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No. 77 Spring/Summer 2011

COMMUNITY DEVELOPMENT
STUDIES & EDUCATION
DEPARTMENT OF THE
FEDERAL RESERVE BANK
OF PHILADELPHIA

INSIDE:
2 — Message from the
Community Affairs Officer
3 — Lessons Emerge from
19 Years of HOPE VI
Funding
5 — Maintaining the Viability
of Small-Scale Rental
Housing
6 — Book Anchors Bank’s
Financial Education
Program
6 — Book Review: Save!
America: Your Guide
to Achieving Financial
Freedom
7 — Banker’s Financial
Education Efforts Focus
on Students
8 — Spotlight on Research:
The Distributional Impact
of Unemployment
14 — Impact of Marcellus Shale
on Housing Needs
15 — How Place Matters Is
Subject of New Book
16 — Calendar of Events

A COMM U N I T Y D E V E LO P M E N T P U B L I C ATION

CASCADE
Economic Implications of Natural Gas Drilling
in the Marcellus Shale Region
By Timothy W. Kelsey, Ph.D., Professor of Agricultural Economics, Penn State Cooperative
Extension, and Thomas B. Murphy, Co-Director, Penn State Marcellus Center for Outreach
and Research
The recent onset of drilling for natural gas
in the Marcellus shale region is having a
major impact on businesses, residents, and
communities in Pennsylvania. According
to Pennsylvania’s Department of Environmental Protection, since 2007 approximately 2,400 wells have been
drilled in Pennsylvania to extract
natural gas from the Marcellus
shale formation, with the number
expanding exponentially every year.
More than 100 energy companies
and related subcontracting firms
have moved to Pennsylvania and
are now active within the Marcellus
shale region, bringing significant
employment and business opportunities for the foreseeable future.
However, along with these opportunities, development of Marcellus
shale is also bringing some significant challenges, including environmental and social impacts. Most
of the development is occurring in
relatively small communities that
lack the infrastructure and support
necessary to accommodate rapid,
intense population growth and economic and workforce expansion.
The Marcellus shale region of Pennsylvania extends from the northeastern to southwestern corners of
the state and includes some of the

www.philadelphiafed.org

commonwealth’s most rural counties. With
the exception of three counties along the
New Jersey border, the communities that
reside miles above the Marcellus shale
...continued on page 10
Penn State Marcellus Center for Outreach and Research

PUBLISHED BY THE

Advanced drilling technology was recently deployed at a Marcellus shale development site in northeastern Pennsylvania.
1

CASCADE

No. 77
Spring/Summer 2011

Cascade is published three times a year by the
Federal Reserve Bank of Philadelphia’s Community Development Studies and Education Department and is available at www.philadelphiafed.
org. Material may be reprinted or abstracted provided Cascade is credited. The views expressed in
Cascade are not necessarily those of the Federal
Reserve Bank of Philadelphia or the Federal Reserve System. Send comments to Keith L. Rolland
at 215-574-6569 or keith.rolland@phil.frb.org.
To subscribe, go to http://www.philadelphiafed.
org/publications/.
COMMUNITY DEVELOPMENT STUDIES AND
EDUCATION DEPARTMENT
Kenyatta Burney
Senior Staff Assistant
215-574-6037
kenyatta.burney@phil.frb.org
Albert Chin
Community Development Research Associate
215-574-6461
albert.chin@phil.frb.org
Jeri Cohen-Bauman
Lead Administrative Assistant
215-574-6458
jeri.cohen-bauman@phil.frb.org
Andrew T. Hill, Ph.D.
Economic Education Advisor and Team Leader
215-574-4392
andrew.hill@phil.frb.org
Amy B. Lempert
Community Development Advisor and Outreach
Coordinator
215-574-6570
amy.lempert@phil.frb.org
Erin Mierzwa
Manager, Administration and Research
215-574-6641
erin.mierzwa@phil.frb.org
Dede Myers
Vice President
215-574-6482
dede.myers@phil.frb.org
Harriet Newburger, Ph.D.
Community Development Research Advisor
215-574-3819
harriet.newburger@phil.frb.org
Keith L. Rolland
Community Development Advisor
215-574-6569
keith.rolland@phil.frb.org
Marvin M. Smith, Ph.D.
Community Development Research Advisor
215-574-6393
marty.smith@phil.frb.org
Brian Tyson
Community Development Research Analyst
215-574-3492
brian.tyson@phil.frb.org
John J. Wackes
Community Development Research Specialist
215-574-3810
john.j.wackes@phil.frb.org
Todd Zartman
Economic Education Specialist
215-574-6457
todd.zartman@phil.frb.org

2

Message from the
Community Affairs Officer
The weather has finally cleared and it
looks like we have survived the snowstorms of 2011. We had to postpone
one meeting this winter, but we held
two meetings in March, including one
on the viability of the private rental
housing sector of one- to four-unit
buildings. Nationally, renters comprise 33 percent of all households, and
more than 50 percent of them live in
one- to four-family structures. Given
the increasing number of properties in foreclosure and subsequently
purchased by investors, and the fact
that two-thirds of all renters have
incomes below 80 percent of the area
median income, we think this is an
important issue for all communities.
Look for Keith Rolland’s story on what
we learned from lenders, local government officials, and for-profit and
nonprofit owners.
We also held a meeting that provided
the latest information on programs to
prevent foreclosure; you can view the
speakers’ presentations on our Bank’s
website. This was the first time that
live audio and video of a Philadelphia
Fed meeting was provided to people
outside the Bank.
Natural gas drilling and extraction in
Marcellus shale are having a major
impact on economic development in
Pennsylvania, affecting businesses,
residents, and communities. The
economic impact, as well as housing
challenges, is described in two extensive articles contributed by Penn State
Cooperative Extension and the Penn
State Marcellus Center for Outreach
and Research.
Since the last issue of Cascade was
published, we have launched two new
tools to help you with your work. The
first is Map Your Community, which

is available on our website. It allows
you to easily and quickly examine
certain data (such as educational
levels, income, and property vacancies) on your community through a
mapping interface. We partnered with
The Reinvestment Fund’s PolicyMap
to provide you with this information.
Please try this tool and let us know if
we have captured the information you
need most.
In January we launched our Community Outlook Survey (COS). We have
always had conversations on financing and other needs in the diverse
communities of our Federal Reserve
District. This survey is a complement
to our face-to-face meetings, plus it
allows us to tabulate the responses
throughout the District. We will build
a diffusion index and identify trends
as we receive quarterly responses.
A similar business survey has been
used for 40 years with the business
community, and it is interesting to see
how responses change shortly before
a recession or growth period. We plan
to use the COS the same way. To see
a copy of the first set of results, go to
www.philadelphiafed.org and select
Community Development and then
COS.
In this issue, you can also read about
two bankers’ notable leadership in
financial education.
Last but not least, earlier this year we
changed the name of our department
from Community Affairs to Community Development Studies and Education. We think this name more clearly
identifies what we do.

