Background guide for Breakout Session 3: Creating Housing Opportunity and Building Mixed-Income Neighborhoods October, 2016
Breakout Session 3: Creating Housing Opportunity and Building Mixed-Income Neighborhoods
Jason Beery, Ph.D. & Jamil Bey, Ph.D. UrbanKind Institute
Authors’ Note and Disclaimer
The UrbanKind Institute is a research driven think-and-do tank dedicated to promoting practices, policies, and programs that are kind to urban people and environments.
This report was prepared at the request of the Heinz Endowments to provide additional perspectives to participants attending the p4 Conference, in Pittsburgh, October 18-19, 2016. Opinions or points of view expressed herein represent a consensus of the authors and are presented for informational purposes to expand the space for conversations around equity, justice, and inclusion in the Pittsburgh region. Opinions and recommendations do not necessarily represent or constitute approval, adoption or endorsement by the Heinz Endowments or the facilitators of the respective sessions.
Correspondence concerning this article should be addressed to Tayler Clemm, UrbanKind Institute, 212 Brownsville Rd., Pittsburgh, PA 15210. Alternatively, you may contact, Ms. Clemm electronically at [email protected].
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Creating Housing Opportunity and Building Mixed-Income Neighborhoods
Over the past ten to fifteen years, many neighborhoods safer places to live for new of Pittsburgh’s neighborhoods have residents and those old residents able to undergone substantial change. Large public stay, the displaced residents are not and low-income housing buildings and around to enjoy them. Residents of many complexes have been demolished, other areas—the Hill District, Uptown, particularly in East Liberty, forcibly Soho, Garfield, Larimer, Homewood, displacing thousands of mostly Wilkinsburg, Hazelwood, Allentown, black/African-American families, with little Beltzhoover, Knoxville, the North Side, and concern or concession for the disruption Millvale—already see similar changes and destruction of their daily lives and the coming down the road. established sense of community and place. This background guide addresses In the East End, large, city-endorsed housing opportunity in the context of this economic development projects, including process of neighborhood transformation. It Eastside, Bakery Square, and Target, draw begins with a discussion of the affordable upon the wealth of Shadyside, Point housing crisis in Pittsburgh, followed by a Breeze, and Highland Park. There, market- description of several schemes and rate apartments, expensive restaurants, projects that seek to ameliorate the and trendy stores now cater to the situation. The guide presents some of the lifestyles of the professional and “creative” short-comings of these schemes and classes (mostly white/European- highlights the intersections of housing and American) attracted here by Google, RAND, the other p4 workshop topics. Uber, and others. In the southern neighborhoods, St. Clair Village contained 680 units. The Pittsburgh Housing Gentrification and the Housing Crisis Authority raised the site in 2010. The Pittsburgh faces a housing crisis. Across current proposal for the 107-acre parcel is the region, municipal authorities and to create Hilltop Farm and homes, a developers continue to raze public and community garden surrounded by 60 low-income housing units and developers market rate homes (priced around continue to build market-rate units. $250,000) and 60 lower-than-market rate “Affordable” housing is generally homes (priced around $1,100 per month).1 considered to mean paying 30% or less of In other neighborhoods, such as household income on housing. A recent Lawrenceville, where no major housing survey and report commissioned by the buildings were demolished, many long- City of Pittsburgh reveals some startling time residents can no longer afford to rent statistics. For renters, there are only 34 or buy. This follows an influx of wealthier units of affordable housing per 100 residents also in search of “walkable” residents earning 30% of the Pittsburgh neighborhoods with hip cafes, expensive median household income (MHI - $40,009 restaurants, and trendy stores. While such in 2014), 41 units per 100 residents changes have made these and other earning 50% MHI, 75 units per 100
2 | Page residents earning 80% MHI, and 90 units to afford the rehabilitation of the house and per 100 residents earning 100% MHI. This the maintenance required.5 This includes means that at every level of household mitigating structural issues, removing lead income up to and including the city’s paint, replacing lead-leaching water lines, median household income, there is a and paying higher waste water rates to pay shortage of affordable housing rental units. for ALCOSAN’s upcoming large-scale That shortage is the greatest for those infrastructure projects.6 households with lower incomes. In total, That is the situation for those paying there is a shortage of almost 15,000 30% of their income on housing. Because of housing units for those households earning the limited supply of affordable housing 30% MHI.2 and the limited incomes of the household, The situation is getting worse. The many households end up paying much supply of income-restricted apartments higher proportions of their incomes on does not meet demand: There are only housing. These households then face 15,809 affordable units for the over 71,000 constraints in what else they are able to households earning at or below 80% MHI. afford.7 This situation may lead to less The supply of these income-restricted