News & Event
Jason Richardson, Director, Research & Evaluation, NCRC
Bruce Mitchell, Ph.D., Senior Research Analyst, NCRC
Juan Franco, Senior GIS Specialist, NCRC
Gentrification is a powerful force for economic change in our cities, but it is often accompanied by extreme and unnecessary cultural displacement. While gentrification increases the value of properties in areas that suffered from prolonged disinvestment, it also results in rising rents, home and property values. As these rising costs reduce the supply of affordable housing, existing residents, who are often black or Hispanic, are displaced. This prevents them from benefiting from the economic growth and greater availability of services that come with increased investment. Gentrification presents a challenge to communities that are trying to achieve economic revitalization without the disruption that comes with displacement.
This study found that from 2000 through 2013 the following occurred:
A major transformation is occurring in the most prosperous American cities. Many of the 600+ member organizations of the National Community Reinvestment Coalition (NCRC) have raised concerns about gentrification, displacement and transformations in their communities. We wanted to better understand where gentrification and displacement was occurring, and how to measure and monitor it. Does gentrification also mean displacement?
Using U.S. Census Bureau and economic data, NCRC found that many major American cities showed signs of gentrification and some racialized displacement between 2000 and 2013. Gentrification was centered on vibrant downtown business districts, and in about a quarter of the cases it was accompanied by racialized displacement. Displacement disproportionately impacted black and Hispanic residents who were pushed away before they could benefit from increased property values and opportunities in revitalized neighborhoods. This intensified the affordability crisis in the core of our largest cities.
Gentrification was most intense in the nation’s biggest coastal cities, yet in medium to small cities of the nation’s interior it was rare: Most of the nation’s cities and towns did not experience gentrification as measured in this study.
Neighborhoods experience gentrification when an influx of investment and changes to the built environment leads to rising home values, family incomes and educational levels of residents. Cultural displacement occurs when minority areas see a rapid decline in their numbers as affluent, white gentrifiers replace the incumbent residents.
In this study, neighborhoods were considered to be eligible to gentrify if in 2000 they were in the lower 40 percent of home values and family incomes in that metropolitan area.
Measuring gentrification and displacement is fraught with controversy, since people who are impacted by the economic and social transition of their neighborhoods feel the disruption of community ties directly. This study measured gentrification and displacement using empirical methods and data, which has its own flaws and limitations. First, while the use of U.S. census data improves the validity of the study’s findings, it also restricts the population analysis to a time period extending from 2000 to 2010, while the social and economic data were gathered under the U.S. Census American Community Survey (ACS) program, covering the period starting in 2000 and until 2009-2013, a five-year consolidation of the social and economic data. This limits our findings to the not-too-distant past. However, neighborhoods with a more recent dynamic of gentrification and displacement could not be covered. Second, the use of census tracts, which average about 4,000 residents, as a proxy for neighborhoods could disguise neighborhood changes taking place at smaller community sizes. As a consequence of these restrictions on the time frame and scale of the study, it should not be implied that other neighborhoods have not experienced the same effects before, during or since the study period. Instead, the study is designed to identify instances of gentrification and displacement that can be measured with a high level of confidence, and avoid falsely noting gentrification where none occurred, but it cannot capture the full-lived reality of residents in gentrifying neighborhoods.
Disinvestment in low- and moderate-income communities results from a long history of discrimination in lending, housing and the exclusionary, racialized practice known as redlining. A recent study by the Federal Reserve Bank of Chicago directly linked community disinvestment with historical redlining practices evident in the Home Owners Loan Corporation (HOLC) residential security (“redlining”) maps, completed for all major cities of the U.S. 80 years ago. A 2018 study by NCRC found that three out of four neighborhoods marked “hazardous” by HOLC surveyors in the 1930s are still struggling economically, with lower incomes and higher proportions of minority residents. The economic outcomes for black and Hispanic families residing in disinvested areas are often stunted by lower incomes, fewer businesses and fewer opportunities to build wealth. This history set the stage for gentrification and displacement.