Lessons Emerge from 19 Years of HOPE VI Funding
By Keith L. Rolland, Community Development Advisor
Public housing authority directors,
researchers, developers, and HUD officials recently debated the successes
and shortcomings of the federal
HOPE VI program at a conference cosponsored by HUD and the Council
of Large Public Housing Authorities.
HOPE VI grants are used to demolish and rebuild or rehabilitate
severely distressed public housing
projects into mixed-income communities with homeowners and
renters. The program also seeks to
transform residents’ lives and help
them become self-sufficient. Since
the program’s inception in 1992, 132
local public housing authorities have
received 254 HOPE VI grants totaling more than $6.1 billion.1

•

•

•

tion or rehabilitation and then
returned to the new developments fare long term?
How did residents who had left
public housing and then used
their Section 8 vouchers to obtain
private housing fare long term?
What was the impact of HOPE
VI on the surrounding neighborhoods and real estate markets?
Was a sense of community created among homeowners and
renters in the new mixed-income
developments?

Several speakers agreed that mixed-

A multiyear study discussed at the
...continued on next page

after

The Obama administration has
introduced a Choice Neighborhoods
program to build on the lessons
learned from HOPE VI and achieve
more comprehensive neighborhood
revitalization. The Choice Neighborhoods program will target federally
assisted housing in addition to public housing and requires that employment, quality education, public
safety, health, and recreation be part
of a comprehensive neighborhood
revitalization strategy.

A deteriorated public housing complex
in New Orleans that had 724 units, of
which only 144 were occupied, was
redeveloped with HOPE VI funds and
other financing. The new development has 460 rental units, consisting
of 193 public housing units, 144 units
affordable to residents earning up to 60
percent of the area median income, and
123 market-rate units. Rental townhouses are shown in the photo above. A
total of 22 for-sale scattered-site units,
affordable to residents with incomes up
to 60 percent and 80 percent of the area
median income, are also planned.

Some issues raised at the conference
included:
• How did residents who had
relocated during new construc-

U.S. Department of Housing and Urban
Development, Evidence Matters, (Winter 2011),
p. 3, available at: http://www.huduser.org/
portal/evidence.html. The issue also includes
a list of resources on HOPE VI.

1

The Chicago Housing Authority is testing an
intensive case management approach serving
the “hardest to house” families in a research
demonstration with the Urban Institute.

income development has as much
promise as a poverty deconcentration
strategy, although the program has
been largely unable to address multifaceted social problems in residents’
lives, such as health and barriers to
employment.2 The speakers noted
that the percent of market-rate occupants varied widely in HOPE VI
developments and observed that the
recession has hurt the ability and willingness of market-rate residents to
move into HOPE VI developments.

2

before
3

conference found that 84 percent of
families no longer lived at the original HOPE VI sites but had moved,
typically with relocation assistance,
to private-market housing, mixedincome developments, or traditional
public housing sites. On the other
hand, residents who had used Section 8 vouchers to move outside the
original sites said they had better
housing, lived in safer neighborhoods, and had better mental health.3
Mark Joseph, assistant professor at
Case Western Reserve University,
said that those residents who were
able to move back to new mixedincome developments reported high
satisfaction with their units and the
surrounding physical environment
and described a range of associated
benefits, including lower stress due
to reduced safety concerns. He also
said that the HOPE VI program did
not provide one-for-one replacement
of units, so there were not enough
units for all of the original residents.
In addition, the size of the units,
rigorous tenant selection, and construction delays of up to five years
deterred the return of some tenants
to their original HOPE VI sites.4
Joseph found that there was a low
degree of social interaction and some
self-isolation in the new HOPE VI
developments. A contributing factor
to the isolation was a lack of clarity
on when residents could use public
space in the developments. Steve
Rudman, executive director of the
Portland, OR, Housing Authority,
said, “Though HOPE VI finance

transactions are particularly complex and challenging, development
is actually the easier part. The social
aspects are much more difficult.
Engaging residents to become part
of a mixed-income community is
time-consuming, messy, and unpredictable.”
Larry Buron, senior associate with
Abt Associates, said that, in the early
stages of HOPE VI, public officials
assumed that the original residents
would return without a concerted
effort. A 2003 study found that
only about one-third of the original
residents moved back to new mixedincome HOPE VI developments5; it
also found that the emphasis was on
replacing the worst public housing
rather than on long-term sustainable neighborhood improvement.
Other speakers said that early on the
program was mistakenly seen as a
“cookie cutter” solution, although
cities have very different real estate
markets.
Richard P. Voith, senior vice president of Econsult Corporation in
Philadelphia, said he found that
HOPE VI augmented existing development activity but had only a
moderate impact in cities in which
there was virtually no such activity.
He found significant, widespread
gains in property values and notable
declines in violent crime in HOPE VI
developments.
Speakers debated what is the right
“mix” of public housing and marketrate residents and noted that good

schools and low crime rates are needed before market-rate residents will
move into HOPE VI developments.
A point of debate was the “right
to return” provision in the Choice
Neighborhoods notice of funding
availability. Developers said that a
major reason for HOPE VI’s success
is the strict standards for returning
residents and that a proposed onefor-one unit replacement policy will
make it harder to have a good mix
of market-rate and public housing or
federally assisted residents.
Richard Baron, chairman and CEO
of McCormack Baron Salazar in
St. Louis, said that it’s important
to include supportive services for
families and children, such as afterschool, arts, and summer programs;
however, it is a continuing challenge
to find funding for these services. He
said anecdotally he knows that many
residents and their children move
ahead in HOPE VI developments
and that it ought to be studied in
quantitative research.
Choice Neighborhoods seeks partnerships among public housing
authorities, local governments, nonprofits, for-profit developers, private
investors, and federal agencies.6
Speakers at the March conference advocated that public housing residents
be centrally involved in planning and
implementing the new program.
For information, contact Erika C.
Poethig, Deputy Assistant Secretary for
Policy Development, at 202-402-5613 or
erika.c.poethig@hud.gov; www.hud.gov.

Susan J. Popkin, Diane K. Levy, and Larry Buron, “Has HOPE VI Transformed Residents’ Lives? New Evidence from the HOPE VI Panel Study,” Housing Studies 24:4 (2009), p. 486.

3

4

A range of publications on mixed-income development are available at http://msass.case.edu/faculty/mjoseph/selected_publications.html.

5
Mary Joel Holin, Larry Buron, Gretchen Locke, and Alvaro Cortes, Interim Assessment of the HOPE VI Program: Cross-Site Report (September 2003),
available at: www.huduser.org.

