Avenue of the Arts Callowhill Chinatown Elfreth’s Alley Fitler Square Franklintown Logan Square Jeweler’s Row Market East Old City Museum District Penn Center Penn’s Land- ing Rittenhouse Square Society Hill South Street Washing- ton Square West Bella Vista Passyunk Square Grays Ferry Hawthorne Italian Market Moyamensing Newbold Pack- er Park Pennsport Point Breeze Queen Village Schuylkill Southwark Graduate Hospital Tasker Wharton Whitman Wil- son Park Angora Bartram Village Clearview Kingsessing Eastwick Elmwood Park Hedgerow Hog Island Mount Moriah Paschall Penrose Belmont District Carroll Park Ca- thedral Park Cedar Park Cobbs Creek Dunlap Garden Court Haddington Haverford Mantua Mill Creek Overbrook Park- side Powelton Village Overbrook Park Saunders Park Spruce Protecting Philadelphia’s Backbone: A Strategy for Vital Neighborhoods Paul C. Brophy and Thomas Burns Commissioned and Issued by NeighborhoodsNow / Winter 2010 Hill University City Overbrook Farms Walnut Hill Woodland Terrace >`UULÄLSK/LPNO[Z Fairmount Park Spruce Hill Walnut Hill Woodland Terrace Chestnut Hill Germantown Morton Mount Airy Wister West Oak Lane Cedarbrook An- dorra East Falls Manayunk Roxborough Wissahickon Brewery- town Fairhill Fairmount Francisville Hartranft Ludlow Northern Liberties Poplar Spring Garden Strawberry Mansion Yorktown Bridesburg Fishtown Kensington Port Richmond Allegheny West Franklinville Glenwood Hunting Park Nic- etown–Tioga East Oak Lane Feltonville Fern Rock Logan Ogontz Olney West Oak Lane Bustleton Millbrook Penny- pack Somerton Torresdale Upper Holmesburg Winchester Park Avenue of the Arts Callowhill Chinatown Elfreth’s Alley Fitler 2 PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS Square Franklintown Logan Square Jeweler’s Row Market East Old City Museum District Penn Center Penn’s Land- ing Rittenhouse Square Society Hill South Street Washing- ton Square West Bella Vista Passyunk Square Grays Ferry Hawthorne Italian Market Moyamensing Newbold Pack- ABOUT THE AUTHORS er Park Pennsport Point Breeze Queen Village Schuylkill PAUL C. BROPHY THOMAS BURNS Southwark Graduate Hospital Tasker Wharton Whitman Wil- Paul C. Brophy is a principal with Brophy & Reilly Thomas Burns is a strategic planning and evalua- 33* H 4HY`SHUKIHZLK JVUZ\S[PUN ÄYT ZWLJPHS- [PVUJVUZ\S[HU[^P[OULHYS``LHYZVML_WLYPLUJL son Park Angora Bartram Village Clearview Kingsessing izing in housing, community development, and PU[OLW\ISPJWYP]H[LHUKUVUWYVÄ[ZLJ[VYZ/LPZ [OLTHUHNLTLU[HUKÄUHUJPUNVMJVTWSL_\YIHU J\YYLU[S`4HUHNPUN+PYLJ[VYVM[OLJVUZ\S[PUNÄYT Eastwick Elmwood Park Hedgerow Hog Island Mount redevelopment projects. Mr. Brophy’s practice Urban Ventures Group, Inc., which he founded in centers on the creation and implementation of 2003 to offer planning and program development Moriah Paschall Penrose Belmont District Carroll Park Ca- strategies to improve the health of central cities. Z\WWVY[[VMV\UKH[PVUZHUKUVUWYVÄ[ZJVUJLYULK He has directed two projects for the prestigious with urban revitalization. Mr. Burns has directed thedral Park Cedar Park Cobbs Creek Dunlap Garden Court American Assembly and advises large institutions projects in management development, organiza- (Johns Hopkins University, University of Chicago) [PVUHSKLZPNUHUKYLZ[Y\J[\YPUNÄUHUJPHSWSHUUPUN Haddington Haverford Mantua Mill Creek Overbrook Park- on neighborhood improvement strategies and and multi-organizational collaboration, as well programs, including housing improvement. Mr. as strategic planning. Over the past decade he side Powelton Village Overbrook Park Saunders Park Spruce Brophy is currently a Nonresident Senior Fellow has advised locally sponsored housing and com- at the Brookings Institution, serves on the board munity development partnerships in Cleveland, VM5L_[(TLYPJHU*P[`HUKPZHMYLX\LU[SLJ[\YLY Detroit, Indianapolis, Pittsburgh, and Philadel- at the School of City Planning at the University of phia. Previously, Mr. Burns was founding Direc- Pennsylvania. From 1988 to 1993, he was presi- tor of the OMG Center for Collaborative Learn- dent and then vice chair and co-CEO of the En- ing; he was also on the faculty of the Wharton terprise Foundation. Previously, Mr. Brophy held School at the University of Pennsylvania, served Hill University City Overbrook Farms Walnut Hill Woodland positions in the City of Pittsburgh government, as a Group Director at the Fels Center of Govern- as Director of the Housing Department and as ment, and was a senior member of the research Terrace >`UULÄLSK/LPNO[Z Fairmount Park Spruce ,_LJ\[P]L+PYLJ[VYVM[OL
ABOUT NEIGHBORHOODSNOW
:PUJL [OL UVUWYVÄ[ VYNHUPaH[PVU 5LPNO- cacy and public education; member services borhoodsNow has developed market-driven and special events; neighborhood preserva- programs to improve the health and competi- tion pro-grams; regional initiatives and special tiveness of Philadelphia’s low- and moderate- projects; and preservation easements. In recent income neighborhoods. NeighborhoodsNow is an years, it has developed a strong neighborhood outgrowth of an earlier community development preservation program that includes workshops program, the Philadelphia Neighborhood Devel- for homeowners and community organizations, opment Collaborative (PNDC), which successfully grants to low- and moderate -income homeown- delivered operating and capacity-building support ers and such special events as The Old House Fair for more than a decade to community