units money available for food, leading to will decrease in coming years as some hunger, food insecurity, and their negative buildings will be demolished and income- effects, or for healthcare, leading to less restrictions will expire. At the same time, preventive care, less treatment, and worse the supply of market-rate housing is health outcomes. increasing. There were 2,158 new market- As a result of housing demolition and rate units constructed between 2012 and increase in rent and housing prices, many 2015. Over 2,100 more are currently residents are forced to find housing in new planned.3 Of the units recently constructed, neighborhoods. Much of what affordable even the studio apartments are affordable housing does exist is outside of the for households earning 125% MHI, leaving neighborhoods seeing the large investment them well outside what the majority of in development projects or the rapid Pittsburgh households can afford.4 increase in rent and housing costs. This has The availability of affordable units for led to the displacement of long-term homeowners (or those considering buying) residents and disruption of their is better, but still not sufficient. At all levels communities (and the negative mental of household income up to and including health effects of this on individuals and the the city’s MHI, there is a shortage of community).8 Recently, for example, those affordable housing homeowner units. The residents forced out by the sale of Penn shortage is not as bad as it is for household Plaza Apartments in East Liberty have renters at or below 100% MHI. Other encountered difficulty finding affordable barriers to affordable homeownership for units elsewhere in East Liberty.9 Many of lower-income residents make matters the displaced residents now have moved to worse, however. Low-income residents far away neighborhoods disconnected from must be able to meet certain necessary jobs and public transportation (e.g. conditions, such as a sufficient credit score, western city neighborhoods, Duquesne, to purchase a house. If they succeed in and Clairton – with its toxic air).10 As many meeting necessary conditions to purchase of these displaced residents are an affordable house, they must then be able black/African-American, many see the 3 | Page removal of affordable housing in East the fund could make approximately 6,800 Liberty and the construction of market rate affordable units available over the next ten housing and trendy stores catering to years.11 predominately white/European-American Related to the Task Force’s communities as a contemporary form of recommendation to prioritize the inclusion colonialism. of affordable housing is the p4 housing metric. The p4 metrics seek to shape how Proposed Solutions development takes place by incentivizing To address this crisis, the city and local developers to include certain aspects and non-profits have offered several solutions. achieve certain standards in their These solutions include strategies that development. In the p4 housing category, directly pertain to creating affordable development projects will receive up to six housing and others that focus on advancing points based on what percent of the units the development of mixed-income housing they are constructing are affordable at and neighborhoods. Due to space which percent of the area median income constraints, only some are highlighted (AMI) [Note: AMI differs slightly from MHI here. discussed above. Whereas MHI is the median income among all households in Perhaps most notably, the City of one area, AMI is the median housing Pittsburgh recently assembled the income for an entire metropolitan Affordable Housing Task Force. After over statistical area. Here, MHI refers to the City a year of work, the task force proposed of Pittsburgh and AMI refers to Allegheny several mechanisms to make more County and the seven counties that affordable housing available and to protect surround it. In 2014, MHI was about the ability of low-income residents to stay $40,000 and AMI was about $52,00012]. The in their neighborhoods. Its proposals greater the percentage of units affordable include: the creation of an affordable to households earning less than or equal to housing trust fund, increased utilization of 30% AMI, the more points the developer a certain low-income tax credit, prioritizing earns. Additional points are available for the inclusion of affordable housing in all developments with multiple housing unit developments in the city that receive public types and various design features. benefits, the monitoring and preservation of existing affordable housing units, and In 2014, Pittsburgh City Council the implementation of programs and approved an ordinance for the creation of a policies (e.g. reassessment spike controls) city-wide land bank. The land bank, a that protect existing tenants and separate public entity, is designed to homeowners. The central component of “amass, inventory, manage and market these recommendations—the trust fund— blighted, abandoned and tax is currently being discussed in city council. foreclosed properties that are sitting It seeks funding of $10 million per year deteriorated and unused” with the goal of that would be used for the preservation reselling the properties to “responsible” and modification of existing units, the owners. The idea is that the improved creation of new units, the rehabilitation of properties will “revitalize local housing owner-occupied homes, and the purchase markets, raise property values, and 13 of vacant structures. Through these efforts, improve community infrastructure.” The construction of the land bank is underway.
