University

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Speakers:
Michael Eriksen, Assistant Professor, University of Georgia
“Crowd-Out Effects of Place-Based Subsidized Rental Housing: New Evidence from the LIHTC Program”

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Justin Marion, Professor of Economics, UC Santa Cruz
“The Effects of Low Income Housing Tax Credit Developments on Neighborhoods”

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Edgar Olsen, Professor, University of Virginia Department of Economics
“The Effect on Program Participation of Replacing Current Low-Income Housing Programs with an Entitlement Housing Voucher Program”

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Research A2: THE IMPACT OF FORECLOSURES ON HOUSEHOLDS

This session contained papers that examine the impact of foreclosure on financial and family outcomes. Specifically, several papers focused on the longer-term effects of foreclosure on household finances, structure, and migration patterns.

Moderator:
Yuliya Demyanyk, Senior Research Economist, Federal Reserve Bank of Cleveland

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Speakers:
Raven Molloy, Senior Economist, Board of Governors
“The Post-Foreclosure Experience of U.S. Households in the Current Housing Market Downturn”

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Ken Brevoort, Senior Economist, Board of Governors
“Foreclosure’s Wake: The Credit Experiences of Individuals Following Foreclosure”

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Leanna Stiefel, Professor, New York University
"Does Losing Your Home Mean Losing Your School?: Effects of Foreclosure on the School Mobility of Children"

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Research A3: ASSETS AND EDUCATIONAL OUTCOMES: NEW RESEARCH FROM THE FIELD

This session presented findings from new, groundbreaking studies exploring the potential impact of asset building on educational outcomes among low-income households. Two of the studies include long-term follow up data from large randomized control trials, one in the U.S. and one in Canada, both looking at adult educational outcomes. The third looks at the effects of children's savings and parental expectations on the children's school performance and college enrollment.

Moderator:
Emre Ergungor, Senior Research Economist, Federal Reserve Bank of Cleveland

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Speakers:
Michal Grinstein-Weiss, Assistant Professor, UNC School of Social Work
“Long-Term Impacts of Individual Development Accounts on Education: Evidence from a Longitudinal Randomized Experiment”

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Jean-Pierre Voyer, President, Social Research and Demonstration Corporation

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William Elliott, Assistant Professor, University of Pittsburgh School of Social Work

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Practitioner A4: CITIES IN TRANSITION: WHAT ARE THE COMPONENTS OF STABLE COMMUNITIES AND WHAT POLICIES WILL GET US THERE?

Current challenges to regional stabilization and sustainability in many Midwest cities include population and job loss, delinquencies and foreclosures, excess vacant housing, and disinvestment. These "cities in transition" are developing innovative strategies for future sustainability. Key components of their strategies include economic growth, stable neighborhoods, productive reuse of vacant property and land, regional cooperation, and effective local governance. Panelists in this session discussed some innovative strategies and tools being developed, and the state and federal policies necessary to help cities in transition move their communities toward sustainability.

Moderator:
Lavea Brachman, Policy Director, Greater Ohio

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Speakers:
Omar Blaik, President & CEO, u3ventures

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Presley Gillespie, Executive Director, Youngstown Neighborhood Development Corporation

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Alan Mallach, Senior Fellow, Brookings Institution

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Practitioner A5: SECURING GREATER FINANCIAL STABILITY

Many individuals and families continually struggle with reaching the goal of financial security, especially those affected with the current foreclosure crisis. Several programs such as the Earned Income Tax Credit Program, Individual Development Accounts and many others emerged from previous policies to help families achieve financial empowerment. But what else is needed? What’s the role for government, financial institutions, and employers? Panelists shared their perspectives surrounding a new policy direction for addressing this persistent challenge and strategies for engaging other strategic partners.

Moderator:
Ian Galloway, Federal Reserve Bank of San Francisco

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Speakers:
George Barany, Director of Financial Education and Youth Saves, America Saves

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Ida Rademacher, Vice President for Policy and Research, Corporation for Enterprise Development (CFED)

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CONCURRENT SESSION B

 

Research B1: LABOR MOBILITY AND HOUSING

This session contained papers that examined the interrelationship between housing markets and labor markets. In particular, several studies presented new findings on the potential for spatial lock-in effects.

Moderator:
Joel Elvery, Assistant Professor of Urban Studies, Cleveland State University

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Speakers:
*Abigail Wozniak, Assistant Professor, University of Notre Dame
“Internal Migration in the United States"

*Was unable to present at the Policy Summit

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John Schmitt, Senior Economist, Center for Economic and Policy Research
“Deconstructing Structural Unemployment"

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Joseph Tracy, Executive Vice President and Senior Advisor to the President, Federal Reserve Bank of New York
“Housing Busts and Household Mobility”

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Research B2: SCHOOLS, NEIGHBORHOODS, AND INEQUALITY

Many education policies are designed to address inequality. For such policies to be effective it is important that policy-makers understand the relationships between the education system and national and local labor markets. The research presented in this session looked at these relationships from several angles.

