Addressing the Root Causes of Municipal Corruption in U.S. Cities

Nearly a year ago, former Los Angeles City Councilman José Huizar pleaded guilty to racketeering and tax evasion, admitting that he took over $1.5 million in bribes during his tenure. As representative for the rapidly gentrifying Boyle Heights neighborhood and Downtown Los Angeles, Huizar used his office to shape urban development in line with the interests of corrupt real estate investors. Throughout his seven years as Chair of the Planning and Land Use Management Committee, he vouched for developers who paid him bribes, received kickbacks in exchange for favorable votes, and even negotiated with labor unions who threatened to block projects from which he stood to benefit financially. The U.S. Attorney for the Central District of California called the Huizar saga one of the most “wide-ranging and brazen public corruption cases” in the city’s history.

Local-level land use decisions are frequently rife with corruption, even in developed countries such as the United States. The elaborate web of regulations that govern zoning and urban planning practices, combined with relatively weak ethical standards for municipal lawmakers, encourage powerful investors to run afoul of the law. The Huizar case stands out as but one glaring example of the corruption that inhabits the world of variances, special use permits, and environmental impact reviews. Faced with mountains of paperwork and political uncertainty, real estate developers are drawn to corruption’s easy fix. Public officials such as Huizar are well-positioned to offer simple and efficient permitting in engage for generous campaign contributions and personal gifts.

While prosecuting corrupt officials like Huizar is necessary, addressing the root causes of this sort of corruption requires significant structural reforms. Three such reforms are particularly important: a reduction in the discretionary authority of political decision-makers in specific land use decisions, the abolition of councilmanic privilege, and the adoption of a universal municipal code of ethics for local lawmakers.

Continue reading

Planning and Zoning Board Corruption: Finding the Missing Whistleblowers

My last post looked at the constant, pernicious corruption and conflict of interest in local land use planning decisions in the United States. Despite shocking stories and a handful of high-profile investigations and prosecutions (see, for example, here and here), little comprehensive work has been done to address the potential for corruption in planning and zoning decisions, even when warning signs abound. Instead, most instances of corruption in land use planning decisions remain undetected, perhaps because the seemingly small stakes make it unlikely that external investigators will scrutinize these decisions too closely.

Yet potential whistleblowers surely see or suspect bribery, conflicted dealings, or other malfeasance in land use planning. Reforms should make it easier for those individuals to come forward, as well as make it more likely that their reports will lead to action. Ideally, these measures would recognize the particular characteristics of land use decisions, such as the challenges posed by the large numbers of local officials involved in planning and zoning. Here are a few suggestions for how to encourage simpler, more consistent reporting:

Continue reading

In Accordance with a Comprehensive Scam: Bribery and Conflicts in U.S. Land Use Planning

Corruption in land used decisions is widespread. Quid pro quo exchanges are relatively common, as are conflicts of interest, especially in small communities. In 2011, Transparency International released a report on land use that found “[a]round the world more than one out of 10 people reported paying bribes when dealing with ordinary land issues.” The United States is far from immune. Consider just a handful of recent examples: The City of Boston has asked for help from the FBI in its approach to corruption, particularly corruption in zoning boards. In 2008, the Chicago Tribune ran an eight-part series on corruption in Chicago real estate decisions. An earlier case revealed that an Indianapolis city official with sway over the zoning board regularly asking for bribes. The former mayor of Charlotte resigned after bribery accusations, including taking cash for influencing zoning decisions. And in a recent review, Minneapolis found that conflicts of interest are common in its planning and zoning boards.

What makes land use planners so susceptible to corruption, even in countries, like the United States, that are not usually thought of as suffering from endemic bribery? Part of the problem concerns the institutional set-up. In a typical U.S. community, there will often be a Planning Commission, responsible for approval of individual site development or demolition plans, oversight of subdivisions, and review of the area’s Master Plan for zoning and development. (For some insight into what these meetings might look like, the City of Syracuse, New York makes its applications and minutes available online.) The community (city or county) would usually also have a Zoning Board of Appeals or Zoning Board of Adjustment—tasked with creating a Master Plan, reviewing zoning ordinance changes, and providing special permits or variances from zoning requirements.

The risk factors associated with this approach to land-use decisionmaking include excessive autonomy, complexity, and delay:

Continue reading