Local advocates and officials should pursue policies that encourage investment while promoting the ability of existing residents to stay and benefit from revitalization. In our 2016 paper, The Community Reinvestment Act: How CRA can promote integration and prevent displacement in gentrifying neighborhoods, we identified several ways in which local stakeholders can promote revitalization to benefit the broader community, such as partnerships between banks and community-based organizations to encourage equitable development; limited-equity co-ops and community land trusts; providing existing tenants with the right of first refusal in apartment conversions coupled with low-income and first-time buyer financing programs; inclusionary zoning regulations; and split tax rates for the incumbent residents of gentrifying neighborhoods. Additionally, HUD’s Affirmatively Furthering Fair Housing (AFFH) process provides an opportunity for community groups to engage with municipal leadership in the planning process. AFFH provides a mechanism for identifying areas that are vulnerable to, or may be in the early stages of, gentrification. Community groups can then work to develop strategies to avoid displacement of incumbent residents by attracting investment and providing affordable housing.
Large and small local banks can also play a role by supporting the development of housing and finance options that accommodate the retention of low- and moderate-income families in the community, rather than excluding them. Bank regulators should recognize pro-integrative bank finance as responsive to the needs of the community, crediting banks for these efforts in their CRA exams. Strategies like those advanced through HUD’s AFFH rule, promoting investment in inclusive and diverse neighborhoods, should be eligible for CRA consideration. It is essential that programs promoting the economic prosperity of incumbent residents of gentrifying neighborhoods be discussed on the public evaluations released subsequent to a CRA exam to document their effectiveness and encourage other banks to apply comparable investment strategies in their markets.
To read the full Shifting Neighbors report, visit NCRC.com, or click on the following link.
Courtesy of NCRC
Applications are now open for Host Organizations to join the fall 2019-2020 class of Rose Fellows. DEADLINE is Friday, November 9.
Organizations apply to join the Enterprise Rose Architectural Fellowship because they seek to leverage the power of design and creativity to tackle issues of equity, opportunity, and sustainability in the communities they serve. The Enterprise Rose Architectural Fellow is a passionate, full-time team member dedicated to this pursuit for two years. Fellows become fully emerged in the work of the organization and become a resource that allows their organization to pursue innovative efforts that might not otherwise be possible. All fellows hold a professional degree in architecture or landscape architecture, and many are pursuing licensure or are already licensed.
Fellowships focus on a range of topics, including: resident-oriented design, health and housing, community engagement, collaborative design processes, creative placemaking, and resilience and sustainability. Enterprise partners with the host organization to select the fellow and provides mentorship and training to the fellow over the two-year period. By participating in the national cohort of fellows and hosts, both have the opportunity to share their work and connect with peers from across the country and bring innovative ideas and best practices back to their local communities. Hosts also support the fellow by providing a comprehensive workplan, day-to-day supervision, a stimulating work environment, and fringe benefits.
Prospective host organizations are strongly encouraged to discuss their application with the Enterprise Rose Architectural Fellowship team before submitting an application. The application requires:
Host organizations must demonstrate:
The fellow receives an annual stipend paid through the host organization’s payroll. The exact amount of the stipend will be determined by Enterprise to attract competitive candidates.
Enterprise has some funding available to subsidize the stipend through a grant to the host organization. Organizations receiving this funding must have 501(c)(3) or Tribally-Designated Housing Entity Status.
Enterprise continually seeks local and national funds to help cover the Fellowship program costs. The application requests you provide a list of potential funders that might be interested in supporting the Fellowship. During the application process, host organizations should speak with the Rose Fellowship Program Director regarding fundraising needs and opportunities.
DOWNLOAD the Enterprise Rose Architectural Fellowship Manual
Courtesy of Enterprise
Posted May 25, 2018 at 12:33 PM
Updated May 25, 2018 at 9:25 PM
PROVIDENCE, R.I. — Several speakers at HousingWorks RI’s forum on gentrification on Friday said they don’t need an academic study to tell them that many longtime city residents are getting priced out of the housing market.
