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	<title>AHI: United States &#187; Theory</title>
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		<title>If you can&#8217;t define it, you can&#8217;t use it: Part 2, my neighborhood, blight or wrong?</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2010/03/if-you-cant-define-it-you-cant-use-it-part-2-my-neighborhood-blight-or-wrong.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2010/03/if-you-cant-define-it-you-cant-use-it-part-2-my-neighborhood-blight-or-wrong.html#comments</comments>
		<pubDate>Fri, 19 Mar 2010 13:53:13 +0000</pubDate>
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				<category><![CDATA[Atlantic Yards]]></category>
		<category><![CDATA[Blight]]></category>
		<category><![CDATA[Cities]]></category>
		<category><![CDATA[Eminent domain]]></category>
		<category><![CDATA[Law]]></category>
		<category><![CDATA[New York City]]></category>
		<category><![CDATA[Policy]]></category>
		<category><![CDATA[Regulation]]></category>
		<category><![CDATA[Theory]]></category>

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		<description><![CDATA[
[Continued from yesterday's Part 1.]
&#160;
By: David A. Smith
&#160;
As we saw yesterday, using as our text a protracted City Journal editorial essay by Nicole Gelinas, when eminent domain is used for economic development (ED4ED) with a private developer as the implementing party, the potential for mischief is simply enormous &#8211; because the law of economic gravity [...]]]></description>
			<content:encoded><![CDATA[<p><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN"></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'">[Continued from yesterday's <a href="http://affordablehousinginstitute.org/blogs/us/2010/03/if-you-cant-define-it-you-cant-use-it-part-1-the-blight-line-test.html"><font color="#800080">Part 1</font></a>.]</span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'"><?xml:namespace prefix ="" o /><o:p></o:p></span></i>&nbsp;</p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt">By:<span style="COLOR: #333333"> </span><span style="COLOR: navy"><a href="http://www.affordablehousinginstitute.org/bio_DAS_long.php"><font color="#800080">David A. Smith</font></a></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="COLOR: navy"></span><span style="COLOR: #333333"><o:p></o:p></span></span>&nbsp;</p>
<p>As we saw yesterday, using as our text a protracted </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'"><a href="http://www.city-journal.org/2010/20_1_eminent-domain-abuse.html"><font color="#800080">City Journal</font></a> </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">editorial essay by </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'"><a href="http://www.manhattan-institute.org/html/gelinas.htm">Nicole Gelinas</a>, </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">when eminent domain is used for economic development (ED4ED) with a private developer as the implementing party, the potential for mischief is simply enormous &ndash; because <a href="http://affordablehousinginstitute.org/blogs/us/2009/02/the-law-of-economic-pressure-part-1-america%E2%80%99s-pull.html">the law of economic gravity</a> <a href="http://affordablehousinginstitute.org/blogs/us/2005/09/political_calcu.html">creates political pressure</a> that disenfranchises the economically disadvantaged.<o:p></o:p></span> </p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">5. A subjective standard creates a power imbalance<o:p></o:p></span></b></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">When the state tries to crowbar a small property holder off his land, the contest is unequal, and the politically weaker are at an enormous disadvantage.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Justice_thomas_02" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/justice_thomas_02_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'">Standing up for the politically weaker party: Justice Thomas<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">This is a civil-rights problem, both in its abstract sense and in racial or ethnic terms, because when power is unequal, it is normally the racially disadvantaged who lose, which is why <a href="http://www.law.cornell.edu/supct/html/04-108.ZD1.html">Justice Thomas so articulately dissented</a> in <i style="mso-bidi-font-style: normal">Kelo</i>: <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">Today&rsquo;s decision is simply the latest in a string of our cases construing the Public Use Clause to be a virtual nullity, without the slightest nod to its original meaning. <o:p></o:p></font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">Allowing the government to take property solely for public purposes is bad enough, but extending the concept of public purpose to encompass any economically beneficial goal <b style="mso-bidi-font-weight: normal">guarantees that these losses will fall disproportionately on poor communities. </b>Those communities are not only systematically less likely to put their lands to the highest and best social use, but are also the least politically powerful. If ever there were justification for intrusive judicial review of constitutional provisions that protect &ldquo;discrete and insular minorities,&rdquo; <i style="mso-bidi-font-style: normal">United States v. Carolene Products Co.,</i> </font><a href="http://www.law.cornell.edu/supct-cgi/get-us-cite?304+144"><span style="COLOR: maroon"><font face="Times New Roman">304 U.S. 144</font></span></a><font face="Times New Roman">, 152, n. 4 (1938), surely that principle would apply with great force to the powerless groups and individuals the Public Use Clause protects. The deferential standard this Court has adopted for the Public Use Clause is therefore deeply perverse. It encourages &ldquo;those citizens with disproportionate influence and power in the political process, including large corporations and development firms&rdquo; to victimize the weak. <i style="mso-bidi-font-style: normal">Ante</i>, at 11 (O&rsquo;Connor, J., dissenting).<o:p></o:p></font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Justice_thomas_03" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/justice_thomas_03_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">&#8220;Citizens with disproportionate influence &hellip; can victimize the weak.&#8221;<o:p></o:p></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">Those incentives have made the legacy of this Court&rsquo;s &ldquo;public purpose&rdquo; test an unhappy one. In the 1950&rsquo;s, no doubt emboldened in part by the expansive understanding of &ldquo;public use&rdquo; this Court adopted in <i style="mso-bidi-font-style: normal">Berman</i>, cities &ldquo;rushed to draw plans&rdquo; for downtown development. <o:p></o:p></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><o:p><font face="Times New Roman">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">B. Frieden &amp; L. Sagalayn, Downtown, Inc. <i style="mso-bidi-font-style: normal">How <?xml:namespace prefix ="" st1 /><st1:place w:st="on"><st1:country-region w:st="on">America</st1:country-region></st1:place> Rebuilds Cities 17 (1989</i>). &ldquo;Of all the families displaced by urban renewal from 1949 through 1963:<o:p></o:p></font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">63% of those whose race was known were nonwhite<o:p></o:p></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">56% of nonwhites and 38% of whites had incomes low enough to qualify for public housing, which, however, was seldom available to them.&rdquo; <o:p></o:p></font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font face="Times New Roman"><st1:place w:st="on"><st1:state w:st="on"><span style="FONT-SIZE: 11pt; COLOR: maroon">Id.</span></st1:state></st1:place><span style="FONT-SIZE: 11pt; COLOR: maroon">, at 28. <o:p></o:p></span></font></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Justice_thomas_01" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/justice_thomas_01_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial">&#8220;The deferential standard this Court has adopted for the Public Use Clause is therefore deeply perverse.&#8221;<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Time and again, ED4ED has been used with <a href="http://affordablehousinginstitute.org/blogs/us/2006/08/eminent_domain_14.html">the stated purpose of improving neighborhoods and cities</a> &ndash; and along the way, as collateral damage, minority and lower-income neighborhoods are demolished.<span style="mso-spacerun: yes">&nbsp; </span>The <i style="mso-bidi-font-style: normal">Poletown</i> neighborhood of <st1:city w:st="on"><st1:place w:st="on">Detroit</st1:place></st1:city>, for instance, was leveled to make way for a GM plant. <span style="mso-spacerun: yes">&nbsp;</span>Robert Moses&#8217; highways cut conveniently through blackening neighborhoods in <st1:place w:st="on">Harlem</st1:place>.<o:p></o:p></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">Public works projects in the 1950&rsquo;s and 1960&rsquo;s destroyed predominantly minority communities in <st1:city w:st="on">St. Paul</st1:city>, <st1:state w:st="on">Minnesota</st1:state>, and <st1:place w:st="on"><st1:city w:st="on">Baltimore</st1:city>, <st1:state w:st="on">Maryland</st1:state></st1:place>. <st1:place w:st="on"><st1:state w:st="on">Id.</st1:state></st1:place>, at 28&mdash;29. In 1981, urban planners in <st1:place w:st="on"><st1:city w:st="on">Detroit</st1:city>, <st1:state w:st="on">Michigan</st1:state></st1:place>, uprooted the largely &ldquo;lower-income and elderly&rdquo; Poletown neighborhood for the benefit of the General Motors Corporation. J. Wylie, <i style="mso-bidi-font-style: normal">Poletown: Community Betrayed 58 (1989</i>). <o:p></o:p></font></span></p>
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<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">Urban renewal projects have long been associated with the displacement of blacks; &ldquo;[i]n cities across the country, urban renewal came to be known as &lsquo;Negro removal.&rsquo;&nbsp;&rdquo; Pritchett, The &ldquo;Public Menace&rdquo; of <i style="mso-bidi-font-style: normal">Blight: Urban Renewal and the Private Uses of Eminent Domain</i>, 21 Yale L. &amp; Pol&rsquo;y Rev. 1, 47 (2003). <o:p></o:p></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; COLOR: maroon; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Justice_thomas_04" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/justice_thomas_04_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Urban renewal came to be known as &#8216;Negro removal&#8217;<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; COLOR: maroon; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">Over 97% of the individuals forcibly removed from their homes by the &ldquo;slum-clearance&rdquo; project upheld by this Court in <i style="mso-bidi-font-style: normal">Berman</i> were black. 348 <st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place>, at 30. Regrettably, the predictable consequence of the Court&rsquo;s decision will be to exacerbate these effects.<o:p></o:p></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">The same power dynamics are at work in the cases being contested today, such as </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><a href="http://affordablehousinginstitute.org/blogs/us/2006/11/billion_dollar_6.html">the billion-dollar Brooklyn</a> struggle over Atlantic Yards<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Blight_or_historic" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/blight_or_historic_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Historic?<span style="mso-spacerun: yes">&nbsp; </span>Blighted?<span style="mso-spacerun: yes">&nbsp; </span>Or both?<span style="mso-spacerun: yes">&nbsp; </span><i style="mso-bidi-font-style: normal">You</i> decide<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">When the state held public hearings in 2006 to decide whether to approve Atlantic Yards, hundreds of supplicants, hoping for a good job or a cheap apartment, easily drowned out the voices of people like Goldstein, who wanted nothing from the government except the right to keep their homes.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Ratner_acorn" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/ratner_acorn_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"><a href="http://biggovernment.com/tag/acorn-scandal/">What&#8217;s not to love about ACORN?</a><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In the twenty-first century, things are different because of the information revolution.<span style="mso-spacerun: yes">&nbsp; </span>The combination of the <a href="http://www.justice.gov/oip/">Freedom Of Information Act</a> and the internet has enabled citizen journalism, neutralizing the previous power imbalance of the media, to the point where <a href="http://affordablehousinginstitute.org/blogs/us/2007/03/atlantic_yards.html">Norman Oder</a>, an individual with <span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">no platform other than a blog and no motivation other <font color="navy"><span style="COLOR: navy"><?xml:namespace prefix ="" o ns ="" "urn:schemas-microsoft-com:office:office" /><o:p></o:p></span></font></span>than a burning desire to uncover the truth, can out-investigate the (conflicted) <i style="mso-bidi-font-style: normal">New York Times</i> with reporting <a href="http://affordablehousinginstitute.org/blogs/us/2007/07/give_this_man_a.html">worthy of a Pulitzer</a>.<span style="mso-spacerun: yes">&nbsp; </span>However, the playing field is still not level:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Another violation: <b style="mso-bidi-font-weight: normal">the government responded poorly to property owners&rsquo; document requests</b> under the state&rsquo;s freedom of information law, hampering their right to mount a solid case. Such requests are particularly important in eminent-domain cases because <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place> property owners don&rsquo;t enjoy the right to a trial with a discovery phase, but must go straight to appeals court&mdash;a seventies-era &ldquo;reform&rdquo; meant to speed up development projects.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">6. ED4ED advocates can always procure a blight finding<o:p></o:p></span></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Just as the condition of insanity has been diluted because it provides such a helpful criminal defense, so too has &#8216;blight&#8217; become a currency so debased it can be minted more or less anywhere.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Papoon" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/papoon_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'">Papoon for President, he&#8217;s not insane<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">But wait, you say: people don&rsquo;t buy half-million-dollar apartments in &ldquo;substandard&rdquo; or &ldquo;unsanitary&rdquo; neighborhoods. You&rsquo;re right; that&rsquo;s why the consultants had to stretch. In the 1930s, as Goldstein&rsquo;s attorney, Matthew Brinckerhoff, pointed out, &ldquo;substandard&rdquo; and &ldquo;unsanitary&rdquo; meant &ldquo;families and children dying from rampant fires and pestilence&rdquo; in tuberculosis-ridden firetraps. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In 2006, by contrast, the UDC&rsquo;s consultants found &ldquo;substandard&rdquo; conditions in isolated graffiti, cracked sidewalks, and &ldquo;underutilization&rdquo;&mdash;that is, when property owners weren&rsquo;t using their land to generate the social and economic benefits that the government desired.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Forty years ago, <a href="http://www.larryniven.org/">Larry Niven</a> in his Known Space stories imagined a world where organ transplants were easy and reliable, resulting in a market in <a href="http://en.wikipedia.org/wiki/Organlegging">organ-legging</a>, and <a href="http://www.larryniven.org/too_much_niven.shtml">the death penalty for parking tickets</a>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Known_space" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/known_space_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Death penalty for parking tickets<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Similar creativity has taken place, at least in court, with regard to what constitutes blight:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place>, this creative definition of blight is the new central-planning model. Consultants have also cited &ldquo;underutilization&rdquo; in West Harlem, where the city&rsquo;s Economic Development Corporation wants to take land from private owners and hand it to <st1:place w:st="on"><st1:placename w:st="on">Columbia</st1:placename> <st1:placetype w:st="on">University</st1:placetype></st1:place> for an expansion project. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">If blight has come to mean under-utilization, it has come to mean absolutely nothing, since the group has never been formed that lacks a bottom quartile.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Says Norman Siegel, who represents the owners: &ldquo;A private property owner has the right to determine the best productive use of his property. It&rsquo;s not a right to be ceded to any government.&rdquo;<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">There&#8217;s only one way to fight a specious finding of blight &ndash; get your own dueling finding of no-blight:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Duel_princess_bride" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/duel_princess_bride_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Blighted?<span style="mso-spacerun: yes">&nbsp; </span>I&#8217;ve worked hard to become so<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The <st1:place w:st="on">Harlem</st1:place> owners were able to convince the lower court partly because they had commissioned their own &ldquo;no-blight&rdquo; study. &ldquo;We said, &lsquo;Let&rsquo;s create our own record . . . as a counterweight,&rsquo; &rdquo; said Siegel. The owners also presented as evidence a government study, performed before <st1:city w:st="on">Columbia</st1:city> showed interest in the land, that <st1:place w:st="on">West Harlem</st1:place> was revitalizing itself. <span style="mso-spacerun: yes">&nbsp;</span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">7. If it&#8217;s not blighted today, I can make it blighted tomorrow</span></b><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">.<span style="mso-spacerun: yes">&nbsp; </span>Blight, like financial weakness, can be a self-fulfilling prophecy:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">And in <st1:place w:st="on">Queens</st1:place>, the Bloomberg administration is preparing a similar argument to grab swaths of Willets Point, an area adjacent to Citi Field that&rsquo;s populated with auto-repair shops. The city&rsquo;s recent &ldquo;request for qualifications&rdquo; from would-be developers drew a sharp response from the people who owned the land: &ldquo;We . . . hold the most significant qualification of all: we own the properties. We are motivated to improve and use our own properties, consistent with the American free market system. <span style="mso-spacerun: yes">&nbsp;</span>We would have done so in spectacular fashion already, had the city upheld its end of the bargain by <b style="mso-bidi-font-weight: normal">providing our neighborhood with essential services and infrastructure.&rdquo; <o:p></o:p></b></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Willets_point_fight" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/willets_point_fight_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The residents are agin it<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">One of my <a href="http://affordablehousinginstitute.org/blogs/us/2005/07/sustainable_aff.html">many definitions</a> of a slum &ndash; <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/slums-a-municipal-definition.html">the municipal definition</a> &ndash; is a place where <a href="http://affordablehousinginstitute.org/blogs/us/2009/03/the-challenge-and-opportunity-of-slums-part-1-the-challenges.html">private investment has outrun public infrastructure</a>. <span style="mso-spacerun: yes">&nbsp;</span>As a result, if the city averts its eyes from a neighborhood, then it will <i style="mso-bidi-font-style: normal">become</i> a slum regardless of what its denizens say or do.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Instead, the city has done the opposite, letting streets disintegrate into ditches to bolster its blight finding.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A city&#8217;s failure to deliver infrastructure is a breach by a city of its obligations to its citizens, and if I were such a citizen, I would sue them.<span style="mso-spacerun: yes">&nbsp; </span>The issue is hugely important in the global south, where municipalities grapple <a href="http://affordablehousinginstitute.org/blogs/us/2008/06/favelas-of-sao-paulo-part-2-guarapiranga.html">with proliferating slums</a>. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The perversity is astonishing: rather than doing its own job of maintaining public infrastructure and public safety, the government wants to do the private sector&rsquo;s job&mdash;and is going about it by starving that private sector of public resources.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A vacant lot, for example, now sprawls where the historic Ward Bakery warehouse was, until recently, a candidate for private-sector reinvestment. Today, <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Heights</st1:placetype></st1:place> finally shows what the state and city governments want everyone to see: decay. <span style="mso-spacerun: yes">&nbsp;</span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">If a neighborhood is going down, there&#8217;s an easy way to help it along: remove businesses and demolish buildings, leaving a deconstructed urban visage.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span>&nbsp;</p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Atlantic_yards_blighted_or_not" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/atlantic_yards_blighted_or_not_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Blighted or not?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The decay, though, isn&rsquo;t the work of callous markets that left the neighborhood to perish. It&rsquo;s the work of a developer wielding state power to press property owners to sell their land &ldquo;voluntarily.&rdquo; It&rsquo;s also the result of a half-decade&rsquo;s worth of government-created <b style="mso-bidi-font-weight: normal">uncertainty, which stopped genuine private investment in its tracks</b>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">8. If cities are always messy, there is always a bottom quartile</span></b><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">. Except for <st1:place w:st="on"><st1:placetype w:st="on">Lake</st1:placetype> <st1:placename w:st="on">Wobegon</st1:placename></st1:place>, <a href="http://www.brainyquote.com/quotes/quotes/g/garrisonke137097.html">where all the properties are above-average</a>, cities by their nature have better and poorer neighborhoods, to say nothing of <a href="http://affordablehousinginstitute.org/blogs/us/2008/02/we-see-what-we-expect-to-see-part-1-why-we-want-to-know.html">the challenge of evaluating which is which</a>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Garrison_keillor" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/garrison_keillor_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'">In <st1:place w:st="on"><st1:placetype w:st="on">Lake</st1:placetype> <st1:placename w:st="on">Wobegon</st1:placename></st1:place>, we have only appreciative neighborhoods<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">To cure yourself of the notion that the government can do better than free markets in producing economic vitality, stroll around Atlantic Yards. You&rsquo;ll walk past three-story clapboard homes nestled next to elegantly corniced row houses&mdash;the supposedly blighted residences that the state plans to demolish. You&rsquo;ll see the <st1:place w:st="on"><st1:placename w:st="on">Spalding</st1:placename> <st1:placename w:st="on">Building</st1:placename></st1:place>, a stately sporting-goods-factory-turned-condo-building that, thanks to Ratner and his government allies, has been slated for demolition and <b style="mso-bidi-font-weight: normal">now stands empty</b>. You&rsquo;ll peer up at Goldstein&rsquo;s nearly empty apartment house, scheduled to be condemned and destroyed.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">And you&rsquo;ll see how wrecking balls have already made the neighborhood gap-toothed. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Missing_teeth" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/missing_teeth_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Can we agree that&#8217;s blighted?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">We had to <a href="http://atlanticyardsreport.blogspot.com/2009/11/atlantic-yards-site-blighted-some.html">blight the neighborhood</a> in order to take it?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued tomorrow in Part 3.]<o:p></o:p></span></i></p>
