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Article
What is a Strategic Acquisition? Decision Modeling in Support of Foreclosed Housing Redevelopment
Socio-Economic Planning Sciences (available online) (2012)
  • Michael P. Johnson, Jr., University of Massachusetts Boston
  • Rachel B. Drew, University of Massachusetts Boston
  • Jeffrey Keisler, University of Massachusetts Boston
  • David Turcotte, University of Massachusetts - Lowell
Abstract
This paper describes and develops a model for calculating location-based strategic values of foreclosed properties considered for acquisition and redevelopment by community development corporations (CDCs). A property’s strategic value refers to its proximity to site-specific neighborhood amenities and disamenities (e.g. schools, public transit, distressed properties), given the relative importance of that proximity to CDC organizational and community objectives. We operationalize the concept of strategic value, and apply this concept to a salient public sector decision problem. Using data and value assessments from a CDC engaged in foreclosed housing redevelopment, we compute measures of strategic value for a set of acquisition candidates. We show that strategic values can differ in systematic ways depending on the types of amenities and disamenities identified as relevant for CDC acquisition decisions, the relative importance assigned to those amenities and disamenities, and the utility maximization objectives of the CDC. We conclude by proposing a multi-criteria decision model for foreclosed housing acquisition and redevelopment which incorporates a theory of residential housing impacts for which strategic value measures are a special case.
Keywords
  • Foreclosed housing,
  • community development,
  • facility location,
  • multi-criteria decision models
Publication Date
September, 2012
Citation Information
Michael P. Johnson, Rachel B. Drew, Jeffrey Keisler and David Turcotte. "What is a Strategic Acquisition? Decision Modeling in Support of Foreclosed Housing Redevelopment" Socio-Economic Planning Sciences (available online) Vol. 46 Iss. 3 (2012)
Available at: http://works.bepress.com/rachel_drew/4/