Lenders propagate sprawl  In the September/October Sierra Club magazine there's a good article entitled Loan Gridlock in the section Lay of the Land that describes how lenders propagate sprawl by their lending practices. Urban homeowners typically spend much less on transportation and a higher percentage of their income on a mortgage, up to 45%. However, many lenders require that their mortgages comprise around 30 percent of income, not taking into account the difference in transportation costs of houses in outlying areas from which residents commute long distances and pay more for transportation. Fannie Mae prvodes small "Smart Commute" bonuses in 40 urban communities.

The Sierra Club site also contains the Healthy Growth Calculator, which compares a typical sprawl community to 45 smart growth communities.
posted by Bruce Wright at 10:23 AM #