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<input type="hidden" name="postContent_0" value="&lt;p&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;[Continued from yesterday's &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2010/03/if-you-cant-define-it-you-cant-use-it-part-1-the-blight-line-test.html&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;Part 1&lt;/font&gt;&lt;/a&gt;.]&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;?xml:namespace prefix =&quot;&quot; o /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;By:&lt;span style=&quot;COLOR: #333333&quot;&gt; &lt;/span&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;a href=&quot;http://www.affordablehousinginstitute.org/bio_DAS_long.php&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;David A. Smith&lt;/font&gt;&lt;/a&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;/span&gt;&lt;span style=&quot;COLOR: #333333&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;As we saw yesterday, using as our text a protracted &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;a href=&quot;http://www.city-journal.org/2010/20_1_eminent-domain-abuse.html&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;City Journal&lt;/font&gt;&lt;/a&gt; &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;editorial essay by &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;a href=&quot;http://www.manhattan-institute.org/html/gelinas.htm&quot;&gt;Nicole Gelinas&lt;/a&gt;, &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;when eminent domain is used for economic development (ED4ED) with a private developer as the implementing party, the potential for mischief is simply enormous &amp;ndash; because &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/02/the-law-of-economic-pressure-part-1-america%E2%80%99s-pull.html&quot;&gt;the law of economic gravity&lt;/a&gt; &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/09/political_calcu.html&quot;&gt;creates political pressure&lt;/a&gt; that disenfranchises the economically disadvantaged.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt; &lt;/p&gt;
&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;5. A subjective standard creates a power imbalance&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;When the state tries to crowbar a small property holder off his land, the contest is unequal, and the politically weaker are at an enormous disadvantage.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Justice_thomas_02&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/justice_thomas_02_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Standing up for the politically weaker party: Justice Thomas&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;This is a civil-rights problem, both in its abstract sense and in racial or ethnic terms, because when power is unequal, it is normally the racially disadvantaged who lose, which is why &lt;a href=&quot;http://www.law.cornell.edu/supct/html/04-108.ZD1.html&quot;&gt;Justice Thomas so articulately dissented&lt;/a&gt; in &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Kelo&lt;/i&gt;: &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Today&amp;rsquo;s decision is simply the latest in a string of our cases construing the Public Use Clause to be a virtual nullity, without the slightest nod to its original meaning. &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Allowing the government to take property solely for public purposes is bad enough, but extending the concept of public purpose to encompass any economically beneficial goal &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;guarantees that these losses will fall disproportionately on poor communities. &lt;/b&gt;Those communities are not only systematically less likely to put their lands to the highest and best social use, but are also the least politically powerful. If ever there were justification for intrusive judicial review of constitutional provisions that protect &amp;ldquo;discrete and insular minorities,&amp;rdquo; &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;United States v. Carolene Products Co.,&lt;/i&gt; &lt;/font&gt;&lt;a href=&quot;http://www.law.cornell.edu/supct-cgi/get-us-cite?304+144&quot;&gt;&lt;span style=&quot;COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;304 U.S. 144&lt;/font&gt;&lt;/span&gt;&lt;/a&gt;&lt;font face=&quot;Times New Roman&quot;&gt;, 152, n. 4 (1938), surely that principle would apply with great force to the powerless groups and individuals the Public Use Clause protects. The deferential standard this Court has adopted for the Public Use Clause is therefore deeply perverse. It encourages &amp;ldquo;those citizens with disproportionate influence and power in the political process, including large corporations and development firms&amp;rdquo; to victimize the weak. &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Ante&lt;/i&gt;, at 11 (O&amp;rsquo;Connor, J., dissenting).&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Justice_thomas_03&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/justice_thomas_03_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;&amp;#8220;Citizens with disproportionate influence &amp;hellip; can victimize the weak.&amp;#8221;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Those incentives have made the legacy of this Court&amp;rsquo;s &amp;ldquo;public purpose&amp;rdquo; test an unhappy one. In the 1950&amp;rsquo;s, no doubt emboldened in part by the expansive understanding of &amp;ldquo;public use&amp;rdquo; this Court adopted in &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Berman&lt;/i&gt;, cities &amp;ldquo;rushed to draw plans&amp;rdquo; for downtown development. &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;B. Frieden &amp;amp; L. Sagalayn, Downtown, Inc. &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;How &lt;?xml:namespace prefix =&quot;&quot; st1 /&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;America&lt;/st1:country-region&gt;&lt;/st1:place&gt; Rebuilds Cities 17 (1989&lt;/i&gt;). &amp;ldquo;Of all the families displaced by urban renewal from 1949 through 1963:&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;63% of those whose race was known were nonwhite&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;56% of nonwhites and 38% of whites had incomes low enough to qualify for public housing, which, however, was seldom available to them.&amp;rdquo; &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;Id.&lt;/span&gt;&lt;/st1:state&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;, at 28. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Justice_thomas_01&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/justice_thomas_01_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial&quot;&gt;&amp;#8220;The deferential standard this Court has adopted for the Public Use Clause is therefore deeply perverse.&amp;#8221;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Time and again, ED4ED has been used with &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/08/eminent_domain_14.html&quot;&gt;the stated purpose of improving neighborhoods and cities&lt;/a&gt; &amp;ndash; and along the way, as collateral damage, minority and lower-income neighborhoods are demolished.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Poletown&lt;/i&gt; neighborhood of &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Detroit&lt;/st1:place&gt;&lt;/st1:city&gt;, for instance, was leveled to make way for a GM plant. &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;Robert Moses&amp;#8217; highways cut conveniently through blackening neighborhoods in &lt;st1:place w:st=&quot;on&quot;&gt;Harlem&lt;/st1:place&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Public works projects in the 1950&amp;rsquo;s and 1960&amp;rsquo;s destroyed predominantly minority communities in &lt;st1:city w:st=&quot;on&quot;&gt;St. Paul&lt;/st1:city&gt;, &lt;st1:state w:st=&quot;on&quot;&gt;Minnesota&lt;/st1:state&gt;, and &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Baltimore&lt;/st1:city&gt;, &lt;st1:state w:st=&quot;on&quot;&gt;Maryland&lt;/st1:state&gt;&lt;/st1:place&gt;. &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;Id.&lt;/st1:state&gt;&lt;/st1:place&gt;, at 28&amp;mdash;29. In 1981, urban planners in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Detroit&lt;/st1:city&gt;, &lt;st1:state w:st=&quot;on&quot;&gt;Michigan&lt;/st1:state&gt;&lt;/st1:place&gt;, uprooted the largely &amp;ldquo;lower-income and elderly&amp;rdquo; Poletown neighborhood for the benefit of the General Motors Corporation. J. Wylie, &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Poletown: Community Betrayed 58 (1989&lt;/i&gt;). &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Urban renewal projects have long been associated with the displacement of blacks; &amp;ldquo;[i]n cities across the country, urban renewal came to be known as &amp;lsquo;Negro removal.&amp;rsquo;&amp;nbsp;&amp;rdquo; Pritchett, The &amp;ldquo;Public Menace&amp;rdquo; of &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Blight: Urban Renewal and the Private Uses of Eminent Domain&lt;/i&gt;, 21 Yale L. &amp;amp; Pol&amp;rsquo;y Rev. 1, 47 (2003). &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; COLOR: maroon; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Justice_thomas_04&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/justice_thomas_04_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Urban renewal came to be known as &amp;#8216;Negro removal&amp;#8217;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; COLOR: maroon; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Over 97% of the individuals forcibly removed from their homes by the &amp;ldquo;slum-clearance&amp;rdquo; project upheld by this Court in &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Berman&lt;/i&gt; were black. 348 &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;U.S.&lt;/st1:country-region&gt;&lt;/st1:place&gt;, at 30. Regrettably, the predictable consequence of the Court&amp;rsquo;s decision will be to exacerbate these effects.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;The same power dynamics are at work in the cases being contested today, such as &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/11/billion_dollar_6.html&quot;&gt;the billion-dollar Brooklyn&lt;/a&gt; struggle over Atlantic Yards&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Blight_or_historic&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/blight_or_historic_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Historic?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Blighted?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Or both?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;You&lt;/i&gt; decide&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;When the state held public hearings in 2006 to decide whether to approve Atlantic Yards, hundreds of supplicants, hoping for a good job or a cheap apartment, easily drowned out the voices of people like Goldstein, who wanted nothing from the government except the right to keep their homes.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Ratner_acorn&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/ratner_acorn_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;&lt;a href=&quot;http://biggovernment.com/tag/acorn-scandal/&quot;&gt;What&amp;#8217;s not to love about ACORN?&lt;/a&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In the twenty-first century, things are different because of the information revolution.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The combination of the &lt;a href=&quot;http://www.justice.gov/oip/&quot;&gt;Freedom Of Information Act&lt;/a&gt; and the internet has enabled citizen journalism, neutralizing the previous power imbalance of the media, to the point where &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/03/atlantic_yards.html&quot;&gt;Norman Oder&lt;/a&gt;, an individual with &lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;no platform other than a blog and no motivation other &lt;font color=&quot;navy&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;?xml:namespace prefix =&quot;&quot; o ns =&quot;&quot; &quot;urn:schemas-microsoft-com:office:office&quot; /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/span&gt;than a burning desire to uncover the truth, can out-investigate the (conflicted) &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;New York Times&lt;/i&gt; with reporting &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/07/give_this_man_a.html&quot;&gt;worthy of a Pulitzer&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;However, the playing field is still not level:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Another violation: &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;the government responded poorly to property owners&amp;rsquo; document requests&lt;/b&gt; under the state&amp;rsquo;s freedom of information law, hampering their right to mount a solid case. Such requests are particularly important in eminent-domain cases because &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt; property owners don&amp;rsquo;t enjoy the right to a trial with a discovery phase, but must go straight to appeals court&amp;mdash;a seventies-era &amp;ldquo;reform&amp;rdquo; meant to speed up development projects.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;6. ED4ED advocates can always procure a blight finding&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Just as the condition of insanity has been diluted because it provides such a helpful criminal defense, so too has &amp;#8216;blight&amp;#8217; become a currency so debased it can be minted more or less anywhere.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Papoon&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/papoon_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Papoon for President, he&amp;#8217;s not insane&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;But wait, you say: people don&amp;rsquo;t buy half-million-dollar apartments in &amp;ldquo;substandard&amp;rdquo; or &amp;ldquo;unsanitary&amp;rdquo; neighborhoods. You&amp;rsquo;re right; that&amp;rsquo;s why the consultants had to stretch. In the 1930s, as Goldstein&amp;rsquo;s attorney, Matthew Brinckerhoff, pointed out, &amp;ldquo;substandard&amp;rdquo; and &amp;ldquo;unsanitary&amp;rdquo; meant &amp;ldquo;families and children dying from rampant fires and pestilence&amp;rdquo; in tuberculosis-ridden firetraps. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In 2006, by contrast, the UDC&amp;rsquo;s consultants found &amp;ldquo;substandard&amp;rdquo; conditions in isolated graffiti, cracked sidewalks, and &amp;ldquo;underutilization&amp;rdquo;&amp;mdash;that is, when property owners weren&amp;rsquo;t using their land to generate the social and economic benefits that the government desired.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Forty years ago, &lt;a href=&quot;http://www.larryniven.org/&quot;&gt;Larry Niven&lt;/a&gt; in his Known Space stories imagined a world where organ transplants were easy and reliable, resulting in a market in &lt;a href=&quot;http://en.wikipedia.org/wiki/Organlegging&quot;&gt;organ-legging&lt;/a&gt;, and &lt;a href=&quot;http://www.larryniven.org/too_much_niven.shtml&quot;&gt;the death penalty for parking tickets&lt;/a&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Known_space&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/known_space_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Death penalty for parking tickets&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Similar creativity has taken place, at least in court, with regard to what constitutes blight:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt;, this creative definition of blight is the new central-planning model. Consultants have also cited &amp;ldquo;underutilization&amp;rdquo; in West Harlem, where the city&amp;rsquo;s Economic Development Corporation wants to take land from private owners and hand it to &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Columbia&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;University&lt;/st1:placetype&gt;&lt;/st1:place&gt; for an expansion project. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;If blight has come to mean under-utilization, it has come to mean absolutely nothing, since the group has never been formed that lacks a bottom quartile.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Says Norman Siegel, who represents the owners: &amp;ldquo;A private property owner has the right to determine the best productive use of his property. It&amp;rsquo;s not a right to be ceded to any government.&amp;rdquo;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;There&amp;#8217;s only one way to fight a specious finding of blight &amp;ndash; get your own dueling finding of no-blight:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Duel_princess_bride&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/duel_princess_bride_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Blighted?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;I&amp;#8217;ve worked hard to become so&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The &lt;st1:place w:st=&quot;on&quot;&gt;Harlem&lt;/st1:place&gt; owners were able to convince the lower court partly because they had commissioned their own &amp;ldquo;no-blight&amp;rdquo; study. &amp;ldquo;We said, &amp;lsquo;Let&amp;rsquo;s create our own record . . . as a counterweight,&amp;rsquo; &amp;rdquo; said Siegel. The owners also presented as evidence a government study, performed before &lt;st1:city w:st=&quot;on&quot;&gt;Columbia&lt;/st1:city&gt; showed interest in the land, that &lt;st1:place w:st=&quot;on&quot;&gt;West Harlem&lt;/st1:place&gt; was revitalizing itself. &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;7. If it&amp;#8217;s not blighted today, I can make it blighted tomorrow&lt;/span&gt;&lt;/b&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Blight, like financial weakness, can be a self-fulfilling prophecy:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;And in &lt;st1:place w:st=&quot;on&quot;&gt;Queens&lt;/st1:place&gt;, the Bloomberg administration is preparing a similar argument to grab swaths of Willets Point, an area adjacent to Citi Field that&amp;rsquo;s populated with auto-repair shops. The city&amp;rsquo;s recent &amp;ldquo;request for qualifications&amp;rdquo; from would-be developers drew a sharp response from the people who owned the land: &amp;ldquo;We . . . hold the most significant qualification of all: we own the properties. We are motivated to improve and use our own properties, consistent with the American free market system. &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;We would have done so in spectacular fashion already, had the city upheld its end of the bargain by &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;providing our neighborhood with essential services and infrastructure.&amp;rdquo; &lt;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Willets_point_fight&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/willets_point_fight_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The residents are agin it&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;One of my &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/07/sustainable_aff.html&quot;&gt;many definitions&lt;/a&gt; of a slum &amp;ndash; &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/slums-a-municipal-definition.html&quot;&gt;the municipal definition&lt;/a&gt; &amp;ndash; is a place where &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/03/the-challenge-and-opportunity-of-slums-part-1-the-challenges.html&quot;&gt;private investment has outrun public infrastructure&lt;/a&gt;. &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;As a result, if the city averts its eyes from a neighborhood, then it will &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;become&lt;/i&gt; a slum regardless of what its denizens say or do.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Instead, the city has done the opposite, letting streets disintegrate into ditches to bolster its blight finding.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;A city&amp;#8217;s failure to deliver infrastructure is a breach by a city of its obligations to its citizens, and if I were such a citizen, I would sue them.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The issue is hugely important in the global south, where municipalities grapple &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/06/favelas-of-sao-paulo-part-2-guarapiranga.html&quot;&gt;with proliferating slums&lt;/a&gt;. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The perversity is astonishing: rather than doing its own job of maintaining public infrastructure and public safety, the government wants to do the private sector&amp;rsquo;s job&amp;mdash;and is going about it by starving that private sector of public resources.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;A vacant lot, for example, now sprawls where the historic Ward Bakery warehouse was, until recently, a candidate for private-sector reinvestment. Today, &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Heights&lt;/st1:placetype&gt;&lt;/st1:place&gt; finally shows what the state and city governments want everyone to see: decay. &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;If a neighborhood is going down, there&amp;#8217;s an easy way to help it along: remove businesses and demolish buildings, leaving a deconstructed urban visage.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Atlantic_yards_blighted_or_not&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/atlantic_yards_blighted_or_not_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Blighted or not?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The decay, though, isn&amp;rsquo;t the work of callous markets that left the neighborhood to perish. It&amp;rsquo;s the work of a developer wielding state power to press property owners to sell their land &amp;ldquo;voluntarily.&amp;rdquo; It&amp;rsquo;s also the result of a half-decade&amp;rsquo;s worth of government-created &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;uncertainty, which stopped genuine private investment in its tracks&lt;/b&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;8. If cities are always messy, there is always a bottom quartile&lt;/span&gt;&lt;/b&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;. Except for &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placetype w:st=&quot;on&quot;&gt;Lake&lt;/st1:placetype&gt; &lt;st1:placename w:st=&quot;on&quot;&gt;Wobegon&lt;/st1:placename&gt;&lt;/st1:place&gt;, &lt;a href=&quot;http://www.brainyquote.com/quotes/quotes/g/garrisonke137097.html&quot;&gt;where all the properties are above-average&lt;/a&gt;, cities by their nature have better and poorer neighborhoods, to say nothing of &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/02/we-see-what-we-expect-to-see-part-1-why-we-want-to-know.html&quot;&gt;the challenge of evaluating which is which&lt;/a&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Garrison_keillor&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/garrison_keillor_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;In &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placetype w:st=&quot;on&quot;&gt;Lake&lt;/st1:placetype&gt; &lt;st1:placename w:st=&quot;on&quot;&gt;Wobegon&lt;/st1:placename&gt;&lt;/st1:place&gt;, we have only appreciative neighborhoods&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;To cure yourself of the notion that the government can do better than free markets in producing economic vitality, stroll around Atlantic Yards. You&amp;rsquo;ll walk past three-story clapboard homes nestled next to elegantly corniced row houses&amp;mdash;the supposedly blighted residences that the state plans to demolish. You&amp;rsquo;ll see the &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Spalding&lt;/st1:placename&gt; &lt;st1:placename w:st=&quot;on&quot;&gt;Building&lt;/st1:placename&gt;&lt;/st1:place&gt;, a stately sporting-goods-factory-turned-condo-building that, thanks to Ratner and his government allies, has been slated for demolition and &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;now stands empty&lt;/b&gt;. You&amp;rsquo;ll peer up at Goldstein&amp;rsquo;s nearly empty apartment house, scheduled to be condemned and destroyed.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;And you&amp;rsquo;ll see how wrecking balls have already made the neighborhood gap-toothed. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Missing_teeth&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/missing_teeth_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Can we agree that&amp;#8217;s blighted?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;We had to &lt;a href=&quot;http://atlanticyardsreport.blogspot.com/2009/11/atlantic-yards-site-blighted-some.html&quot;&gt;blight the neighborhood&lt;/a&gt; in order to take it?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued tomorrow in Part 3.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
">
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		<title>If you can&#8217;t define it, you can&#8217;t use it: Part 1, the blight-line test</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2010/03/if-you-cant-define-it-you-cant-use-it-part-1-the-blight-line-test.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2010/03/if-you-cant-define-it-you-cant-use-it-part-1-the-blight-line-test.html#comments</comments>
		<pubDate>Thu, 18 Mar 2010 13:51:00 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Atlantic Yards]]></category>
		<category><![CDATA[Blight]]></category>
		<category><![CDATA[Cities]]></category>
		<category><![CDATA[Eminent domain]]></category>
		<category><![CDATA[Law]]></category>
		<category><![CDATA[New York City]]></category>
		<category><![CDATA[Policy]]></category>
		<category><![CDATA[Regulation]]></category>
		<category><![CDATA[Theory]]></category>

		<guid isPermaLink="false">http://affordablehousinginstitute.org/blogs/us/2010/03/if-you-cant-define-it-you-cant-use-it-part-1-the-blight-line-test.html</guid>
		<description><![CDATA[By: David A. Smith
&#160;
Is blight, like beauty, in the eye of the beholder?


Houses to be condemned to make way for Atlantic Yards in Brooklyn. Look blighted to you?
&#160;
Or is blight just a planner&#8217;s word for a city&#8217;s natural messiness?
&#160;

Does this look blighted to you?
