Category Archives: Community Investment

HOUSING JUSTICE IS CLIMATE JUSTICE

Is This What It Means To Be An American? If we acquiesce to a system that creates such glaring inequality, we are saying YES!

Instead we could pursue a Social Housing Development Authority at the federal level. I hope those maintaining HOUSING JUSTICE IS CLIMATE JUSTICE will embrace this concept and promote it with policymakers.

Is Freedom what we want?

On April 16, this sprawling homeless encampment at the edge of downtown Portland displayed a FREEDOM sign. Find it in the shade of the upper right corner.

Did Freedom go somewhere else?

By Jun 9 FREEDOM was gone! I’ve searched around in the rubble, but no trace of the sign. The very small tent that is partially hidden by two tarps is still there today.

Independence Day is usually a time when I see historical reviews examining where we’ve come from and analyzing where we may be going.  This July 4, 2021, I thought I would make my own attempt.  The scenes around me in downtown Portland, Oregon are of increasing sidewalk tents filled with humans that most of our business community wants to see swept away so that people with money will come back to downtown.. Some of them are willing to help build more shelters to get folks off the street. They hope to hide the glaring inequality our society has produced through it’s housing policy.

A few days ago, I was reminded of an underlying cause of this housing inequity situation by an ad in our statewide newspaper, The Oregonian.

Block 216 Fund II ad

This half-page ad in The Oregonian Jun 20 offering a tax break to the wealthy symbolizes a root cause of the housing crisis.

The ad invites readers to join Fund II for the 251 room Ritz-Carlton Hotel and the 132 luxury condominiums, along with 153,000 square feet of Class A office space. It’s a “Qualified Opportunity Zone Fund” –meaning that if you are wealthy enough, you can get a big tax break for such an investment. While downtown Portland’s designation as an “Opportunity Zone” was especially egregious when it was first declared, now, with all of its boarded up storefronts, such a designation for downtown would raise fewer eyebrows than it did when it first came out.  Regardless, there is no better symbol of what’s wrong with United States housing policy than this enormous tax break for the wealthy.

CALLING FOR HOUSING AND TAX POLICY CHANGE

Dorothy Brown is one of many writing about how housing policy fails Black families

Dorothy Brown author of THE WHITENESS OF WEALTH @DorothyABrown

There is now a chorus of authors, myself included, who are calling for a “Brave New US Housing Policy”—one that treats housing as a social good rather than an investment. We are critical of the way that US tax policy has been used to make housing into a commodity–leading to greater and greater financialization of what should be a social good..  One such author, tax professor, Dorothy A. Brown, testified before the U.S. Senate Finance Committee on April 20, about how current tax policy greatly disadvantages Black families.

Her book, The Whiteness of Wealth gives several solutions that would lead to more equity in the housing system. Brown makes a case for a far more progressive tax policy. The change that she feels will work is to eliminate all existing deductions and exclusions, reduce or eliminate income taxes for those taxpayers who earn less than the living wage in their geographic area and, in fact, pay those earning less the difference. This solution would not only help many in the Black community, but many in what used to be the “middle class” all races.

More recently, through a post by the PLACE Initiative, I learned about Gianpaolo Baiocchi and H. Jacob Carlson, two activist academics who came together to publish Housing Is A Social Good. Baiocchi is from NYU and Carlson is from Brown University. Not only do they offer a critique of the Biden Administration’s American Jobs Plan strategy in the housing arena, but they also offer a proactive solution.

Image from their Boston Review article

The American Jobs Plan mirrors past efforts at affordable housing that contributed to our problems and failed Black Americans. We need to take housing out of the private market. say the authors

AMERICAN JOBS PLAN OFFERS MORE OF THE SAME

The American Jobs Plan calls for a new “Neighborhood Homes Tax Credit to attract private investment in the development and rehabilitation of affordable homes for low- and moderate-income homebuyers and homeowners”–according to the Administration.

