Auctioning the Upzone: A New Strategy to Induce Local Government Compliance with State Housing Policies

Published: 2018 | Chris Elmendorf

Abstract

States should confer on local governments the right to auction development rights created by upzoning pursuant to state policy. This is akin to a state subsidy, but it would come at no cost to the state’s budget, and, critically, the size of the subsidy—that is, the revenue generated for the local government through the auction—would depend on the credibility of the local government’s commitment to allowing development in the upzoned area