Tag Archives: Community Land Trusts

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.

 

Portland Region 2040 Vision–What’s Next?

April 4, 2016

“How do you think Metro should respond to the key issues and trends affecting the region’s ability to realize the vision of the 2040 Growth Concept?”  

I was asked this question recently and here’s what I said. . .

Since its inception in 1995, the 2040 Growth Concept has promoted compact, mixed-use, transit-oriented development in centers and corridors.  This has been central to shaping regional growth patterns, limiting sprawl and creating livable communities.  In fact, directing growth into centers & corridors has been the region’s primary strategy for preserving farms, forests and natural areas outside the Urban Growth Boundary.  Metro policymakers (and I myself) believe that compact development is the premier tool to address climate change, ensure equity, create jobs and protect the region’s quality of life.

I see three key trends that have only gotten stronger since 1995:

Trend 1: Walkable Urbanism Preference

Beaverton's Broadway Vision

Most cities in the region know that they must promote walkable urbanism–but sometimes their policymakers forget. This image is from Beaverton’s Civic Plan.

Boomers and Millenials both show a strong preference for “Walkable Urbanism.” Some suburban policymakers responses to Metro’s Climate Smart Communities (CSC) project shows that many of them are not aware that this first trend means that they should be focusing more of their infrastructure dollars towards “retrofitting suburbia” rather than building and widening roads. I worked hard to see that urban form/urban design was in the strategies tested in the CSC project (and indeed it tested at the top!), but many suburban policymakers would rather focus on electric vehicles and other technology for lowering tail pipe emissions. More needs to be done to alert them that their present course will potentially lead to stranded assets where there is little market left for suburban single-family homes that don’t provide the opportunity to walk to needed services and amenities.

Trend 2: Recognition That Inequality Hurts Us

There is a growing recognition of the unacceptable impacts of inequality (racial, social, financial).  Inequality impacts such issues as housing affordability, homelessness, displacement and even sprawl as people seek more affordable housing in towns outside the Metro Urban Growth Boundary.  Thanks to Bernie Sanders, financial inequality (the widening income gap) has become a chief topic of presidential debates and led to more discussion of the role that the Federal government should play. Meanwhile, Metro has attempted to address several aspects of inequality.

Equitable Housing Report

This report mentions Community Land Trust as a strategy. But it needs to become THE major strategy if we are to address housing costs for a 2040 workforce.

Regarding Metro’s Strategic Plan to Advance Diversity, Equity, and Inclusion Metro’s COO Martha Bennett said “the priorities are to learn more about best practices, apply equity plans to its service-delivery areas, improve community engagement and use equity as a measure of decision-making in spending money.” Any build out of the 2040 Growth Plan will need to address gentrification, displacement and contracting opportunities in an equity strategy that focuses on communities of color.

Metro has pursued affordable housing strategies for many years—the latest effort being the Equitable Housing Initiative headed up by Councilor Sam Chase. From Metro’s web site: The Initiative’s Report discusses a variety of tools that could help, including financial assistance for residents, renter protections against evictions and nonprofit community land trusts. . .

I agree that Metro should utilize the Community Land Trust model, but not just for the involuntarily low-income. I would like to see governments in the region, including Metro, promoting the CLT for ALL OF US.  The original impetus behind the CLT movement was to create a new institution to keep housing permanently affordable.  The first people I ever met living in a CLT were NOT low-income, rather middle-income people who saw it as a better way. Probably the local government that best understood its potential was Burlington, VT under then-mayor Bernie Sanders.  The City of Burlington under Sanders helped to support the formation of the Burlington Community Land Trust.  It’s now the Champlain Housing Trust, the largest CLT in the US and a model for local governments looking for systemic solutions.

Champlain Housing Trust Image

Champlain Housing Trust is the largest Community Land Trust in the nation. It enables housing to be kept permanently affordable by holding title to the land under both multifamily and single family homes–both rented and owned. Image from CHT 2014 Annual Report: http://www.getahome.org/learn-more/publications.