Baiocchi and Carlson point out that “… the bulk of the proposals in the American Jobs Plan … mostly mirror earlier policies to stimulate ownership and new construction of affordable housing through subsidies and tax-breaks for private developers.”

Like Dorothy A. Brown, they point out that “These mechanisms have not only contributed to our problems, but failed African Americans. For the last several decades in the United States, the highly regressive policy of tax breaks for mortgage interest, for example, has encouraged greater household indebtedness while deeply disadvantaging African Americans.”

SOCIAL HOUSING DEVELOPMENT AUTHORITY

Published Nov 2020 by NYU Gallatin, this document is a manual for how the Social Housing Development Authority would work

I will get onboard Baiocchi and Carlson’s proposal for the creation of the Social Housing Development Authority, a federal agency that would purchase distressed real estate, ensure it is livable and environmentally sound, and finance its transfer to the  social housing sector, including tenant cooperatives, community land trusts, nonprofits or public housing. And I will encourage the PLACE Initiative and other groups that I’m involved with to get aboard too.

But, before I go into greater detail, one area where the authors and I differ–they write: Through its retrofitting efforts, the SHDA would also contribute to climate mitigation efforts.” They also mention in their Notes:  “Retrofitting affordable housing is seen by many analysts as an important pillar of the Green New Deal.” I don’t disagree with those statements, but, because I believe that housing justice is climate justice, I believe their proposal relates to mitigating climate change even more than they may recognize.

Baiocchi and Carlson et al describe the institutional design of the SHDA.                                      Part 1 describes the overarching mission and organizational structure of the SHDA. Within the mission we find:                                                                                                                                               • Reverse decades of neglect, predatory practices, and discriminatory policies by focusing efforts on historically marginalized communities.                                                                                        • Invest in green infrastructure and climate mitigation by assuring that transferred properties are retrofitted.

Part 2 elaborates on how the SHDA acquires distressed properties. “It would likely prioritize housing that is at risk of predatory activity, such as what policy makers sometimes denominate “naturally occurring affordable housing” in gentrifying areas, among others.”

Part 3 outlines what happens while the SHDA holds the assets, from servicing mortgages to maintaining and rehabbing distressed property.The maintenance function of the SHDA would be a significant stimulus into the local economy through maintenance and construction jobs.”

Part 4 lays out the asset disposition process. Preferred housing providers — community land trusts, housing cooperatives,  tenant groups, non-profit housing organizations, public housing authorities, and other government agencies — gain first priority to purchase the SHDA’s assets.

Part 5 discusses two pieces of companion policy that would enhance the ability of the SHDA to carry out its mission: the repeal of the Faircloth Amendment and the establishment of a national Tenant Opportunity to Purchase (TOPA) policy.

CONCLUSION

I suspect that TAX POLICY is not something to which most of us want to pay attention. For those of us who run a small business, we may think the IRS Schedule C seems quite arcane, but, after our taxes are filed we put it out of our mind. It is the wealthy who hire tax attorneys and accountants to find every possible deduction they can take and buy into systems like the Low-Income Housing Tax Credit and Opportunity Zones Tax Credits who are the real beneficiaries. “These market-oriented programs are fundamentally costly to public coffers and, at their foundation, prioritize profit over public function”, write Baiocchi and Carlson.

With Senator Wyden (D-OR) the chair of the Senate Finance Committee, those of us in Oregon have a special responsibility to speak out against this long-entrenched, but highly inequitable system to say that our present  housing policy is NOT what we want as Americans . And Join me in calling for the Social Housing Development Authority proposed by the group from NYU Gallatin!

NOTES

My search for the root cause of the housing crisis in the US has been fueled by the writings of authors as divergent as Samuel Stein, Diana Lind,, Heather McGhee and Alan Durning in addition to those mentioned above. The books or articles by these authors all go into far more policy history than I covered above–as does the Boston Review piece linked in this post.