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Similarly, Lawrenceville United has Interest in these low-income established a community land trust to neighborhoods with predominantly ensure that some properties remain black/African-American populations is affordable for low-income residents. Unlike based on the prospective bus rapid transit the city land bank, which will resell vacant development connecting downtown and lots and properties, this land trust would Oakland and the associated development purchase the property and rent the house that would ensue. Concerns about at an affordable rate.14 maintaining and constructing some affordable housing in the district appear in Other large-scale projects seek to the initial plans.19 develop mixed-income, environmentally- friendly neighborhoods. Although it was not intended as a solution for the housing Critiques and Absences shortage, the Pittsburgh Penguins’ planned As promising as these proposals sound, LEED-certified development of the former it is not entirely clear how they will solve Civic Arena site in the Lower Hill District the affordable housing crisis. Considering includes some temporarily affordable that there is currently a 15,000-unit housing. Following a deal reached with Hill shortage in affordable housing for District community leaders and city households making 30% of Pittsburgh’s officials, the Penguins must include in the median housing income, these various development 15% of the units for schemes and projects, while inclusive of households making 80% AMI and 5% of mixed-income and affordable housing, only the units for households making 60-70% make a dent in the number of units needed. AMI. The Penguins have until October 21st The Affordable Housing Task Force’s to purchase the land or will face losing its proposed Housing Opportunity Fund 15 development rights. In Larimer, would potentially create around 6,800 over construction is proceeding on a 350-unit a ten-year period. That equates to only 680 mixed-income neighborhood development newly available affordable units each year. made possible through a $30 million The total number of units proposed for Choice Neighborhoods Grant from the US other planned and proposed developments Department of Housing and Urban (also years away from completion) do not 16 Development. A nearly-complete first come close to providing enough housing phase of development partially financed for those who need it, now or in the future. through this grant is on the former sites of three federally subsidized housing The fixation on affordability through a buildings. It includes 29 market rate units singular lens that only includes the costs and 56 units available to households associated with living there (rent and earning 60% AMI or less.17 A third utilities) obscures the actual costs of development project is currently in the displacement, which often increases costs planning stages in Uptown, Soho, and West in transportation and decreases access to Oakland – between downtown and Oakland medical care, social networks, jobs, and along Fifth and Forbes Avenues. This nutritious food sources. Looking at the “Ecoinnovation District” aims to “improve numbers involved is a quantitative way to the environment, support the needs of look at a crisis that extends beyond raw existing residents and expand numbers. Clearly, the crisis faces entrepreneurship and job growth.”18 individuals and their households, who find
5 | Page it difficult to find affordable units in the neighborhood, rather than whether or in neighborhoods where they might have whose interest. Conversely, what some resided for decades. But it also affects their neighborhood groups call for is a more communities and the neighborhoods. The democratic process through which involuntary relocation of individuals that communities—not municipalities, results from the razing of neighborhood developers, or non-profits—decide low-income housing and the increases in whether, how, what, and for whose benefit neighborhood housing prices disrupts the development proceeds. The Northside bonds and networks of communities, with Coalition for Fair Housing organized along negative psychological effects for the these lines to prevent the eviction and individuals and communities.20 The displacement of over 300 families from construction of market-rate developments expiring affordability requirements. They (even if they include some percentage of have succeeded in securing long-term, affordable units) and the stores and quality affordable housing for restaurants that cater to the new, neighborhood residents.23 This form of wealthier, and more predominantly community and neighborhood self- white/European-American inhabitants of determination demonstrates a difference those developments physically transform between community participation in top- the built environment and reconfigure the down projects and projects that are social dynamics of the neighborhood to community-led – or at least where they are reflect the interests of the incoming group. included as partners in decision making. In essence, one community is replaced with another; the neighborhood is transformed. Intersections Even for those individuals and households who find a way to stay, they may be in the The affordable housing crisis intersects same house, but it is not the same with the other p4 workshop topics in community or the same neighborhood. several ways, some of which have been mentioned in passing. One key component Many long-term neighborhood of affordable housing is the quality of the residents feel that they have been excluded housing. The housing needs to be from top-down processes that have greatly environmentally safe: it needs to be free of transformed their communities