For information on the first Choice Neighborhoods planning grants, go to http://tinyurl.com/66trdcl. The grants include one to Mt. Vernon Manor,
Inc., which created a transformation plan for Philadelphia’s Mantua neighborhood with Diamond and Associates.

6

4

Maintaining the Viability of Small-Scale Rental Housing
By Keith L. Rolland, Community Development Advisor
The need for better cooperation
between rental housing owners, city
housing inspectors, and tenants was
highlighted at a recent roundtable at
the Philadelphia Fed on maintaining the viability of the private rental
housing sector of one- to four-unit
buildings.
The context for the discussion was
set by Alan Mallach,1 senior fellow for the Center for Community
Progress and visiting scholar at the
Philadelphia Fed, and Karen Black,2
principal of May 8 Consulting. Both
said that national political leaders
and policies have, for the past decade, overemphasized homeownership and paid little attention to rental
housing.
They both indicated that rental
housing has a stigma and is often
associated with deteriorated housing
conditions and communities. They
pointed out that small-scale rental
housing is important and that half of
the rental units nationally are in oneto four-unit buildings.3
The seminar, which is part of an
ongoing focus on rental housing
issues by the Philadelphia Fed’s
Community Development Studies
and Education Department,4 was
attended by 38 nonprofit and forprofit developers, lenders, government practitioners, and researchers

in the rental housing field. It was
co-sponsored by the Federal Reserve
Banks of Philadelphia and Cleveland
and the Federal Reserve Board of
Governors.
Some issues raised at the seminar
involved acquisition and rehabilitation financing; compliance with new
government regulations; challenges
in working with absentee landlords;
and tenant selection, retention, and
eviction. The speakers and attendees
focused on strategies and solutions
for these and other issues.
Chris Krehmeyer, president and
CEO of Beyond Housing in St. Louis,
said, “Small-scale rental housing
must be part of a larger comprehensive place-based strategy that
includes both homeownership and
rental housing. We’re pro-active and
we contact municipal code enforcement departments to ask how we’re
doing.” The nonprofit’s staff members talk to both municipal officials
and renters regularly and help
renters set goals and create an action
plan. The tenants have stayed an average of six years, during which time
70 percent increased their income
and 90 percent pursued educational
goals, Krehmeyer said. The turnover
rate during that time was about 25
percent.
Ann Houston, executive director of

Chelsea Neighborhood Developers
in Chelsea, MA, said that municipal
housing inspections should be rigorous because weak code enforcement
results in lower sales prices. Inspectors are sometimes reluctant to go
after the worst landlords, and that
practice has an impact on the value
of properties owned by both nonprofits and for-profits.
Houston added that municipal housing inspectors “have the power to
convene and help build a culture for
owners, city inspectors, and renters to work together.” She said, “We
need a joint strategy in which each
respects the other’s role.” Inspectors
must rely on communication more
because municipal budgets, including for housing code enforcement,
are being reduced.
David Paulus, director of Building
Standards and Safety for the city of
Allentown, agreed that communication was key. He said, “I tell my
inspectors, your biggest tool is your
communications skills, not your
badge. The goal is to have a good
relationship with landlords.”
Martha Van Cleve, president of Meridian Property Services, a for-profit
management company that owns
and manages apartment buildings
in Trenton and Hamilton, NJ, noted
...continued on page 15

Alan Mallach, “Meeting the Challenge of Distressed Property Investors in America’s Neighborhoods,” Local Initiatives Support Corporation, October
2010, available at http://www.lisc.org (go to Resources and then Publications).

1

Sarah Treuhaft, Kalima Rose, and Karen Black, “When Investors Buy Up the Neighborhood: Preventing Investor Ownership from Causing Neighborhood Decline,” PolicyLink, April 2010, available at: http://www.nwaf.org/home.aspx.

2

3
According to American Community Survey estimates for 2005–2009, in the United States 51 percent of renter-occupied units are in structures with one
to four units. New Jersey and Delaware resemble the nation at 51 and 52 percent, respectively. In Pennsylvania, the percentage of renter-occupied units
in structures with one to four units is higher at 62 percent.

Affordability and Availability of Rental Housing in Pennsylvania, a special report published in 2010 by the Community Development Studies and Education
Department, is available at http://www.philadelphiafed.org/community-development/publications (go to Special Reports).

4

5

Book Anchors Bank’s Financial Education Program
By Keith L. Rolland, Community Development Advisor
Tom Petro, president and CEO of
Fox Chase Bank based in Hatboro,
PA, watched family members and
neighbors struggle with excessive
debt and was especially troubled
that an employee at the bank resorted to payday loans.
Petro and his wife, Kris Messner, a
business consultant, began holding
workshops for the bank’s employees, and in the fall of 2009, they
decided to write a book entitled
Save! America: Your Guide to Achieving
Financial Freedom to help consumers

manage their money. In writing the
book, they remembered how they
struggled to manage their finances
when they were first married in their
mid-20s. They met a financial advisor who described a system that they
outline in the book. Petro said, “With
the system, we were both in alignment and all the tension over money
went out of our marriage.”
The book has become the cornerstone of the bank’s financial education program, which includes training “certified savings counselors” in

the bank’s branches and conducting
seminars in its community in southeastern Pennsylvania.
Fox Chase Bank paid for the book’s
printing in January 2010 and distributed about 6,000 copies without
charge at the bank’s branches and
seminars. The book is sold on Amazon.com as a paperback and a Kindle
e-book. All proceeds are donated to
the Fox Chase Bank Charitable Foundation, which funds financial education, entrepreneurship, the arts, and
human services.

Book Review
Save! America: Your Guide to Achieving Financial Freedom
This 162-page book conveys practical information on managing
personal finances in an easy-tounderstand, direct style.
Tom Petro, CEO of Fox Chase
Bank, and his wife, Kris Messner,
a business consultant, advocate
freeing up about 2 percent to 5
percent of take-home pay to accelerate debt repayment and build
cash-reserve accounts, which can
reduce the use of credit cards.
Petro and Messner emphasize
seven principles:
• Make a Budget and Stick
to It — A budget enables an
individual or family to gain
control of their finances and
become aware of small, unnoticed expenditures.
• Give Yourself an Allowance
— Take an allowance with no
restrictions for discretionary
spending and use a “weekly
draw” for budgeted expenses.
6

•

•

•

Thus, one portion of the budget
is used for “fun things” that are
not part of the budget, and the
other portion of the budget is
used for “must-haves,” such as
parking or train fare.
Restrict the Use of Your Debit
Card — Use debit cards only for
necessities, such as groceries and
medicines, to help keep track of
budgeted expenses.
Establish Cash-Reserve Accounts — Build cash-reserve
accounts for expected expenses,
such as auto maintenance and
inspections, home repairs and
appliances, clothing for work,
tuition, gifts, and vacations. This
helps avoid taking on additional
debt. In addition, gradually
build a “rainy day” fund until
it reaches six months of living
expenses.
Start Paying Off Your Debts —
Avoid using a credit card as an
extension of income and pay the
card off each month. Resolve

•
•

disputes with creditors.
Pay Yourself First — Save and
invest money for retirement.
Live Within Your Means —
Live within or, preferably,
below your means. Seek sales
and discounts when making
purchases.