&#160;
Though the question is metaphysical, the answer is anything but.&#160; On that [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN">By:<span style="COLOR: #333333"> </span><span style="COLOR: navy"><a href="http://www.affordablehousinginstitute.org/bio_DAS_long.php"><font color="#800080">David A. Smith</font></a></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><span style="COLOR: navy"></span><span style="COLOR: #333333"><?xml:namespace prefix ="" o ns ="" "urn:schemas-microsoft-com:office:office" /><o:p></o:p></span></span>&nbsp;</p>
<p>Is blight, like beauty, in the eye of the beholder?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Cityjournal_eminent_domain_as_central_planning_ed_winter2010" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/cityjournal_eminent_domain_as_central_planning_ed_winter2010_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Houses to be condemned to make way for Atlantic Yards in <?xml:namespace prefix ="" st1 /><st1:place w:st="on">Brooklyn</st1:place>. Look blighted to you?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Or is blight just a planner&#8217;s word for a city&#8217;s natural messiness?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Alg_crowley_blighted" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/alg_crowley_blighted_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt"><a href="http://www.nydailynews.com/ny_local/queens/2009/12/14/2009-12-14_dirty_site_gets_a_green_nod_from_the_mta.html">Does this look blighted to you?</a><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Though the question is metaphysical, the answer is anything but.<span style="mso-spacerun: yes">&nbsp; </span>On that finding of judicial &#8216;fact&#8217; hinges the most contentious issue in eminent domain for economic development (ED4ED) today, as explored in a protracted </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt"><a href="http://www.city-journal.org/2010/20_1_eminent-domain-abuse.html"><font color="#800080">City Journal</font></a> </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">editorial essay by </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt"><a href="http://www.manhattan-institute.org/html/gelinas.htm">Nicole Gelinas</a>.</span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Atlantic_yards_blight_area" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/atlantic_yards_blight_area_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"></span><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt">Spot the blight: Atlantic Yards<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt">Indeed, what seems an intractable policy problem &ndash; when is ED4ED permissible, and when must it be prohibited? &ndash; can be reduced to a problem of boundary &ndash;what is blight?<span style="mso-spacerun: yes">&nbsp; </span>In turn, the entire problem, over which so many hours of legal wrestling have been held, can be solved easily &ndash; the fuzzy boundary has to be construed against the party with power, so either define blight objectively and observably, or eliminate it as a valid reason.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt">To see why, we must descend the rabbit hole of current jurisprudence, in particular the way &#8216;blight&#8217; has been redefined out of all observable meaning (Part 1 of this post), and then resurface elsewhere to see how ED4ED is requisite for urban improvement (Part 2), and hence how to reconcile the competing pressures.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">1. If property is &#8216;blighted,&#8217; government can take it</span></b><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">.<span style="mso-spacerun: yes">&nbsp; </span>Lost in <a href="http://affordablehousinginstitute.org/blogs/us/2006/11/kelos_election.html">the political uproar</a> that followed the Supreme Court&#8217;s <i style="mso-bidi-font-style: normal"><a href="http://affordablehousinginstitute.org/blogs/us/2005/02/whose_private_p.html">Kelo v. New London</a></i> <a href="http://affordablehousinginstitute.org/blogs/us/2005/06/supremes_vote_5.html">5-4 decision</a> is that the jurisprudence on ED4ED is half a century old, as laid down in a landmark 8-0 decision in 1954 <i style="mso-bidi-font-style: normal">[Same year as Brown v. Board of Education of Topeka, another landmark &ndash; Ed.]</i>, <i style="mso-bidi-font-style: normal"><a href="http://en.wikipedia.org/wiki/Berman_v._Parker">Berman v. Parker</a></i>.<span style="mso-spacerun: yes">&nbsp; </span>Under <i style="mso-bidi-font-style: normal">Berman, </i>a Supreme Court enraptured with the promise of economic development allowed the District of Columbia Redevelopment Authority to demolish and rebuild a large chunk of southwestern <st1:state w:st="on"><st1:place w:st="on">Washington</st1:place></st1:state>, based on the finding of &#8216;blight&#8217;, which in the 1954 decision was concluded to exist because:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><font face="Times New Roman">&#8220;64.3% of the dwellings were beyond repair, 18.4% needed major repairs, only 17.3% were satisfactory; 57.8% of the dwellings had <B style="mso-bidi-font-weight: normal">outside toilets</B>, 60.3% had <B style="mso-bidi-font-weight: normal">no baths</B>, 29.6% lacked electricity, 82.2% had <B style="mso-bidi-font-weight: normal">no wash basins</B> or laundry tubs, 83.8% <B style="mso-bidi-font-weight: normal">lacked central heating</B>.&#8221; <o:p></o:p></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: maroon"><o:p><font face="Times New Roman">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">I think anyone today would agree that even in 1954, properties without indoor plumbing, central heating, or running water, constituted blight.<span style="mso-spacerun: yes">&nbsp; </span>Indeed, under today&#8217;s laws &ndash; absent in 1954 &ndash; those buildings could be condemned as unsanitary.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Warren_court_douglas" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/warren_court_douglas_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;<span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial">The court that gave us <i><span style="FONT-STYLE: italic">Brown v. Board of Education </span></i>also gave us <i><span style="FONT-STYLE: italic">Berman</span></i></span></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial"><i><span style="FONT-STYLE: italic"><o:p></o:p></span></i></span></o:p></span>&nbsp;</p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">As Justice William O. Douglas, <a href="http://affordablehousinginstitute.org/blogs/us/2005/11/8_simple_rules.html">writing for the unanimous court</a>, put it:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><strong><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial">Miserable and disreputable housing conditions</span></strong><strong><span lang="EN" style="FONT-WEIGHT: normal; FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold"> may do more than spread disease and crime and immorality. They may also suffocate the spirit by reducing the people who live there to the status of cattle. They may indeed make living an almost insufferable burden. They may also be an ugly sore, </span></strong><strong><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial">a blight on the community</span></strong><strong><span lang="EN" style="FONT-WEIGHT: normal; FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold"> which robs it of charm, <a name="pg_33"></a>[p33] which makes it a place from which men turn. The misery of housing may despoil a community as an open sewer may ruin a river.</span></strong><b style="mso-bidi-font-weight: normal"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN">Unfortunately for Justice Douglas&#8217;s defenders, the greatest blight now inflicted on many northern urban communities are <a href="http://affordablehousinginstitute.org/blogs/us/2005/09/the_slums_insid.html">the slums inside</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2009/07/big-bad-blocks-part-1-blame-the-architects.html">the high-rise public housing properties</a> such as the <span style="COLOR: blue"><a href="http://www.affordablehousinginstitute.org/blogs/us/2005/11/city_of_light_c.html">French</a> <a href="http://www.affordablehousinginstitute.org/blogs/us/2005/11/outside_looking.html">banlieues</a></span><span style="COLOR: #333333">, </span><a href="http://affordablehousinginstitute.org/blogs/us/2005/11/fixing_french_h.html">all of which should be torn down</a>, and <a href="http://affordablehousinginstitute.org/blogs/us/2009/06/end-of-an-error-part-2-envisioning-the-essential-future.html">many of which have been torn down</a> or <a href="http://affordablehousinginstitute.org/blogs/us/2010/03/not-only-better-but-also-cheaper.html">are being torn down</a>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="High_rise_demolition" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/high_rise_demolition_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">We&#8217;re not sorry to see you go<span style="COLOR: #333333"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Century; mso-ansi-language: EN; mso-bidi-font-family: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Arial; mso-ansi-language: EN">Justice Douglas was doing more than penning a manifesto. <span style="mso-spacerun: yes">&nbsp;</span>(No one ever accused Justice Douglas of lacking in legal imagination, as when in <em><span style="FONT-FAMILY: Arial">Roe v. Wade </span></em>he found that a right to privacy &#8216;emanates from the penumbra of the Constitution&#8217; &ndash; in other words, that were was no Constitutional language to support it.) <span style="mso-spacerun: yes">&nbsp;</span>Here he was grounding the decision in an expanded concept of &lsquo;public health&rsquo; so as to argue that blight goes beyond the optical:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial">In the present case, the Congress and its authorized agencies have made determinations that take into account a wide variety of values. It is not for us to reappraise them. If those who govern the <st1:state w:st="on"><st1:place w:st="on">District of Columbia</st1:place></st1:state> decide that the Nation&rsquo;s Capital should be beautiful as well as sanitary, there is nothing in the <a href="http://www.law.cornell.edu/supct-cgi/get-const?amendmentv"><span style="COLOR: #091744">Fifth Amendment</span></a> that stands in the way. <em><span style="FONT-FAMILY: Calibri; mso-bidi-font-family: Arial">["Nor shall private property be taken for public use without just compensation,"</span></em> <em><span style="FONT-FAMILY: Calibri; mso-bidi-font-family: Arial">the 'takings' clause. -- Ed.]</span></em></span><span lang="EN" style="FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Berman</span></i><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"> proved to be the opening salvo in a half-century of ever-expanding municipal authority and judicial deference to local findings.<span style="mso-spacerun: yes">&nbsp; </span>In 1984 the Supreme Court even expanded municipal discretion through the <i style="mso-bidi-font-style: normal">Midkiff</i> decision, so that <a href="http://affordablehousinginstitute.org/blogs/us/2005/03/eminent_domain.html">when in 2005</a> the court upheld <st1:place w:st="on"><st1:city w:st="on">New London</st1:city></st1:place>&#8217;s taking of Suzette Kelo&#8217;s house, the remarkable point was not that the city won, but that it won &#8216;only&#8217; 5-4, <i style="mso-bidi-font-style: normal">and</i> in winning provoked an impressive and <a href="http://affordablehousinginstitute.org/blogs/us/2006/07/eminent_domain_12.html">sustained voter backlash</a>.<span style="mso-spacerun: yes">&nbsp; </span>As the </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt"><a href="http://www.city-journal.org/2010/20_1_eminent-domain-abuse.html"><font color="#800080">City Journal</font></a> essay put it:</span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In 2005, in <i style="mso-bidi-font-style: normal">Kelo v. <st1:place w:st="on"><st1:city w:st="on">New London</st1:city></st1:place></i>, the Supreme Court decided that these &ldquo;public purposes&rdquo; could even include economic development. But <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place>&rsquo;s constitution theoretically holds the state to a higher standard. In 1967, <st1:place w:st="on"><st1:placename w:st="on">Empire</st1:placename> <st1:placetype w:st="on">State</st1:placetype></st1:place> voters voted not to add a &ldquo;public purpose&rdquo; clause to their constitution, preferring to stick with the stricter requirement of &ldquo;public use.&rdquo;<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">2. Once &#8216;blight&#8217; is found, the state can flip property to a private developer</span></b><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">.<span style="mso-spacerun: yes">&nbsp; </span>In parallel with the thread of government having a police power to take small parcels and aggregate them into more rational urban uses ran another thread, that the state can contract these <a href="http://affordablehousinginstitute.org/blogs/us/2007/09/the-essential-housing-authority.html">basically technical functions</a> to a private third party.<span style="mso-spacerun: yes">&nbsp; </span>Here too it was the supremely confident Douglas who wrote the sweeping apologia:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Douglas_william_young" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/douglas_william_young_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt">The firebrand justice: William O. Douglas<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial">Here, one of the means chosen is the use of private enterprise for redevelopment of the area. Appellants argue that this makes the project a taking from one businessman for the benefit of another businessman. But the means of executing the project are for Congress, and Congress alone, to determine once the public purpose has been established. <em><span style="FONT-FAMILY: Calibri; mso-bidi-font-family: Arial">See Luxton v. North River Bridge Co., supra; cf. Highland v. Russell Car Co.,</span></em> <a href="http://www.law.cornell.edu/supct-cgi/get-us-cite/279/253"><strong><span style="COLOR: #091744; FONT-FAMILY: Calibri; TEXT-DECORATION: none; mso-bidi-font-family: Arial; text-underline: none">279 U.S. 253</span></strong></a>. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><strong><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial">The public end may be as well or better served through an <a name="pg_34"></a>[p34] agency of private enterprise than through a department of government &mdash; or so the Congress might conclude.</span></strong><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial"> <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial">We cannot say that public ownership is the sole method of promoting the public purposes of community redevelopment projects. What we have said also disposes of any contention concerning the fact that certain property owners in the area may be permitted to repurchase their properties for redevelopment in harmony with the over-all plan. That, too, is a legitimate means which Congress and its agencies may adopt, if they choose.</span><span lang="EN" style="FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Now enters the worm of self-interest, for if the state can gobble up small parcels from small and politically unconnected holders, and bestow them in a bundle on a politically connected private redeveloper, then both the redeveloper and the municipality have a selfish interest in doing so.<span style="mso-spacerun: yes">&nbsp; </span><a href="http://affordablehousinginstitute.org/blogs/us/2007/03/the_value_of_ur.html">Land that is redeveloped becomes more valuable</a>.<span style="mso-spacerun: yes">&nbsp; </span><a href="http://affordablehousinginstitute.org/blogs/us/2009/07/us-property-taxes-part-2-local-autonomy-local-initiatives.html">Land that is rezoned becomes more valuable</a>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Atlantic_yards_redevelopment" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/atlantic_yards_redevelopment_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt">Raise the height, raise the value, raze the incumbents<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">None of this bothered <st1:place w:st="on">Douglas</st1:place>, taken as he was by a vision of the city council as philosopher-kings:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Century; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN">Subject to specific constitutional limitations, <strong><span style="FONT-FAMILY: Calibri">when the legislature has spoken, the public interest has been declared in terms well nigh conclusive.</span></strong> In such cases, the legislature, not the judiciary, is the main guardian of the public needs to be served by social legislation.</span><span lang="EN" style="COLOR: #333333; FONT-FAMILY: Calibri; mso-ansi-language: EN"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Evidently they trusted their government more back then.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><br /><b style="mso-bidi-font-weight: normal">3. By now, the practical definition of &#8216;blight&#8217; has been diluted into &#8216;economically underperforming&#8217;</b>.<span style="mso-spacerun: yes">&nbsp; </span>If finding a word translates into giving someone more money, then the word is increasingly found.<span style="mso-spacerun: yes">&nbsp; </span>With &#8216;blight&#8217; the key to unlock potent government power to <a href="http://affordablehousinginstitute.org/blogs/us/2005/05/eminent_domain_7.html">take property from A and then to give it to B</a>, why then will develop, in short order, an active marketplace in finding blight.<span style="mso-spacerun: yes">&nbsp; </span><i style="mso-bidi-font-style: normal">[The same thing has happened, on a multi-billion-dollar global scale, in the counterfeiting of certified emission reduction (CER) certificates, otherwise known as carbon credits &hellip; but that's another story, about which I may post in the context of <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>. &ndash; Ed.]</i><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Long_arm_gil_hamilton" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/long_arm_gil_hamilton_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt">You cannot outreach the long arm of the law<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><a href="http://affordablehousinginstitute.org/blogs/us/2005/11/8_simple_rules_2.html">Kelo<span style="FONT-STYLE: normal"> highlighted this</span></a></span></i><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"> and empowered other opponents of ED4ED, such as in <st1:place w:st="on">Brooklyn</st1:place>, with its </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><a href="http://affordablehousinginstitute.org/blogs/us/2006/11/billion_dollar_6.html">billion-dollar battle over Atlantic Yards</a>, which has been going on for more than half a decade.<span style="mso-spacerun: yes">&nbsp; </span>As City Journal puts it:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt"><span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Brooklyn&rsquo;s <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Heights</st1:placetype></st1:place>, industrial and forlorn for much of the late twentieth century, was looking better by 2003. <span style="mso-spacerun: yes">&nbsp;</span>Government was doing its proper job: crime was down, and the public-transit commute to midtown <st1:city w:st="on"><st1:place w:st="on">Manhattan</st1:place></st1:city>, where many Brooklynites worked, was just 25 minutes. That meant that the private sector could do its job, too, rejuvenating the neighborhood after urban decay. Developers had bought 1920s-era factories and warehouses and converted them into condos for buyers like Daniel Goldstein, who paid $590,000 for a place in a former dry-goods warehouse in 2003. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Daniel_goldstein" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/daniel_goldstein_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">My $590k says my home isn&#8217;t blighted<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">These new residents weren&rsquo;t put off by the Metropolitan Transportation Authority&rsquo;s railyards nearby, and they liked the hardwood floors and airy views typical of such refurbished buildings. They also settled in alongside longtime residents in little houses on quiet streets. Wealthier newcomers joined regulars at Freddy&rsquo;s, a bar that predated Prohibition. Small businesses continued to employ skilled laborers in low-rise industrial buildings.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Two questions are entangled here:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">1. From an urban-vibrancy perspective, would we &#8216;like&#8217; to see redevelopment?<o:p></o:p></span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">2. Is the neighborhood &#8216;blighted&#8217; today?<o:p></o:p></span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">It&#8217;s entirely possible to answer Yes to the first question &ndash; making us wish we could assemble the land &ndash; and No to the second, meaning we cannot do it, tempted though we may be.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Wilde_temptation" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/wilde_temptation_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">I can resist everything but temptation<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Except that it is all too easy to substitute &#8220;I am entitled to&#8221; for the phrase &#8220;I want to&#8221; &ndash; especially if one is adjudicating for oneself.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The state hasn&rsquo;t let this inconvenience derail its plans for <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Heights</st1:placetype></st1:place>, however. For seven decades, courts have let New York seize and demolish slum housing if it&rsquo;s blighted&mdash;which New York State defines as &ldquo;substandard&rdquo; and &ldquo;unsanitary.&rdquo; So the Urban Development Corporation (UDC), a public entity of <st1:place w:st="on"><st1:placename w:st="on">New York</st1:placename> <st1:placetype w:st="on">State</st1:placetype></st1:place>, decided that the &ldquo;public use&rdquo; of Atlantic Yards would be blight removal. The city had already designated part of the neighborhood as &ldquo;blighted&rdquo; 40 years earlier, long before its resurgence. As for the rest, the UDC commissioned consultants&mdash;previously employed by Ratner&mdash;who soon returned the requisite blight finding.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Bruce_ratner" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/bruce_ratner_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"></span><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt">I applaud the commission&#8217;s consultants<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">4. When courts confront a blight dispute, they tend to defer to the public agency</span></b><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">.<span style="mso-spacerun: yes">&nbsp; </span>Judicial deference to legislative or executive decision-making is generally a sound principle for separation-of-powers.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Property owners have looked to the judiciary to check the overweening grasp of the legislative and executive branches. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Yet the courts seem to have difficulty grappling with the municipality&#8217;s economic conflict of interest:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In Brooklyn, Goldstein and his neighbors have lost their lawsuits&mdash;most recently, in <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place>&rsquo;s highest court, the court of appeals. In November, the court decided 6&ndash;1 that &ldquo;all that is at issue is <b style="mso-bidi-font-weight: normal">a reasonable difference of opinion</b> as to whether the area in question is in fact substandard and insanitary. This is not a sufficient predicate for us to supplant [the state&rsquo;s] determination.&rdquo; <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Alg_court_daniel_goldstein" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/alg_court_daniel_goldstein_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Goldstein&#8217;s got his dander up<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Except that the harm is unbalanced, because either way, the decision is irrevocable.<span style="mso-spacerun: yes">&nbsp; </span>If a court finds blight, then owners are dispossessed of their property &ndash; uprooted.<span style="mso-spacerun: yes">&nbsp; </span>With that dispossession goes their entire way of life.<span style="mso-spacerun: yes">&nbsp; </span>I&#8217;m especially sensitized to this by all <a href="http://www.affordablehousinginstitute.org/resources/library/HBSIndia_challenge_opportunity_slums_handout_090313.pdf">my global South experience, where slum dwellers are routinely</a> dispossessed of land, once it has become valuable.<span style="mso-spacerun: yes">&nbsp; </span>The slumdwellers lack legal title &ndash; they gained their occupancy rights by squatting &ndash; so their claim is weaker, but the principle is the same: occupancy vests political legitimacy.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The court essentially abdicated its duty to protect property owners from the governor and the Legislature.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Abdication_edward_viii" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/abdication_edward_viii_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt">I choose to abdicate my duty<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">That&#8217;s <i style="mso-bidi-font-style: normal">City Journal&#8217;s</i> conclusion, not ours, but it&#8217;s in line with the factual record.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt">[Continued tomorrow in <a href="http://affordablehousinginstitute.org/blogs/us/2010/03/if-you-cant-define-it-you-cant-use-it-part-2-my-neighborhood-blight-or-wrong.html">Part 2</a>.]<o:p></o:p></span></i></p>
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<input type="hidden" name="postDateTime_0" value="2010-03-18 09:03:00">
<input type="hidden" name="postContent_0" value="&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;By:&lt;span style=&quot;COLOR: #333333&quot;&gt; &lt;/span&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;a href=&quot;http://www.affordablehousinginstitute.org/bio_DAS_long.php&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;David A. Smith&lt;/font&gt;&lt;/a&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;/span&gt;&lt;span style=&quot;COLOR: #333333&quot;&gt;&lt;?xml:namespace prefix =&quot;&quot; o ns =&quot;&quot; &quot;urn:schemas-microsoft-com:office:office&quot; /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Is blight, like beauty, in the eye of the beholder?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Cityjournal_eminent_domain_as_central_planning_ed_winter2010&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/cityjournal_eminent_domain_as_central_planning_ed_winter2010_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Houses to be condemned to make way for Atlantic Yards in &lt;?xml:namespace prefix =&quot;&quot; st1 /&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Brooklyn&lt;/st1:place&gt;. Look blighted to you?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Or is blight just a planner&amp;#8217;s word for a city&amp;#8217;s natural messiness?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Alg_crowley_blighted&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/alg_crowley_blighted_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt&quot;&gt;&lt;a href=&quot;http://www.nydailynews.com/ny_local/queens/2009/12/14/2009-12-14_dirty_site_gets_a_green_nod_from_the_mta.html&quot;&gt;Does this look blighted to you?&lt;/a&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Though the question is metaphysical, the answer is anything but.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;On that finding of judicial &amp;#8216;fact&amp;#8217; hinges the most contentious issue in eminent domain for economic development (ED4ED) today, as explored in a protracted &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt&quot;&gt;&lt;a href=&quot;http://www.city-journal.org/2010/20_1_eminent-domain-abuse.html&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;City Journal&lt;/font&gt;&lt;/a&gt; &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;editorial essay by &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt&quot;&gt;&lt;a href=&quot;http://www.manhattan-institute.org/html/gelinas.htm&quot;&gt;Nicole Gelinas&lt;/a&gt;.&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Atlantic_yards_blight_area&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/atlantic_yards_blight_area_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt&quot;&gt;Spot the blight: Atlantic Yards&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt&quot;&gt;Indeed, what seems an intractable policy problem &amp;ndash; when is ED4ED permissible, and when must it be prohibited? &amp;ndash; can be reduced to a problem of boundary &amp;ndash;what is blight?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;In turn, the entire problem, over which so many hours of legal wrestling have been held, can be solved easily &amp;ndash; the fuzzy boundary has to be construed against the party with power, so either define blight objectively and observably, or eliminate it as a valid reason.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt&quot;&gt;To see why, we must descend the rabbit hole of current jurisprudence, in particular the way &amp;#8216;blight&amp;#8217; has been redefined out of all observable meaning (Part 1 of this post), and then resurface elsewhere to see how ED4ED is requisite for urban improvement (Part 2), and hence how to reconcile the competing pressures.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;1. If property is &amp;#8216;blighted,&amp;#8217; government can take it&lt;/span&gt;&lt;/b&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Lost in &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/11/kelos_election.html&quot;&gt;the political uproar&lt;/a&gt; that followed the Supreme Court&amp;#8217;s &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/02/whose_private_p.html&quot;&gt;Kelo v. New London&lt;/a&gt;&lt;/i&gt; &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/06/supremes_vote_5.html&quot;&gt;5-4 decision&lt;/a&gt; is that the jurisprudence on ED4ED is half a century old, as laid down in a landmark 8-0 decision in 1954 &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[Same year as Brown v. Board of Education of Topeka, another landmark &amp;ndash; Ed.]&lt;/i&gt;, &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;a href=&quot;http://en.wikipedia.org/wiki/Berman_v._Parker&quot;&gt;Berman v. Parker&lt;/a&gt;&lt;/i&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Under &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Berman, &lt;/i&gt;a Supreme Court enraptured with the promise of economic development allowed the District of Columbia Redevelopment Authority to demolish and rebuild a large chunk of southwestern &lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Washington&lt;/st1:place&gt;&lt;/st1:state&gt;, based on the finding of &amp;#8216;blight&amp;#8217;, which in the 1954 decision was concluded to exist because:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;#8220;64.3% of the dwellings were beyond repair, 18.4% needed major repairs, only 17.3% were satisfactory; 57.8% of the dwellings had &lt;B style=&quot;mso-bidi-font-weight: normal&quot;&gt;outside toilets&lt;/B&gt;, 60.3% had &lt;B style=&quot;mso-bidi-font-weight: normal&quot;&gt;no baths&lt;/B&gt;, 29.6% lacked electricity, 82.2% had &lt;B style=&quot;mso-bidi-font-weight: normal&quot;&gt;no wash basins&lt;/B&gt; or laundry tubs, 83.8% &lt;B style=&quot;mso-bidi-font-weight: normal&quot;&gt;lacked central heating&lt;/B&gt;.&amp;#8221; &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: maroon&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;I think anyone today would agree that even in 1954, properties without indoor plumbing, central heating, or running water, constituted blight.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Indeed, under today&amp;#8217;s laws &amp;ndash; absent in 1954 &amp;ndash; those buildings could be condemned as unsanitary.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Warren_court_douglas&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/warren_court_douglas_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial&quot;&gt;The court that gave us &lt;i&gt;&lt;span style=&quot;FONT-STYLE: italic&quot;&gt;Brown v. Board of Education &lt;/span&gt;&lt;/i&gt;also gave us &lt;i&gt;&lt;span style=&quot;FONT-STYLE: italic&quot;&gt;Berman&lt;/span&gt;&lt;/i&gt;&lt;/span&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial&quot;&gt;&lt;i&gt;&lt;span style=&quot;FONT-STYLE: italic&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/span&gt;&lt;/o:p&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;As Justice William O. Douglas, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/11/8_simple_rules.html&quot;&gt;writing for the unanimous court&lt;/a&gt;, put it:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;strong&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;Miserable and disreputable housing conditions&lt;/span&gt;&lt;/strong&gt;&lt;strong&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-WEIGHT: normal; FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold&quot;&gt; may do more than spread disease and crime and immorality. They may also suffocate the spirit by reducing the people who live there to the status of cattle. They may indeed make living an almost insufferable burden. They may also be an ugly sore, &lt;/span&gt;&lt;/strong&gt;&lt;strong&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;a blight on the community&lt;/span&gt;&lt;/strong&gt;&lt;strong&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-WEIGHT: normal; FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold&quot;&gt; which robs it of charm, &lt;a name=&quot;pg_33&quot;&gt;&lt;/a&gt;[p33] which makes it a place from which men turn. The misery of housing may despoil a community as an open sewer may ruin a river.