 

Toronto’s Regent Park Explored

October 20, 2015

For those of us on the Greater Portland Inc. Sept. 27-30 Best Management Practices tour choosing the Regent Park Revitalization, doubtless, the most animated and enthusiastic speaker we encountered on the trip was Mitchell Kosny.  Kosny is Associate Director of the Ryerson University School of Urban and Regional Planning and a former Chair of the Board of Directors at Toronto Community Housing Corporation during the ‘roll-out’ of Regent Park revitalization.  Unfortunately, Dr. Kosny may not have realized two things: 1) We had spent the earlier part of the day sitting in meetings and were ready for a tour; 2) We were from the Pacific Northwest and therefore comfortable with rain.  I knew Regent Park to be just a few blocks down the street from Ryerson.  So, after nearly an hour sitting in Dr. Kosny’s PowerPoint lecture when he expressed doubt about doing a tour in the rain, , , I set off on my own tour.

RegentParkLocationMap

Regent Park is directly east of Ryerson University and very close to the rest of downtown. Image courtesy of UoT student paper: http://www.torontohousing.ca/webfm_send/11574

Regent Park Twin Towers

Regent Park identical towers. One is market rate, one is subsidized. Photo by PlanGreen

Regent Park is being redeveloped in five phases with three of those phases currently underway. A key tenet of the revitalization is including both rent-geared-to-income and market rate units together in the same community. I could guess which was the market rate building because I was there at rush hour when a number of young people were coming home from work and others were leaving to walk their dogs.

When the Regent Park revitalization is completed over the next 10 to 15 years, 12,500 people will live in 5,115 units across 69 acres of the largest publicly funded community in Canada. The plan includes the replacement of the 2,083 existing social housing units in Regent Park with new, energy efficient, modern units and the introduction of approximately 3,000 market units for sale.

Regent Park Sign

Regent Park is both the name of a park and a neighborhood that is re-branding itself. The park is separate from the athletic fields, but does have a community garden at one edge and an aquatic center at another. Photo by PlanGreen

I was happy to see that Regent Park actually has a park!  It’s a large park that is separate from the athletic fields that are currently under construction.  There’s a separate dog park too!  A community garden at one edge of the park is the front yard of many people who live in high rise housing.

Regent Park Community Garden

A community garden at one edge of Regent Park is close to much high density housing. Photo by PlanGreen

The architecture of the new buildings is a departure from the red brick of social housing projects.  Although there are some townhouses too, I was a bit surprised by the focus on high-rise housing, considering the bad rep that got with Cabrini Green and Pruitt Igo iin the US. However, Toronto seems to have a long history of housing its poor in high rise housing,.  Another question I have about high rises has to do with resiliency.  Considering the era of increasing natural disasters we are in, most high rises will fare very poorly without power for even a week or two. With Toronto’s mandatory Green Roof Bylaw and its Green Standards policy, its new high rises may be in better shape than most to weather power outages.

The revitalization also reconnects Regent Park to Toronto’s grid of streets and avenues, and includes the creation of new commercial spaces and community facilities including a bank, grocery store, aquatic center, new community center, restaurant and an arts & cultural center.

Regent Park Aquatic Center

Regent Park Aquatic Center is a regional swim center that brings in folks from other neighborhoods too. Photo by PlanGreen

Regent Park Aquatic Center serves people from other neighborhoods as well. I spoke to a man from Leslieville neighborhood who was waiting in the park for his daughter who was using the swimming pool.

Daniels Spectrum Artspace

The Arts and Culture Centre with Paint Box condominiums atop it. is the center point of the cultural regeneration of the neighborhood. This 60,000 sf facility is home to seven arts and innovation non-profit organizations. Yes, intersections are often too wide to be truly comfortable to the pedestrian in Toronto. Photo by PlanGreen

The Arts and Culture Centre known officially  as Daniels Spectrum is seen as a center point of the neighborhood. (Daniels Corporation is the development company that partnered with Toronto Community Housing to build all five phases so they got naming rights to this key facility!)  This 60,000 square foot facility is home to seven arts and innovation non-profit organizations. As we have seen in the U.S., the arts can offer an exciting career path to children from all income classes so I see this center as vital to the revitalization efforts.  I saw lots of people coming and going during my brief observation.

