This thesis studies the impact of creative financing on single family house prices, focussing on instruments such as Agreements-for-Sale, assumed mortgages and vendor-financed loans. Benefits from financing at below-market interest rates are expected to be capitalized into higher sale prices of houses, however, the literature is not clear on the appropriate adjustment. If the purchase price of houses increased by an amount equal to the present value of the payment savings, there would be no direct benefit for purchasers and they would effectively be using a financing scheme similar to a graduated payment mortgage. A Canadian sample of housing transactions has been used, specifically in the Lower Mainland area of British Columbia between 1980 and 1982. The sample was selected to include home sales at different price levels and during different periods of market activity. In this way, the capitalization effect of creative financing instruments could be tested at different house price levels and market conditions, as well as for alternative types of creative funds. Creative financing arrangements can be classified as institutional or non-institutional depending on the loan origination source, and it was hypothesized that assumption loans (institutional origination) would be properly capitalized in the price while vendor-financed loans (non-institutional origination) would be overcapitalized in house prices. The reason for the dual pricing response hinges on the discount rate used to calculate the benefit of below-market financing; it should be higher for vendor-financed loans due to the higher costs in loan origination and servicing for the seller as compared to a financial intermediary. The results indicated that assumption loans were properly capitalized in the price of single family homes as the coefficient of the creative financing variable assumed a value of approximately 1. The vendor-financed sample revealed that the benefit for below-market financing was overcapitalized in the price as the coefficient was generally in excess of 3. The research suggests that the market interest rate is not the appropriate discount rate to use in deriving the benefit from vendor-financed loans and possibly a higher rate should be used. This is an area which requires further study. A sample of house sales which includes information on the secondary yields of vendor-financing from sellers to other mortgage market participants should help to identify the true market rate for these non-institutional loans and provide for a more precise calculation of the present value of the payment savings in the case of vendor-financed loans. / Business, Sauder School of / Real Estate Division / Graduate

Due to the high fate of urban population growth in Tanzania, there is an inadequate supply of housing, particularly for low-income groups, which has caused a proliferation of squatter settlements in the urban areas. The Tanzanian Government is trying to improve the quality and quantity of the housing supply for low-income urban groups. In 1973, the planning of the National Sites and Services Project, jointly financed by the International Development Association (IDA) and the Tanzania Government, was undertaken in three urban centres in Tanzania: Dar es Salaam, Mwanza and Mbeya. This study of the National Sites and Services Project in Tanzania examines the different stages of the project cycle normally pursued by the IDA for planning various development projects. The distinctive objectives of this study are: to identify various problem areas that require attention when planning future sites and services projects in Tanzania; and to provide guidelines on IDA project cycle which would be useful for the Ministry of Lands, Housing and Urban Development (Ardhi) when planning IDA projects. This information could be particularly useful for other sites and services projects, especially since it is hoped that the IDA would continue to play an active role in supporting sites and services projects in Tanzania. The IDA project cycle is composed of five stages: identification, preparation, appraisal, negotiation and supervision. Since the National Sites and Services' Project had effectively completed only the first three stages of this cycle when this study was undertaken in April 1974, analysis of the negotiation and supervision stages is not included in the study. Before analyzing these three stages of the project cycle, the first chapter of the study examines some general aspects of foreign aid projects in developing countries. It points out various motives behind aid giving and examines some problems that the recipients and the donors face in the course of undertaking aided projects. The method of investigation used for this study was that of participant observer. The author spent about six months in the Sites and Services Section of Ardhi in Dar es Salaam, Tanzania, during which time contact was established with various officials in the Tanzania Government involved in the Project. Prior to this six-month observation period, the author visited the World Bank headquarters in Washington, D.C., to interview various IDA officials involved in the project. Contact was also made with IDA officials involved in the Project who visited Tanzania on project missions during the observation period. This study concludes that though the project was operating satisfactorily during its planning stages, the success of the project depends largely on the implementation stage of the Project. The last chapter of the study focusses on the various operational and institutional problems facing the Project and attempts to outline the possible steps that could be taken to overcome these problems. These recommendations are developed through the author's subjective reactions as a participant observer. / Applied Science, Faculty of / Community and Regional Planning (SCARP), School of / Graduate