develop- and a bi-annual conference on neighborhood ment corporations (CDC) throughout the city. preservation. In view of the Preservation Alli- ance’s increased emphasis on the preservation After completing a thorough strategic review in of Philadelphia’s neighborhoods, this shift of 2009, the board of NeighborhoodsNow decided responsibility for the Vital Neighborhoods pro- to wind down its operations and merge its pro- gram is entirely appropriate. grams with other entities while they are strong and viable and can ensure a return on invest- The Preservation Alliance is the lead partner and ment for current funders. In a cooperative effort will assume the majority of the Vital Neighbor- ^P[O[OL*P[`VM7OPSHKLSWOPH»Z6MÄJLVM/V\ZPUN hoods program management responsibility. It will and Community Development, Neighborhood- be supported in this role by the Center for Archi- sNow chose to award its Vital Neighborhoods tecture and the Community Design Collaborative. program and associated funding to the The Center for Architecture, established in 2002 Preservation Alliance for Greater Philadelphia. to carry out the charitable interests of Philadel- phia architects, achieves its mission through three ABOUT THE NEW VITAL NEIGHBORHOODS program areas: public engagement, collaboration, MANAGEMENT TEAM HUK KLZPNU L_JLSSLUJL ;OL *VTT\UP[` +LZPNU The Preservation Alliance’s mission is to actively Collaborative provides pro bono predevelopment promote the appreciation, protection, and appro- KLZPNUZLY]PJLZ[VUVUWYVÄ[VYNHUPaH[PVUZVMMLYZ priate use and development of the Philadelphia unique volunteer opportunities for design profes- region’s historic buildings, communities, and land- sionals, and raises awareness about the impor- scapes. The Preservation Alliance accomplishes tance of design in community revitalization. P[ZTPZZPVU[OYV\NOWYVNYHTZPUÄ]LHYLHZ!HK]V- 5
Protecting Philadelphia’s Backbone: A Strategy for Vital Neighborhoods Paul C. Brophy and Thomas Burns
FOREWORD
This paper describes a strategy to improve the these areas available to working middle-income overall well-being of Philadelphia by putting people who want to live in Philadelphia. middle-market or vital neighborhoods on a posi- tive trajectory—one that has them becoming Starting in 2006, NeighborhoodsNow supported stronger and more desirable places to live. Pro- investments in vital neighborhoods, with modest tecting Philadelphia’s Backbone: A Strategy for success. Early in 2009, the City of Philadelphia Vital Neighborhoods is shaped by the understand- and NeighborhoodsNow convened a Round- ing that the longer-term economic and social table to broaden understanding of the opportu- ^LSS ILPUN VM 7OPSHKLSWOPH PZ PUL_[YPJHIS` [PLK [V nities to strengthen these vital neighborhoods the future of these neighborhoods. Moderate- and to share promising practices from here and and middle-income neighborhoods, many of elsewhere. Following the Roundtable, the City of which appear stable, are under enormous stress. 7OPSHKLSWOPH»Z6MÄJLVM/V\ZPUNHUK*VTT\UP[` Homeowners are aging, maintenance is deferred, Development committed additional seed money and foreclosure rates are high. Yet, these neigh- to advance a targeted preservation approach in borhoods also have many assets–strong neigh- several neighborhoods. borhood associations, determined leadership, 5V^ [OL VWWVY[\UP[` L_PZ[Z [V QVPU ^P[O WSHJLZ and conditions that make them attractive to new such as Baltimore that have developed much more homeowners. Helping these neighborhoods im- far-reaching and integrated public-private sector prove should be part of any strategy aimed at investment strategies that are ensuring that mod- WYLZLY]PUNHUKNYV^PUN[OLJP[`»Z[H_IHZL erate- and middle-income communities remain For decades Philadelphia has struggled with the viable—where it makes economic and emotional challenges common to older industrial cities: sense for people to invest time, money, population loss, neighborhood disinvestment, HUKLULYN`+YH^PUNVU[OLPYL_WLY[PZLHUKL_- KL[LYPVYH[PUNPUMYHZ[Y\J[\YLH^LHRLUPUN[H_IHZL tensive knowledge of national best practices, a high poverty rate, and other social ills. In com- Brophy and Burns make a compelling argument bating these challenges, Philadelphia has primar- PU[OPZWHWLYMVYJHYLM\SS`[HYNL[LKÄUHUJPHSPU]LZ[- ily focused on slowing or reversing decline in our ments in these neighborhoods. They establish a most severely distressed neighborhoods. This road map from which to navigate toward a more paper advocates a focus that can complement robust public-private preservation strategy for [OL *P[`»Z J\YYLU[ Z[YH[LN` ,HYS` YLSH[P]LS` PUL_- vital neighborhoods. pensive interventions to strengthen the markets in the city’s vital neighborhoods will protect one NeighborhoodsNow hopes this paper and the of the city’s most precious assets, prevent fore- dialogue that it inspires position city government, ZLLHISL WYVISLTZ HUK H]VPK JVZ[S` Ä_LZ `LHYZ philanthropy, and community partners to work down the line. Acting now to preserve the qual- together to strengthen these vital neighborhoods ity of life of our vital neighborhoods will not only now. avoid deterioration, but will also continue to make Beverly Coleman 6 PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS
BACKGROUND