Moderator:
Guhan Venkatu, Economist, Federal Reserve Bank of Cleveland

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Speakers:
Richard Mansfield, PhD candidate, Yale University
"Teacher Quality and Student Inequality"

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Maria Fitzpatrick, postdoctoral scholar, Stanford Institute for Economic Policy Research
"Disparities in Child Care Availability across Communities: Differential Reflection of Targeted Interventions and Local Demand"

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Subhra B. Saha, Assistant Professor of Economics, Cleveland State
"Economic Effects of Universities and Colleges"

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Practitioner B3: CHANGES IN COMMUNITY DEVELOPMENT: INNOVATIVE APPROACHES AND ASSESSING WHAT WORKS

The foreclosure crisis has given cities, nonprofits, and foundations more reason to consider new ways to define community development as well as new ways to approach it. Innovative comprehensive models such as Living Cities’ Integration Initiative and United way of Greater Cincinnati’s Agenda for Community Impact represent efforts that combine the resources of nontraditional partners and infuse them with catalytic investments and private capital. For more than five years, Cleveland has been home to an ambitious community building strategy designed to leverage the power of its large hospitals, universities and other anchors to create new investments in six low-income, disinvested neighborhoods. These approaches require stakeholders—in education, health, workforce development, financial stability, and housing—to view community issues through a shared lens. Accountability and evaluating are key components of this silo-busting approach that can result in new partnerships and unlimited opportunities for change.

Moderator:
Ted Howard, The Democracy Collaborative, University of Maryland

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Speakers:
Terry Grundy, Community Impact Director, United Way of Greater Cincinnati

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Marian Urquilla, Director of Programs and Strategies, Living Cities

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*Steven Standley, Senior Vice President of System Services, University Hospitals

*Last minute addition
Practitioner B4: WORKFORCE DEVELOPMENT AND THE FORMERLY INCARCERATED

Cuyahoga County and other urban areas in Ohio are home to a significant number of formerly incarcerated individuals. To stop the cycle of recidivism, organizations like Lutheran Metropolitan Ministries run programs designed to help formerly incarcerated individuals to successfully integrate back into society, including job training and placement. Panelists for this session discussed the scope of reentry in different Ohio regions and potential opportunities to train those currently incarcerated and those newly released to conduct demolition or deconstruction of vacant and abandoned properties, giving them skills to better enable them to reenter the workforce in a way that helps address community needs.

Moderator:
Bill Sabol, Deputy Director, Statistical Collections & Analysis, U.S. Department of Justice

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Speakers:
Charles See, Executive Director, Lutheran Metropolitan Ministry’s Cleveland Community Reentry Program

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Edward Rhine, Deputy Director, Office of Policy and Offender Reentry, Ohio Department of Rehabilitation and Corrections

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Jan Lepore-Jentleson, Executive Director, East End Community Services

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Practitioner B5: INVESTING IN CDFIs: A WINNING RETURN

As the CDFI industry has grown in market share and business acumen, CRA-covered banks have taken notice of the unique role CDFIs play in providing mission– and impact–focused credit for revitalization activities such as affordable housing and small business development. Not only have CDFIs helped banks increase market share and business acumen, these organizations have also helped banks penetrate new markets such as child care, charter schools, and healthcare clinics. This session will feature experts highlighting the partnerships that have emerged between CRA–covered institutions and CDFIs, as well as the role CDFIs play in community development.

Moderator:
Scott Turner, Vice president and Community Affairs Officer, Federal Reserve Bank of San Francisco

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Speakers:
Jim Greer, Senior Research Analyst and Joe Valenti, Research Analyst, CDFI Fund
“Community Economic Development in Distressed Communities”

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Keith S. Burgess, Manager of Community Development Lending, Huntington National Bank

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Friday, June 10

CLOSING DAY PLENARY

 

BREAKFAST WITH THE REGULATORS

Cassandra McConnell, Associate Director of Community Affairs, FDIC

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Theresa Stark, Senior Project Manager, Federal Reserve Board

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Barry Wides, Deputy Comptroller for Community Affairs, Office of the Comptroller of the Currency

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Richard Cordray, Director of Enforcement, Consumer Financial Protection Bureau

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ASSET BUILDING IN LOW- AND MODERATE-INCOME COMMUNITIES

This plenary session focused on housing and education policies that are relevant to asset building, stability, and upward mobility in low- and moderate-income communities in the aftermath of the housing crisis.

Moderator & Speaker:
Andrea Levere, President, Corporation for Enterprise Development (CFED)

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Speakers:
Rob Grunewald, Economist, Federal Reserve Bank of Minneapolis

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Michael Stegman, Director of Policy and Housing, MacArthur Foundation

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James Rosenbaum, Professor of Sociology, Education, and Social Policy, Northwestern University

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CONCURRENT SESSION C

 
Research C1: HOUSING MOBILITY PROGRAMS AND NEIGHBORHOOD EFFECTS

Following the results of the Gautreaux housing mobility program there was widespread support for housing mobility programs as a means of addressing the negative impacts of segregation and concentrated poverty. However, the enthusiasm for such programs has been tempered by the results of the more recent Moving to Opportunity experiment. The research presented in this session examined the evidence from these housing mobility programs, and considers how we can constructively use this evidence in the design of future housing and education policies.