&lt;/span&gt;&lt;/strong&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Unfortunately for Justice Douglas&amp;#8217;s defenders, the greatest blight now inflicted on many northern urban communities are &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/09/the_slums_insid.html&quot;&gt;the slums inside&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/07/big-bad-blocks-part-1-blame-the-architects.html&quot;&gt;the high-rise public housing properties&lt;/a&gt; such as the &lt;span style=&quot;COLOR: blue&quot;&gt;&lt;a href=&quot;http://www.affordablehousinginstitute.org/blogs/us/2005/11/city_of_light_c.html&quot;&gt;French&lt;/a&gt; &lt;a href=&quot;http://www.affordablehousinginstitute.org/blogs/us/2005/11/outside_looking.html&quot;&gt;banlieues&lt;/a&gt;&lt;/span&gt;&lt;span style=&quot;COLOR: #333333&quot;&gt;, &lt;/span&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/11/fixing_french_h.html&quot;&gt;all of which should be torn down&lt;/a&gt;, and &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/06/end-of-an-error-part-2-envisioning-the-essential-future.html&quot;&gt;many of which have been torn down&lt;/a&gt; or &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2010/03/not-only-better-but-also-cheaper.html&quot;&gt;are being torn down&lt;/a&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;High_rise_demolition&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/high_rise_demolition_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;We&amp;#8217;re not sorry to see you go&lt;span style=&quot;COLOR: #333333&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Century; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Justice Douglas was doing more than penning a manifesto. &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;(No one ever accused Justice Douglas of lacking in legal imagination, as when in &lt;em&gt;&lt;span style=&quot;FONT-FAMILY: Arial&quot;&gt;Roe v. Wade &lt;/span&gt;&lt;/em&gt;he found that a right to privacy &amp;#8216;emanates from the penumbra of the Constitution&amp;#8217; &amp;ndash; in other words, that were was no Constitutional language to support it.) &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;Here he was grounding the decision in an expanded concept of &amp;lsquo;public health&amp;rsquo; so as to argue that blight goes beyond the optical:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;In the present case, the Congress and its authorized agencies have made determinations that take into account a wide variety of values. It is not for us to reappraise them. If those who govern the &lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;District of Columbia&lt;/st1:place&gt;&lt;/st1:state&gt; decide that the Nation&amp;rsquo;s Capital should be beautiful as well as sanitary, there is nothing in the &lt;a href=&quot;http://www.law.cornell.edu/supct-cgi/get-const?amendmentv&quot;&gt;&lt;span style=&quot;COLOR: #091744&quot;&gt;Fifth Amendment&lt;/span&gt;&lt;/a&gt; that stands in the way. &lt;em&gt;&lt;span style=&quot;FONT-FAMILY: Calibri; mso-bidi-font-family: Arial&quot;&gt;[&quot;Nor shall private property be taken for public use without just compensation,&quot;&lt;/span&gt;&lt;/em&gt; &lt;em&gt;&lt;span style=&quot;FONT-FAMILY: Calibri; mso-bidi-font-family: Arial&quot;&gt;the 'takings' clause. -- Ed.]&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Berman&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt; proved to be the opening salvo in a half-century of ever-expanding municipal authority and judicial deference to local findings.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;In 1984 the Supreme Court even expanded municipal discretion through the &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Midkiff&lt;/i&gt; decision, so that &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/03/eminent_domain.html&quot;&gt;when in 2005&lt;/a&gt; the court upheld &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;New London&lt;/st1:city&gt;&lt;/st1:place&gt;&amp;#8217;s taking of Suzette Kelo&amp;#8217;s house, the remarkable point was not that the city won, but that it won &amp;#8216;only&amp;#8217; 5-4, &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;and&lt;/i&gt; in winning provoked an impressive and &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/07/eminent_domain_12.html&quot;&gt;sustained voter backlash&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As the &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt&quot;&gt;&lt;a href=&quot;http://www.city-journal.org/2010/20_1_eminent-domain-abuse.html&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;City Journal&lt;/font&gt;&lt;/a&gt; essay put it:&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In 2005, in &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Kelo v. &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;New London&lt;/st1:city&gt;&lt;/st1:place&gt;&lt;/i&gt;, the Supreme Court decided that these &amp;ldquo;public purposes&amp;rdquo; could even include economic development. But &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt;&amp;rsquo;s constitution theoretically holds the state to a higher standard. In 1967, &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Empire&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;State&lt;/st1:placetype&gt;&lt;/st1:place&gt; voters voted not to add a &amp;ldquo;public purpose&amp;rdquo; clause to their constitution, preferring to stick with the stricter requirement of &amp;ldquo;public use.&amp;rdquo;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;2. Once &amp;#8216;blight&amp;#8217; is found, the state can flip property to a private developer&lt;/span&gt;&lt;/b&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;In parallel with the thread of government having a police power to take small parcels and aggregate them into more rational urban uses ran another thread, that the state can contract these &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/09/the-essential-housing-authority.html&quot;&gt;basically technical functions&lt;/a&gt; to a private third party.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Here too it was the supremely confident Douglas who wrote the sweeping apologia:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Douglas_william_young&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/douglas_william_young_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt&quot;&gt;The firebrand justice: William O. Douglas&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;Here, one of the means chosen is the use of private enterprise for redevelopment of the area. Appellants argue that this makes the project a taking from one businessman for the benefit of another businessman. But the means of executing the project are for Congress, and Congress alone, to determine once the public purpose has been established. &lt;em&gt;&lt;span style=&quot;FONT-FAMILY: Calibri; mso-bidi-font-family: Arial&quot;&gt;See Luxton v. North River Bridge Co., supra; cf. Highland v. Russell Car Co.,&lt;/span&gt;&lt;/em&gt; &lt;a href=&quot;http://www.law.cornell.edu/supct-cgi/get-us-cite/279/253&quot;&gt;&lt;strong&gt;&lt;span style=&quot;COLOR: #091744; FONT-FAMILY: Calibri; TEXT-DECORATION: none; mso-bidi-font-family: Arial; text-underline: none&quot;&gt;279 U.S. 253&lt;/span&gt;&lt;/strong&gt;&lt;/a&gt;. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;strong&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;The public end may be as well or better served through an &lt;a name=&quot;pg_34&quot;&gt;&lt;/a&gt;[p34] agency of private enterprise than through a department of government &amp;mdash; or so the Congress might conclude.&lt;/span&gt;&lt;/strong&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;We cannot say that public ownership is the sole method of promoting the public purposes of community redevelopment projects. What we have said also disposes of any contention concerning the fact that certain property owners in the area may be permitted to repurchase their properties for redevelopment in harmony with the over-all plan. That, too, is a legitimate means which Congress and its agencies may adopt, if they choose.&lt;/span&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Calibri; mso-ansi-language: EN; mso-bidi-font-family: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Now enters the worm of self-interest, for if the state can gobble up small parcels from small and politically unconnected holders, and bestow them in a bundle on a politically connected private redeveloper, then both the redeveloper and the municipality have a selfish interest in doing so.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/03/the_value_of_ur.html&quot;&gt;Land that is redeveloped becomes more valuable&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/07/us-property-taxes-part-2-local-autonomy-local-initiatives.html&quot;&gt;Land that is rezoned becomes more valuable&lt;/a&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Atlantic_yards_redevelopment&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/atlantic_yards_redevelopment_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt&quot;&gt;Raise the height, raise the value, raze the incumbents&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;None of this bothered &lt;st1:place w:st=&quot;on&quot;&gt;Douglas&lt;/st1:place&gt;, taken as he was by a vision of the city council as philosopher-kings:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Century; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 11pt; COLOR: blue; FONT-FAMILY: Calibri; mso-ansi-language: EN&quot;&gt;Subject to specific constitutional limitations, &lt;strong&gt;&lt;span style=&quot;FONT-FAMILY: Calibri&quot;&gt;when the legislature has spoken, the public interest has been declared in terms well nigh conclusive.&lt;/span&gt;&lt;/strong&gt; In such cases, the legislature, not the judiciary, is the main guardian of the public needs to be served by social legislation.&lt;/span&gt;&lt;span lang=&quot;EN&quot; style=&quot;COLOR: #333333; FONT-FAMILY: Calibri; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Evidently they trusted their government more back then.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;br /&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;3. By now, the practical definition of &amp;#8216;blight&amp;#8217; has been diluted into &amp;#8216;economically underperforming&amp;#8217;&lt;/b&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;If finding a word translates into giving someone more money, then the word is increasingly found.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;With &amp;#8216;blight&amp;#8217; the key to unlock potent government power to &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/05/eminent_domain_7.html&quot;&gt;take property from A and then to give it to B&lt;/a&gt;, why then will develop, in short order, an active marketplace in finding blight.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[The same thing has happened, on a multi-billion-dollar global scale, in the counterfeiting of certified emission reduction (CER) certificates, otherwise known as carbon credits &amp;hellip; but that's another story, about which I may post in the context of &lt;st1:country-region w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;India&lt;/st1:place&gt;&lt;/st1:country-region&gt;. &amp;ndash; Ed.]&lt;/i&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Long_arm_gil_hamilton&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/long_arm_gil_hamilton_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt&quot;&gt;You cannot outreach the long arm of the law&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/11/8_simple_rules_2.html&quot;&gt;Kelo&lt;span style=&quot;FONT-STYLE: normal&quot;&gt; highlighted this&lt;/span&gt;&lt;/a&gt;&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt; and empowered other opponents of ED4ED, such as in &lt;st1:place w:st=&quot;on&quot;&gt;Brooklyn&lt;/st1:place&gt;, with its &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/11/billion_dollar_6.html&quot;&gt;billion-dollar battle over Atlantic Yards&lt;/a&gt;, which has been going on for more than half a decade.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As City Journal puts it:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 12.0pt&quot;&gt;&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Brooklyn&amp;rsquo;s &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Heights&lt;/st1:placetype&gt;&lt;/st1:place&gt;, industrial and forlorn for much of the late twentieth century, was looking better by 2003. &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;Government was doing its proper job: crime was down, and the public-transit commute to midtown &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Manhattan&lt;/st1:place&gt;&lt;/st1:city&gt;, where many Brooklynites worked, was just 25 minutes. That meant that the private sector could do its job, too, rejuvenating the neighborhood after urban decay. Developers had bought 1920s-era factories and warehouses and converted them into condos for buyers like Daniel Goldstein, who paid $590,000 for a place in a former dry-goods warehouse in 2003. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Daniel_goldstein&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/daniel_goldstein_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;My $590k says my home isn&amp;#8217;t blighted&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;These new residents weren&amp;rsquo;t put off by the Metropolitan Transportation Authority&amp;rsquo;s railyards nearby, and they liked the hardwood floors and airy views typical of such refurbished buildings. They also settled in alongside longtime residents in little houses on quiet streets. Wealthier newcomers joined regulars at Freddy&amp;rsquo;s, a bar that predated Prohibition. Small businesses continued to employ skilled laborers in low-rise industrial buildings.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Two questions are entangled here:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;1. From an urban-vibrancy perspective, would we &amp;#8216;like&amp;#8217; to see redevelopment?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;2. Is the neighborhood &amp;#8216;blighted&amp;#8217; today?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;It&amp;#8217;s entirely possible to answer Yes to the first question &amp;ndash; making us wish we could assemble the land &amp;ndash; and No to the second, meaning we cannot do it, tempted though we may be.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Wilde_temptation&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/wilde_temptation_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;I can resist everything but temptation&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Except that it is all too easy to substitute &amp;#8220;I am entitled to&amp;#8221; for the phrase &amp;#8220;I want to&amp;#8221; &amp;ndash; especially if one is adjudicating for oneself.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The state hasn&amp;rsquo;t let this inconvenience derail its plans for &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Heights&lt;/st1:placetype&gt;&lt;/st1:place&gt;, however. For seven decades, courts have let New York seize and demolish slum housing if it&amp;rsquo;s blighted&amp;mdash;which New York State defines as &amp;ldquo;substandard&amp;rdquo; and &amp;ldquo;unsanitary.&amp;rdquo; So the Urban Development Corporation (UDC), a public entity of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;New York&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;State&lt;/st1:placetype&gt;&lt;/st1:place&gt;, decided that the &amp;ldquo;public use&amp;rdquo; of Atlantic Yards would be blight removal. The city had already designated part of the neighborhood as &amp;ldquo;blighted&amp;rdquo; 40 years earlier, long before its resurgence. As for the rest, the UDC commissioned consultants&amp;mdash;previously employed by Ratner&amp;mdash;who soon returned the requisite blight finding.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Bruce_ratner&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/bruce_ratner_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt&quot;&gt;I applaud the commission&amp;#8217;s consultants&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;4. When courts confront a blight dispute, they tend to defer to the public agency&lt;/span&gt;&lt;/b&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Judicial deference to legislative or executive decision-making is generally a sound principle for separation-of-powers.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Property owners have looked to the judiciary to check the overweening grasp of the legislative and executive branches. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Yet the courts seem to have difficulty grappling with the municipality&amp;#8217;s economic conflict of interest:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In Brooklyn, Goldstein and his neighbors have lost their lawsuits&amp;mdash;most recently, in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt;&amp;rsquo;s highest court, the court of appeals. In November, the court decided 6&amp;ndash;1 that &amp;ldquo;all that is at issue is &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;a reasonable difference of opinion&lt;/b&gt; as to whether the area in question is in fact substandard and insanitary. This is not a sufficient predicate for us to supplant [the state&amp;rsquo;s] determination.&amp;rdquo; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Alg_court_daniel_goldstein&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/alg_court_daniel_goldstein_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Goldstein&amp;#8217;s got his dander up&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Except that the harm is unbalanced, because either way, the decision is irrevocable.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;If a court finds blight, then owners are dispossessed of their property &amp;ndash; uprooted.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;With that dispossession goes their entire way of life.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;I&amp;#8217;m especially sensitized to this by all &lt;a href=&quot;http://www.affordablehousinginstitute.org/resources/library/HBSIndia_challenge_opportunity_slums_handout_090313.pdf&quot;&gt;my global South experience, where slum dwellers are routinely&lt;/a&gt; dispossessed of land, once it has become valuable.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The slumdwellers lack legal title &amp;ndash; they gained their occupancy rights by squatting &amp;ndash; so their claim is weaker, but the principle is the same: occupancy vests political legitimacy.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The court essentially abdicated its duty to protect property owners from the governor and the Legislature.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Abdication_edward_viii&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/abdication_edward_viii_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt&quot;&gt;I choose to abdicate my duty&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;That&amp;#8217;s &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;City Journal&amp;#8217;s&lt;/i&gt; conclusion, not ours, but it&amp;#8217;s in line with the factual record.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued tomorrow in &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2010/03/if-you-cant-define-it-you-cant-use-it-part-2-my-neighborhood-blight-or-wrong.html&quot;&gt;Part 2&lt;/a&gt;.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
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		<item>
		<title>Don&#8217;t get smart with me-ter: Part 2, the cost of knowing</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2010/03/dont-get-smart-with-me-ter-part-2-the-cost-of-knowing.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2010/03/dont-get-smart-with-me-ter-part-2-the-cost-of-knowing.html#comments</comments>
		<pubDate>Wed, 17 Mar 2010 14:51:38 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Homeownership]]></category>
		<category><![CDATA[Innovations]]></category>
		<category><![CDATA[Metering]]></category>
		<category><![CDATA[Theory]]></category>
		<category><![CDATA[US News]]></category>
		<category><![CDATA[Utilities]]></category>

		<guid isPermaLink="false">http://affordablehousinginstitute.org/blogs/us/2010/03/don%e2%80%99t-get-smart-with-me-ter-part-2-the-cost-of-knowing.html</guid>
		<description><![CDATA[
By: David A. Smith
&#160;
[Continued from yesterday&#8217;s Part 1.]
&#160;
Yesterday, in our most recent installment of No Good Deed Goes Unpunished, we explored the got-to-be-a-good-idea of smart meters for single-family residential customers.&#160; As revealed in a recent Wall Street Journal article, the meters are an unequivocal advance, since they enable both producer and consumer to know what [...]]]></description>
			<content:encoded><![CDATA[<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN">By:<span style="COLOR: #333333"> </span><span style="COLOR: navy"><a href="http://www.affordablehousinginstitute.org/bio_DAS_long.php"><font color="#800080">David A. Smith</font></a></span><span style="COLOR: #333333"><?xml:namespace prefix ="" o /><o:p></o:p></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">[Continued from yesterday&rsquo;s <a href="http://affordablehousinginstitute.org/blogs/us/2010/03/dont-get-smart-with-me-ter-part-1-the-value-of-knowing.html"><font color="#800080">Part 1</font></a>.]<o:p></o:p></span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"></span>&nbsp;</p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Yesterday, in our most recent installment of <i style="mso-bidi-font-style: normal"><a href="http://affordablehousinginstitute.org/blogs/us/2009/07/wont-or-cant-part-2-how-fast-a-fix.html">No Good Deed Goes Unpunished</a></i>, we explored the got-to-be-a-good-idea of smart meters for single-family residential customers.<span style="mso-spacerun: yes">&nbsp; </span>As revealed in a recent <a href="http://online.wsj.com/article/SB10001424052748704878904575031020562238094.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird"><font color="#800080">Wall Street Journal</font></a> article, the meters are an unequivocal advance, since they enable both producer and consumer to know what it costs to produce one more kwh, and one it costs to consume that hour.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Smart_meter_network" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/smart_meter_network_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">We&#8217;re all just part of SkyNet<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">That matters, because as pointed out in a similar <a href="http://www.nytimes.com/2009/12/14/us/14meters.html">New York Times</a> article (</span><span style="COLOR: #333399"><font face="Times New Roman" size="3">Times New Roman, indigo</font></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">)<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: #333399"><font size="3"><font face="Times New Roman">Power companies say the meters will allow utilities to vary the price charged to their customers by the hour to correspond to what those utilities are paying for energy in the wholesale market. This can help consumers save money, they say.<o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: #333399"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: #333399">They also say the meters will be crucial to remaking the electric system to handle intermittent power sources like</span> </font></font><a title="More articles about wind power." href="http://topics.nytimes.com/top/reference/timestopics/subjects/w/wind_power/index.html?inline=nyt-classifier"><font face="Times New Roman" size="3">wind turbines</font></a><font size="3"><font face="Times New Roman"> <span style="COLOR: #333399">and solar cells while continuously meeting customers&rsquo; needs.<o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">But any change, however rational, in the price of a commodity, always triggers the same knee-jerk response &ndash; angry noise.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: #333399"><font face="Times New Roman" size="3">WASHINGTON &mdash; Millions of households across America are taking a first step into the world of the </font><a title="Department of Energy introduction." href="http://www.oe.energy.gov/SmartGridIntroduction.htm"><span style="COLOR: #333399"><font face="Times New Roman" size="3">&ldquo;smart grid,&rdquo;</font></span></a><font size="3"><font face="Times New Roman"> as their power companies install meters that can tell them how much electricity they are using hour by hour &mdash; and sometimes, appliance by appliance. <o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: #333399"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: #333399"><font size="3"><font face="Times New Roman">But not everyone is happy about it.<o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: #333399"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: #333399"><font size="3"><font face="Times New Roman">Customers in <?xml:namespace prefix ="" st1 /><st1:state w:st="on">California</st1:state> are in open revolt, and officials in <st1:state w:st="on">Connecticut</st1:state> and <st1:place w:st="on"><st1:state w:st="on">Texas</st1:state></st1:place> are questioning whether the rush to install meters benefits the public. <o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Storm_bastille" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/storm_bastille_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Let them eat kilowatts!<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: #333399"><font size="3"><font face="Times New Roman">Some consumers argue that the meters are logging far more kilowatt hours than they believe they are using. <o:p></o:p></font></font></span></p>
<p style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Whenever</span></i><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"> a customer gains transparency into the marginal cost of something, the customer <i style="mso-bidi-font-style: normal">always</i> believes that he&#8217;s being overcharged.<span style="mso-spacerun: yes">&nbsp; </span>This is true for taxi meters, true for internet cafes, true for time spent on the phone.<span style="mso-spacerun: yes">&nbsp; </span>People think they&#8217;re consuming less than they are.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8220;What it told us is that people aren&#8217;t really knowledgeable about smart meters coming down the pike and they don&#8217;t pay much attention to rate changes,&#8221; says Dian Grueneich, a member of the <a href="http://www.cpuc.ca.gov/puc/">California Public Utilities Commission</a>, which is monitoring the situation. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8220;Monitoring the situation&#8221; is code for <i style="mso-bidi-font-style: normal">we know the utilities are right, but if we tell the public that, they&#8217;ll think we&#8217;re in cahoots with them.<o:p></o:p></i></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><st1:place w:st="on"><st1:state w:st="on"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Cal_puc" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/cal_puc_small.jpg" border="0" /></span></st1:state></st1:place></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">Meddling on your behalf<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">(Don&#8217;t forget, <st1:place w:st="on"><st1:state w:st="on">California</st1:state></st1:place> has a <a href="http://insightadvisor.wordpress.com/2009/09/13/schwarzenegger-to-veto-33-rps-bill/">thoroughly screwed-up utility rate-setting structure</a>.)<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Contorted_2" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/contorted_2_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">No, really, it all connects up<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">In politics, it would be called &#8216;rational ignorance&#8217; &ndash; in utilities, it&#8217;s called emotional self-defense.<span style="mso-spacerun: yes">&nbsp; </span>Why learn about rate changes before they happen?<span style="mso-spacerun: yes">&nbsp; </span>What can you do differently, other than become upset?<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8220;It told us there needs to be a lot of consumer education&#8221; before making big changes.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8220;Consumer education&#8221; means <i style="mso-bidi-font-style: normal">carefully explaining this to minimize the internet flame wars that must inevitably ensue.<span style="mso-spacerun: yes">&nbsp; </span></i>It also means creating a rate structure that has both substance &ndash; options for the consumer &ndash; and optics &ndash; how those options are presented and computed.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">PG&amp;E now has a voluntary program in which customers agree to pay <b style="mso-bidi-font-weight: normal">higher peak rates</b> of 60 cents a kilowatt-hour for no more than <b style="mso-bidi-font-weight: normal">15 days a year</b>, in exchange for a discount of <b style="mso-bidi-font-weight: normal">three cents a kilowatt-hour for electricity used at other times</b>. So far some 26,000 customers have signed up.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">It is remarkable how giving people a choice sugars the pill.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Sugar_coated" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/sugar_coated_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">Yummy!<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">To date, 16,000 to 18,000 people have participated in more than five dozen pilot tests involving smart meters and experimental rate plans, according to <a href="http://www.brattle.com/Experts/ExpertDetail.asp?ExpertID=164">Ahmad Faruqui</a>, a consultant with the Brattle Group who has helped utilities develop some of the programs. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Ahmad_faruqui" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/ahmad_faruqui_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">Faruqui wants to help the herd be more observant<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Showing <a href="http://affordablehousinginstitute.org/blogs/us/2005/06/the_law_of_the.html">the observant herd</a> that the early adopters do better is critical to moving the herd your way.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">He says that while it is sometimes disheartening to see utility executives ignore their own findings, he understands the desire to move slowly until people become comfortable with smart-meter technology.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">The executives aren&#8217;t necessarily ignoring their own findings, they&#8217;re just considering human behavior in choosing when and how to make the change.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Waiting_bronze" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/waiting_bronze_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">We&#8217;ve got to get them to move somehow<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><a href="http://online.wsj.com/public/quotes/main.html?type=djn&amp;symbol=POM">Pepco Holdings </a>Inc. recently did a pilot test in <st1:place w:st="on"><st1:city w:st="on">Washington</st1:city>, <st1:state w:st="on">D.C.</st1:state></st1:place>, of three rate plans designed to gauge how customers respond to different price signals. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">1. One plan <i style="mso-bidi-font-style: normal">[Passthrough &ndash; Ed.] </i>pegged the price, which ranged from a penny to 37 cents a kilowatt-hour, to the wholesale cost of electricity. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">2. One <i style="mso-bidi-font-style: normal">[Surcharge &ndash; Ed.] </i>charged a &#8220;critical peak price&#8221; of 75 cents a kilowatt-hour during certain hours on a handful of days, and 11 cents per kwh at other times. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">3. The final plan <i style="mso-bidi-font-style: normal">[Conservation rebate &ndash; Ed.]</i>gave customers 75 cents for each kilowatt-hour of energy saved and charged 11 cents per kwh for power used. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Of the three &ndash; passthrough, surcharge, or rebate, which do you think was most effective?<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Lets_make_deal_doors" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/lets_make_deal_doors_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">The right rate is behind &hellip; <i style="mso-bidi-font-style: normal">Door Number Three!<o:p></o:p></i></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Results showed that<b style="mso-bidi-font-weight: normal"> people responded most when threatened with the 75-cent-per-kwh peak pricing.</b> <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Would that it were not so, but in terms of <i style="mso-bidi-font-style: normal">immediate </i>impact, we react best to threats and penalties.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Those customers <b style="mso-bidi-font-weight: normal">cut their overall energy consumption between 22% and 34%</b>, depending on whether they also had programmable thermostats that could automatically change temperature settings. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Once the surcharge was used as motivation, then the real-time metering enabled customers to save more &ndash; and probably, after they had habituated to the changes, to become much greener electricity users.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"></span>&nbsp;</p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Cratchit_magoo" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/cratchit_magoo_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">Cold?<span style="mso-spacerun: yes">&nbsp; </span>Who&#8217;s cold?<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Customers offered rebates reduced their usage 9% to 15%&mdash;again, with the deeper cuts among those who had smart thermostats. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">So rebates work &ndash; but get-their-attention punishments work better.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Despite evidence that <b style="mso-bidi-font-weight: normal">sticks are better motivators than carrots</b>, the utility intends to offer rebates in the future in an effort to change behavior. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Icarrot" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/icarrot_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">Would you rather be hit?<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">The reason is simple: while using a punitive structure gets more rapid compliance, it also angers the customer, which has long-term costs.<span style="mso-spacerun: yes">&nbsp; </span>People who feel wronged will often do non-economic things to gain revenge.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Revenge_sith_4" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/Revenge_sith_4_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">Gonna be bad for the franchise &hellip;<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8220;Our general sense is that consumers would prefer a rate structure with no downside,&#8221; says <a href="http://www.demandresponsecommittee.org/id103.htm">Steven Sunderhauf</a>, a program manager for Pepco. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Personally, I&#8217;d like a <i style="mso-bidi-font-style: normal">life</i> with no downside.<span style="mso-spacerun: yes">&nbsp; </span>I&#8217;d like free health care at no cost to taxpayers.<span style="mso-spacerun: yes">&nbsp; </span>I&#8217;d like to be able to dunk a basketball.<span style="mso-spacerun: yes">&nbsp; </span>I&#8217;d like to be immortal.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Dunk_fail" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/dunk_fail_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">I is the dunk-ee, not the dunk-er<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8220;From a purist&#8217;s standpoint, I may prefer critical peak pricing because it gets the boldest response &hellip; but using rebates will help people get comfortable with smart meters.&#8221;<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><a href="http://affordablehousinginstitute.org/blogs/us/2009/03/rules-you-dont-enforce-are-worse-than-useless.html">Rules you don&#8217;t enforce are worse than useless</a>; a plan that people will not follow is worse than useless.<span style="mso-spacerun: yes">&nbsp; </span>An inferior plan that people embrace is superior.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Most importantly, getting homeowners to embrace a plan is the big savings, because customers have the most flexible usage patterns:<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Last summer, Connecticut Light &amp; Power Co., a subsidiary of <a href="http://online.wsj.com/public/quotes/main.html?type=djn&amp;symbol=NU">Northeast Utilities Service </a>Co., gave new meters to 3,000 residential and business customers, testing three types of rates. Like other utilities, it found that homes facing the highest peak-hour pricing&mdash;$1.60 per kwh at certain times&mdash;responded the most, cutting peak use 16% to 23%, depending on whether they had other aids like smart thermostats. Commercial customers, in a similar test, cut their demand far less, only 7%. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">This is just like airline pricing.<span style="mso-spacerun: yes">&nbsp; </span>Right now it costs a fortune to fly from <st1:city w:st="on">Boston</st1:city> to <st1:state w:st="on"><st1:place w:st="on">Washington</st1:place></st1:state>, because everyone in a suit is hurrying down to our nation&#8217;s capital to convince someone of something.<span style="mso-spacerun: yes">&nbsp; </span>To fly to <st1:city w:st="on"><st1:place w:st="on">Baltimore</st1:place></st1:city>, an hour away by train, costs one-fifth as much, because one is presumed to be a leisure traveler, not a commercial one.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Southwest_bwi" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/southwest_bwi_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">&#8220;Because we think you&#8217;re cheap&#8221;<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">That was instructive, says Jessica Brahaney Cain, director of CL&amp;P&#8217;s smart-grid planning, because it told the utility that many commercial customers don&#8217;t have the option of cutting usage during times of peak demand. &#8220;A restaurant has to use its ovens,&#8221; she says. &#8220;A dentist has to use his drills.&#8221; <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Sure enough, if we want to cut electricity consumption, changing the behavior of <i style="mso-bidi-font-style: normal">people</i> &ndash; meaning residential apartments &ndash; is the big win.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">One surprise, says Ms. Cain, was that almost all of the customers who participated in the pilot test reported more satisfaction with the <st1:place w:st="on"><st1:city w:st="on">Berlin</st1:city>, <st1:state w:st="on">Conn.</st1:state></st1:place>, utility than those who didn&#8217;t. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Because they <i style="mso-bidi-font-style: normal">chose </i></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">to participate.<span style="mso-spacerun: yes">&nbsp; </span>People want to believe they made smart choices, so merely by opting in, the customers improved their morale.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">They liked that the meters gave them greater insight into how they use electricity, she says.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><a href="http://affordablehousinginstitute.org/blogs/us/2008/01/profile-of-a-slum-dharavi-part-3.html">People are smart</a>.<span style="mso-spacerun: yes">&nbsp; </span>People want to know.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Smart_brain" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/smart_brain_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">Keep those mental wheels turning<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Southern California <st1:place w:st="on">Edison</st1:place> says it also plans to adopt a rebate strategy by the end of the year, even though it won&#8217;t have all its meters in place until 2012.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8220;If customers do nothing, they&#8217;ll get the same bill they otherwise would get,&#8221; says Lynda Ziegler, senior vice president for customer service at the Edison International unit. Those that cut peak consumption will get a credit of 75 cents to $1.25 for each kilowatt-hour of reduction. The main concern of regulators, she says, is making sure meter readings are accurate.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Getting a financial savings for reducing consumption would be a big win.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><span style="mso-spacerun: yes">&nbsp;</span><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">The utility chose rebates over penalties partly because a law passed during the <st1:state w:st="on"><st1:place w:st="on">California</st1:place></st1:state> energy crisis a decade ago &ndash; <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">More of <st1:place w:st="on"><st1:state w:st="on">California</st1:state></st1:place>&#8217;s misguided meddling in utility rates.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Scooby_doo_meddling" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/scooby_doo_meddling_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">&#8220;I&#8217;d've been able to impose surcharges if not for those meddling regulators.&#8221;<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">&ndash; <span style="mso-spacerun: yes">&nbsp;</span>limits its ability to involuntarily switch people to higher peak-hour pricing plans right now. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Since <a href="http://affordablehousinginstitute.org/blogs/us/2008/07/microfinance-born-in-the-usa-part-1-birth.html">one man&#8217;s rebate is another man&#8217;s surcharge</a>, the <st1:state w:st="on"><st1:place w:st="on">California</st1:place></st1:state> statute effectively incentivizes the utilities to charge <i style="mso-bidi-font-style: normal">everybody</i> the higher rate, achieving the arithmetic equivalent but the wrong way around.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">A new law may allow it after 2013.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Don&#8217;t hurry or anything.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">But the utility also concluded that it wouldn&#8217;t be fair to really crank up peak pricing until homeowners have greater access to automation tools such as smart appliances and controllers. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">I have seen the future, and its pricing is an integral.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Integral" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/Integral_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">Your future electric bill<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">In the future, devices will contain computer chips and software so they can go into energy-saving mode in response to a signal sent from the utility or another energy manager that higher prices are kicking in.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua"><img alt="Higher_prices" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/higher_prices_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt">Be nice to have someone to blame<o:p></o:p></span></p>
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&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;By:&lt;span style=&quot;COLOR: #333333&quot;&gt; &lt;/span&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;a href=&quot;http://www.affordablehousinginstitute.org/bio_DAS_long.php&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;David A. Smith&lt;/font&gt;&lt;/a&gt;&lt;/span&gt;&lt;span style=&quot;COLOR: #333333&quot;&gt;&lt;?xml:namespace prefix =&quot;&quot; o /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued from yesterday&amp;rsquo;s &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2010/03/dont-get-smart-with-me-ter-part-1-the-value-of-knowing.html&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;Part 1&lt;/font&gt;&lt;/a&gt;.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Yesterday, in our most recent installment of &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/07/wont-or-cant-part-2-how-fast-a-fix.html&quot;&gt;No Good Deed Goes Unpunished&lt;/a&gt;&lt;/i&gt;, we explored the got-to-be-a-good-idea of smart meters for single-family residential customers.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As revealed in a recent &lt;a href=&quot;http://online.wsj.com/article/SB10001424052748704878904575031020562238094.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;Wall Street Journal&lt;/font&gt;&lt;/a&gt; article, the meters are an unequivocal advance, since they enable both producer and consumer to know what it costs to produce one more kwh, and one it costs to consume that hour.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Smart_meter_network&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/smart_meter_network_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;We&amp;#8217;re all just part of SkyNet&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;That matters, because as pointed out in a similar &lt;a href=&quot;http://www.nytimes.com/2009/12/14/us/14meters.html&quot;&gt;New York Times&lt;/a&gt; article (&lt;/span&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;Times New Roman, indigo&lt;/font&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;)&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Power companies say the meters will allow utilities to vary the price charged to their customers by the hour to correspond to what those utilities are paying for energy in the wholesale market. This can help consumers save money, they say.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;They also say the meters will be crucial to remaking the electric system to handle intermittent power sources like&lt;/span&gt; &lt;/font&gt;&lt;/font&gt;&lt;a title=&quot;More articles about wind power.&quot; href=&quot;http://topics.nytimes.com/top/reference/timestopics/subjects/w/wind_power/index.html?inline=nyt-classifier&quot;&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;wind turbines&lt;/font&gt;&lt;/a&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt; &lt;span style=&quot;COLOR: #333399&quot;&gt;and solar cells while continuously meeting customers&amp;rsquo; needs.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;But any change, however rational, in the price of a commodity, always triggers the same knee-jerk response &amp;ndash; angry noise.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;WASHINGTON &amp;mdash; Millions of households across America are taking a first step into the world of the &lt;/font&gt;&lt;a title=&quot;Department of Energy introduction.&quot; href=&quot;http://www.oe.energy.gov/SmartGridIntroduction.htm&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;ldquo;smart grid,&amp;rdquo;&lt;/font&gt;&lt;/span&gt;&lt;/a&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt; as their power companies install meters that can tell them how much electricity they are using hour by hour &amp;mdash; and sometimes, appliance by appliance. &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;But not everyone is happy about it.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Customers in &lt;?xml:namespace prefix =&quot;&quot; st1 /&gt;&lt;st1:state w:st=&quot;on&quot;&gt;California&lt;/st1:state&gt; are in open revolt, and officials in &lt;st1:state w:st=&quot;on&quot;&gt;Connecticut&lt;/st1:state&gt; and &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;Texas&lt;/st1:state&gt;&lt;/st1:place&gt; are questioning whether the rush to install meters benefits the public. &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Storm_bastille&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/storm_bastille_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Let them eat kilowatts!&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: #333399&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Some consumers argue that the meters are logging far more kilowatt hours than they believe they are using. &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Whenever&lt;/span&gt;&lt;/i&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt; a customer gains transparency into the marginal cost of something, the customer &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;always&lt;/i&gt; believes that he&amp;#8217;s being overcharged.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;This is true for taxi meters, true for internet cafes, true for time spent on the phone.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;People think they&amp;#8217;re consuming less than they are.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8220;What it told us is that people aren&amp;#8217;t really knowledgeable about smart meters coming down the pike and they don&amp;#8217;t pay much attention to rate changes,&amp;#8221; says Dian Grueneich, a member of the &lt;a href=&quot;http://www.cpuc.ca.gov/puc/&quot;&gt;California Public Utilities Commission&lt;/a&gt;, which is monitoring the situation. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8220;Monitoring the situation&amp;#8221; is code for &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;we know the utilities are right, but if we tell the public that, they&amp;#8217;ll think we&amp;#8217;re in cahoots with them.&lt;o:p&gt;&lt;/o:p&gt;&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Cal_puc&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/cal_puc_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/st1:state&gt;&lt;/st1:place&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;Meddling on your behalf&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;(Don&amp;#8217;t forget, &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;California&lt;/st1:state&gt;&lt;/st1:place&gt; has a &lt;a href=&quot;http://insightadvisor.wordpress.com/2009/09/13/schwarzenegger-to-veto-33-rps-bill/&quot;&gt;thoroughly screwed-up utility rate-setting structure&lt;/a&gt;.)&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Contorted_2&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/contorted_2_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;No, really, it all connects up&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;In politics, it would be called &amp;#8216;rational ignorance&amp;#8217; &amp;ndash; in utilities, it&amp;#8217;s called emotional self-defense.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Why learn about rate changes before they happen?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;What can you do differently, other than become upset?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8220;It told us there needs to be a lot of consumer education&amp;#8221; before making big changes.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8220;Consumer education&amp;#8221; means &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;carefully explaining this to minimize the internet flame wars that must inevitably ensue.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/i&gt;It also means creating a rate structure that has both substance &amp;ndash; options for the consumer &amp;ndash; and optics &amp;ndash; how those options are presented and computed.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;PG&amp;amp;E now has a voluntary program in which customers agree to pay &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;higher peak rates&lt;/b&gt; of 60 cents a kilowatt-hour for no more than &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;15 days a year&lt;/b&gt;, in exchange for a discount of &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;three cents a kilowatt-hour for electricity used at other times&lt;/b&gt;. So far some 26,000 customers have signed up.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;It is remarkable how giving people a choice sugars the pill.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Sugar_coated&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/sugar_coated_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;Yummy!&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;To date, 16,000 to 18,000 people have participated in more than five dozen pilot tests involving smart meters and experimental rate plans, according to &lt;a href=&quot;http://www.brattle.com/Experts/ExpertDetail.asp?ExpertID=164&quot;&gt;Ahmad Faruqui&lt;/a&gt;, a consultant with the Brattle Group who has helped utilities develop some of the programs. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Ahmad_faruqui&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/ahmad_faruqui_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;Faruqui wants to help the herd be more observant&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Showing &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/06/the_law_of_the.html&quot;&gt;the observant herd&lt;/a&gt; that the early adopters do better is critical to moving the herd your way.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;He says that while it is sometimes disheartening to see utility executives ignore their own findings, he understands the desire to move slowly until people become comfortable with smart-meter technology.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;The executives aren&amp;#8217;t necessarily ignoring their own findings, they&amp;#8217;re just considering human behavior in choosing when and how to make the change.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Waiting_bronze&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/waiting_bronze_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;We&amp;#8217;ve got to get them to move somehow&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;a href=&quot;http://online.wsj.com/public/quotes/main.html?type=djn&amp;amp;symbol=POM&quot;&gt;Pepco Holdings &lt;/a&gt;Inc. recently did a pilot test in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Washington&lt;/st1:city&gt;, &lt;st1:state w:st=&quot;on&quot;&gt;D.C.&lt;/st1:state&gt;&lt;/st1:place&gt;, of three rate plans designed to gauge how customers respond to different price signals. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;1. One plan &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[Passthrough &amp;ndash; Ed.] &lt;/i&gt;pegged the price, which ranged from a penny to 37 cents a kilowatt-hour, to the wholesale cost of electricity. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;2. One &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[Surcharge &amp;ndash; Ed.] &lt;/i&gt;charged a &amp;#8220;critical peak price&amp;#8221; of 75 cents a kilowatt-hour during certain hours on a handful of days, and 11 cents per kwh at other times. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;3. The final plan &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[Conservation rebate &amp;ndash; Ed.]&lt;/i&gt;gave customers 75 cents for each kilowatt-hour of energy saved and charged 11 cents per kwh for power used. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Of the three &amp;ndash; passthrough, surcharge, or rebate, which do you think was most effective?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Lets_make_deal_doors&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/lets_make_deal_doors_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;The right rate is behind &amp;hellip; &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Door Number Three!&lt;o:p&gt;&lt;/o:p&gt;&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Results showed that&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt; people responded most when threatened with the 75-cent-per-kwh peak pricing.&lt;/b&gt; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Would that it were not so, but in terms of &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;immediate &lt;/i&gt;impact, we react best to threats and penalties.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Those customers &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;cut their overall energy consumption between 22% and 34%&lt;/b&gt;, depending on whether they also had programmable thermostats that could automatically change temperature settings. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Once the surcharge was used as motivation, then the real-time metering enabled customers to save more &amp;ndash; and probably, after they had habituated to the changes, to become much greener electricity users.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Cratchit_magoo&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/cratchit_magoo_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;Cold?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Who&amp;#8217;s cold?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Customers offered rebates reduced their usage 9% to 15%&amp;mdash;again, with the deeper cuts among those who had smart thermostats. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;So rebates work &amp;ndash; but get-their-attention punishments work better.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Despite evidence that &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;sticks are better motivators than carrots&lt;/b&gt;, the utility intends to offer rebates in the future in an effort to change behavior. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Icarrot&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/icarrot_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;Would you rather be hit?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;The reason is simple: while using a punitive structure gets more rapid compliance, it also angers the customer, which has long-term costs.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;People who feel wronged will often do non-economic things to gain revenge.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Revenge_sith_4&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/Revenge_sith_4_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;Gonna be bad for the franchise &amp;hellip;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8220;Our general sense is that consumers would prefer a rate structure with no downside,&amp;#8221; says &lt;a href=&quot;http://www.demandresponsecommittee.org/id103.htm&quot;&gt;Steven Sunderhauf&lt;/a&gt;, a program manager for Pepco. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Personally, I&amp;#8217;d like a &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;life&lt;/i&gt; with no downside.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;I&amp;#8217;d like free health care at no cost to taxpayers.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;I&amp;#8217;d like to be able to dunk a basketball.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;I&amp;#8217;d like to be immortal.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Dunk_fail&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/dunk_fail_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;I is the dunk-ee, not the dunk-er&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8220;From a purist&amp;#8217;s standpoint, I may prefer critical peak pricing because it gets the boldest response &amp;hellip; but using rebates will help people get comfortable with smart meters.&amp;#8221;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/03/rules-you-dont-enforce-are-worse-than-useless.html&quot;&gt;Rules you don&amp;#8217;t enforce are worse than useless&lt;/a&gt;; a plan that people will not follow is worse than useless.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;An inferior plan that people embrace is superior.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Most importantly, getting homeowners to embrace a plan is the big savings, because customers have the most flexible usage patterns:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Last summer, Connecticut Light &amp;amp; Power Co., a subsidiary of &lt;a href=&quot;http://online.wsj.com/public/quotes/main.html?type=djn&amp;amp;symbol=NU&quot;&gt;Northeast Utilities Service &lt;/a&gt;Co., gave new meters to 3,000 residential and business customers, testing three types of rates. Like other utilities, it found that homes facing the highest peak-hour pricing&amp;mdash;$1.60 per kwh at certain times&amp;mdash;responded the most, cutting peak use 16% to 23%, depending on whether they had other aids like smart thermostats. Commercial customers, in a similar test, cut their demand far less, only 7%. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;This is just like airline pricing.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Right now it costs a fortune to fly from &lt;st1:city w:st=&quot;on&quot;&gt;Boston&lt;/st1:city&gt; to &lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Washington&lt;/st1:place&gt;&lt;/st1:state&gt;, because everyone in a suit is hurrying down to our nation&amp;#8217;s capital to convince someone of something.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;To fly to &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Baltimore&lt;/st1:place&gt;&lt;/st1:city&gt;, an hour away by train, costs one-fifth as much, because one is presumed to be a leisure traveler, not a commercial one.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Southwest_bwi&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/southwest_bwi_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;&amp;#8220;Because we think you&amp;#8217;re cheap&amp;#8221;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;That was instructive, says Jessica Brahaney Cain, director of CL&amp;amp;P&amp;#8217;s smart-grid planning, because it told the utility that many commercial customers don&amp;#8217;t have the option of cutting usage during times of peak demand. &amp;#8220;A restaurant has to use its ovens,&amp;#8221; she says. &amp;#8220;A dentist has to use his drills.&amp;#8221; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Sure enough, if we want to cut electricity consumption, changing the behavior of &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;people&lt;/i&gt; &amp;ndash; meaning residential apartments &amp;ndash; is the big win.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;One surprise, says Ms. Cain, was that almost all of the customers who participated in the pilot test reported more satisfaction with the &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Berlin&lt;/st1:city&gt;, &lt;st1:state w:st=&quot;on&quot;&gt;Conn.&lt;/st1:state&gt;&lt;/st1:place&gt;, utility than those who didn&amp;#8217;t. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Because they &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;chose &lt;/i&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;to participate.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;People want to believe they made smart choices, so merely by opting in, the customers improved their morale.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;They liked that the meters gave them greater insight into how they use electricity, she says.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/01/profile-of-a-slum-dharavi-part-3.html&quot;&gt;People are smart&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;People want to know.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Smart_brain&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/smart_brain_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;Keep those mental wheels turning&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Southern California &lt;st1:place w:st=&quot;on&quot;&gt;Edison&lt;/st1:place&gt; says it also plans to adopt a rebate strategy by the end of the year, even though it won&amp;#8217;t have all its meters in place until 2012.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8220;If customers do nothing, they&amp;#8217;ll get the same bill they otherwise would get,&amp;#8221; says Lynda Ziegler, senior vice president for customer service at the Edison International unit. Those that cut peak consumption will get a credit of 75 cents to $1.25 for each kilowatt-hour of reduction. The main concern of regulators, she says, is making sure meter readings are accurate.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Getting a financial savings for reducing consumption would be a big win.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;The utility chose rebates over penalties partly because a law passed during the &lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;California&lt;/st1:place&gt;&lt;/st1:state&gt; energy crisis a decade ago &amp;ndash; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;More of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;California&lt;/st1:state&gt;&lt;/st1:place&gt;&amp;#8217;s misguided meddling in utility rates.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Scooby_doo_meddling&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/scooby_doo_meddling_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;&amp;#8220;I&amp;#8217;d've been able to impose surcharges if not for those meddling regulators.&amp;#8221;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;ndash; &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;limits its ability to involuntarily switch people to higher peak-hour pricing plans right now. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Since &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/07/microfinance-born-in-the-usa-part-1-birth.html&quot;&gt;one man&amp;#8217;s rebate is another man&amp;#8217;s surcharge&lt;/a&gt;, the &lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;California&lt;/st1:place&gt;&lt;/st1:state&gt; statute effectively incentivizes the utilities to charge &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;everybody&lt;/i&gt; the higher rate, achieving the arithmetic equivalent but the wrong way around.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;A new law may allow it after 2013.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Don&amp;#8217;t hurry or anything.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;But the utility also concluded that it wouldn&amp;#8217;t be fair to really crank up peak pricing until homeowners have greater access to automation tools such as smart appliances and controllers. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;I have seen the future, and its pricing is an integral.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Integral&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/Integral_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;Your future electric bill&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;In the future, devices will contain computer chips and software so they can go into energy-saving mode in response to a signal sent from the utility or another energy manager that higher prices are kicking in.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Higher_prices&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/higher_prices_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN; mso-bidi-font-size: 10.0pt&quot;&gt;Be nice to have someone to blame&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
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		<title>Don&#8217;t get smart with me-ter: Part 1, the value of knowing</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2010/03/dont-get-smart-with-me-ter-part-1-the-value-of-knowing.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2010/03/dont-get-smart-with-me-ter-part-1-the-value-of-knowing.html#comments</comments>
		<pubDate>Tue, 16 Mar 2010 14:17:09 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Homeownership]]></category>
		<category><![CDATA[Innovations]]></category>
		<category><![CDATA[Metering]]></category>
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		<category><![CDATA[Utilities]]></category>

		<guid isPermaLink="false">http://affordablehousinginstitute.org/blogs/us/2010/03/don%e2%80%99t-get-smart-with-me-ter-part-1-the-value-of-knowing.html</guid>
		<description><![CDATA[By: David A. Smith
&#160;
When people know what they are doing, they do it smarter.&#160; That&#8217;s the principle behind biofeedback.
