2005/06/15 Council Agenda Packet

REAL ESTATE IMPACTS This study also undertook the quantification of possible_effects of the proximity of adult entertainment businesses on the value of residential properties within a one thousand foot radius ,of locations. their In examining the potential impacts, three sources of residential property values were Investigated: i.e,, Indianapolis Residential Multiple Listing Summaries (MLS) of the Metropolitan Indianapolis Board of Realtors, the 1980 Census (tract and block occupied, single -unit housing valuation data); and, annual lending institu- tion statements under the Federal home Mortgage Disclosure Act (MOA). Summary data from the MLS were available over the period 1979 - 1982, while actual mortgage values reported by lending institutions were available for the period 1977 - 1982. The U.S. Bureau of the Census provides homeowner estimates of home value at the time of the 1980 Census (April 1, 1980). The data available from these three sources differ In other ways, The 1980 Census, while relying on homeowner estimates of the worth of property, is a 100 percent survey and Is described dam to the block level. Home Mortgage Disclosure Act data provide a record of actual mortgages processed and reported by local lenders (only a portion of the total volume). The lowest geographic level at which this information is available is the Census Tract and, even at this level, at times poses a difficulty with the available sample size. Multiple Listing Summaries generally reflect an esti- mate of worth based on current market conditions for the area and can be assembled at virtually any geographic level since they are listed by address. As in the case of the Mortgage Disclosure Act statements, however, there are at times problems with the suffi- ciency of the sample size at the small area level. Each of the data sets presents some weaknesses. Although the 1980 Census only reflects an estimate of housing value at one point in time, it has the advantage of being a 100 percent survey of occupied, single -unit housing. The other two sourcas offer time series data over periods of four and five years. They have the liability, how- ever, -of sometimes lacking a sufficient sample size at the small area level in any given year to allow an acceptable level of statis- tical confidence, Due to these characteristics of the data, certain modifications were made in the study's original intent. Rather than doing annual comparisons of housing value, 1979 was chosen as the ccmparlson year and the 1980 Census data set chosen due to the ability to summarize it at the county, tract and block level. EVER00038 27