Like many older industrial cities making a tran- recovery; their residents aren’t wealthy but they sition to a new economy, Philadelphia continues are by no means poor. They comprise what we to strive to rebuild its population. Upon taking call the “middle-income market,” and they con- VMÄJLPU1HU\HY` 4H`VY5\[[LYZL[HNVHS stitute the backbone of the city in geographic as to increase the city population by 75,000 over well as economic terms. ten years. The good news reported in December This report outlines a strategy for promoting devel- 20091PZ[OH[MVY[OLÄYZ[[PTLPUV]LY `LHYZ opment and preservation of these neighborhoods the city population was growing. This is good as attractive, competitive communities that are news indeed since the city’s long-term economic IV[OTP_LKPUJVTLHUKVM[LUTP_LKYHJL2LLW- viability is tied directly to its ability to retain and ing these neighborhoods vital means that the attract residents. The current economic climate residents feel it makes economic and emotional and real estate crisis makes this goal of popula- sense for them to continue to invest their time, tion growth particularly daunting. energy, and money there. This, in turn, supports communities in being able to negotiate neigh- These neighborhoods borhood-related issues and successfully man- age their own change. Strengthening these vital constitute the backbone neighborhoods also draws in newcomers seeking places to invest. We propose relatively low-cost of the city in geographic approaches that other cities like Baltimore are as well as economic terms. already employing, with successful results. Maintaining the health of these neighborhoods ILULÄ[Z [OL JP[` HZ H ^OVSL ;OLZL HYLHZ HYL ;VHJOPL]L [OPZ NVHS [OL JP[` ÄYZ[ JHUUV[ HMMVYK now largely stable, which means they contrib- to lose its current population, especially middle- ute to the overall economy of the city. But it’s income persons. Increasing the population will clear they could easily decline, particularly in the require an array of strategic and creative mea- wake of the economic downturn and increasing sures. This report addresses one key approach to MVYLJSVZ\YLZ 0U [OPZ ÄZJHS JSPTH[L H TVKLZ[ retaining and building population—strengthening investment of scarce public dollars would support the vital neighborhoods that are now home to a this administration’s declared goal for population ZPNUPÄJHU[WYVWVY[PVUVM[OLJP[`»Z^VYRPUNJSHZZHUK growth and help prevent further erosion of the city’s moderate-income families. These neighborhoods WYVWLY[`[H_IHZL are not currently severely deteriorated, nor are they undergoing a robust real estate market
1St. John Barned-Smith, “Hey, Philly: You’re bigger!” (Philadelphia Daily News, December 2, 2009.) Posted on www.philly.com; accessed January 12, 2010. PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS 7
THE NEIGHBORHOODS AT RISK
Many of us have friends or family members who Ä[ [OPZ WYVÄSL! [OL` OH]L SP]LK MVY `LHYZ·L]LU decades—in the same Philadelphia neighbor- hood. They want to do better, and they want their kids to do better than they’ve done. They maintain These vital neighborhoods their homes meticulously, know most of the peo- ple on their block, send their kids to public school, can be found throughout and run errands at the corner store. Thousands of Philadelphians like this keep these neighbor- Philadelphia, in every one of OVVKZ]P[HSHUK[OLPYYLHSLZ[H[L[H_LZJVTWYPZL H ZPNUPÄJHU[ WLYJLU[HNL VM [OL JP[`»Z YL]LU\L the city’s Council Districts. These residents are committed to living in the city and want to invest where they live. However, many are concerned that the value of their homes may be declining—even though they, themselves, have invested in and remained committed to these neighborhoods.
The neighborhoods deemed as “vital” encompass a fairly broad cross-section of Philly’s “bread and butter” neighborhoods. They include parts of Ger- mantown, East Mount Airy, and West Oak Lane PU 5VY[O^LZ[ 7OPSHKLSWOPH" [OL >`UULÄLSK HYLH in West Philadelphia; and a large area in Frank- ford. And there are many more neighborhoods scattered throughout the city with similar demo- NYHWOPJZ;OLTHWVU[OLUL_[WHNLZOV^ZJSLHY- ly that these vital neighborhoods can be found throughout Philadelphia, in every one of the city’s Council Districts. 8 PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS
The Reinvestment Fund used Market Value Analysis (MVA), a tool it developed, to create this map. MVA, which is based on a compre- OLUZP]LZL[VMKH[HKL[HPSPUNYLHSLZ[H[LTHYRL[ZH[HÄULSL]LSVMZWLJPÄJP[`PZKLZPNULK[VMHJPSP[H[LKLJPZPVUTHRPUNHIV\[[OLHSSVJH[PVU VMÄUHUJPHSYLZV\YJLZHUKWYVNYHTTH[PJPU[LY]LU[PVUZ PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS 9
The residents of these neighborhoods pay a substantial portion of the city’s wage and property taxes. CHARACTERIZING PHILADELPHIA’S VITAL NEIGHBORHOODS
One of the key lessons from neighborhood and white-collar workers—who own their own homes. community development over the past 20 years ;OLZLHYLHZHYLHMMVYKHISLHUKKLZPYHISLMVYÄYZ[ is that markets matter. Most people have choices time homebuyers who choose to remain in the about where they live. Neighborhoods compete city rather than move to the suburbs. They also to attract residents and compete for all kinds of have the potential to attract suburban homebuy- investment—those that residents make in buying ers back to the city. Perhaps most critically, the or improving homes, that property owners make residents of these neighborhoods pay a substan- in providing rental housing, and that merchants [PHSWVY[PVUVM[OLJP[`»Z^HNLHUKWYVWLY[`[H_LZ make running businesses there.