A chapter that describes each principle is listed on Fox Chase Bank’s
website at www.foxchasebank.
com/saveamerica. The site also has
useful budget templates that can
be downloaded.
–Keith L. Rolland

“The state of financial literacy is incredibly
poor among people of all incomes,” Petro
said. “Folks say that we present an integrated system that’s easy to follow and allows
them to be in charge of their money for the
first time in their lives. They can see a way
out and make steady progress.”
A basketball coach in Coatesville, PA, told
Petro that the book had changed his life
and that he has talked to his team about
managing money.
Petro has spoken to entrepreneurs who are
very knowledgeable about their businesses
but who haven’t paid much attention to retirement. He held a seminar for administrative staff at a law firm and noticed that the
attorneys also attended and paid attention.
The bank created its own curriculum and
certifies branch managers as “savings
counselors” who help customers prepare a
budget, establish a savings plan, and create
a plan to pay off debt. There is no fee for
the service. Messner developed the curriculum and knowledge-based tests and taught
the counselors.
In 2010, Petro, Messner, or other bank representatives spoke to nearly 1,000 people
at 21 locations, including rotary clubs, high
school classes, retirement communities,
chambers of commerce, church groups, a
university, a library, and a law firm.
Petro cannot trace new business to the
bank’s financial education program but said
it’s consistent with the “principles of good
financial stewardship” followed by the
bank.
Petro, first vice chairman of the board of
the Pennsylvania Bankers Association,
added, “Without a public that understands
basic principles of money management,
there can be no flourishing banking system
in this country.”
For information, contact Tom Petro at 215-7751402 or tpetro@foxchasebank.com; http://www.
foxchasebank.com/saveamerica/.

Banker’s Financial Education Efforts
Focus on Students
Aaron L. Groff, Jr., chairman, president,
and CEO of Ephrata National Bank (ENB)
in Ephrata, PA, shares his insights about
personal finance with students through
the Junior Achievement program, school
tours, and presentations, and discusses
helping teachers to obtain training.
Groff teaches several lessons on budgeting and credit to eighth-grade students as
part of Junior Achievement’s Economics
for Success program. He explains the importance of educational and career goals
and relates how he started his banking
career with positions at ENB as a clerk
and a teller.

Aaron L. Groff, Jr., chairman,
president, and CEO of Ephrata
National Bank

In addition, when students come to the bank for tours arranged by local schools, he provides an overview of banking and the importance of
each person’s credit record. He emphasizes basic concepts about money
when he speaks with young children and discusses bank accounts and
loans with older students.
Last summer, ENB made a contribution to the Ephrata Area School
District that enabled three teachers to attend “Keys to Financial Success,” the Philadelphia Fed’s personal finance training program for high
school teachers held each summer.*
Groff shared these reflections about financial education:
“Sharing experiences with the next generation is an investment of time
and energy where you get to keep the ‘change.’ Especially during these
times of economic uncertainty, teaching students safe and sound money
management skills — save more, borrow less — is paramount. I also
appreciate the opportunity to teach them the role of the bank — a caretaker, never the owner, of the community’s money.
“The ‘bank’s money’ actually belongs to the students, their families,
and their friends. Putting the deposit and lending relationship in this
context helps students understand the importance of being financially
responsible, especially with regard to loans. I believe this is a prudent
lesson for all bankers as well. Remembering this ‘caretaker’ role encourages prudent loan underwriting standards and strong partnerships
with customers.”
–Keith L. Rolland

* The five-day program will be offered June 27–July 1, 2011, at the Philadelphia Fed. For
information, contact Todd Zartman at todd.zartman@phil.frb.org.

7

The Distributional Impact of Unemployment
The recession of 2008–09 has had
debilitating effects throughout the
economy. One lingering effect that
continues to receive a great deal of
attention is the persistently high rate
of unemployment. Since the recent
recession has left a large number of
American workers without employment, the creation of more jobs
would provide welcome relief to
some of those who have been struggling to find a job. However, the
creation of jobs for jobs’ sake might
not be a panacea if the skills required
in the new jobs do not match those
possessed by the unemployed. Thus,
the distribution of job losses among
different segments of the labor force
and their requisite job skills might
figure prominently in addressing the
unemployment dilemma. A study by
Andrew Sum, Ishwar Khatiwada, Joseph McLaughlin, and Sheila Palma
provides some insight by focusing

on those workers hardest hit by the
recession.1 Following is a summary
of their analysis.
Data and Results
Sum et al. used data from several
sources to conduct their analysis,
including various reports from the
U.S. Bureau of Labor Statistics and
the U.S. Census Bureau’s Current
Population Survey of households.
The authors found that the recent
recession “sharply increased unemployment, underemployment, hidden unemployment, and other forms
of labor underutilization,” among
other effects.2 They further reported
that the job losses and resulting rising unemployment problems were
not shared evenly among workers by
gender, age, race–ethnicity, educational attainment, or occupational
groups. As with past recessions, certain segments of the workforce, such
as young workers, black males, those
with less educational attainment,
and blue-collar workers, tend to bear
a great deal of the job losses. The authors stressed that, as a result of the
recent recession, “blue-collar workers (construction crafts, manufactur-

ing operatives and other production
workers, laborers and helpers, and
transportation operatives/material
movers) have been more severely affected than any other group.”3
Recent Recession’s Overall Job Losses.
Sum et al. focused their analysis
on the period from November–December 2007 (the recession officially
started in December 2007) through
February 2010. According to them,
nonfarm payroll jobs declined by 3.3
million between November–December 2007 and the end of 2008 and by
nearly 8.4 million from November–
December 2007 to January–February
2010. However, there was an uneven
distribution of the job losses across
key industrial sectors, with those industries that are primary employers
of blue-collar workers experiencing a
greater decline than other industries.
Relative Job Loss of Blue-Collar Workers. The authors noted that total
employment fell by nearly 18 percent
in three industries (construction,
manufacturing, and transportation/
warehousing) where the majority of
workers are blue-collar. These indus-

Andrew Sum, Ishwar Khatiwada, Joseph McLaughlin, and Sheila Palma, “The Great Recession of
2008–2009 and the Blue-Collar Depression,” Challenge, 53:4 (July/August 2010), pp. 6–24.