Moderator & Speaker:
Brendan O’Flaherty, Professor, Columbia University
"Safety, Health, Location, and Policy"

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Speakers:
Dionissi Aliprantis, Economist, Federal Reserve Bank of Cleveland
"Assessing the Evidence on Neighborhood Effects from Moving to Opportunity"

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Ruby Mendenhall, Professor of African American Studies and Sociology, University of Illinois
"The Gautreaux Assisted Housing Program: Historical Lessons about the Role of Race and Resources"

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Research C2: LOW-INCOME HOMEOWNERSHIP

The value of homeownership to households and society at large has been somewhat questioned by the recent crisis. Much of the gains in low-income ownership rates have been or are about to be lost. In this context, this session's presentations focus on two issues:
1. What are the benefits of homeownership for low-income households? and
2. How did programs specifically designed for low-income borrowers perform during the subprime boom?

Moderator:
Emre Ergungor, Senior Research Economist, Federal Reserve Bank of Cleveland

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Speakers:
Gary Engelhardt, Professor, Maxwell School at Syracuse University
“What are the Social Benefits of Homeownership? Experimental Evidence for Low-Income Households”

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Sarah Riley, Senior Research Economist, University of North Carolina Center for Community Capital
“The User Cost of Low-Income Homeownership” and “Perceptions and Reality During the Financial Crisis”

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Clinton Key, Research Associate, UNC School of Social Work
“The Effect of Homeownership on Wealth in Low-Income Households”

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Research C3: LENDING AND LOAN PERFORMANCE IN THE AFTERMATH OF A CRISIS

This session included research on mortgage lending and delinquency, with a focus on lessons learned in the aftermath of the crisis. To what extent is securitization responsible for high delinquency and default rates? s refinancing an option for troubled LMI homeowners? And what are current lending conditions for low income and minority homebuyers?

Moderator:
Yilan Xu, PhD candidate, University of Pittsburgh

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Speakers:
Stephanie Moulton, Professor, John Glenn School of Public Affairs, Ohio State University
“Access, Affordability and Minority Homebuyers: Mortgage Lending After the Subprime Boom and Bust”

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Ryan Goodstein, Senior Financial Economist, FDIC
“Refinancing Trends among Lower Income Homeowners during the Housing Boom and Bust"

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Ronel Elul, Senior Economist, Federal Reserve Bank of Philadelphia
"Securitization and Mortgage Default"

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Practitioner C4: COVERING THE EDUCATIONAL CONTINUUM IN LMI COMMUNITIES: FROM CRADLE TO COLLEGE

What makes for successful educational programs in low-income communities, and is it possible to scale-up or replicate these models? How do place and race come into play? This session featured research on these issues, along with the experiences of an ongoing program that has grown in scope and success over time. An initiative by the Department of Education to scale-up successful cradle-to-college models nationwide was also presented.

Moderator & Speaker:
Erin Hardy, Senior Research Associate, DiversityData-Kids Project, Northeastern University with Jason Reece, Senior Researcher, Kirwan Institute for the Study of Race & Ethnicity, The Ohio State University
“Equity in Early Opportunities to Learn: Examining the Roles of Place, Space, and Race”

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Speakers:
Steven Kahn, Director, Center for Excellence and Equity in Mathematics, and Professor, Wayne State University

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John Zitzner, Founder, Entrepreneurship Preparatory School and Village Preparatory School, and President, Friends of E Prep Schools

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Larkin Tackett, Deputy Director, Promise Neighborhoods Initiative, Department of Education

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Mobile Workshop C5: GREATER UNIVERSITY CIRCLE INITIATIVE MOBILE WORKSHOP

See the Living Cities’ Integration Initiative in action during this tour of the Greater University Circle Initiative, a comprehensive community building approach to community development spearheaded by the Cleveland Foundation. Project and community leaders guided tour participants to various components of the initiative to demonstrate how an anchor-based strategy can transform a neighborhood, including the Health Tech Corridor, the University Arts and Retail District, the Fairfax neighborhood, and the Evergreen Cooperative Laundry.

|Video 6:08|

LUNCH & KEYNOTE SPEECH

 

CLOSING SPEECH

Keynote speaker:
Paul Tough, author and researcher
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Paul Tough is the author of Whatever It Takes: Geoffrey Canada's Quest to Change Harlem and America. He has written extensively about education, child development, poverty, and politics, including cover stories in the New York Times Magazine on the Harlem Children’s Zone, the post-Katrina school system in New Orleans, and the achievement gap and charter schools.

Sponsored by the Federal Reserve Bank of Cleveland's Research and Community Development Departments, with support from the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Ohio Capital Corporation for Housing (OCCH), and NeighborWorks America.