&#160;

Now, as you can see, reading AHI blogs makes you happier
&#160;
When people know what they are spending, they usually spend less.&#160; Of the three main costs of sheltering a family &#8211; cost of occupancy, cost of transportation [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN">By:<span style="COLOR: #333333"> </span><span style="COLOR: navy"><a href="http://www.affordablehousinginstitute.org/bio_DAS_long.php"><font color="#800080">David A. Smith</font></a></span><span style="COLOR: #333333"><?xml:namespace prefix ="" o /><o:p></o:p></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">When people know what they are doing, they do it smarter.<span style="mso-spacerun: yes">&nbsp; </span>That&#8217;s the principle behind biofeedback.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Biofeedback_laptop" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/biofeedback_laptop_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Now, as you can see, reading AHI blogs makes you happier<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">When people know what they are spending, they usually spend less.<span style="mso-spacerun: yes">&nbsp; </span>Of the three main costs of sheltering a family &ndash; cost of occupancy, <a href="http://affordablehousinginstitute.org/blogs/us/2006/12/driving_to_the.html">cost of transportation</a> (<a href="http://affordablehousinginstitute.org/blogs/us/2010/03/bringing-those-people-to-our-neighborhood.html">to job</a> and leisure), and cost of operations &ndash; people make big choices bout the first two, how and where to live, but the third is ruled by a host of small choices to which people are curiously indifferent, mainly because they cannot perceive that switching on this light or that boombox means thus-and-such amount of money.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">What if we gave homeowners real-time insight into their utility spending?<span style="mso-spacerun: yes">&nbsp; </span>With smart meters, this is now possible, leading to unexpected consequences, as revealed in this <a href="http://online.wsj.com/article/SB10001424052748704878904575031020562238094.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird"><font color="#800080">Wall Street Journal</font></a> article:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<h1 style="MARGIN: 0in 0in 0pt 0.5in"><b style="mso-bidi-font-weight: normal"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">What Utilities Have Learned From Smart-Meter Tests&#8230; <o:p></o:p></span></b></h1>
<h2 style="MARGIN: 0in 0in 0pt 0.5in"><b style="mso-bidi-font-weight: normal"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8230;And why they aren&#8217;t putting those lessons to use<o:p></o:p></span></b></h2>
<h2 style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></h2>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Utilities have learned a lot about how smart meters can compel consumers to save electricity. Unfortunately, too often they aren&#8217;t putting the knowledge to good use. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Wsj_what_utilities_have_learned_from_smart-meter_tests_meter_100222" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/wsj_what_utilities_have_learned_from_smart_2Dmeter_tests_meter_100222_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">Do you really want to see the numbers scrolling red?<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Let&#8217;s stipulate, for the moment, that tie <i style="mso-bidi-font-style: normal">Journal</i> knows what &#8216;good use&#8217; is &hellip;<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Smart meters are more precise than traditional meters in that they send readings on electricity usage to utility billing departments throughout the day. Not only do smart meters provide customers with a clearer picture of how they use electricity on a daily basis, they also <b style="mso-bidi-font-weight: normal">make it possible for utilities to charge more</b> for power when demand is highest&mdash;in the afternoon&mdash;and less when usage falls off&mdash;at night.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Information is a two-edged sword &ndash; one edge cutting consumption, the other edge pricing up production.<span style="mso-spacerun: yes">&nbsp; </span>So too is computing power &ndash; when one side gets smarter, the other can too.<span style="mso-spacerun: yes">&nbsp; </span>All of us encounter this every time we search for airline flights, since it&#8217;s quite clear that the Web-based systems are an extended game of ELIZA where we ask, &#8220;What does it cost?&#8221; and the computer answers coquettishly, &#8220;how badly do you want to go?&#8221;<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Belle_de_jour" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/belle_de_jour_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">Rates are cheaper during the day<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">But really, it&#8217;s hard to argue that you shouldn&#8217;t pay more for power when it&#8217;s more expensive to produce, particularly if you can shift your consumption.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">By making variable pricing plans possible, smart meters are expected to play a big role in getting customers to reduce their peak-hour energy consumption, a key goal of utility executives and policy makers.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">That&#8217;s the theory behind everything from the price of reserving a tennis court (which varies by day and week and demand) to the cost of a stadium seat on a stadium (it may be the same game and you may all have the same eyeballs, but not all seats are equivalent).<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Jack_nicholson_courtside" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/jack_nicholson_courtside_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">The better to heckle from<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Equally significant, a host of small <i style="mso-bidi-font-style: normal">consumption</i>-related and reversible decisions can collectively aggregate to a single <i style="mso-bidi-font-style: normal">production&shy;</i>-related and irreversible capital decision:<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Electricity grids are sized to meet the maximum electricity need, so a drop in peak demand would let utilities operate with fewer expensive power plants, meaning they could provide electricity at a <b style="mso-bidi-font-weight: normal">lower cost and with less pollution</b>.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Small increments accumulate into big discontinuities.<span style="mso-spacerun: yes">&nbsp; </span>The same moral reasoning behind recycling newspapers and plastic applied to the cost of LEDs and HVAC&#8217;s.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Utilities have run dozens of pilot tests of digital meters and found that <b style="mso-bidi-font-weight: normal">people cut power consumption the most when faced with higher peak-hour rates</b>. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Peak_savings" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/peak_savings_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">Note the spike at 8:00 pm<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><a href="http://affordablehousinginstitute.org/blogs/us/2005/12/people_value_on.html">People value what they pay for</a>, and if you help them save, they will.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">But utility executives and regulators have been reluctant to implement rate plans that penalize people for too much energy use, fearing that if customers associate smart meters with higher bills, they will stall the technology&#8217;s advance just as it is gaining traction.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Now we head into behavioral economics &ndash; saving $1 and being charged $1 surtax may be equivalent to an economist, but not to a human being.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Only about 5% of <?xml:namespace prefix ="" st1 /><st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place> electric meters are &#8220;smart&#8221; today, according to the U.S. Department of Energy, but that figure is expected to grow to about one-third in the next five years.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Hal_chess" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/hal_chess_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">I&#8217;m growing smarter, Dave<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Two lines govern these innovations:<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><br />1. The cost of technology, which always declines.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">2. The value of behavioral change, which always ascends.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Supply_demand_cross" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/supply_demand_cross_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"></span><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN"><a href="http://www.ajablokov.com/">&#8220;Efficient technology is like the flu: sooner or later everyone gets it&#8221;</a><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">In the office where I write this post, there is a motion-detector light switch.<span style="mso-spacerun: yes">&nbsp; </span>First posited in 1938 by Robert A. Heinlein in <i style="mso-bidi-font-style: normal">The Man Who Sold the Moon</i> (which also prefigured Richard Branson?), it only became commercially viable a few years back.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Virgin_galactic" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/virgin_galactic_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">Enough bucks, you can find Buck Rogers<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">And even more economically effective are setback thermostats for hot water heaters, motion-detector sensors in stairwells, auto-shutoff car headlights, and a host of on-only-when-needed devices.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">So, many utilities are trying an approach that is less controversial, but also less effective: <b style="mso-bidi-font-weight: normal">offering rebates</b> to customers who conserve energy in key periods of the day. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Fuzzy boundaries are bad boundaries: a crude simulation that people observe is better than precision that people flout.<span style="mso-spacerun: yes">&nbsp; </span>A simpler maritally-imposed decision rule I can remember (&#8221;use the Amex in this country, the Visa overseas&#8221;) will yield more savings than the more complex rule I&#8217;ll forget.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">By doing things like turning off clothes dryers and adjusting air conditioners on hot summer afternoons, customers earn credits that can reduce their electricity bills.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Blame_token" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/blame_token_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">Not a good thing<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Somewhere I read that for a manager, the proper ratio of praise to blame is 5 to 1.<span style="mso-spacerun: yes">&nbsp; </span>(For a spouse, it&#8217;s 20 to 1, if not higher.)<span style="mso-spacerun: yes">&nbsp; </span>Something similar works for customer relations &ndash; offer people a cookie for doing something positive, and your customer pool will be much happier than if you penalize a sluggard for doing nothing.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8220;Most CEOs struggle over this issue more than anything else,&#8221; says Ted Craver, chief executive of <a href="http://online.wsj.com/public/quotes/main.html?type=djn&amp;symbol=EIX">Edison International</a>, the <st1:place w:st="on"><st1:city w:st="on">Rosemead</st1:city>, <st1:state w:st="on">Calif.</st1:state></st1:place>, parent of Southern California Edison, which is in the midst of a massive smart-meter rollout. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN">&#8220;You could have a real rebellion&#8221; if smart meters push up customers&#8217; rates, especially if utilities&#8217; other capital expenses are increasing, he says.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN">Fixation on rates is foolish but human, because people&#8217;s perceptions of expense relate to how a thing is priced.<span style="mso-spacerun: yes">&nbsp; </span>It&#8217;s always seemed to me nonsensical that in the aggregate cost of driving a car, we fixate on gasoline prices to the exclusion of capital costs and depreciation.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Gas_prices_3" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/gas_prices_3_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">&#8220;Your Mileage May Vary&#8221;<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN">The <a href="http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut11.shtm">average price of an American car is $25,000 or so</a>, and the average American car <a href="http://www.google.com/search?sourceid=navclient&amp;ie=UTF-8&amp;rlz=1T4GZAZ_enUS360US360&amp;q=average+miles+Americans+drive+per+year">is driven 12,000 miles a year</a>.<span style="mso-spacerun: yes">&nbsp; </span>Say it lasts five years and is then traded in for $5,000. <span style="mso-spacerun: yes">&nbsp;</span>That&#8217;s 33 cents a mile even before considering anything else &ndash; tires, maintenance, repairs, insurance, financing costs.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Gas_prices_arm" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/gas_prices_arm_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">At least we disclosed it<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN">Conversely, even with gasoline at $3.00 per gallon, at (say) 25 miles to the gallon that&#8217;s 12 cents a mile.<span style="mso-spacerun: yes">&nbsp; </span>In other words, gasoline is less than one-third as price as the car costs, yet the American public goes bonkers when gas prices go up.<span style="mso-spacerun: yes">&nbsp; </span>Why?<span style="mso-spacerun: yes">&nbsp; </span>A combination of the difficulty of equating the effective cost of the large-purchase choice versus the constant reinforcement that for gasoline, the <i style="mso-bidi-font-style: normal">only</i> thing relevant is price at the pump.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Gas_prices_lol" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/gas_prices_lol_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"></span><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">How about, NFW?<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">Pacific Gas &amp; Electric Co., a unit of <a href="http://online.wsj.com/public/quotes/main.html?type=djn&amp;symbol=PCG">PG&amp;E</a> Corp., got a taste of the public-relations risk last summer when it installed smart meters in <st1:city w:st="on">Bakersfield</st1:city>, <st1:state w:st="on">Calif.</st1:state>, as part of a broad upgrade in its <st1:place w:st="on">Northern California</st1:place> service territory. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN">What do you do when your meter start tattling on you?<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Tattletale" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/tattletale_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">Especially not an electronic one<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">When customers&mdash;who weren&#8217;t participating in any sort of experimental rate plan&mdash;received dramatically higher bills shortly afterward, they blamed the meters for what they assumed was faulty billing. <o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">When in doubt, blame someone else!<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">The <st1:place w:st="on"><st1:city w:st="on">San Francisco</st1:city></st1:place> utility investigated and concluded that the meters were functioning properly. It found that the higher bills were simply a case of unfortunate timing: An increase in conventional rates had taken effect just ahead of unseasonably hot temperatures.<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN">How then to get people to embrace a smarter meter without going ballistic on selectively higher rates?<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN"><img alt="Angry_lou" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/angry_lou_small.jpg" border="0" /></span></p>
<p style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">We&#8217;ll just not tell you the score &hellip;<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span lang="EN" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span lang="EN" style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN">[Continued tomorrow in <a href="http://affordablehousinginstitute.org/blogs/us/2010/03/don%e2%80%99t-get-smart-with-me-ter-part-2-the-cost-of-knowing.html">Part 2</a>.]<o:p></o:p></span></i></p>
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<input type="hidden" name="postContent_0" value="&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;By:&lt;span style=&quot;COLOR: #333333&quot;&gt; &lt;/span&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;a href=&quot;http://www.affordablehousinginstitute.org/bio_DAS_long.php&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;David A. Smith&lt;/font&gt;&lt;/a&gt;&lt;/span&gt;&lt;span style=&quot;COLOR: #333333&quot;&gt;&lt;?xml:namespace prefix =&quot;&quot; o /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;When people know what they are doing, they do it smarter.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;That&amp;#8217;s the principle behind biofeedback.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Biofeedback_laptop&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/biofeedback_laptop_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Now, as you can see, reading AHI blogs makes you happier&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;When people know what they are spending, they usually spend less.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Of the three main costs of sheltering a family &amp;ndash; cost of occupancy, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/12/driving_to_the.html&quot;&gt;cost of transportation&lt;/a&gt; (&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2010/03/bringing-those-people-to-our-neighborhood.html&quot;&gt;to job&lt;/a&gt; and leisure), and cost of operations &amp;ndash; people make big choices bout the first two, how and where to live, but the third is ruled by a host of small choices to which people are curiously indifferent, mainly because they cannot perceive that switching on this light or that boombox means thus-and-such amount of money.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;What if we gave homeowners real-time insight into their utility spending?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;With smart meters, this is now possible, leading to unexpected consequences, as revealed in this &lt;a href=&quot;http://online.wsj.com/article/SB10001424052748704878904575031020562238094.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;Wall Street Journal&lt;/font&gt;&lt;/a&gt; article:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;h1 style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;What Utilities Have Learned From Smart-Meter Tests&amp;#8230; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/b&gt;&lt;/h1&gt;
&lt;h2 style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8230;And why they aren&amp;#8217;t putting those lessons to use&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/b&gt;&lt;/h2&gt;
&lt;h2 style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/h2&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Utilities have learned a lot about how smart meters can compel consumers to save electricity. Unfortunately, too often they aren&amp;#8217;t putting the knowledge to good use. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Wsj_what_utilities_have_learned_from_smart-meter_tests_meter_100222&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/wsj_what_utilities_have_learned_from_smart_2Dmeter_tests_meter_100222_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;Do you really want to see the numbers scrolling red?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Let&amp;#8217;s stipulate, for the moment, that tie &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Journal&lt;/i&gt; knows what &amp;#8216;good use&amp;#8217; is &amp;hellip;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Smart meters are more precise than traditional meters in that they send readings on electricity usage to utility billing departments throughout the day. Not only do smart meters provide customers with a clearer picture of how they use electricity on a daily basis, they also &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;make it possible for utilities to charge more&lt;/b&gt; for power when demand is highest&amp;mdash;in the afternoon&amp;mdash;and less when usage falls off&amp;mdash;at night.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Information is a two-edged sword &amp;ndash; one edge cutting consumption, the other edge pricing up production.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;So too is computing power &amp;ndash; when one side gets smarter, the other can too.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;All of us encounter this every time we search for airline flights, since it&amp;#8217;s quite clear that the Web-based systems are an extended game of ELIZA where we ask, &amp;#8220;What does it cost?&amp;#8221; and the computer answers coquettishly, &amp;#8220;how badly do you want to go?&amp;#8221;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Belle_de_jour&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/belle_de_jour_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;Rates are cheaper during the day&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;But really, it&amp;#8217;s hard to argue that you shouldn&amp;#8217;t pay more for power when it&amp;#8217;s more expensive to produce, particularly if you can shift your consumption.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;By making variable pricing plans possible, smart meters are expected to play a big role in getting customers to reduce their peak-hour energy consumption, a key goal of utility executives and policy makers.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;That&amp;#8217;s the theory behind everything from the price of reserving a tennis court (which varies by day and week and demand) to the cost of a stadium seat on a stadium (it may be the same game and you may all have the same eyeballs, but not all seats are equivalent).&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Jack_nicholson_courtside&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/jack_nicholson_courtside_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;The better to heckle from&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Equally significant, a host of small &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;consumption&lt;/i&gt;-related and reversible decisions can collectively aggregate to a single &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;production&amp;shy;&lt;/i&gt;-related and irreversible capital decision:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Electricity grids are sized to meet the maximum electricity need, so a drop in peak demand would let utilities operate with fewer expensive power plants, meaning they could provide electricity at a &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;lower cost and with less pollution&lt;/b&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Small increments accumulate into big discontinuities.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The same moral reasoning behind recycling newspapers and plastic applied to the cost of LEDs and HVAC&amp;#8217;s.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Utilities have run dozens of pilot tests of digital meters and found that &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;people cut power consumption the most when faced with higher peak-hour rates&lt;/b&gt;. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Peak_savings&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/peak_savings_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;Note the spike at 8:00 pm&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/12/people_value_on.html&quot;&gt;People value what they pay for&lt;/a&gt;, and if you help them save, they will.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;But utility executives and regulators have been reluctant to implement rate plans that penalize people for too much energy use, fearing that if customers associate smart meters with higher bills, they will stall the technology&amp;#8217;s advance just as it is gaining traction.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Now we head into behavioral economics &amp;ndash; saving $1 and being charged $1 surtax may be equivalent to an economist, but not to a human being.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Only about 5% of &lt;?xml:namespace prefix =&quot;&quot; st1 /&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;U.S.&lt;/st1:country-region&gt;&lt;/st1:place&gt; electric meters are &amp;#8220;smart&amp;#8221; today, according to the U.S. Department of Energy, but that figure is expected to grow to about one-third in the next five years.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Hal_chess&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/hal_chess_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;I&amp;#8217;m growing smarter, Dave&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Two lines govern these innovations:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;br /&gt;1. The cost of technology, which always declines.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;2. The value of behavioral change, which always ascends.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Supply_demand_cross&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/supply_demand_cross_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;/span&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;&lt;a href=&quot;http://www.ajablokov.com/&quot;&gt;&amp;#8220;Efficient technology is like the flu: sooner or later everyone gets it&amp;#8221;&lt;/a&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;In the office where I write this post, there is a motion-detector light switch.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;First posited in 1938 by Robert A. Heinlein in &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;The Man Who Sold the Moon&lt;/i&gt; (which also prefigured Richard Branson?), it only became commercially viable a few years back.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Virgin_galactic&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/virgin_galactic_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;Enough bucks, you can find Buck Rogers&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;And even more economically effective are setback thermostats for hot water heaters, motion-detector sensors in stairwells, auto-shutoff car headlights, and a host of on-only-when-needed devices.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;So, many utilities are trying an approach that is less controversial, but also less effective: &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;offering rebates&lt;/b&gt; to customers who conserve energy in key periods of the day. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Fuzzy boundaries are bad boundaries: a crude simulation that people observe is better than precision that people flout.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;A simpler maritally-imposed decision rule I can remember (&amp;#8221;use the Amex in this country, the Visa overseas&amp;#8221;) will yield more savings than the more complex rule I&amp;#8217;ll forget.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;By doing things like turning off clothes dryers and adjusting air conditioners on hot summer afternoons, customers earn credits that can reduce their electricity bills.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Blame_token&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/blame_token_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;Not a good thing&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Somewhere I read that for a manager, the proper ratio of praise to blame is 5 to 1.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;(For a spouse, it&amp;#8217;s 20 to 1, if not higher.)&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Something similar works for customer relations &amp;ndash; offer people a cookie for doing something positive, and your customer pool will be much happier than if you penalize a sluggard for doing nothing.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8220;Most CEOs struggle over this issue more than anything else,&amp;#8221; says Ted Craver, chief executive of &lt;a href=&quot;http://online.wsj.com/public/quotes/main.html?type=djn&amp;amp;symbol=EIX&quot;&gt;Edison International&lt;/a&gt;, the &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rosemead&lt;/st1:city&gt;, &lt;st1:state w:st=&quot;on&quot;&gt;Calif.&lt;/st1:state&gt;&lt;/st1:place&gt;, parent of Southern California Edison, which is in the midst of a massive smart-meter rollout. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&amp;#8220;You could have a real rebellion&amp;#8221; if smart meters push up customers&amp;#8217; rates, especially if utilities&amp;#8217; other capital expenses are increasing, he says.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Fixation on rates is foolish but human, because people&amp;#8217;s perceptions of expense relate to how a thing is priced.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;It&amp;#8217;s always seemed to me nonsensical that in the aggregate cost of driving a car, we fixate on gasoline prices to the exclusion of capital costs and depreciation.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Gas_prices_3&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/gas_prices_3_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;&amp;#8220;Your Mileage May Vary&amp;#8221;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;The &lt;a href=&quot;http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut11.shtm&quot;&gt;average price of an American car is $25,000 or so&lt;/a&gt;, and the average American car &lt;a href=&quot;http://www.google.com/search?sourceid=navclient&amp;amp;ie=UTF-8&amp;amp;rlz=1T4GZAZ_enUS360US360&amp;amp;q=average+miles+Americans+drive+per+year&quot;&gt;is driven 12,000 miles a year&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Say it lasts five years and is then traded in for $5,000. &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;That&amp;#8217;s 33 cents a mile even before considering anything else &amp;ndash; tires, maintenance, repairs, insurance, financing costs.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Gas_prices_arm&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/gas_prices_arm_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;At least we disclosed it&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Conversely, even with gasoline at $3.00 per gallon, at (say) 25 miles to the gallon that&amp;#8217;s 12 cents a mile.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;In other words, gasoline is less than one-third as price as the car costs, yet the American public goes bonkers when gas prices go up.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Why?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;A combination of the difficulty of equating the effective cost of the large-purchase choice versus the constant reinforcement that for gasoline, the &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;only&lt;/i&gt; thing relevant is price at the pump.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Gas_prices_lol&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/gas_prices_lol_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;/span&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;How about, NFW?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;Pacific Gas &amp;amp; Electric Co., a unit of &lt;a href=&quot;http://online.wsj.com/public/quotes/main.html?type=djn&amp;amp;symbol=PCG&quot;&gt;PG&amp;amp;E&lt;/a&gt; Corp., got a taste of the public-relations risk last summer when it installed smart meters in &lt;st1:city w:st=&quot;on&quot;&gt;Bakersfield&lt;/st1:city&gt;, &lt;st1:state w:st=&quot;on&quot;&gt;Calif.&lt;/st1:state&gt;, as part of a broad upgrade in its &lt;st1:place w:st=&quot;on&quot;&gt;Northern California&lt;/st1:place&gt; service territory. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;What do you do when your meter start tattling on you?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Tattletale&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/tattletale_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;Especially not an electronic one&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;When customers&amp;mdash;who weren&amp;#8217;t participating in any sort of experimental rate plan&amp;mdash;received dramatically higher bills shortly afterward, they blamed the meters for what they assumed was faulty billing. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;When in doubt, blame someone else!&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;The &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;San Francisco&lt;/st1:city&gt;&lt;/st1:place&gt; utility investigated and concluded that the meters were functioning properly. It found that the higher bills were simply a case of unfortunate timing: An increase in conventional rates had taken effect just ahead of unseasonably hot temperatures.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;How then to get people to embrace a smarter meter without going ballistic on selectively higher rates?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; COLOR: black; FONT-FAMILY: Arial; mso-highlight: aqua; mso-ansi-language: EN&quot;&gt;&lt;img alt=&quot;Angry_lou&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/angry_lou_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;We&amp;#8217;ll just not tell you the score &amp;hellip;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-ansi-language: EN&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span lang=&quot;EN&quot; style=&quot;FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-ansi-language: EN&quot;&gt;[Continued tomorrow in &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2010/03/don%e2%80%99t-get-smart-with-me-ter-part-2-the-cost-of-knowing.html&quot;&gt;Part 2&lt;/a&gt;.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
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		<title>Not only better but also cheaper</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2010/03/not-only-better-but-also-cheaper.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2010/03/not-only-better-but-also-cheaper.html#comments</comments>
		<pubDate>Wed, 03 Mar 2010 16:45:20 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Apartments]]></category>
		<category><![CDATA[Construction]]></category>
		<category><![CDATA[HOPE VI]]></category>
		<category><![CDATA[New York City]]></category>
		<category><![CDATA[Public housing]]></category>
		<category><![CDATA[Theory]]></category>

		<guid isPermaLink="false">http://affordablehousinginstitute.org/blogs/us/2010/03/not-only-better-but-also-cheaper.html</guid>
		<description><![CDATA[By: David A. Smith
&#160;
Would you rather spend $138 and get 360 brand-new objects, or spend $130 and get 269 used objects?