1

This includes those workers who are seeking jobs but remain unemployed, those who desire fulltime employment but are working less than 40 hours a week, those who are working at jobs that
do not require them to use their primary skills, and those who want to work but who have stopped
looking for employment out of frustration due to unsuccessful job hunting.

2

Marvin M. Smith, Ph.D.,
Community Development Research Advisor
8

The authors noted that earlier papers refer to the severity of job losses among blue-collar workers
as “Blue-Collar Depression.”

3

tries “accounted for 54 percent of all
payroll job losses across the entire
economy through January–February
2010.” To provide some context, the
authors pointed out that “during the
Great Depression of 1929–33, total
employment in the U.S. had been
estimated to have fallen by slightly
more than 18 percent.” Sum et al.
also indicated that the industrial sectors that were least likely to employ
blue-collar workers lost fewer jobs
or actually increased employment.
More specifically, between the fourth
quarters of 2007 and 2009 there was
a 2.4 percent growth rate for professional/technical workers.
Sum et al. highlighted how educational attainment figured prominently in the employment picture during
the economic downturn. They noted
that “between November 2007 and
January 2010, employment among
males with no high school diploma
or GED certificate fell by just under
17 percent versus declines of 10 to
11 percent among males with a high
school diploma or one to three years
of college and only 1 percent among
males with a bachelor’s or higher
degree.”
Blue-Collar Unemployment and Underemployment. Given the marked
decline in employment among bluecollar workers, the authors explored
whether this group experienced
above-average increases in their
unemployment and underemployment. Once again, there was a stark
difference between the blue-collar
groups and those in the professional
and managerial occupations. By the
fourth quarter of 2009, they found
double-digit unemployment rates in
three of the four blue-collar groups
(ranging from nearly 12 percent
to slightly less than 21 percent). In
contrast, “professional and managerial workers faced unemployment
rates only in the four- to five-per-

centage-point range, which would
be considered the equivalent of near
full employment for the entire labor
force.”
A similar situation occurred with underemployment. The authors reported that “the underemployment rates
of blue-collar workers in the fourth
quarter of 2009 ranged from a low of
4.6 percent among installation/maintenance/repair workers to 8.4 percent
for transportation operators/material
movers to a high of over 15 percent
for construction and extraction occupations.” The professional and management workers fared much better
with underemployment rates only in
the 2 to 3 percentage point range.
To dramatize the labor market difficulties of blue-collar workers, the
authors combined the unemployment and underemployment rates
and found that three of the four bluecollar groups experienced combined
unemployment/underemployment
problems in the 19–33 percent range,
while both professional and managerial workers faced combined rates
in the 7 percent range.” Sum et al.
further noted that the disparity in the
combined rates for these two groups
“widened considerably over the
course of the recession.”
Impact of Employment Problems on
Blue-Collar Workers. Sum et al. indicated that the jobless difficulties of
blue-collar workers have serious negative consequences. The increases in
the mean duration of unemployment
spells over the course of the recession
diminish their reemployment prospects and lessen their hopes of obtaining a job at their former earnings.
Moreover, those blue-collar workers
who are permanently displaced from
their jobs face stiff competition from
a large surplus of workers seeking
employment.

Other Groups Affected by the Recession.
In addition to the recession having
a negative impact on the overall category of blue-collar workers, certain
subgroups that were also adversely
affected are worth mentioning. Since
blue-collar occupations are composed mostly of males, men experienced greater job loss than women
(10.8 percent unemployment rate
versus 8.6). Moreover, black males as
well as young males (under 30) who
lack post-secondary degrees were
severely affected. Black males had
an employment loss of 10.1 percent,
while the decline in blue-collar employment shut young males out of a
key segment of jobs.

Concluding Observations

Sum et al. determined that “the recession of 2008–9 has taken a very severe toll on the labor market fortunes
of the nation’s blue-collar workers.
Rising displacement from their jobs
and an increasing incidence of both
unemployment and underemployment problems have put them in
severe long-term jeopardy.” They
noted that “the depression in many
blue-collar labor markets will not
be resolved by a modest recovery of
the U.S. economy over the next few
years.” Thus, they called for expanded and revamped training and
retraining efforts to assist displaced
workers. But they hasten to add that
the nation has not had a promising
track record on retraining efforts for
displaced workers. Nonetheless, the
authors suggested that “new innovative training efforts with strong ties
to employers, including combined
classroom/on-the-job training efforts,
will be needed to increase long-term
employment and earnings outcomes
for the nation’s dislocated blue-collar
workers.”

9

Economic Implications of Natural Gas Drilling
in the Marcellus Shale Region
...continued from page 1

formation have been struggling economically and have seen a decline
in population over the past two
decades. Therefore, many people in
the region view the drilling activity
in the Marcellus shale as a potential
economic lifesaver. Drilling activity
so far has been concentrated in two
general areas of the state: Bradford,
Susquehanna, and Tioga counties
in the northern tier; and Fayette,
Greene, and Washington counties in
the southwestern portion. However,
there has been an increase in drilling
activity between these two areas.

Penn State Marcellus Center for Outreach and Research

The development of Marcellus shale
natural gas is still very young; therefore, little is known about its future
implications. Experts predict that
the drilling activity could last 30 to
50 years or more. In addition, there
are at least four other strata of deep

shales above and below Marcellus
in Pennsylvania that could become
commercially viable once the natural
gas development infrastructure is in
place, further extending the development activity. The onset of development has been very rapid, as has
the scaling up of production, catching many communities (and some
would argue the state) by surprise.
Many communities have felt they are
playing “catch up” rather than being
able to anticipate and plan for the
changes that are occurring.
Economic Implications
Marcellus shale is a nonrenewable
natural resource; therefore, the economic development opportunities
will fade as the resource is extracted.
It is critical that policymakers, businesses, and communities plan for
how this economic opportunity can

be used to benefit their communities
over the long term, rather than just
focusing on more immediate gains.
The economic implications from the
development of Marcellus shale arise
from several factors, including: (1)
the gas industry’s spending on subcontractors, workers, and local goods
and services; (2) increased spending
by landowners who are receiving
leasing and royalty dollars from gas
companies in exchange for access
to their property; and (3) the relocation and/or expansion of industries
with high energy use or similar firms
to the region because they want to
benefit from the ample gas supplies
with more predictable energy cost
models.

