The CNU's Live/Work/Walk Initiative

This week, I became a member of the Congress for the New Urbanism and attended the kickoff of the Live/Work/Walk Initiative :)

The basic problem being addressed by the initiative is that current Federal lending standards dictate that new development cannot include more than ~15% commercial space. This has distorted the market by diverting new development towards single family homes and high-rises. In a small urban area, such as Mt. Clemens or Royal Oak, MI, it is prohibitively difficult to secure financing build new 2-3 story mixed-use (Apartments on top, shops on the bottom) buildings along the commercial corridors. This is tragic because it essentially forces people to spend money on gas and time in traffic, when they could walk downstairs to work.

Prior to the involvement of the federal government in real estate lending, banks preferred mixed-use development as it allowed them to hedge the risk of a downturn in either the commercial or residential property markets. Banking followed the path of least-personal-risk and bent their lending standards to those of the Gov't-backed entities. Single-use is still the more risky option, just not to the bank whose loan is now backed by the American taxpayer. The CNU wants to modify the restriction to relax the restrictions on commercial space. This requires no government funds and would clear the way for private investment in our historic, walkable urban centers.

This is a Forbes summary