and lead paint and dust, mold, and indoor air neighborhoods. Many former East Liberty pollution. Owners of affordable single- residents felt they had little voice in the family housing units must also be able to decisions to demolish the neighborhood’s afford potentially costly increases in water 21 low-income high-rise buildings. Hill and sewage rates and be able to afford District community groups had to fight for replacing the water lines if the pipes are their community’s interests the Penguins’ made of lead. Much affordable housing in 22 Civic Arena redevelopment plan. Some the region is not accessible to public plans, such as the p4 metric for transportation or to stores that sell fresh “Community” and the EcoInnovation produce. Some of it is in areas, like the Mon district, emphasize the need for and Valley, with higher amounts of air importance of community participation. pollution. Failing to provide and create The participation that they call for, healthy, environmentally-friendly housing however, is participation in how and neighborhood conditions for residents development takes place in their of all incomes, races, and ethnicities risks
6 | Page creating a Pittsburgh region that is such as higher minimum wages and “separate, but eco” – one in which the support for service industry unionization, healthy conditions are only accessible to may work to enhance housing the wealthy.24 opportunities for some. As has been mentioned, the disruption As these projects continue to be built in of communities through involuntary many parts of the city, it is necessary to displacement has a traumatic effect on the consider how these construction projects residents and the community. Part of this contribute to climate change. Some of the trauma stems from the community developments (for example, the Civic Arena members no longer being able to interact site, Larimer Choice Neighborhoods, and and bond over shared neighborhood the Ecoinnovation district) recognize the experiences. Another part stems from the need for environmentally friendly design. arts and culture of the community no The p4 metrics do, too. But they do not longer being represented in the account for the contributions that such neighborhood. Obvious examples include large-scale construction projects make to the razing of the lower Hill District and its greenhouse gas emissions and to air jazz clubs to make way for the Civic Arena pollution elsewhere, where the materials and Chatham Center sixty years ago and are made, and here, where the diesel- the removal over of a beloved mural of a engine trucks will transport them through girl and three black/African-American boys the neighborhoods. Neither do they on a prominent building in East Liberty. account for the in-migration of climate Such cultural erasure reflects the removal refugees, rich and poor, from cities and of residents. towns that may soon no longer exist. Most obviously, what happens to low- income residents who cannot afford Conclusion housing is intimately tied to economic An affordable housing crisis exists in prospects of the city and region. Policies Pittsburgh. There are several schemes and dedicated to luring technology companies projects underway to make affordable and the “creative class” may put further housing more available and to enable some strains on the affordable housing crisis, as current low-income residents to stay in new wealthier young workers move to their home or neighborhood. These affordable neighborhoods and drive up schemes and projects likely will not solve rent and housing prices. Mixed-income the affordable housing crisis: there are housing developments may help simply not enough healthy, accessible accommodate the desires of the units, currently or planned, for the number professionals and the needs of some lower- of low-income residents who need them. income residents for affordable housing, Development projects are transforming but it is unlikely to solve the crisis. neighborhoods and transforming the Focusing on mixed-income developments communities that occupy those as the solution elides an underlying neighborhoods. Many residents seek a problem of why low-income households stronger voice in determining what cannot find housing: they do not earn happens in their neighborhood. As political, enough money. Future economic policies economic, and environmental changes that attend to increasing the skills and continue, recognizing low-income income of currently low-income residents,
7 | Page residents’ voices and desires for “amenities” that do not align with democratic processes and self- the existing culture? In what ways determination may be necessary to ensure can neighborhoods be protected the creation of a “Just Pittsburgh.” from unwanted changes to the built- environment? Key Questions • How will the construction of mixed- • With such a large shortage of income developments alleviate the affordable units, where will low- housing crisis? income households find affordable • How can low-income residents housing in the short term? In the remediate poor environmental longer term? conditions (e.g, have lead paint and • How and where should new volatile organic compounds affordable housing be built? Where removed) in existing homes and should market-rate housing be apartments? How will they pay for built? lead water pipe replacement? How will they pay for increases in • In what ways can individuals and sewage rates? households be protected from displacement? In what ways can • How can residents meaningfully communities be protected from participate in decisions affecting disruption caused by the their communities and displacement of their members and neighborhoods? How can they avoid the influx of new people and being displaced?