The persistence of substandard housing in many older Canadian cities has prompted the Federal government to intervene in the private process of renewal. Early public programmes concentrated on neighbourhood redevelopment, as had private enterprise. However, a recent revision in Federal policy has led to a greater emphasis on rehabilitation, the goal being to preserve elder residential areas through a programme cf Neighbourhood Improvement (NIP) and Residential Rehabilitation Assistance (RRAP). This change in policy has implications for the future character of declining areas and the evolution of the urban spatial structure. Since participation in BRAP is voluntary, the success cf this programme and the ultimate improvement of these neighbourhoods depends on residents1 attitudes towards rehabilitation and their eagerness to renovate. The purpose of this study is to examine factors influencing the owner's decision to rehabilitate his property. The conversion zones cf the three Vancouver inner city neighbourhoods of Kitsilano, Cedar Cottage and Grandview have been selected for the purpose of this investigation. In the past, these zones have been considered impermanent and their redevelopment seen as inevitable. However, they are now to be conserved, although at the time of the research, only Kitsilano and Cedar Cottage had been designated for Federal assistance through NIP and RRflP, The data for this study were principally collected through a questionnaire survey conducted in January and February, 1976. Resident homeowners were interviewed, while a small sample of absentee owners were sent mail questionnaires. Non-parametric statistics were used to analyse the data. The survey indicated that the decision to rehabilitate is based not only on financial considerations, but also owners' attitudes towards their neighbourhood, their property and the notion of improvement. While lower income residents having to make mortgage payments did encounter financial constraints to home improvements, income per se did not significantly affect rehabilitation activity. Possible property tax increases nevertheless did constitute a disincentive to improvement for many owners, profit oriented landlords also being discouraged by Provincial rent controls. However, most respondents supported the notion of residential rehabilitation and wanted more improvement in their neighbourhood. Kitsilano residents feared that further decline would lead to the disintegration of their community and culminate in apartment redevelopment, while Cedar Cottage respondents were concerned for the social status of their area. A small proportion of homeowners in these two neighbourhoods considered further deterioration inevitable and perceived this as a disincentive to rehabilitation. However, most regarded residential improvement as an effective means of maintaining the desirability of these neighbourhoods and protecting them from further undesirable changes. In all areas, respondents exhibiting pride and confidence in their neighbourhood and a sense of personal efficacy achieved the highest levels of rehabilitation. Many resident owners were also motivated by pride in their property. However, for most absentee landlords, the incentive to improve was purely economic. Despite a generally positive attitude towards improvement, few perceived ERAP as an incentive to rehabilitate. Landlords disliked the associated rent controls and many homeowners were discouraged by the financial burden of a REAP loan, pride in their self-sufficiency, and a negative attitude towards the neighbourhood and improvement. REAP therefore seems unlikely to significantly contribute to the improvement of older, deteriorating neighbourhoods, although recent programme revisions may stimulate more activity. Some of Vancouver's declining inner city neighbourhoods have at least temporarily been upgraded through residents' efforts to rehabilitate and government controls on redevelopment. The positive attitude of most respondents suggests that private rehabilitation will continue as long as owners remain confident in the future of their area. Neighbourhoods that would otherwise have been redeveloped have hence been preserved. However, unless the government continues to intervene in the deterioration process, private redevelopment will likely ensue and the urban spatial structure continue to evolve as before. / Arts, Faculty of / Geography, Department of / Graduate

Between 19.51 and 1971 the population of Canada increased 50 per cent from 14.1 million to 21.5 million. Simultaneous with the increase, significant changes in the composition of the population were occurring. Age distributions shifted as the post-war baby boom matured. The non-family portion of the household stock increased from 13.3 to 18 per cent. Growing proportions of households were locating in the urban areas. However, there has been virtually no attempt to modify Canadian housing policy to better suit the changing population. Home-ownership and the single family dwelling continue to be encouraged. This thesis examines these and other demographic changes and analyses recent projections of the Canadian population in an attempt to determine the suitability of current housing policy in the light of possible future populations. While recognizing the limitations of using projections based on trends, until a better model is provided, this study illustrates the possibility that today's housing policy may be mis-shaping the housing stock for future populations if current trends continue. / Business, Sauder School of / Graduate

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