RP Athletic Fields Administrative Office

The Phase 3 construction of athletic fields is underway, along with the construction of new streets. Photo by PlanGreen

Phase 3 is progressing with the development of the athletic fields and the addition of pedestrian-friendly streets connecting to other neighborhoods. Planners believed that because of its enclave-like street design, residents were cut off from the city, even though they lived a short streetcar ride from some of its most affluent neighbourhoods and greatest cultural attractions. More social and market housing  is also part of phase 3– with completion estimated to be 2018 .

RP The Bartholomew

A Daniels ad for The Bartholomew condominium community–a mix of high rise and row houses. Photo by PlanGreen

 

It bears repeating that a key tenet of the revitalization is including both subsidized and market rate units – together in the same community. Townhouse as well as high rise; rental as well as ownership opportunities are available.  This sign advertises suites from the $300.000s but I also saw from the $200,000s.

Another key tenet is access to employment.  Regent Park residents can get one-on-one help with job searching, local employment opportunities, career planning, education and training, and more.  The Regent Park Employment Plan has an ambitious agenda.

<img class="wp-image-990 size-full" src="http://plangreen.net/wp-content/uploads/2015/10/RP-Next-Phase-2.jpg" alt="RP – Next Phase" width="640" height="480" srcset="http://plangreen More about the author.net/wp-content/uploads/2015/10/RP-Next-Phase-2.jpg 640w, http://plangreen.net/wp-content/uploads/2015/10/RP-Next-Phase-2-300×225.jpg 300w, http://plangreen.net/wp-content/uploads/2015/10/RP-Next-Phase-2-624×468.jpg 624w” sizes=”(max-width: 640px) 100vw, 640px” />

These are typical units in the old social housing. Photo by PlanGreen

RP - No Loitering

This “No Loitering No Trespassing No Alcoholic Beverages sign hints at old problems the community is trying to overcome.  The sign also reminded me  that Regent Park had become synonymous with poverty, crime and unemployment. Photo by PlanGreen

Never one to avoid a challenge, I also spent some time exploring the older parts of Regent Park that have not yet been demolished.  I’m not sure during which phase this seemingly vacant building will come down–and with the rain, there was no one around to ask.  Any tenants who have to move because of construction get one year’s notice before demolition and five months’ notice before they have to move.

While Toronto’s version of the U.S. Hope VI program is impressive, like its counterpart in Portland, New Columbia, it has not solved all its problems.  There had been three fatal shootings in the neighborhood in 2010 that left even Regent Park’s supporters in doubt. TCHC maintains that by incorporating crime prevention best practices into the design of the buildings and public areas and by linking tenants to jobs and training opportunities, it is improving community safety.

In his talk, Dr. Kosny spoke about the green that is not seen.  One of those unseen aspects seems to be what Margaret Wente in The Globe and Mail calls “the most successful “normalization” project ever launched in Regent Park”:

. . . an all-encompassing program called Pathways to Education, which mentors and coaches secondary-school kids through graduation and beyond, and guarantees them a bursary if they graduate. (A big advantage, in my view, is that Regent Park has no secondary school, so the kids have no choice but to venture outside the ’hood.) Pathways connects them with the world and shows them how to navigate it.

Regent Park Is Greener

Regent Park Is Growing Greener Every Day reads this sign near the community garden. Photo by PlanGreen

Toronto-based journalist, Doug Saunders, in his book, The Arrival City, points to three things that are crucial for integrating immigrants into the middle class:  education, transportation and access to jobs.  Time will tell if Regent Park is doing all three well.  At the end of 2015, it appears to be headed in the right direction.