City Council member Luis Aponte said it’s almost impossible to find an apartment in South Providence today because so many houses are being purchased by investors who renovate them and then rent them for ”$650 or $750 a month, per bedroom” to students.
“We see a direct impact,” he said. “It makes the cost of housing for families skyrocket.” Aponte represents Ward 10, which includes the neighborhoods of Lower South Providence and Washington Park.
Aponte said the city’s “meds and eds” — medical and educational institutions — need to do more to address the city’s affordable housing problem. He said every time Brown University buys a new building, it’s a positive for the new jobs it will bring, but it often takes another building off the tax rolls, and puts more pressure on the housing market.
On Friday, HousingWorks RI at Roger Williams University released a report, “You Don’t Have A Problem Until You Do: Revitalization and Gentrification in Providence, Rhode Island.” It was adapted from a master’s thesis written by Fay Strongin, who studied city planning at the Massachusetts Institute of Technology.
Strongin attended a Friday morning session at RWU’s Providence campus to discuss her findings, along with a panel that included Teresa Guaba, of the Providence Children & Youth Cabinet; Jennifer Hawkins, executive director of ONE Neighborhood Builders; Ana Novais of the Rhode Island Department of Health; and Taino Palermo of Roger Williams University. The discussion was moderated by Brenda Clement, executive director of HousingWorks.
Strongin’s report documented that several neighborhoods in Providence, including those clustered near downtown and Federal Hill, have experienced rent increases between 2000 and 2015 that far outpaced those seen in other sections of the city.
While the citywide median rent jumped 26.1 percent between 2000 and 2015, some neighborhoods experienced a 47.8-percent average increase in median gross rent, nearly double the growth citywide, and nearly triple the increase seen in non-gentrifying neighborhoods, where rents increased by 16.2 percent, Strongin found.
The report defines gentrification as a process in which housing costs rise after new investment comes into “historically disinvested” low-income neighborhoods.
Guaba said she is a longtime Providence resident and has seen residents displaced from Fox Point due to gentrification, and she sees a similar trend happening now in South Providence.
“It’s not rocket science, because I think we all know what’s going on,” she said.
Novais, a resident of Pawtucket, said that city is also experiencing gentrification.
Clement said in Providence, unlike cities where housing costs have spiraled out of sight, “we’re early enough in the process to control it,” by being proactive.
Panelists discussed options including inclusionary zoning, which is requiring new housing developments to have a percentage of affordable units, and more incentive-based options, such as rewarding developers with more density if they include affordable units.
On Twitter @ChristineMDunn
Courtesy of Providence Journal
A gubernatorial forum and debate between the 2018 candidates will be held on Wednesday, May 9th at the Sheraton Airport Hotel, 1850 Post Road in Warwick, RI.
This forum will be focused on the issue of affordable housing, with the debate portion of the night to be moderated by Bill Rappleye of NBC 10.
Doors open at 6:30PM, the event will begin at 7PM, and is set to conclude by 9PM.
Attendees will be encouraged to actively participate and raise topics, questions, and issues for discussion.
Future forums are planned regarding the issues of: healthcare, "A tale of two Rhode Islands", and economic success.
Candidates confirmed for this event are, in no particular order:
Paul Roselli, Democrat
Spencer Dickinson, Democrat
Giovanni Feroce, Republican
TBA, Moderate Party
Invitations have also been extended to candidates Allan Fung (R), Patricia Morage (R), Matt Brown (D), Joe Trillo (I) and incumbent Gina Raimondo (D) but their attendance has not yet been confirmed.
To get up to date information, visit the Facebook Page of the Moderate Party of Rhode Island or RSVP here
Courtesy of North Kingstown Patch
After the three panel discussions, attendees will participate in breakout sessions. The forum is free to attend, but attendees must register online at AIPChousing.eventbrite.com. Breakfast and lunch will be provided.
Courtesy of Newport Daily News
Panelists touched on challenges such as seniors’ ability to age in place and millennials’ struggle to find affordable housing.
“This problem is not going away anytime soon, so we have these conversations, we can begin to create long-term policies,” said Rep. Lauren Carson, D-Newport, in the statement.
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