Suggestions for further reading
Reports
Affordable Housing Task Force. (2016, May). Affordable Housing Task Force Findings and Recommendations to Mayor William Peduto and the Pittsburgh City Council. City of Pittsburgh. Retrieved from: http://apps.pittsburghpa.gov/mayorpeduto/FinalReport_5_31_16_(1).pdf
Mullin & Lonergan Associates, Brean Associates, & Fourth Economy. (2016). City of Pittsburgh - Housing Needs Assessment. Retrieved from: http://apps.pittsburghpa.gov/dcp/Pittsburgh_Housing_Needs_Assessment.pdf.
Academic papers
Slater, T. (2014, November 24). There Is Nothing Natural About Gentrification. New Left Project. Retrieved from: http://www.newleftproject.org/index.php/site/article_comments/there_is_nothing_natural_about_gen trification
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Other sources
Coles, N. (2016, February 16). Black Homes Matter: The Fate of Affordable Housing in Pittsburgh. [Web log post] cmoa blog. Retrieved from: http://blog.cmoa.org/2016/02/black- homes-matter-the-fate-of-affordable-housing-in-pittsburgh/
“Housing.” (n.d.). Retrieved from Northside Coalition for Fair Housing http://www.northsidetenants.org/history.html.
Lord, R. (2003, November 7). A redevelopment push has East Liberty residents worried that their place in the changing neighborhood is slipping away. Pittsburgh City Paper. Retrieved from: http://www.pghcitypaper.com/pittsburgh/sliberty-slope/Content?oid=1335849.
Lugo, A. & Mannos, A. (2012, May 21). Separate but Eco: Livable Communities for Whom? Streetsblog LA. Retrieved from: http://la.streetsblog.org/2012/05/21/separate-but-eco-livable- communities-for-whom/.
Wachsmuth, D., Aldana Cohen, D., & Angelo, H. (2016, August 23). Expand the Frontiers of Urban Sustainability. Nature 536, 391-393. Retrieved from: http://www.nature.com/news/expand- the-frontiers-of-urban-sustainability-1.20459.
References to Guide 3
1 Murray, Ashley. (2016, February 3). Pittsburgh’s St. Clair Village to get an urban farm and new housing. Pittsburgh City Paper. Retrieved from: http://www.pghcitypaper.com/pittsburgh/pittsburghs-st-clair- neighborhood-to-get-an-urban-farm-and-new-housing/Content?oid=1887249. 2 Mullin & Lonergan Associates, Brean Associates, & Fourth Economy. (2016). City of Pittsburgh - Housing Needs Assessment. Retrieved from: http://apps.pittsburghpa.gov/dcp/Pittsburgh_Housing_Needs_Assessment.pdf. 3 Integra Realty Resources. (2016). Viewpoint 2016 Commercial Real Estate Trends Report. Cited in Mullin & Lonergan Associates, Brean Associates, & Fourth Economy. (2016). City of Pittsburgh. 4 Mullin & Lonergan Associates, Brean Associates, & Fourth Economy. (2016). City of Pittsburgh. 5 Mullin & Lonergan Associates, Brean Associates, & Fourth Economy. (2016). City of Pittsburgh. 6 Allegheny County Sanitation Authority. (n.d.) ALCOSAN Public Hearing to Discuss CAP Program (11/5/15). Retrieved from: http://www.alcosan.org/MediaRoom/NewsReleases/tabid/79/selectedmoduleid/460/ArticleID/60/Defa ult.aspx. 7 Mullin & Lonergan Associates, Brean Associates, & Fourth Economy. (2016). City of Pittsburgh. 8 Fullilove, M.T. (2005). Root Shock. New York: One World/Ballantine Books. 9 Zhorov, I. (2015, December 22). Section 8 vouchers can help low-income renters, but finding housing is difficult. Keystone Crossroads. Retrieved from: http://crossroads.newsworks.org/index.php/local/keystone-crossroads/89282-section-8-vouchers-can- help-low-income-renters-but-finding-housing-is-difficult. 10 Deto, R. (2015, July 22). Recent Penn Plaza evictions highlight East Liberty’s severe lack of affordable housing. Pittsburgh City Paper. Retrieved from: http://www.pghcitypaper.com/pittsburgh/recent-penn- plaza-evictions-highlight-east-libertys-severe-lack-of-affordable-housing/Content?oid=1841883.