A combination of assets affects the strength of the neighborhood markets, making some more CHARACTERISTICS OF attractive to potential residents than others. PHILADELPHIA’S VITAL NEIGHBORHOODS Assets can include: Have an estimated population of geography or access to transportation HWWYV_PTH[LS` VM[OL the kind and quality of the housing stock city’s total population
nearby shopping options (YL WLYJLU[ V^ULY parks and recreational amenities occupied, as compared with WLYJLU[ JP[`^PKL ;OPZ schools, churches, and other institutions YLWYLZLU[Z VM HSS V^ULY safety or sense of neighborliness. occupied households in the city
One of the key variables in whether a neighbor- Have median residential sale pric- hood competes well is how current and poten- es of $127,500, compared with $115,000 citywide for 2008–09 tial investors perceive its future. A neighbor- hood viewed as stagnant or at imminent risk of Have a median household decline attracts little or no interest from inves- income of $41,680 vs. $37,322 tors. Alternatively, a neighborhood regarded as citywide in 2009 stable and healthy—or better yet, as “up-and- /H]L VMHSSYLZPKLU[PHSMVYL- coming”—continues to attract new residents JSVZ\YLÄSPUNZPU ¶ and further investment.
These “middle-market,” backbone neighbor- Source: The Reinvestment Fund hoods to which we refer are home to many of the city’s working families—mostly blue- and 10 PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS
The future of these neigh- borhoods depends on managing the market reational facilities, tree-lined streets, schools and libraries, and established neighborhood institu- conditions and challenges tions. These are not neighborhoods that typi- they are encountering, so cally attract high-end newcomers, but the current residents do have the resources to choose where that current and prospective they live. They will “vote with their feet” and relo- new residents can become cate—albeit reluctantly—if the quality of life in the neighborhood deteriorates too far. Some housing JVUÄKLU[HIV\[HUKPU]LZ[ stock may already show signs of neglect, and the number of vacant properties may be growing. In in these areas. cases of benign neglect, minor interventions can OH]L H ZPNUPÄJHU[ PTWHJ[ VU [OL HWWLHYHUJL VM According to a recent analysis by The Reinvest- the area and the attitude of its residents. ment Fund (TRF), these vital neighborhoods are home to more 429,000 of Philadelphia’s resi- However, the residential population of many of dents—nearly 30 percent of the city’s population. these areas is aging, and the percentage of seniors With more than a third of Philadelphia’s entire SP]PUN VU Ä_LK PUJVTLZ PZ NYV^PUN ;OPZ TLHUZ housing stock, they have a higher level of owner- that much-needed repairs and maintenance are occupied housing than most other neighborhoods OHYKLY MVY YLZPKLU[Z [V KV HUK TVYL KPMÄJ\S[ MVY in the city. These areas have houses priced in the them to afford. In some neighborhoods there may upper-middle range of the city’s housing market, also be rising concerns about crime and safety. healthy sales, and low vacancies. Over time, these trends undermine resident con- ÄKLUJL PU [OL ULPNOIVYOVVK OV\ZPUN THYRL[ 4HU`VM[OLZLULPNOIVYOVVKZHYLHSZVL_WLYPLUJ- and make these neighborhoods less attractive to ing signs of increasing stress, with rising foreclo- new homebuyers. sure rates and a still small but growing number of WYVWLY[PLZ^P[OV\[Z[HUKPUN[H_SPLUZ;OLM\[\YL of these neighborhoods depends on managing The current residents the market conditions and challenges they are will “vote with their feet” encountering, so that current and prospective UL^YLZPKLU[ZJHUILJVTLJVUÄKLU[HIV\[HUK and relocate—albeit invest in these areas. reluctantly—if the quality Although these neighborhoods are quite diverse of life in the neighborhood physically, they share some fairly stable assets: public transportation, access to parks and rec- deteriorates too far. PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS 11
AN OUNCE OF PREVENTION
Benjamin Franklin said that “an ounce of preven- the entire city. There is a real potential for further tion is worth a pound of cure” when he established SVZZLZVM[H_YL]LU\LHUKVMTPKKSLPUJVTLMHTP- 7OPSHKLSWOPH»Z ÅLKNSPUN ÄYL JVTWHUPLZ HUK [OPZ lies, further polarizing Philadelphia into a city of OHZUL]LYILLUTVYL[Y\LMVYV\YJP[`,HYS`PUL_- residents who are either poor or wealthy. pensive intervention to prevent foreseeable prob- SLTZ PZ TVYL LMÄJPLU[ LJVUVTPJHSS` [OHU JVZ[S` LTLYNLUJ`Ä_LZHM[LY[OLMHJ[;VMVSSV^[OPZHK- Tom Ferrick Jr., was a writer and columnist age by investing in our vital neighborhoods is to for the Philadelphia Inquirer for 10 years protect one of the city’s most precious resources. and is currently senior editor for Metropolis Ensuring their stability is to ensure Philadelphia’s (www.phlmetropolis.com): future. “There is a group of people I call the ‘aspir- Funds for neighborhood improvement are not only ing class,’ who want a better life for their scarce, but they are available almost entirely for children than they had themselves, and they programs and initiatives targeted at areas that are believe the path to this better life is a good already severely distressed—to address decades LK\JH[PVU;OLZLPUKP]PK\HSZHYLUV[KLÄULK of disinvestment, respond to affordable housing by income level or race—they are poor as needs, and help restart the markets. These pro- well as wealthy and middle-class. They are grams will continue to be critically important, but black, Asian, Latino, and white. They are Philadelphia’s vital neighborhoods also require the reason there are 27,000 people on the intervention. We need to take action to stabilize waiting lists for charter schools in Philadel- and preserve neighborhoods that are currently phia. The members of the aspiring class are at risk. most affected when city library branches close, because they go there regularly with At present there are virtually no dedicated funds their