&#160;
What is this, asks the reader, a trick question?&#160; 
&#160;
Not to the New York City Housing Authority, but perhaps to those whose willingness to believe and trust has been incinerated by many years of unfulfilled [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span lang="EN" style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-ansi-language: EN">By:<span style="COLOR: #333333"> </span><span style="COLOR: navy"><a href="http://www.affordablehousinginstitute.org/bio_DAS_long.php">David A. Smith</a></span><span style="COLOR: #333333"><?xml:namespace prefix ="" o ns ="" "urn:schemas-microsoft-com:office:office" /><o:p></o:p></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'">Would you rather spend $138 and get 360 brand-new objects, or spend $130 and get 269 used objects?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'">What is this, </span></i><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'">asks the reader,<i style="mso-bidi-font-style: normal"> a trick question?<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></i></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'">Not to the New York City Housing Authority, but perhaps to those whose <a href="http://affordablehousinginstitute.org/blogs/us/2009/09/distrust-me-just-this-once-part-3-how-to-build-trust.html">willingness to believe and trust</a> has been incinerated by many years of unfulfilled hopes.<span style="mso-spacerun: yes">&nbsp; </span>As reported in the <a href="http://www.nytimes.com/2010/02/06/nyregion/06demolish.html?pagewanted=2"><font color="#800080">New York Times</font></a> <i style="mso-bidi-font-style: normal">[February 6, 2010 &ndash; Ed.]</i>:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><?xml:namespace prefix ="" st1 ns ="" "urn:schemas-microsoft-com:office:smarttags" /><st1:city w:st="on"><st1:place w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Philadelphia</span></st1:place></st1:city><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> tore down 21. <st1:city w:st="on"><st1:place w:st="on">Chicago</st1:place></st1:city> leveled 79. <st1:place w:st="on"><st1:city w:st="on">Baltimore</st1:city></st1:place> took down 21 as well, and when 6 of them came down in one day in 1995, it threw a parade. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Nyt_ny_plans_to_topple_public_housing_implosion_100228" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/nyt_ny_plans_to_topple_public_housing_implosion_100228_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">IMPLOSION&#8211;The implosion of a large housing project in <st1:place w:st="on"><st1:city w:st="on">Newark</st1:city></st1:place> in 1996. Many cities have moved toward smaller-scale housing that does not carry the stigma of despair and poverty. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Since the 1990s, <a href="http://affordablehousinginstitute.org/blogs/us/category/public-housing">public housing</a> high-rise buildings have come tumbling down by the dozens across the country as cities replace them with smaller suburban-style homes that do not carry the stigma of looming urban despair and poverty. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Not just in <st1:country-region w:st="on"><st1:place w:st="on">America</st1:place></st1:country-region>.<span style="mso-spacerun: yes">&nbsp; </span><st1:city w:st="on"><st1:place w:st="on">London</st1:place></st1:city> has torn down some of its council high-rises.<span style="mso-spacerun: yes">&nbsp; </span><a href="http://affordablehousinginstitute.org/blogs/us/2005/11/fixing_french_h.html">Paris should tear down its</a>.<span style="mso-spacerun: yes">&nbsp; </span>Even as increasing density means cities must go vertical, going vertical is the prerogative of the wealthy.<span style="mso-spacerun: yes">&nbsp; </span>The poorer you are, <a href="http://www.affordablehousinginstitute.org/resources/library/APHF2_slum_redevelopment_2009.pdf">the more important it is for you to live on or near the ground floor</a> &ndash; despite <a href="http://affordablehousinginstitute.org/blogs/us/2009/07/big-bad-blocks-part-1-blame-the-architects.html">theoretical architects like Le Corbusier</a>, the only people who can live happily in a high-rise are middle-income or rich.<span style="mso-spacerun: yes">&nbsp; </span>Very low income high-rises become <a href="http://affordablehousinginstitute.org/blogs/us/2005/09/the_slums_insid.html">the slums inside</a>. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><st1:city w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New York City</span></st1:city><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> has long been the great exception, and red-brick towers still dominate the skyline from the Lower East Side to East Harlem, from Mott Haven, in the Bronx, to Bushwick, <st1:place w:st="on">Brooklyn</st1:place>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Farragut_community" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/farragut_community_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Dents in the sign notwithstanding, a wonderful community?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:state w:st="on"><st1:place w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New York</span></st1:place></st1:state><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> is exceptional for many reasons:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<ul style="MARGIN-TOP: 0in" type="disc">
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">It has long had the nation&#8217;s most capable large public housing authority<o:p></o:p></span></li>
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As <a href="http://affordablehousinginstitute.org/blogs/us/2006/04/cradle_of_apart.html">the cradle of apartment</a> and high-rise living, it&#8217;s got a granite backbone uniquely suited to high-rises.<o:p></o:p></span></li>
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">NYCHA has been <a href="http://affordablehousinginstitute.org/blogs/us/2006/04/searching_the_s.html">searching the sofa cushions</a> (to scrape up extra operating money) and <a href="http://affordablehousinginstitute.org/blogs/us/2007/06/selling_the_fam.html">selling the family silver</a> (disposing of non-core assets) to stave off the evil day.<o:p></o:p></span></li>
</ul>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Yet, as we saw only a few weeks ago, <a href="http://affordablehousinginstitute.org/blogs/us/2010/02/rehab-deferred-is-rehab-denied-part-3-future.html">rehab deferred is rehab denied</a>, and <st1:city w:st="on"><st1:place w:st="on">New York City</st1:place></st1:city>, under the capable direction of Michael Kelly, has finally reached the inevitable conclusion for this property:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">But now, for the first time in its 75-year history, <a title="The authority&rsquo;s site." href="http://www.nyc.gov/html/nycha/html/home/home.shtml">the New York City Housing Authority</a> wants to knock down an entire high-rise complex, <a href="http://en.wikipedia.org/wiki/Prospect_Plaza_Houses">Prospect Plaza in Brooklyn</a> &mdash; a move that has surprised and angered a number of former tenants and advocates for low-income housing. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Nyt_ny_plans_to_topple_public_housing_project_set_to_fall_100228" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/nyt_ny_plans_to_topple_public_housing_project_set_to_fall_100228_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In the past decade, the authority has chosen to renovate rather than tear down its aging housing stock, often at great expense. Its decision to demolish <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Plaza</st1:placetype></st1:place> was not the result of a sweeping policy shift, but of the failure of a renovation project that became bogged down in years of administrative, financial and legal problems. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The failure of <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Park</st1:placetype></st1:place>&#8217;s HOPE VI renovation &ndash; a failure over a decade in the making &ndash; is a classic story.<span style="mso-spacerun: yes">&nbsp; </span>Visions of sugar plums brought to the party far too<span style="mso-spacerun: yes">&nbsp; </span>many cooks, all angling for their own piece of the pie.<span style="mso-spacerun: yes">&nbsp; </span>As profiled in a story I discovered from </span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'"><a href="http://www.citylimits.org/news/article.cfm?article_id=2150">City Limits, July 1, 2001</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/11/the-inevitability-effect-part-1-who-wants-a-piece.html">the inevitability effect</a> doomed the Prospect Plaza HOPE VI transaction:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Inevitability_effect" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/inevitability_effect_small1.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: yellow; FONT-FAMILY: Arial; mso-highlight: yellow"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"></span>&nbsp;</p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Here are a few snippets from the tragedy:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><b style="mso-bidi-font-weight: normal"><span style="FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia">A consortium of community groups and churches</span></b><span style="FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia">, which joined with project tenants to jointly administer the funds, are now <i style="mso-bidi-font-style: normal">[July 1, 2001 &ndash; Ed.] </i>duking it out for control of the money.</span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">While they <a href="http://affordablehousinginstitute.org/blogs/us/2009/10/dharavi-while-the-ice-cream-cone-melts.html">fought over the financial ice cream cone, it melted away</a>.<span style="mso-spacerun: yes">&nbsp; </span>Here&#8217;s a representative snapshot from a story so dreary I cannot bear to quote it:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia">Early on, when <a href="http://www.villagevoice.com/2006-06-27/nyc-life/abdur-rahman-farrakhan/">Abdur-Rahman Farrakhan</a> became chairman of the PPDC, the group quickly descended into a nasty war of words. Farrakhan accuses other nonprofits&#8211;in particular the Brooklyn Interborough Community Network (BICNet)&#8211;of manipulating <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Plaza</st1:placetype></st1:place>&rsquo;s tenants in the hopes of getting large contracts for job training and technical assistance. &ldquo;Everybody is looking to position themselves as best they can to be able to take advantage of this,&rdquo; he says. Farrakhan says that Shelton Jefferson, who heads BICNet, &ldquo;wanted a guaranteed contract and went to the tenants to stir shit up.&rdquo; <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><st1:place w:st="on"><span style="FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia">Jefferson</span></st1:place><span style="FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia"> says he&rsquo;s astonished by Farrakhan&rsquo;s charge. &ldquo;I doubt if Mr. Farrakhan would say something like that,&rdquo; he says. &ldquo;I have become involved in this project only because I was asked. I was asked by NYCHA to be an adviser to the tenants.&rdquo; <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">For several years, NYCHA and its preferred developer, a very capable organization khown as Michaels Development, pursued HOPE VI, but that too collapsed.<span style="mso-spacerun: yes">&nbsp; </span>Meanwhile &ndash; <a href="http://affordablehousinginstitute.org/blogs/us/2010/02/rehab-deferred-is-rehab-denied-part-3-future.html">rehab deferred is rehab denied</a> &ndash; the buildings became progressively more empty, more decrepit, and more expensive to renovate.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Prospect_plaza_derelict" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/prospect_plaza_derelict_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:place w:st="on"><st1:placename w:st="on"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Prospect</span></st1:placename><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"> <st1:placetype w:st="on">Plaza</st1:placetype></span></st1:place><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"> today: derelict and fenced off<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Don&#8217;t let the windows fool you &ndash; the ground floors are boarded up<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><st1:placename w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Prospect</span></st1:placename><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> <st1:placetype w:st="on">Plaza</st1:placetype> &mdash; three 12- to 15-story towers in <st1:place w:st="on"><st1:city w:st="on">Brownsville</st1:city></st1:place> &mdash; is plagued by neither despair nor poverty: It has been vacant since 2003, when the last tenants were moved out with the promise they could return to refurbished apartments. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">So why are we keeping an outmoded shell?<span style="mso-spacerun: yes">&nbsp; </span>Nostalgia?<span style="mso-spacerun: yes">&nbsp; </span>Or political expectation?<span style="mso-spacerun: yes">&nbsp; </span>Or something simpler &ndash; like distrust of the alternative?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Agency officials say they want to tear down the 35-year-old buildings and erect new apartments in their place. Officials initially planned to leave the towers standing and reconfigure the apartments, by eliminating some units to create bigger living rooms and bathrooms, but those plans were scrapped by the authority&rsquo;s new leadership because demolition made better financial sense. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">It often does.<span style="mso-spacerun: yes">&nbsp; </span>Buildings become obsolete, the more so when they fail to receive periodic upgrading and repositioning.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><a href="http://www.nytimes.com/1987/10/12/style/ilene-c-popkin-weds-mitchell-make-on-li.html?pagewanted=1">Ilene Popkin</a>, the agency&rsquo;s assistant deputy general manager for development, said the three buildings had deteriorated from vandalism and exposure to the elements, and were out of context with the neighborhood. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">She said it would cost $481,000 to renovate each of the 269 apartments. Demolishing the structures and building 361 new units would cost $381,700 per unit. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">If you do that arithmetic, renovation will cost $130 million and deliver 269 existing apartments; new-build will cost $138 million and deliver 361 &ndash; 92 more apartments for only $8 million more.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Mo_money" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/mo_money_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Mo&#8217; money, mo&#8217; housing<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Moreover, because they&#8217;re new-build, with no resident relocation challenges, the construction will go faster, with far fewer unknowns or temporal risk factors.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The new apartments &mdash; including public and private housing, not only for the poor but also for low- and moderate-income families &mdash; are likely to be built in low-rise buildings. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><st1:place w:st="on"><st1:placename w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Prospect</span></st1:placename><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> <st1:placetype w:st="on">Plaza</st1:placetype></span></st1:place><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> originally included four towers housing 1,200 people. <span style="mso-spacerun: yes">&nbsp;</span><i style="mso-bidi-font-style: normal">[Not units &ndash; Ed.]</i><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">One was torn down in 2005; the plan was to use that space for a new community center, shops and additional housing. But today, the building&rsquo;s old footprint is just a fenced-off lot. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Many public housing properties suffer from excessive density, particularly if the apartments are designed for families.<span style="mso-spacerun: yes">&nbsp; </span>Babies have the annoying habit of growing up into toddlers, then into children, then into adolescents, and all these increasingly animate and rambunctious small people<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">That building was the first high-rise the authority demolished. In 2007, the agency also knocked down a number of two-story buildings as part of the redevelopment of the <st1:placename w:st="on"><st1:personname w:st="on">Mark</st1:personname>ham</st1:placename> <st1:placetype w:st="on">Gardens</st1:placetype> complex on <st1:place w:st="on">Staten Island</st1:place>. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The authority has completed the first two phases of its Prospect Plaza redevelopment plan, involving not the actual housing project itself but 37 two-family houses and 150 rental units in four-story town-house-style buildings that were constructed on nearby lots formerly owned by the city.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">It&#8217;s a start &ndash; improving the neighborhood surrounding the public housing property.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="New_prospect_plaza" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/new_prospect_plaza_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The new <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Plaza</st1:placetype></st1:place>: not a project but a neighborhood<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Prospect_plaza_new_ribbon_cutting" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/prospect_plaza_new_ribbon_cutting_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The ribbon-cutting &ndash; always a happy moment<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Several former residents of <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Plaza</st1:placetype></st1:place> and groups that represent public housing tenants said they did not support the demolition, in part, because it was unclear to them that the authority intended to replace the old units with the same number of new public housing units.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">While I understand about residents&#8217; fear of losing apartments, there is a vast difference between losing a judicial unit &ndash; an apartment that is contractually or legally obligated to be affordable, irrespective of whether it is inhabitable &ndash; versus losing an <i style="mso-bidi-font-style: normal">actual</i> unit.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="All_boarded_up" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/all_boarded_up_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Do we count the unit as here or lost?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Even as the three towers sit vacant on <st1:street w:st="on"><st1:address w:st="on">Prospect Place</st1:address></st1:street> near <st1:street w:st="on"><st1:address w:st="on">Saratoga Avenue</st1:address></st1:street>, they continue to be a costly expense for the cash-strapped authority, which has paid a security firm $25,000 a month since 2005 to keep watch over the buildings.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">At $25,000 a month for five years, that&#8217;s $1.5 million &ndash; which could have meant five more brand-new apartments after the rebuilding.<span style="mso-spacerun: yes">&nbsp; </span>A large fraction of our public housing stock has decayed beyond salvageability, and &ndash; <a href="http://affordablehousinginstitute.org/blogs/us/2009/07/end-of-an-error-part-3-proving-it-by-doing-it.html">as we saw in Atlanta</a> &ndash; it takes an executive with some courage to say so.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Agency officials have not decided how many of the new apartments will be public housing, but they said that former residents and community leaders would help make that determination. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">&ldquo;We are committed to being shoulder to shoulder with you,&rdquo; the agency&rsquo;s new general manager, Michael Kelly, told former tenants and others at <b style="mso-bidi-font-weight: normal">a community meeting last week</b> [<i style="mso-bidi-font-style: normal">Late January &ndash; Ed.]</i> a few blocks from the vacant buildings. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-size: 8.0pt; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Nyt_ny_plans_to_topple_public_housing_kelly_100228" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/nyt_ny_plans_to_topple_public_housing_kelly_100228_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Michael Kelly, general manager of the New York City Housing Authority, tried to reassure former tenants at a public meeting. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As I&#8217;ve previously posted, <a href="http://affordablehousinginstitute.org/blogs/us/2010/02/rehab-deferred-is-rehab-denied-part-1-past.html">Mike Kelly is one of the good guys</a>.<span style="mso-spacerun: yes">&nbsp; </span>I trust him.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The cost of demolishing the towers and building the new apartments is estimated at $138 million. Part of the financing will come from a $21.4 million federal grant the authority was awarded in 1999 to revitalize <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Plaza</st1:placetype></st1:place>, of which about $17 million remains. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The other $4 million got spent in the ill-fated Michaels HOPE VI effort.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">At the meeting, Mr. Kelly said it was too early to say where the rest of the financing would come from. Agency documents describe the project as &ldquo;mixed finance,&rdquo; meaning it will be paid for with public and private dollars, with some of the money coming from the sale of federal low-income housing tax credits. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Laura_tach_03" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/laura_tach_03_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"><a href="http://affordablehousinginstitute.org/blogs/us/2008/02/we-see-what-we-expect-to-see-part-1-why-we-want-to-know.html">Doctoral candidate Laura Tach</a> likes income mixing<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Meaning income mixing, meaning LIHTC residents and so on.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The demolition, which must be approved by the federal <a title="More articles about Housing and Urban Development Department, U.S." href="http://topics.nytimes.com/top/reference/timestopics/organizations/h/housing_and_urban_development_department/index.html?inline=nyt-org">Department of Housing and Urban Development</a>, is planned for this fall, with construction scheduled to start in 2012. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">If one cannot finance the renovation, one has no choice but a teardown and rebuild.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Preference for the new public housing units will go to former residents, many of whom were relocated to other public housing in <st1:place w:st="on">Brooklyn</st1:place>. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><a href="http://www.nydailynews.com/ny_local/brooklyn/2009/11/03/2009-11-03_demo_would_put_tenants_in_a_fix.html">Milton Bolton</a>, 50, a former resident and the president of the still-intact Prospect Plaza Tenants Association, held up a thick draft of a 1998 application for the federal grant and said, &ldquo;It&rsquo;s hard to have trust.&rdquo; <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-size: 8.0pt; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua"><img alt="Nyt_ny_plans_to_topple_public_housing_bolton_100228" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/nyt_ny_plans_to_topple_public_housing_bolton_100228_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'">Milton Bolton, the tenant association president of <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Plaza</st1:placetype></st1:place>, at the vacant buildings where he used to live. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><br /></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'">There comes a time when <a href="http://affordablehousinginstitute.org/blogs/us/2007/09/going-somewhere-to-die.html">buildings have to go somewhere to die</a>; when that happens, it is a kindness to get rid of them.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Ms. Popkin and Mr. Kelly acknowledged &ldquo;bumps along the road&rdquo; for the project in the past, but they stressed their desire to rebuild the neighborhood. &ldquo;I understand that folks here are frustrated,&rdquo; Ms. Popkin said. &ldquo;There is a new management at Nycha. We have a commitment to these towers. This is a top priority to move forward.&rdquo; <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Initially I was skeptical of Mr. Bolton&#8217;s <a href="http://affordablehousinginstitute.org/blogs/us/2009/09/distrust-me-just-this-once-part-1-the-need-for-trust.html">distrust</a>, until I found these paragraphs from nine years ago:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia">Even residents who say they&rsquo;d welcome higher-income neighbors are running out of patience. Milton Bolton, the president of the Prospect Plaza Tenant Association and once a big booster of the plan, is now <i style="mso-bidi-font-style: normal">[July, 2001 &ndash; Ed.] </i>ambivalent. He&rsquo;s distressed that the social service programs are not established yet&#8211;particularly the homeowner training workshops, since he someday hopes to buy a house. <st1:place w:st="on">Bolton</st1:place>, a soft-spoken bear of a man, sits in a straight-backed chair and bounces his 2-year-old son <i style="mso-bidi-font-style: normal">[The boy is now 11 &ndash; Ed.] </i>on his lap as his seven other children scoot in and out of the room. &ldquo;We welcome the changes,&rdquo; he says. &ldquo;We welcome the impact if it&rsquo;s done right. But no matter what we do, it still feels like we&rsquo;re fighting a losing battle.&rdquo; <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia">Bolton, who has put in countless hours on the <st1:place w:st="on"><st1:placename w:st="on">Prospect</st1:placename> <st1:placetype w:st="on">Plaza</st1:placetype></st1:place> deal, believes that he will not be allowed to return to the project once the renovations are complete. He has been unemployed for a while and admits that there have been many times that he has fallen behind in his rent. He&rsquo;s even been put on probation for the problem. &ldquo;What they&rsquo;re telling me is once I leave, I&rsquo;m not coming back,&rdquo; he says. &ldquo;We just have to hope they bring at least some of the people back.&rdquo; <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">I sometimes forget that those residents who have the most time to devote to public housing advocacy may be those who have the fewest economic resources.<span style="mso-spacerun: yes">&nbsp; </span>I respect and admire Mr. Bolton&#8217;s patience and commitment in the face of uncertainty and disappointment.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><img alt="Alg_milton_bolton" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/alg_milton_bolton_small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:place w:st="on"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Bolton</span></st1:place><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"> keeps hoping<o:p></o:p></span></p>