Current estimates indicate that about
489 trillion cubic feet of gas can be
recovered from the Marcellus shale
formation in Pennsylvania, for a total gross value of $1.46 trillion. The
Pennsylvania economy
in 2008, by contrast, was
$499 billion (as defined by total personal
income). The relative
local economic impact
will be larger than this,
however, because counties with Marcellus are
a relatively small share
of the commonwealth’s
economy, accounting
Year Drilled
for only $207 billion
2010 (1,445 wells)
of this total. State law
2009 (785 wells)
requires that gas rights
2008 (161 wells)
owners be paid a mini2007 (27 wells)
mum of one-eighth of
Based on Pennsylvania Department
of Environmental Protection Rig and
the value of production
Permit Activity Reports
www.dep.state.pa.us/dep/deputate/
from gas wells, which
minres/oilgas/RIG10.htm
means a significant
amount of the value
About 2,400 wells have been drilled in Pennsylvania since 2007 to extract natural gas from the Marcellus shale
formation.
will go directly to them.
10

Experience with gas development in
other states indicates that economic
benefits are also being obtained by
other sectors of the economy, not just
the oil and gas sector. Most economic
sectors report increased business
activity and employment due to
spending by the drilling industry as
well as by the mineral rights owner.
Some concerns have been expressed
that certain sectors in Pennsylvania,
such as the tourist sector, may be
harmed, but such impacts have not
yet been documented due to the
young age of the development. The
anecdotal evidence from the counties in the Marcellus shale region
suggests that a broad range of businesses are experiencing significant
new activity — even sectors that are
not traditionally aligned with the gas
industry, such as laundromats, sign
makers, and jewelers.
Some currently available secondary
data sources are providing evidence
that dollars and activity that are generated from the Marcellus shale are
making a difference in Pennsylvania
counties that have significant gas
drilling activity. For example, counties with more than 100 wells in 2010
experienced larger changes in total
employment than did counties with
less or no Marcellus-related drilling

1

activity.1 Likewise,
the unemployment
rates are lower in
counties that have
drilling activity
than elsewhere in
the commonwealth.
State sales tax collections, which are
an important indicator of the level of
retail sales activity,
are also increasing significantly in
counties with major
Marcellus-related
drilling activity, up
an average of more
than 11 percent
between 2007 and
2010 in Pennsylvania’s top five counties where Marcellus drilling is
occurring. During
this same period,
counties with no
Flaring off of a well in north-central Pennsylvania after the
Marcellus activcompletion of the hydraulic fracturing process.
ity experienced an
average 6.5 percent
decrease in sales tax collections.2
require a four-year degree or higher,
with many of the remaining jobs
Workforce and Business
requiring some specialized training
Implications
or certification, such as a commercial
Workforce needs that are associated
driver’s license. Because the trainwith natural gas development are
ing requirements for most jobs are
particularly broad. A recent worknot overly restrictive, many of the
force study identified more than
positions are broadly available to the
150 different occupations that are
general workforce.
directly associated with drilling a
Marcellus well; more than 420 indiMany of the highly skilled jobs asviduals are required, and the time
sociated with drilling and completcommitments add up to about 12.9
ing a well are currently being held
full-time direct jobs per well drilled.3
by workers from outside PennsylOnly about one-quarter of the jobs
...continued on next page

Pennsylvania’s Department of Labor & Industry, Pennsylvania Civilian Labor Force Data by County of Residence, 2009 and 2010.

Charles Costanzo and Timothy W. Kelsey, “State Tax Implications of Marcellus Shale: What the Pennsylvania Data Say in 2010,” Cooperative Extension, Pennsylvania State University, 2011, available at: http://pubs.cas.psu.edu/FreePubs/pdfs/ua468.pdf.

2

3
Marcellus Shale Education and Training Center, “Marcellus Shale Workforce Needs Assessment: Southwest Pennsylvania,” 2011, available at: http://
www.msetc.org/docs/NeedsAssessmentwithcoverSW.pdf#zoom=75.

11

Penn State Marcellus Center for Outreach and Research

The landowners’ estimated share of
royalty value per well, which typically drains 80 acres, is around $2.5
million and will be paid out over
the lifetime of the well. This could
lead to Pennsylvania landowners
receiving an estimated $200 billion
over the life of the Marcellus shale
development.

vania who have moved temporarily
into the commonwealth to give the
companies time to develop and train
a local workforce. As a result, hotel
rooms and rental properties can
be difficult to find in counties with
high drilling activity. Many community colleges and worker training programs in Pennsylvania have
been adjusting and expanding their
programs in response to the growing
demand for Marcellus-related jobs.
It is difficult to determine how many
workers are from out of state because available data sources do not
provide state-of-origin information
on employment.
With the exception of the skilled
jobs on the rigs, anecdotal evidence
is that Pennsylvanians will be hired
for most of the jobs. In addition,
anecdotal evidence strongly suggests that many small businesses in
Pennsylvania are adjusting to the
development of the Marcellus and
have been expanding their business
activity as a result. Net profits were
up by an average of 10.8 percent in
counties with high Marcellus activity
between 2007 and 2008, for example,
compared with only 1.7 percent in
counties with no Marcellus activity.4

Phases of Natural Gas
Development

The majority of the economic impact
of natural gas drilling in the Marcellus shale will occur during the development phase, which is the most
labor-intensive portion of natural gas
activity. During this phase, the pipelines and well pads are constructed,
and the wells are drilled. Once all
the wells are developed, long-term
workers will be needed to tend to
and maintain the active wells along
with the supporting infrastructure;
however, these jobs are significantly
fewer in number than those that

4

See the article by Costanzo and Kelsey.

12

are needed during the drilling and
construction process. Royalty income
similarly will be the highest during the development phase, since
production from each individual
well declines quickly over the first 24
to 30 months before it stabilizes at a
slowly declining rate.
No one knows how long the development phase will last, since it depends
critically upon how many drill rigs
are operating in Pennsylvania, the
comparative advantage of Marcellus
shale to other natural gas developments, broader market forces, and
the long-run plans of the drilling
companies. The range expressed by
experts typically varies between 30
and 50 years (and it could be longer if
any of Pennsylvania’s other gas shales
prove to be commercially viable).
Similarly, no one knows precisely
how long individual Marcellus wells
will remain productive because there
is a lack of long-term experience with
the productivity of such wells.
The different phases of natural gas
development have strong implications for the economic impact of
Marcellus shale activity. The major
difference in labor requirements
between the development and later
phases can create difficult policy
trade-offs, particularly related to infrastructure needs. Housing is critical
to ensure that the workers and their
families live within the community
and spend their dollars locally, rather
than spending those dollars immediately after leaving. However, if housing is built to accommodate shortterm needs (albeit potentially 30 to
50 years), the community may have
a major surplus of housing after the
development phase is over and most
of the workers have left. It is important to understand that the major economic impacts will phase out as drilling ends; therefore, business owners
and residents in these communities
must act during this phase to capture

the benefits and simultaneously plan
for the long term when these benefits
will no longer be available.