children. They use the local recreation available to strengthen the neighborhoods de- The current residents centers. The aspiring class brings stability scribed here. What the city does devote to to city neighborhoods—many, but not all, will “vote with their feet” ULPNOIVYOVVK YL]P[HSPaH[PVU HYL HSTVZ[ L_JS\- of them are homeowners, and issues of sively federal funds, which are income-restricted and relocate—albeit safety and neighborhood cleanliness are of and cannot be used in the majority of neighbor- [OL \[TVZ[ PTWVY[HUJL (UV[OLY KLÄUPUN reluctantly—if the quality hoods that we are characterizing here as “vital.” characteristic: the aspiring class gets too They are not the focus of programs sponsored of life in the neighborhood little attention from policymakers, who are by state and local government. This means that trying to attend to the poorest of the city’s the future of these neighborhoods is uncertain. deteriorates too far. residents.” Without sustained intervention now, their decline is likely and will have negative consequences for 12 PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS
By bringing a commitment to partner with neigh- The role of City leadership in supporting our vital borhood groups, City Council leaders, founda- neighborhoods is critical; while the City govern- tions, and other civic stakeholders to stimulate ment should not directly operate neighborhood commitment to and investment in Philly’s vital development programs, it must provide reason- neighborhoods, the Nutter Administration will put HISLUVU¶PUJVTLYLZ[YPJ[LKÄUHUJPHSZ\WWVY[HUK these neighborhoods and the city as a whole on a act as a fully invested partner with the agents who positive trajectory. run these improvement efforts.
Bob Inman, Professor of Finance and Eco- The city is having success with programs de- UVTPJZH[>OHY[VUOHZ^YP[[LUL_[LUZP]LS` signed to handle the high foreclosure rates of the on how to sustain prosperous, livable cities past several years. Programs like the Mortgage in today’s fast-evolving economy: Foreclosure Prevention Program—which man- dates that lenders meet with homeowners as part “In addition to good transportation and oth- of a formal mediating process—are essential in er services, neighborhoods that are home the face of the foreclosure crisis. to the city’s mid-market earners and own- ers are critical to the health of the Philadel- City government must phia economy. This must remain so for the continued stability and future growth of the provide reasonable, city overall.” non–income restricted
BUILDING ON EXISTING EFFORTS ÄUHUJPHSZ\WWVY[HUK
NeighborhoodsNow co-hosted a Roundtable on act as a fully invested vital neighborhoods with City leaders in February partner with the agents ;OL*P[`»Z6MÄJLVM/V\ZPUNHUK*VTT\- nity Development has allocated $200,000 in year who run these improve- 35 Community Development Block Grant (CDBG) funding to support implementation of a Vital ment efforts. 5LPNOIVYOVVKZWYVNYHTHUK[VWYV]PKLÄUHUJPHS However, while this program helps to avoid fore- and technical support to the target neighbor- closures, more work must be done to address hoods. Senior staff at the Philadelphia Commerce the broader impacts that are on the horizon for +LWHY[TLU[HUK[OL6MÄJLVM/V\ZPUNHUK*VT- the residents of vital neighborhoods. The positive munity Development (OHCD) have been strong developments made in these neighborhoods in supporters of Vital Neighborhoods and the earlier recent years are vulnerable to being quickly re- Healthy Neighborhoods program, especially in versed, as foreclosures remain high and home administering CDBG funding for eligible areas. values continue to stagnate and, in some cases, PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS 13
fall. Spillover effects can include increased crime people get into good homes. These programs HUK]HUKHSPZTHZ^LSSHZÅPNO[HUKKPZPU]LZ[TLU[ strive to stabilize and increase home values, from the neighborhood. recognizing that increases in home values build equity and wealth for the residents who live there. Philadelphia must act now to determine what is 0U HKKP[PVU [OLZL WYVNYHTZ ILULÄ[ [OLPY JP[- feasible and what is best for our vital neighbor- PLZHZH^OVSLI`ZOVYPUN\W[OL[H_IHZLHUK hoods and take targeted, strategic action. The L_WHUKPUNVW[PVUZMVYYLZPKLU[Z0UMHJ[)HS[PTVYL»Z City must identify non–income restricted funds Healthy Neighborhoods, Inc. (HNI) focuses on [OH[VMMLYNYLH[LYÅL_PIPSP[`[V\UKLY[HRL[HYNL[LK improving its vital neighborhoods, and a separate strategic initiatives in these vital neighborhoods. effort called Live Baltimore markets the city and its neighborhoods as attractive places to live, PRINCIPLES FOR HELPING PHILADELPHIA’S work, and invest. VITAL NEIGHBORHOODS
7OPSHKLSWOPH ^V\SK UV[ IL [OL ÄYZ[ <: JP[` [V undertake initiatives that invest in neighborhoods Baltimore’s Healthy Neighborhoods, Inc. at risk—or on the cusp—of decline. Baltimore’s www.healthyneighborhoods.org Healthy Neighborhoods program, Richmond’s Neighborhoods in Bloom, and Chattanooga’s The organization helps strong but under- Neighborhood Preservation Program have already valued Baltimore neighborhoods increase committed to making their own “vital” neighbor- home values, market their communities, hoods good places to live and invest. These cities create high standards for property im- understand that strengthening these neighbor- provements, and forge strong connections hoods is fundamental to the future health of the among neighbors. Measurable results to entire city, and accordingly have already broadly date have included: embraced efforts to increase the attractiveness of Increased home values their vital neighborhoods. Even more important, (UL_WHUKLK[H_IHZL [OLPY L_WLYPLUJL ZOV^Z [OH[ [OL PTWYV]LTLU[Z Decreased time on market of homes HYLUV[JH\ZPUNNLU[YPÄJH[PVU"[OLWLVWSLTV]PUN for sale into these areas are of similar demographics to Increased home-equity investment the people who live there already.