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&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Would you rather spend $138 and get 360 brand-new objects, or spend $130 and get 269 used objects?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;What is this, &lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;asks the reader,&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt; a trick question?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Not to the New York City Housing Authority, but perhaps to those whose &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/09/distrust-me-just-this-once-part-3-how-to-build-trust.html&quot;&gt;willingness to believe and trust&lt;/a&gt; has been incinerated by many years of unfulfilled hopes.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As reported in the &lt;a href=&quot;http://www.nytimes.com/2010/02/06/nyregion/06demolish.html?pagewanted=2&quot;&gt;&lt;font color=&quot;#800080&quot;&gt;New York Times&lt;/font&gt;&lt;/a&gt; &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[February 6, 2010 &amp;ndash; Ed.]&lt;/i&gt;:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;?xml:namespace prefix =&quot;&quot; st1 ns =&quot;&quot; &quot;urn:schemas-microsoft-com:office:smarttags&quot; /&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Philadelphia&lt;/span&gt;&lt;/st1:place&gt;&lt;/st1:city&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; tore down 21. &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Chicago&lt;/st1:place&gt;&lt;/st1:city&gt; leveled 79. &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Baltimore&lt;/st1:city&gt;&lt;/st1:place&gt; took down 21 as well, and when 6 of them came down in one day in 1995, it threw a parade. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Nyt_ny_plans_to_topple_public_housing_implosion_100228&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/nyt_ny_plans_to_topple_public_housing_implosion_100228_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;IMPLOSION&amp;#8211;The implosion of a large housing project in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Newark&lt;/st1:city&gt;&lt;/st1:place&gt; in 1996. Many cities have moved toward smaller-scale housing that does not carry the stigma of despair and poverty. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Since the 1990s, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/category/public-housing&quot;&gt;public housing&lt;/a&gt; high-rise buildings have come tumbling down by the dozens across the country as cities replace them with smaller suburban-style homes that do not carry the stigma of looming urban despair and poverty. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Not just in &lt;st1:country-region w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;America&lt;/st1:place&gt;&lt;/st1:country-region&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;London&lt;/st1:place&gt;&lt;/st1:city&gt; has torn down some of its council high-rises.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/11/fixing_french_h.html&quot;&gt;Paris should tear down its&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Even as increasing density means cities must go vertical, going vertical is the prerogative of the wealthy.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The poorer you are, &lt;a href=&quot;http://www.affordablehousinginstitute.org/resources/library/APHF2_slum_redevelopment_2009.pdf&quot;&gt;the more important it is for you to live on or near the ground floor&lt;/a&gt; &amp;ndash; despite &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/07/big-bad-blocks-part-1-blame-the-architects.html&quot;&gt;theoretical architects like Le Corbusier&lt;/a&gt;, the only people who can live happily in a high-rise are middle-income or rich.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Very low income high-rises become &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/09/the_slums_insid.html&quot;&gt;the slums inside&lt;/a&gt;. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;New York City&lt;/span&gt;&lt;/st1:city&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; has long been the great exception, and red-brick towers still dominate the skyline from the Lower East Side to East Harlem, from Mott Haven, in the Bronx, to Bushwick, &lt;st1:place w:st=&quot;on&quot;&gt;Brooklyn&lt;/st1:place&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Farragut_community&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/farragut_community_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Dents in the sign notwithstanding, a wonderful community?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;New York&lt;/span&gt;&lt;/st1:place&gt;&lt;/st1:state&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; is exceptional for many reasons:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;ul style=&quot;MARGIN-TOP: 0in&quot; type=&quot;disc&quot;&gt;
&lt;li class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;It has long had the nation&amp;#8217;s most capable large public housing authority&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/li&gt;
&lt;li class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/04/cradle_of_apart.html&quot;&gt;the cradle of apartment&lt;/a&gt; and high-rise living, it&amp;#8217;s got a granite backbone uniquely suited to high-rises.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/li&gt;
&lt;li class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;NYCHA has been &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/04/searching_the_s.html&quot;&gt;searching the sofa cushions&lt;/a&gt; (to scrape up extra operating money) and &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/06/selling_the_fam.html&quot;&gt;selling the family silver&lt;/a&gt; (disposing of non-core assets) to stave off the evil day.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/li&gt;
&lt;/ul&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Yet, as we saw only a few weeks ago, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2010/02/rehab-deferred-is-rehab-denied-part-3-future.html&quot;&gt;rehab deferred is rehab denied&lt;/a&gt;, and &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;New York City&lt;/st1:place&gt;&lt;/st1:city&gt;, under the capable direction of Michael Kelly, has finally reached the inevitable conclusion for this property:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;But now, for the first time in its 75-year history, &lt;a title=&quot;The authority&amp;rsquo;s site.&quot; href=&quot;http://www.nyc.gov/html/nycha/html/home/home.shtml&quot;&gt;the New York City Housing Authority&lt;/a&gt; wants to knock down an entire high-rise complex, &lt;a href=&quot;http://en.wikipedia.org/wiki/Prospect_Plaza_Houses&quot;&gt;Prospect Plaza in Brooklyn&lt;/a&gt; &amp;mdash; a move that has surprised and angered a number of former tenants and advocates for low-income housing. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Nyt_ny_plans_to_topple_public_housing_project_set_to_fall_100228&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/nyt_ny_plans_to_topple_public_housing_project_set_to_fall_100228_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In the past decade, the authority has chosen to renovate rather than tear down its aging housing stock, often at great expense. Its decision to demolish &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt;&lt;/st1:place&gt; was not the result of a sweeping policy shift, but of the failure of a renovation project that became bogged down in years of administrative, financial and legal problems. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The failure of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Park&lt;/st1:placetype&gt;&lt;/st1:place&gt;&amp;#8217;s HOPE VI renovation &amp;ndash; a failure over a decade in the making &amp;ndash; is a classic story.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Visions of sugar plums brought to the party far too&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;many cooks, all angling for their own piece of the pie.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As profiled in a story I discovered from &lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;a href=&quot;http://www.citylimits.org/news/article.cfm?article_id=2150&quot;&gt;City Limits, July 1, 2001&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/11/the-inevitability-effect-part-1-who-wants-a-piece.html&quot;&gt;the inevitability effect&lt;/a&gt; doomed the Prospect Plaza HOPE VI transaction:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Inevitability_effect&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/inevitability_effect_small1.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: yellow; FONT-FAMILY: Arial; mso-highlight: yellow&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Here are a few snippets from the tragedy:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia&quot;&gt;A consortium of community groups and churches&lt;/span&gt;&lt;/b&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia&quot;&gt;, which joined with project tenants to jointly administer the funds, are now &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[July 1, 2001 &amp;ndash; Ed.] &lt;/i&gt;duking it out for control of the money.&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;While they &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/10/dharavi-while-the-ice-cream-cone-melts.html&quot;&gt;fought over the financial ice cream cone, it melted away&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Here&amp;#8217;s a representative snapshot from a story so dreary I cannot bear to quote it:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia&quot;&gt;Early on, when &lt;a href=&quot;http://www.villagevoice.com/2006-06-27/nyc-life/abdur-rahman-farrakhan/&quot;&gt;Abdur-Rahman Farrakhan&lt;/a&gt; became chairman of the PPDC, the group quickly descended into a nasty war of words. Farrakhan accuses other nonprofits&amp;#8211;in particular the Brooklyn Interborough Community Network (BICNet)&amp;#8211;of manipulating &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt;&lt;/st1:place&gt;&amp;rsquo;s tenants in the hopes of getting large contracts for job training and technical assistance. &amp;ldquo;Everybody is looking to position themselves as best they can to be able to take advantage of this,&amp;rdquo; he says. Farrakhan says that Shelton Jefferson, who heads BICNet, &amp;ldquo;wanted a guaranteed contract and went to the tenants to stir shit up.&amp;rdquo; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia&quot;&gt;Jefferson&lt;/span&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia&quot;&gt; says he&amp;rsquo;s astonished by Farrakhan&amp;rsquo;s charge. &amp;ldquo;I doubt if Mr. Farrakhan would say something like that,&amp;rdquo; he says. &amp;ldquo;I have become involved in this project only because I was asked. I was asked by NYCHA to be an adviser to the tenants.&amp;rdquo; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;For several years, NYCHA and its preferred developer, a very capable organization khown as Michaels Development, pursued HOPE VI, but that too collapsed.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Meanwhile &amp;ndash; &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2010/02/rehab-deferred-is-rehab-denied-part-3-future.html&quot;&gt;rehab deferred is rehab denied&lt;/a&gt; &amp;ndash; the buildings became progressively more empty, more decrepit, and more expensive to renovate.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Prospect_plaza_derelict&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/prospect_plaza_derelict_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Prospect&lt;/span&gt;&lt;/st1:placename&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt;&lt;/span&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt; today: derelict and fenced off&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Don&amp;#8217;t let the windows fool you &amp;ndash; the ground floors are boarded up&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Prospect&lt;/span&gt;&lt;/st1:placename&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt; &amp;mdash; three 12- to 15-story towers in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Brownsville&lt;/st1:city&gt;&lt;/st1:place&gt; &amp;mdash; is plagued by neither despair nor poverty: It has been vacant since 2003, when the last tenants were moved out with the promise they could return to refurbished apartments. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;So why are we keeping an outmoded shell?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Nostalgia?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Or political expectation?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Or something simpler &amp;ndash; like distrust of the alternative?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Agency officials say they want to tear down the 35-year-old buildings and erect new apartments in their place. Officials initially planned to leave the towers standing and reconfigure the apartments, by eliminating some units to create bigger living rooms and bathrooms, but those plans were scrapped by the authority&amp;rsquo;s new leadership because demolition made better financial sense. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;It often does.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Buildings become obsolete, the more so when they fail to receive periodic upgrading and repositioning.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;a href=&quot;http://www.nytimes.com/1987/10/12/style/ilene-c-popkin-weds-mitchell-make-on-li.html?pagewanted=1&quot;&gt;Ilene Popkin&lt;/a&gt;, the agency&amp;rsquo;s assistant deputy general manager for development, said the three buildings had deteriorated from vandalism and exposure to the elements, and were out of context with the neighborhood. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;She said it would cost $481,000 to renovate each of the 269 apartments. Demolishing the structures and building 361 new units would cost $381,700 per unit. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;If you do that arithmetic, renovation will cost $130 million and deliver 269 existing apartments; new-build will cost $138 million and deliver 361 &amp;ndash; 92 more apartments for only $8 million more.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Mo_money&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/mo_money_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Mo&amp;#8217; money, mo&amp;#8217; housing&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Moreover, because they&amp;#8217;re new-build, with no resident relocation challenges, the construction will go faster, with far fewer unknowns or temporal risk factors.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The new apartments &amp;mdash; including public and private housing, not only for the poor but also for low- and moderate-income families &amp;mdash; are likely to be built in low-rise buildings. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Prospect&lt;/span&gt;&lt;/st1:placename&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt;&lt;/span&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; originally included four towers housing 1,200 people. &lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[Not units &amp;ndash; Ed.]&lt;/i&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;One was torn down in 2005; the plan was to use that space for a new community center, shops and additional housing. But today, the building&amp;rsquo;s old footprint is just a fenced-off lot. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Many public housing properties suffer from excessive density, particularly if the apartments are designed for families.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Babies have the annoying habit of growing up into toddlers, then into children, then into adolescents, and all these increasingly animate and rambunctious small people&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;That building was the first high-rise the authority demolished. In 2007, the agency also knocked down a number of two-story buildings as part of the redevelopment of the &lt;st1:placename w:st=&quot;on&quot;&gt;&lt;st1:personname w:st=&quot;on&quot;&gt;Mark&lt;/st1:personname&gt;ham&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Gardens&lt;/st1:placetype&gt; complex on &lt;st1:place w:st=&quot;on&quot;&gt;Staten Island&lt;/st1:place&gt;. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The authority has completed the first two phases of its Prospect Plaza redevelopment plan, involving not the actual housing project itself but 37 two-family houses and 150 rental units in four-story town-house-style buildings that were constructed on nearby lots formerly owned by the city.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;It&amp;#8217;s a start &amp;ndash; improving the neighborhood surrounding the public housing property.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;New_prospect_plaza&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/new_prospect_plaza_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The new &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt;&lt;/st1:place&gt;: not a project but a neighborhood&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Prospect_plaza_new_ribbon_cutting&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/prospect_plaza_new_ribbon_cutting_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The ribbon-cutting &amp;ndash; always a happy moment&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Several former residents of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt;&lt;/st1:place&gt; and groups that represent public housing tenants said they did not support the demolition, in part, because it was unclear to them that the authority intended to replace the old units with the same number of new public housing units.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;While I understand about residents&amp;#8217; fear of losing apartments, there is a vast difference between losing a judicial unit &amp;ndash; an apartment that is contractually or legally obligated to be affordable, irrespective of whether it is inhabitable &amp;ndash; versus losing an &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;actual&lt;/i&gt; unit.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;All_boarded_up&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/all_boarded_up_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Do we count the unit as here or lost?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Even as the three towers sit vacant on &lt;st1:street w:st=&quot;on&quot;&gt;&lt;st1:address w:st=&quot;on&quot;&gt;Prospect Place&lt;/st1:address&gt;&lt;/st1:street&gt; near &lt;st1:street w:st=&quot;on&quot;&gt;&lt;st1:address w:st=&quot;on&quot;&gt;Saratoga Avenue&lt;/st1:address&gt;&lt;/st1:street&gt;, they continue to be a costly expense for the cash-strapped authority, which has paid a security firm $25,000 a month since 2005 to keep watch over the buildings.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;At $25,000 a month for five years, that&amp;#8217;s $1.5 million &amp;ndash; which could have meant five more brand-new apartments after the rebuilding.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;A large fraction of our public housing stock has decayed beyond salvageability, and &amp;ndash; &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/07/end-of-an-error-part-3-proving-it-by-doing-it.html&quot;&gt;as we saw in Atlanta&lt;/a&gt; &amp;ndash; it takes an executive with some courage to say so.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Agency officials have not decided how many of the new apartments will be public housing, but they said that former residents and community leaders would help make that determination. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&amp;ldquo;We are committed to being shoulder to shoulder with you,&amp;rdquo; the agency&amp;rsquo;s new general manager, Michael Kelly, told former tenants and others at &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;a community meeting last week&lt;/b&gt; [&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;Late January &amp;ndash; Ed.]&lt;/i&gt; a few blocks from the vacant buildings. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-size: 8.0pt; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Nyt_ny_plans_to_topple_public_housing_kelly_100228&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/nyt_ny_plans_to_topple_public_housing_kelly_100228_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Michael Kelly, general manager of the New York City Housing Authority, tried to reassure former tenants at a public meeting. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As I&amp;#8217;ve previously posted, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2010/02/rehab-deferred-is-rehab-denied-part-1-past.html&quot;&gt;Mike Kelly is one of the good guys&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;I trust him.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The cost of demolishing the towers and building the new apartments is estimated at $138 million. Part of the financing will come from a $21.4 million federal grant the authority was awarded in 1999 to revitalize &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt;&lt;/st1:place&gt;, of which about $17 million remains. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The other $4 million got spent in the ill-fated Michaels HOPE VI effort.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;At the meeting, Mr. Kelly said it was too early to say where the rest of the financing would come from. Agency documents describe the project as &amp;ldquo;mixed finance,&amp;rdquo; meaning it will be paid for with public and private dollars, with some of the money coming from the sale of federal low-income housing tax credits. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Laura_tach_03&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/laura_tach_03_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/02/we-see-what-we-expect-to-see-part-1-why-we-want-to-know.html&quot;&gt;Doctoral candidate Laura Tach&lt;/a&gt; likes income mixing&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Meaning income mixing, meaning LIHTC residents and so on.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The demolition, which must be approved by the federal &lt;a title=&quot;More articles about Housing and Urban Development Department, U.S.&quot; href=&quot;http://topics.nytimes.com/top/reference/timestopics/organizations/h/housing_and_urban_development_department/index.html?inline=nyt-org&quot;&gt;Department of Housing and Urban Development&lt;/a&gt;, is planned for this fall, with construction scheduled to start in 2012. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;If one cannot finance the renovation, one has no choice but a teardown and rebuild.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Preference for the new public housing units will go to former residents, many of whom were relocated to other public housing in &lt;st1:place w:st=&quot;on&quot;&gt;Brooklyn&lt;/st1:place&gt;. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;a href=&quot;http://www.nydailynews.com/ny_local/brooklyn/2009/11/03/2009-11-03_demo_would_put_tenants_in_a_fix.html&quot;&gt;Milton Bolton&lt;/a&gt;, 50, a former resident and the president of the still-intact Prospect Plaza Tenants Association, held up a thick draft of a 1998 application for the federal grant and said, &amp;ldquo;It&amp;rsquo;s hard to have trust.&amp;rdquo; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-bidi-font-size: 8.0pt; mso-bidi-font-family: 'Times New Roman'; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Nyt_ny_plans_to_topple_public_housing_bolton_100228&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/nyt_ny_plans_to_topple_public_housing_bolton_100228_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'&quot;&gt;Milton Bolton, the tenant association president of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt;&lt;/st1:place&gt;, at the vacant buildings where he used to live. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;br /&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: 'Times New Roman'&quot;&gt;There comes a time when &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/09/going-somewhere-to-die.html&quot;&gt;buildings have to go somewhere to die&lt;/a&gt;; when that happens, it is a kindness to get rid of them.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Ms. Popkin and Mr. Kelly acknowledged &amp;ldquo;bumps along the road&amp;rdquo; for the project in the past, but they stressed their desire to rebuild the neighborhood. &amp;ldquo;I understand that folks here are frustrated,&amp;rdquo; Ms. Popkin said. &amp;ldquo;There is a new management at Nycha. We have a commitment to these towers. This is a top priority to move forward.&amp;rdquo; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Initially I was skeptical of Mr. Bolton&amp;#8217;s &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2009/09/distrust-me-just-this-once-part-1-the-need-for-trust.html&quot;&gt;distrust&lt;/a&gt;, until I found these paragraphs from nine years ago:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia&quot;&gt;Even residents who say they&amp;rsquo;d welcome higher-income neighbors are running out of patience. Milton Bolton, the president of the Prospect Plaza Tenant Association and once a big booster of the plan, is now &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[July, 2001 &amp;ndash; Ed.] &lt;/i&gt;ambivalent. He&amp;rsquo;s distressed that the social service programs are not established yet&amp;#8211;particularly the homeowner training workshops, since he someday hopes to buy a house. &lt;st1:place w:st=&quot;on&quot;&gt;Bolton&lt;/st1:place&gt;, a soft-spoken bear of a man, sits in a straight-backed chair and bounces his 2-year-old son &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;[The boy is now 11 &amp;ndash; Ed.] &lt;/i&gt;on his lap as his seven other children scoot in and out of the room. &amp;ldquo;We welcome the changes,&amp;rdquo; he says. &amp;ldquo;We welcome the impact if it&amp;rsquo;s done right. But no matter what we do, it still feels like we&amp;rsquo;re fighting a losing battle.&amp;rdquo; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: #333399; FONT-FAMILY: Georgia&quot;&gt;Bolton, who has put in countless hours on the &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Prospect&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Plaza&lt;/st1:placetype&gt;&lt;/st1:place&gt; deal, believes that he will not be allowed to return to the project once the renovations are complete. He has been unemployed for a while and admits that there have been many times that he has fallen behind in his rent. He&amp;rsquo;s even been put on probation for the problem. &amp;ldquo;What they&amp;rsquo;re telling me is once I leave, I&amp;rsquo;m not coming back,&amp;rdquo; he says. &amp;ldquo;We just have to hope they bring at least some of the people back.&amp;rdquo; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;I sometimes forget that those residents who have the most time to devote to public housing advocacy may be those who have the fewest economic resources.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;I respect and admire Mr. Bolton&amp;#8217;s patience and commitment in the face of uncertainty and disappointment.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;img alt=&quot;Alg_milton_bolton&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/alg_milton_bolton_small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Bolton&lt;/span&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt; keeps hoping&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
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