I believe the CLT is the best tool for transforming our housing system.  By taking the land under housing off the private, commodity, speculative market, it helps to change the concept of housing from a commodity to be bought and sold for a profit. Instead it encourages us to see it as a social good that everyone needs and deserves.

“By looking at housing as a fundamental human right rather than a market good that goes to the highest bidder, and with shrewd political organizing in a hostile environment, housing advocates in Burlington have created a sustainable model for affordable housing that deserves to be emulated across the country” says Daniel Fireside in Burlington Busts the Affordable Housing Debate.

The Portland region has a Community Land Trust, Proud Ground (formerly Portland Community Land Trust and Clackamas Community Land Trust). Personally, I feel that it is far too focused on home ownership rather than a mix of ownership and rental. Nonetheless, Metro should explore developing a relationship with it similar to that of Burlington and CHT.

Woolsey Corner in the New Columbia area of Portland was developed as a Community Land Trust by Proud Ground utilizing Orange Splott as its builder. Photo courtesy of Orange Splott.

Woolsey Corner in the New Columbia community of Portland was developed as a Community Land Trust by Proud Ground utilizing Orange Splott as its developer. Photo courtesy of Orange Splott.

For the shorter term, it should work with innovative housing developer Orange Splott, LLC and its network of other small  incremental developers in promoting more alternatives to conventional home ownership. Let me repeat, these alternatives should be marketed not just to “the poor” but to ALL OF US!  For Metro, this work could come under the banner of the Equitable Housing Initiative, but it needs to be larger than “affordable housing.” Rather it needs to focus on housing affordability involving ALL income levels.  In the long run, hopefully before 2040, such efforts by Metro will help to change the concept of housing from a commodity to a social good.

Trend 3: Need for Excellent Urban Design

Residents of existing neighborhoods will be far more supportive of new development when it includes excellent urban design encompassing:

  • appropriately scaled buildings
  • streets designed for walking, biking, pushing baby strollers. . .and even cars
  • neighborhoods with diverse uses
  • people of diverse incomes, class and ethnicity
  • sufficient parks and natural areas, protected streams, wetlands, and steep slopes
  • infrastructure for arts and culture

Metro might look into working with the Regional Arts and Culture Council to produce a toolkit to encourage every community in the region to integrate arts and culture. Transportation for America has produced a Creative Placemaking Handbook that could provide a good start.

Towards a Walkable Tigard

Tigard Mayor welcomes New Urbanist Jeff Speck for two days of talks and workshops on making Tigard, a suburban community in the Portland Metro area, more walkable. Photo by PlanGreen.

Members of the Congress for the New Urbanism have a great deal of expertise in excellent urban design.  Metro should continue to develop a partnership with the Portland-based non-profit National Charrette Institute, a leading affiliate and powerful voice within CNU. As presented at the New Partners for Smart Growth Conference by Council Member Craig Dirksen, the Investment Areas Approach with its Shared Investments Strategy  highlighted both the City of Tigard and the Tigard Triangle in the SW Corridor Investment Area. New Urbanists are having strong influence over Tigard’s redevelopment and this trend should be encouraged.

Metro is involved with connecting its natural area at Canemah Bluff with a riverwalk along the Willamette River.

Metro is connecting its natural area at Canemah Bluff with a riverwalk along the Willamette River. This will make Oregon City even more appealing as a place to live and work. Photo by PlanGreen.

Metro should continue its long-standing relationship with The Intertwine regarding the integration of parks and natural areas into developing centers and corridors. This coalitions of organizations have long been involved with implementation of Titles 3 and 13 of the 2040 Concept. It should consider expanding relationships with environmentally oriented organizations that represent communities of color (some of whom are in The Intertwine). As mentioned above in the inequality trend, any urban design efforts must take into account gentrification and displacement. They must also take into account inequitable air quality impacts.

What do you think about my three key trends re: implementing the 2040 Growth Concept–and my ideas on what Metro should do about them?  What are your ideas?