Other Implications

Much of the public controversy
over drilling for natural gas in the
Marcellus shale relates to potential
environmental implications, particularly with regard to water use and
groundwater contamination. Other
concerns relate to forest fragmentation, invasive species, and air quality.
Regulatory agencies are reviewing
these issues and are encouraging
methods that have minimal impact,
but because some of the environmental risks are still unclear, advocacy
groups are at odds over how much
regulation is enough.
There has been less focus on the
social implications of Marcellus shale
development, but these may prove
almost as important in the long run.
The influx of new workers has the
potential to change the communities and create conflicts between
long-term and new residents about
community needs. Anecdotes from
local governments in Pennsylvania
suggest that the development is
affecting the demand and cost for
local government services, such as
emergency services, law enforcement
and the courts, human services, and
most particularly, roads and other
infrastructure. Rising housing costs
have already made it difficult for
low-income households in several
Pennsylvania counties to make ends
meet, and these rising costs have
the potential to become an effective
barrier for such families to remain
in those communities. Because the
benefits and costs of development
will not be distributed equally across
all residents, there very clearly will
be some “haves” and “have-nots”
as a result of development, thereby
increasing the potential for community conflict.

13

Penn State Marcellus Center for Outreach and Research

Of equal concern is the
ability of local governments to influence
what occurs within
their jurisdiction. Local
control of gas development is limited in
Pennsylvania due to
the state Oil and Gas
Act, which specifically
preempts local decision-making about key
aspects of gas development. Much of the
development is occurring in very small rural
communities, and the
governments in these
communities have
limited resources and,
This well in Lycoming County, PA, is still in the early stage of Marcellus shale drilling.
therefore, may lack the
capacity to act even if
munity, and a wealth of interested
vestment vehicles, risk management,
the law allowed such control.
stakeholders is key to ensuring that
and estate planning. The banking
the development of Marcellus shale
industry can assist owners in making
Role of the Banking Industry
has the most positive effects on the
appropriate
financial
management
The banking industry can play imcommonwealth. And most impordecisions and thereby help them
portant roles within the development
tant to those pending discussions
manage their portfolios. The legal
of the Marcellus shale formation. Anwill be accurate, scientifically valicomponent of wealth management
ecdotes from people in the commudated data that can be used to make
and
the
deployment
of
approprinities in the Marcellus shale region
strategic decisions, both at the indiate tax strategies will also be critical
indicate that some local businesses
vidual landowner level as well as at
for landowners and their family
are trying to expand but are finding
the community and statewide levels.
members for several generations.
it difficult to obtain local financing.
Marcellus shale development is havThe
banks,
which
serve
as
trusted
Local financing can help local firms
ing an impact on almost all aspects
financial agents in these communisuccessfully compete with newcomof life in communities in two-thirds
ties, will play an important role as
ers from outside the region, keeping
of the geographic area of Pennsylthe Marcellus shale is developed in
profits within the community. The
vania, which accounts for half of
Pennsylvania.
banking industry can also assist
the commonwealth’s population.
with helping to attract or establish
Therefore, it is crucial to incorporate
Summary
businesses that rely heavily upon
new information as the development
The development of the Marcellus
natural gas as an input and that may
evolves across the state over the next
shale natural gas resource in Pennfind it profitable to locate within
several decades.5
sylvania has the potential to prothe state. Financing likely will be
foundly change the commonwealth.
particularly important for exploring
For more information, contact Timothy
Over time, extraction of this energy
this opportunity.
W. Kelsey at 814-865-9542 or tkelsey@
resource will affect Pennsylvania’s
psu.edu, or Thomas Murphy at 814economy, society, environment,
Many of the gas rights owners who
865-1587 or tmurphy@psu.edu; www.
workforce, businesses, and residents.
are receiving royalties have never
marcellus.psu.edu; www.naturalgas.psu.
In addition, these implications will
handled such large checks and thereedu.
be multigenerational in nature. Acfore are unfamiliar with the financial
tive participation by landowners,
management tools and skills necesregulators, environmental advocates,
sary for effectively managing their
5
See U.S. Census of Population, 2011.
academia, the broader business comportfolios, including appropriate in-

Impact of Marcellus Shale on Housing Needs
By Timothy W. Kelsey, Ph.D., Professor of Agricultural Economics, Penn State Cooperative Extension, and Thomas B. Murphy,
Co-Director, Penn State Marcellus Center for Outreach and Research
One of the more difficult policy issues arising from the development
of the Marcellus shale is housing.
Gas workers, like most other workers, want to live close to their place
of work to avoid commuting time.
Therefore, these workers are seeking
housing in the areas where Marcellus drilling activity is occurring.
Having the workers live locally is
best for the economic development
of these communities because the
workers will spend their salaries
locally. However, most of the communities that are currently under
major development pressure are
very rural and have little surplus
housing. In fact, discussions with
key local stakeholders indicate that
there is a shortage of rental housing
in particular. Accommodating the
new workers has proved difficult at
times, with rents doubling or tripling
over the past two years in some communities. This creates obvious difficulties for low-income residents and
others who do not own their own
homes. There are frequent reports
of landlords not renewing leases
with existing residents so that they
can charge higher rents to incoming
gas workers, as well as reports of
low-income residents struggling to
find affordable places to live within
the community. Accommodating the
new workers also has the potential
of crowding out long-term residents
who no longer are able to afford to
live in these communities.
Companies have responded to these
housing shortages, in part, by renting motel rooms for their workers. In
some cases, the gas companies even
are renting or purchasing the entire
facilities. The result has been a shortage of rooms, raising fears among
some that the Marcellus development may be affecting tourism or
14

other travel into the communities.
Campgrounds similarly have seen an
influx of new residents, typically gas
workers looking for temporary housing for several months. Numerous
existing hotels within the Marcellus
region are expanding their capacity,
and new hotels are being built in
high-impact areas.

adds value to the community in the
long run. To ensure that there isn’t an
excess of housing, communities must
put careful thought and planning
into the housing issue and look for
opportunities to address both shortand long-term needs simultaneously.
For example, a lack of hotel rooms
has been a chronic problem for
developing the tourism potential of
some parts of Pennsylvania, such as
traveling to view Pennsylvania’s elk
herd in Cameron and Elk counties, or
in several other communities in the