Community-Based Investment

[I’m struggling to determine alternative ways to build the kind of communities we will need to address climate change and peak oil–and to put myself and other built environment colleagues back to work.  Although I had placed some of what’s below on the Congress for the New Urbanism – Cascadia Google Group awhile back, I decided to publish it as a blog after reading “Opportunity for New Urbanists: Occupy Wall Street” in New Urban News.  To see much movement at all in the real estate development world, we must address the financial and the NUN article does that.  However, as I began to think about it, I realized that the NUN title mis-appropriates the name of that popular movement, taking us in a direction opposite what Occupiers are demanding.]

I recently attended two lectures that call into question the long-term viability of depending upon Wall Street based investments–one by Denis Hayes, President of the Bullitt Foundation, the other by Richard Heinburg, Senior Fellow of the Post Carbon Institute.

Hayes watches the stock market on a daily basis for the Bullitt Foundation.  He says that economists he follows say it has one or two more runs. Because of the “green bubble,” even those may be in question because we have been ignoring environmental externalities that are coming due.

Heinberg had just finished a solid day of consulting with Portfolio 21, an
alternative investment fund in Portland, about moving money from Wall Street.  He is the author of “Power Down,”” The Party’s Over” and most recently, “The End of Growth.”  After showing multiple reasons why Wall Street’s day is over he asked “What does a transition to a new economy look like that doesn’t depend on a model of growth based on cheap energy, reckless consumption and financial speculation?”

The messages from these talks coincided with Occupy Wall Street’s successful campaign
to Move Your Money from the big Wall Street banks.  Although the Occupy
movement set the target date as Nov 5, in Oregon, we had news stories
on the mainstream media of people transferring their funds from big banks
to local credit unions for several weeks before the target date!

It seems that this is the time to strike with popularizing solutions for
people seeking local investments–investments that will help the built environment
industries too.  After Denis Hayes talk, I wrote him asking: *”Would you consider setting up a support arm for the Community-Development Initial Public Offering
(CD-IPO)
  concept pioneered by Market Creek Community Ventures?  Its
investors earned 10% on their money–in 2008 and 2009 when many others were
losing their shirts.”

Market Creek had foundation support from the Jacobs Center for Community Innovation.  Here’s what Jacobs has to say:

Ultimately, all assets and social enterprises in The Village at Market
Creek will be owned by the community. Community ownership is key to
long-term change, providing a way for residents to have a voice in how
resources are used and to benefit from community assets.

A resident-led Community Ownership Design Team worked to find a way to
transfer ownership of Market Creek Plaza to residents. They created a
ground-breaking new tool for building wealth in under-invested areas, the
Community-Development Initial Public Offering (CD-IPO).

It took six years of work, 40 drafts by a legal team, and three attempts
to earn approval for the CD-IPO from the California Department of
Corporations. Working hand-in-hand with residents to design the investor
criteria, the CD-IPO transfered 20% ownership in Market Creek Partners,
LLC, the company that owns Market Creek Plaza, to a preferred group of
investors called the Diamond Community Investors. Another 20% is owned by a
community-foundation, the Neighborhood Unity Foundation, which invested
$500,000 in the Plaza and uses the dividends to fund philanthropic efforts
in the community.

The offering opened on July 5, 2006 and closed on October 31, 2006, with
investments ranging from $200 to $10,000. In total, 415 investors purchased
all 50,000 available units, at $10 per unit, for a total of $500,000. 

In 2008 and 2009, the Diamond Community Investors received a full 10%
return on their investments.

There are other solutions too–like working to lift some limitations on
credit unions, working with local community development banks and
developing a Community Loan Fund.

In Portland, Springboard Innovation is pioneering a Direct Public Offering to build  Hatch, a community-oriented business incubator for social-benefit companies. Hatch aims to serve what founder, Amy Pearl calls “hybrid organizations” by providing space and services for mission-driven organizations.

I see the above as promising ideas to help put New Urbanists and and our friends back to work in addressing the most pressing environmental issue of our day in the way that we New Urbanists do it best–creating walkable neighborhoods.