Most importantly, the actions of Baltimore, Rich- mond, and Chattanooga demonstrate that it is a legitimate public purpose to improve these areas, and that the housing policy for these neighbor- hoods is an essential complement to a more traditional affordable housing strategy to help 14 PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS
An initial investment began as a pilot program of These programs generally follow similar principles: the Baltimore Community Foundation in 2000, [VKL]LSVWTHYRL[Z[YH[LNPLZ[OH[ILULÄ[ULPNO- 1. Improving the neighborhood by working IVYOVVKZ ^P[O ZPNUPÄJHU[ HZZL[Z I\[ Z[HNUHU[ from the strongest areas outward. This real estate values. The corporation was created approach targets neighborhood improve- in 2004 as a partnership of banks, foundations, ment by building on the assets rather than government, and community organizations. I` Ä_PUN [OL IPNNLZ[ WYVISLTZ ;OPZ WYPU- To date, HNI has organized an innovative $40 ciple may appear to be counterintuitive, but million below-market loan pool for purchase, building from the strongest areas spreads YLÄUHUJLYLOHIPSP[H[PVUHUKOVTLPTWYV]LTLU[ market strength and avoids the common by homeowners, and has closed 130 loans total- problem of having investments made in ing $24 million (through August 2009). weak areas chewed up by decline. This
Live Baltimore Building from the strong- www.livebaltimore.com est areas spreads market This program strives to grow the city’s pop- ulation by providing education and market- strength and avoids the PUNV\[YLHJO[VÄUKHUKKLSP]LYJVUZ\TLYZ common problem of hav- MVY JP[` SP]PUN PUJYLHZL [OL YLZPKLU[PHS [H_ base, realize no net loss in the city’s annual ing investments made in population, and promote positive attributes VMJP[`SP]PUN[VPUÅ\LUJLW\ISPJWLYJLW[PVUZ weak areas chewed up Outreach and marketing activities include: by decline. A “Home Center” where prospective residents meet with real estate agents strategy gains momentum based on suc- Website: 500 active pages and 120 cess that can be reinvested, improvement ULPNOIVYOVVKWYVÄSLZ by improvement, until it impacts the entire Ambassadors: 1,400 and growing, with ULPNOIVYOVVK -VY L_HTWSL PM H X\HSP[` a resident referral system school is an asset for a particular neighbor- Education Programs: down payment hood, then efforts should focus on building and closing cost assistance, spe- cial home purchase and rehabilitation additional support in the community for that SVHUZHUKJP[`[H_PUJLU[P]LZ school. This could mean working with the Events: Regular networking opportuni- school principal and staff to offer additional ties, fairs, and tours access to school facilities or to afterschool activities. Helping the residents to connect City Resource Guide for prospective residents. with the school as a resource is one ap- proach to neighborhood improvement. PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS 15
2. Supporting residents in working togeth- prices, which residents can access in an er to establish and strengthen individual L_WLKP[LKTHUULY:WLJPHSLMMVY[ZTH`HSZV neighborhood identities by focusing on be needed in Philadelphia to address fore- strengths. This is often accomplished by di- closure problems in neighborhoods where rect neighbor-to-neighbor contact, in which foreclosures are increasing. residents focus on what they like about their 5. Marketing the neighborhood and its neighborhood, and not on its liabilities. As assets to people who may want to move a starting point, everyone should know the in—and knowing the market segments name of their neighborhood and be able to that are likely to move into the neigh- articulate the key reasons for living there. borhood. A key starting point is simply to There should be general agreement about market the neighborhoods to people with what is important and why most people similar income levels, and to be strategic choose to live there. Knowing neighbor- PUYLHJOPUNV\[[V[OVZL^OV^V\SKÄUK[OL Building from the strong- hood history helps to build this solidarity, as neighborhoods attractive as a place to live do programs like walking tours, community and invest. est areas spreads market newsletters published by residents, etc. 6. Tackling crime aggressively. People strength and avoids the 3. Helping residents become spokespeople do not choose to live in unsafe neighbor- and “sales agents” for the area. These common problem of hav- hoods. programs can help organize active residents ing investments made in to speak articulately about their neighbor- weak areas chewed up hoods and actively promote its virtues to A key starting point is friends, relatives, and co-workers. Baltimore simply to market the by decline. uses the terms “Neighborhood Ambassa- dors” or “‘I Love City Life’ Ambassadors” for neighborhoods to people its program of city residents who are actively involved in the community and with similar income levels. volunteer at neighborhood events and 7. Cleaning up physical problems in the other opportunities. neighborhood. Vacant homes, abandoned 4. Helping people of all income levels to cars, and vacant and littered lots must be invest in their properties by making it tackled to improve the look of the neigh- LHZPLY HUK MHZ[LY [V NL[ ÄUHUJPUN [V borhood. Philadelphia already offers as a make home improvements. To encourage model the vacant land treatment program people to invest in their properties, Balti- created by New Kensington CDC, along more has arranged with a group of lenders with The Pennsylvania Horticultural So- to provide home improvement loans and ciety, which is a bottoms-up approach to home mortgages at slightly below-market controlling abandoned land. 16 PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS
8. Helping residents to be directly involved 10. Comprehensive thinking about how the and take personal responsibility to im- KPMMLYLU[WPLJLZVM[OLULPNOIVYOVVKÄ[ prove their blocks physically, through together and reinforce one another. This small, inexpensive programs. Not only do may lead to different strategies for differ- greening, improved lighting, and other ef- ent places—a focus on “aging in place” forts help to beautify a neighborhood, but for neighborhoods with large numbers of the process of making the improvements seniors, a school-focused strategy to in- also helps to create a community fabric. crease resident involvement in school im- Contrary to conventional beliefs about provement efforts, and similar targeted neighborhood revitalization, the effective approaches. strategy is to go to the strongest block in an Please note that a number of critical elements area and support its park or school, rather underlie each of these principles: than just focusing on a group of kids caus- They assume and require that residents, ing trouble on a corner. Rather than merely merchants, property owners, and neighbor- focusing on solving problems, the efforts hood institutions take responsibility for im- ZOV\SK I\PSK VU [OL L_PZ[PUN Z[YLUN[OZ VM proving their neighborhood. these areas—leveraging them in order to make them even stronger and more self- Government needs to be supportive—but sustaining. In addition to supporting resi- not lead the process. Government identi- dents in investing in their own properties ÄJH[PVU ^P[O ULPNOIVYOVVK PTWYV]LTLU[ and acting as agents for their neighbor- efforts can have the unintended conse- hood, we want them to take action that quence of damaging neighborhood con- helps them to feel a sense of ownership of ÄKLUJLI`ZLUKPUN[OLTLZZHNL[OH[[OL and connection to where they live. neighborhood is bad enough to need gov- ernmental support. Government’s role is to 9. Building community spirit through pic- make the streets safe, invest in infrastruc- nics, block parties, and other festive ture as needed, pick up trash and keep events. These activities make it fun to live in the neighborhood clean, improve schools the neighborhood and build stronger bridg- ZVWHYLU[ZHYLJVUÄKLU[[OH[[OLPYRPKZHYL es among different groups (young and old, learning enough to be able to make a living schools and community, etc.). Residents as adults. feel that living in a good neighborhood is ;OL ZWLJPÄJZ VM L_LJ\[PVU PU LHJO ULPNO- about people enjoying living together, not borhood will—and should—vary. This is by about them spending time solving prob- no means a “neighborhood improvement lems. Encouraging events to celebrate the by formula,” but rather an approach that quality of life that people have chosen helps seeks to unleash invention and creativity at to build community spirit. the neighborhood level. PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS 17
There are many forces working against the improvement of these areas. Although these (7YVNYHT,_HTWSL! neighborhoods may seem “good enough” Neighborhoods in Bloom, Richmond, VA to some, there is hard work ahead to ensure Richmond launched Neighborhoods in Bloom that they are on the path to becoming im- (NiB), a strategy that concentrated CDBG, proved places to live and invest. HOME, general fund projects, and service re- sources in a few neighborhoods for a period The neighborhoods involved must be care- Z\MÄJPLU[[VHJOPL]LHJYP[PJHSTHZZ[OH[SL]LY- fully selected. They must be large enough HNLKMVYWYVÄ[PU]LZ[TLU[ that their improvement can spread to bor- dering areas, yet small enough that change Between startup in 1999 and February 2004, is visible over a year or two. Residents and roughly $16.6 MM was invested in 300 city outsiders alike need to develop a growing blocks. LISC also invested $4.7 MM in these JVUÄKLUJL[OH[[OLULPNOIVYOVVKPZVU[OL areas. The funds and services provided by the City focused on code enforcement, tax road to improvement. delinquent sales and property disposition pri- (UVUWYVÄ[VYNHUPaH[PVUPZLZZLU[PHSHZ[OL ority, accelerated historic preservation review, intermediary between neighborhood lead- and housing counseling. ership, City government, the School Board, An evaluation of NiB found that where City lenders, and other partners. Like HNI, in expenditures exceeded $261,000 per census Baltimore, this organization’s role is to help tract, neighborhood trajectories were altered. neighborhood leaders develop and imple- Similarly, there were larger positive impacts ment improvement programs, help to mar- when a block received at least $21,000 site- ket the neighborhoods, work with lenders ZWLJPÄJHUKYV\NOS` PUMYHZ[Y\J[\YLPU- to make loans available in these areas, and vestment on average. Increases in property work closely with City government on de- tax revenue due to NiB were estimated at ploying its programs, services, and capital in $13.2 MM. these areas. There are a number of organiza- Source: Targeting Investments for Neighborhood tions in Philadelphia that could play this role, Revitalization. George Galster, Peter Tatian, and and, if this approach is to proceed—even John Accordino. Journal of the American Planning Association, vol. 72, no. 4, Autumn 2006. on a pilot basis—City government, Philadel- phia foundations, and others need to reach consensus on which group should play this role. 18 PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS
MOVING AHEAD: STEPS TO LAUNCH WHAT WOULD IT COST? A PROGRAM TO PROTECT PHILADELPHIA’S ;OLWYVNYHTPZUV[L_WLUZP]L(ZHWVPU[VMYLMLY- VITAL NEIGHBORHOODS ence, Baltimore provides $40,000 per neighbor- The City needs to commit to improved services in OVVKMVYZ[HMÄUNHUKTVKLZ[M\UKZMVYISVJRPT- [OLZLULPNOIVYOVVKZHUK[VÄUHUJPHSZ\WWVY[MVY provements. Baltimore’s HNI currently supports HUVUWYVÄ[ZLY]PUNHZ[OLWYVNYHTOVZ[(S[OV\NO UVUWYVÄ[Z[OH[ZLY]L ULPNOIVYOVVKZ;OL its support it critical, City government should not operating unit that serves the selected neighbor- be visible in running a program that will improve hoods has a small, highly skilled professional staff these neighborhoods. and operates with a budget of under $500,000. Funds are provided by the City and by local foun- An initial program could be dations. Taking the Baltimore case as a starting point, an initial program could be established in established in Philadelphia Philadelphia with an annual budget commitment of no more than $1 million. As small an amount of with an annual budget of no funding as possible should be income restricted. The City need not be the only source of support more than $1 million. for the program. Thus it will be important for rel- evant foundations, banks, and corporations that Already the City’s Department of Commerce, may be candidates to provide charitable dollars. [OL6MÄJLVM/V\ZPUNHUK*VTT\UP[`+L]LSVW- ment, and NeighborhoodsNow worked together to select three neighborhoods to serve as pilot efforts to demonstrate the Vital Neighborhoods approach. The criteria for choosing these neigh- borhoods were threefold:
1. an analysis from TRF on the market conditions in these areas
2. opportunities for market improvements in the target neighborhoods, to complement other ZPNUPÄJHU[ PU]LZ[TLU[Z PU W\ISPJ HUK WYP]H[L revitalization
3. Z\MÄJPLU[ PU[LYLZ[ JHWHJP[` HUK JVTTP[- ment from resident associations in the target neighborhoods, since this is such an essential part of the model. PROTECTING PHILADELPHIA’S BACKBONE: A STRATEGY FOR VITAL NEIGHBORHOODS 19
A PROACTIVE INVESTMENT
If we take to heart Franklin’s advice about an ounce of prevention, then we need to shift our “Philadelphia is blessed to attention and resources from crisis manage- have a group of vital neigh- ment to crisis prevention. We’ve been slow to adopt this, as individuals and collectively as borhoods—places where a city, but our approach to neighborhood PTWYV]LTLU[ ^V\SK ILULÄ[ MYVT L_HJ[S` some of our proudest, most this kind of planning. The proposed program dedicated residents call takes seriously the reality that—unless we take action now to help—Philly’s vital neighborhoods home. The residents have HYL SPRLS` [V ULLK ZPNUPÄJHU[S` TVYL PU [OL ^H` VM UVU¶PUJVTL YLZ[YPJ[LK W\ISPJ L_WLUKP[\YLZ PU kept these neighborhoods the future. Where will those funds come from in HT\UPJPWHS[H_IHZL[OH[PZHSYLHK`L_WLYPLUJPUN strong, out of love of their enormous stress? communities and for their The fact that these neighborhoods are “vital” means, of course, that it is possible that they city. The proposed Vital could become stronger on their own—without Neighborhoods program is any help from government or the philanthropic sector. Yet it is not responsible for local leaders to intended to support their leave to chance such a critical aspect of our city. More purposeful action is essential to guarantee work, so that these neigh- that we can rely on this resource for decades borhoods become even to come. more attractive as places to live and do business in the foreseeable future.”
—City Councilwoman Marian B. Tasco Avenue of the Arts Callowhill Chinatown Elfreth’s Alley Fitler Square Franklintown Logan Square Jeweler’s Row Market East Old City Museum District Penn Center Penn’s Land- ing Rittenhouse Square Society Hill South Street Washing- ton Square West Bella Vista Passyunk Square Grays Ferry Hawthorne Italian Market Moyamensing Newbold Pack- er Park Pennsport Point Breeze Queen Village Schuylkill Southwark Graduate Hospital Tasker Wharton Whitman Wil- son Park Angora Bartram Village Clearview Kingsessing Eastwick Elmwood Park Hedgerow Hog Island Mount Moriah Paschall Penrose Belmont District Carroll Park Ca- thedral Park Cedar Park Cobbs Creek Dunlap Garden Court Haddington Haverford Mantua Mill Creek Overbrook Park- side Powelton Village Overbrook Park Saunders Park Spruce For information about the Vital Neighborhoods program, please contact the Preservation Alliance for Greater Philadelphia at 215.546.1146 or www.preservationalliance.com. Edited by Alison Rooney www.alisonrooney.com Graphic Design by Lori Johnson www.lojographics.com Hill University City Overbrook Farms Walnut Hill Woodland Terrace >`UULÄLSK/LPNO[Z Fairmount Park Spruce Hill Walnut Hill Woodland Terrace Chestnut Hill Germantown Morton Mount Airy Wister West Oak Lane Cedarbrook An- dorra East Falls Manayunk Roxborough Wissahickon Brewery- town Fairhill Fairmount Francisville Hartranft Ludlow Northern Liberties Poplar Spring Garden Strawberry Mansion Yorktown Bridesburg Fishtown Kensington Port Richmond Allegheny West Franklinville Glenwood Hunting Park Nic- etown–Tioga East Oak Lane Feltonville Fern Rock Logan Ogontz Olney West Oak Lane Bustleton Millbrook Penny- pack Somerton Torresdale Upper Holmesburg Winchester Park