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11 Affordable Housing Task Force. (2016, May). Affordable Housing Task Force Findings and Recommendations to Mayor William Peduto and the Pittsburgh City Council. City of Pittsburgh. Retrieved from: http://apps.pittsburghpa.gov/mayorpeduto/FinalReport_5_31_16_(1).pdf. 12 Mullin & Lonergan Associates, Brean Associates, & Fourth Economy. (2016). City of Pittsburgh, 7. 13 “Land Banking FAQs.” (n.d.). City of Pittsburgh. Retrieved from: http://pittsburghpa.gov/landbanking/faqs. 14 Deto, R. (2016, January 20). Land trust will help low-income residents purchase homes in Lawrenceville. Pittsburgh City Paper. Retrieved from: http://www.pghcitypaper.com/pittsburgh/land- trust-will-help-low-income-residents-purchase-homes-in-lawrenceville/Content?oid=1884073. 15 Belko, M. (2016, May 17). Penguins say residential development at Civic Arena site could be delayed. Pittsburgh Post-Gazette. Retrieved from: http://www.post- gazette.com/business/development/2016/05/17/Finance-gap-environment-concerns-stall-Civic-Arena- site-development/stories/201605170072. 16 Nelson Jones, D. (2014, June 30). Pittsburgh lands $30 million grant to rebuild Larimer. Pittsburgh Post-Gazette. Retrieved from: http://www.post-gazette.com/local/city/2014/06/30/City-lands-30- million-grant-to-rebuild-Larimer/stories/201406300171. 17 Pop, A. (n.d.) $26M Mixed-Income Housing Project Coming to Larimer and East Liberty. Multi-Housing News. Retrieved from: https://www.multihousingnews.com/post/26m-mixed-income-housing-project- coming-to-larimer-and-east-liberty-2/. 18 “What is an Ecoinnovation District?” (n.d.). Retrieved from: http://www.ecoinnovationdistrict.org/what-is-an-eco-innovation-district. 19 “EcoInnovation District Uptown Oakland.” (2016, September). Retrieved from: https://www.dropbox.com/s/pwp4fu2rp78qevt/SEPTEMBER_2016_STEERING_COMMITTEE.pdf?dl=0 20 Fullilove, M.T. (2005). Root Shock. 21 Lord, R. (2003, November 7). A redevelopment push has East Liberty residents worried that their place in the changing neighborhood is slipping away. Pittsburgh City Paper. Retrieved from: http://www.pghcitypaper.com/pittsburgh/sliberty-slope/Content?oid=1335849. 22 Belser, A. (2007, August 30). Hill group outlines benefits it expects from new Arena. Pittsburgh Post- Gazette. Retrieved from: http://www.post-gazette.com/local/neighborhoods/2007/08/30/Hill-group- outlines-benefits-it-expects-from-new-arena/stories/200708300203 23 “Housing.” (n.d.). Retrieved from Northside Coalition for Fair Housing http://www.northsidetenants.org/history.html. 24 Lugo, A. & Mannos, A. (2012, May 21). Separate but Eco: Livable Communities for Whom? Streetsblog LA. Retrieved from: http://la.streetsblog.org/2012/05/21/separate-but-eco-livable-communities-for- whom/.
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