Real estate agents are reporting
increases in home sales to incoming
transplants with families, but this
growth is slower than the rising demand for rental
housing. There
Real estate agents are reporting increases
are some anecdotal reports from
in home sales to incoming transplants
companies that
with families, but this growth is slower
there are shortagthan the rising demand for rental housing.
es of higher-end
homes, which are
currently limit“PA Wilds” tourism region. If coming the number of workers willing
munities plan appropriately, the new
to bring their families to Pennsylvahotels that are built for the natural
nia. In addition, some homeowners
gas workers could help the tourism
who had previously put their homes
industry in the future by providing
up for sale have taken them off the
more places for visitors to stay.
market to rent them more profitably
instead.
Editor’s note: ProximityOne, a website
that provides geodemographic–economic
One of the housing policy challenges
data and analytical tools, reported that
is that the demand for labor, and
the Williamsport, PA, metropolitan
thus housing, is highest during the
statistical area (MSA) was one of two
development phase of natural gas,
nationally that had the highest fourwhich is when all the wells are being
quarter increase in the housing price
drilled and pipelines are being laid.
index (HPI). The HPI for Williamsport
Once this current phase ends (which
rose 8.38 percent from the third quarter
could be 15 or more years within an
of 2009 to the third quarter of 2010. See
individual community, depending
http://proximityone.com/hpi.htm. In
upon how many rigs are active), the
addition, an electronic newsletter, 24/7
need for housing will decline draWall St., reported that the Williamsport
matically as those workers leave. The
MSA was one of 10 MSAs nationally
challenge for local decision-makers
with the greatest increase in home valis ensuring that sufficient housing
ues. It found that home prices increased
exists during these “boom” years
18.4 percent from the third quarter of
without creating a large housing
2005 to the third quarter of 2010. See
surplus after the activity ends and
http://tinyurl.com/6zfmjg8.
making sure that new infrastructure

How Place Matters Is Subject of New Book
Neighborhood and Life Chances: How
Place Matters in Modern America,
published recently by the University of Pennsylvania Press, consists
of papers that were prepared in
conjunction with the Community
Development Studies and Education
Department’s 2008 conference on
“Reinventing Older Communities:
How Does Place Matter?”
The book was edited by Harriet
B. Newburger, Ph.D., community
development research advisor at the
Federal Reserve Bank of Philadelphia, and by Eugenie L. Birch and
Susan M. Wachter, professors at the
University of Pennsylvania and codirectors of the Penn Institute for Urban Research. Margery Turner, vice
president for Research at the Urban
Institute, discussed the book in the
institute’s MetroTrends Blog at http://
tinyurl.com/67c5nlx. An excerpt of
her commentary follows.
“Most of us take it for granted that
where we live, and especially where
our kids grow up, makes a big difference. But this proposition — that
neighborhoods matter — is still the
topic of spirited disagreement and
debate in the scholarly world…
“Neighborhoods do in fact alter
children’s long-term prospects, but

we don’t entirely understand how.
Street crime and violence, lousy
schools, dilapidated parks and rec
centers, and a dearth of decent grocery stores all pose serious risks for
kids. These neighborhood effects help
explain why so many kids who are
born poor, especially minority kids,
remain poor into adulthood.
“We still have a lot to learn about
exactly how our neighborhoods affect our kids. It’s clearly not a simple
cause-and-effect process. Much of
what a neighborhood has to offer,
both good and bad, depends on who
lives there. And our choices about
where to live are influenced by our
priorities (good schools or a short
commute? cheap rent or low crime?),
our budgets, and whether we feel
welcome. So the link between people
and the places they live looks less
like a one-way arrow than a tangle of
feedback loops, where both people
and places are changing all the time.
“This dynamic complexity makes it
tough for researchers to nail down
conclusions about causality, and
even tougher for policymakers (and
constituents) to figure out how to
“fix” troubled neighborhoods for the
benefit of poor kids and their families.
“We’ve been arguing for way too long

about whether public policies should
focus on helping people or fixing
places. To me, it’s painfully obvious that we should do three things
at once: 1) help vulnerable families
and kids, regardless of where they’re
located; 2) fix the distressed places
in which too many of them live; and
3) help poor families move from
distressed places to opportunity-rich
places if they want to.
“These are complementary, not
competing strategies. In fact, failing
on any one of them makes it harder
to succeed on the others. Instead
of bickering about which strategy
(place-based or people-based) wins
across the board, we should be figuring out how each can contribute…”
Information on the book is available
at http://www.upenn.edu/pennpress/
book/14740.html.

Maintaining the Viability of Small-Scale Rental Housing
that government agencies often view
landlords as adversaries rather than
potential partners in the goal of providing good quality rental housing.
She and other speakers emphasized
that building partnerships is essential to maintaining a viable market
and that long-term occupancy is

better for everyone — the owners, the
neighborhood, and the tenants.
For information, contact Alan Mallach
at amallach@comcast.net; Karen Black at
kblack@may8consulting.com; Ann Houston at ahouston@chelseand.org, http://
www.chelseand.org/; Chris Krehmeyer at

...continued from page 5

ckrehmeyer@beyondhousing.org, http://
www.beyondhousing.org/; Martha Van
Cleve at mvc@meridianservices.com,
http://www.meridianservices.com/; and
David Paulus at paulus@allentowncity.
org. For information on future work of
the Philadelphia Fed on rental housing,
contact Erin Mierzwa at erin.mierzwa@
phil.frb.org.
15

CASCADE
Federal Reserve Bank of Philadelphia
100 N. 6th Street
Philadelphia, PA 19106-1574

PRESORTED STANDARD
U.S. POSTAGE PAID
Philadelphia, PA
PERMIT No. 529

Address SERVICE Requested

Calendar of Events
2011 Federal Reserve Bank of Cleveland Policy Summit

June 9–10, 2011, Cleveland, OH
The Federal Reserve Bank of Cleveland’s annual Policy Summit will focus on housing, inequality, neighborhoods, and
labor market issues, with special consideration given to research related to the foreclosure crisis. For information, contact Tim Dunne at tim.dunne@clev.frb.org or Francisca G.-C. Richter at francisca.g.richter@clev.frb.org; http://www.
clevelandfed.org/2011policysummit/call.cfm.

Entrepreneurs Forum of Greater Philadelphia

June 14, 2011, Federal Reserve Bank of Philadelphia
This event will focus on the financing needs of minority entrepreneurs. For information, contact Jeri Cohen-Bauman at
jeri.cohen-bauman@phil.frb.org.

Homes Within Reach 2011

November 14–16, 2011, Hilton Harrisburg, Harrisburg, PA
The Housing Alliance of Pennsylvania’s annual conference will focus on tools and resources to preserve and increase
the supply of safe, decent, affordable homes. For details, go to http://www.housingalliancepa.org/.

Reinventing Older Communities

May 9–11, 2012, Hyatt Regency Philadelphia at Penn’s Landing
The Federal Reserve Bank of Philadelphia’s Community Development Studies and Education Department will host
its fifth biennial Reinventing Older Communities conference. The Reinventing conferences are typically attended by
policymakers, community developers, bankers, researchers, funders, planners, and government representatives. For
information, contact Erin Mierzwa at erin.mierzwa@phil.frb.org.

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