Equitable Development Guidelines
CUNY Institute for State and Local Governance
March 2018
CONTENTS
5 Introduction
7 Equitable Development Guidelines Snapshot
The Guidelines
9 Planning Process
21 Employment and Procurement
31 Designated Space
39 Housing
49 Design Standards
3 Introduction
Real estate development has an immense The Equitable Development Guidelines is a impact on the affordability, accessibility, and robust tool that provides developers with a economic opportunity of neighborhoods and comprehensive overview and details about cities. Equitable development is an approach the decisions, activities, and strategies that to development that recognizes this impact can make their projects more equitable. by building projects that provide commu- nity benefits, respond to local needs, and Some of the guidelines presented here are contribute to the health and wellbeing of resi- already incentivized by local government in dents and workers. Equitable development cities around the country. In addition, commu- projects can provide affordable housing, nity-based organizations and nonprofit create good jobs, and increase access to developers have been fighting for and services, all while ensuring that commu- implementing many of these guidelines for nities have a voice in shaping the future of decades. However, equitable development is their neighborhoods. far from the industry standard and need not
The guidelines fall into five overall categories:
Employment Planning Designated and Process Space Procurement
Design Housing Standards
4 5 Equitable Development Guidelines
be limited to projects that are built with public work is related to the goals of our Equality resources or subject to local regulation. All Indicators project, which measures prog- developers have the capacity and opportunity ress towards equality across six domains: to contribute in meaningful and significant economy, education, health, housing, justice, ways to equitable neighborhoods and cities, and services. Within this work, we define and these guidelines are a starting point for “equality” as follows: Equitable Development this work. Everyone has the same Guidelines Snapshot Implementing these guidelines depends on outcomes regardless of race, a complex set of factors, from construction ethnicity, disability, sexual orien- costs and financing to public incentives and tation, gender, single parenthood, Planning Process • Designate space for a local nonprofit or political will. Understanding the local context age, immigration status, criminal • Research the neighborhood and community-based organization is critical to a project’s success, and building record, place of residence, and other community • Designate space for disadvantaged equitable projects requires commitment from characteristics. • Pursue partnerships with community- business owners many different actors. This tool provides a based organizations foundation for collaboration by identifying Equal opportunities can be a first step towards • Engage the community Housing best practices that have been successful in achieving equal outcomes. The Equitable • Maximize the number of affordable units different contexts and pushing for higher Development Guidelines provide a range of Employment and Procurement • Make housing units permanently standards across the real estate industry. options designed to increase access or oppor- • Provide living wages to all project affordable tunity, with the ultimate goal of improving employees • Include deeply affordable units These guidelines are the first phase of a larger outcomes for individuals and communities. • Ensure wage equity • Provide supportive housing units project to identify, measure, and incentivize • Hire employees from diverse, local, and • Expand opportunities for homeownership best practices in real estate development that disadvantaged groups and community ownership can improve the social and economic well- • Prioritize local or disadvantaged • Reserve a percentage of units for being of individuals and communities. This businesses when procuring materials or existing disadvantaged residents of the services neighborhood • Incorporate the above practices into the • Provide protections for existing tenants of Disadvantaged groups lease agreements of commercial tenants redevelopment projects Sign and enforce a project labor Several of the guidelines refer to “disadvantaged groups.” In the Equality • agreement, labor peace agreement, or Design Standards Indicators framework for New York City, we identified a number of disadvantaged community benefits agreement Follow design standards that impact the groups based on our literature review and feedback from experts and community • groups. Our final framework includes specific measures for 12 of these groups: • Provide apprenticeship programs (in health and wellbeing of building tenants children under 18; immigrants; individuals currently in jail or on probation; partnership with labor unions) and neighborhoods, such as those found in: individuals living in poverty; individuals with a physical or intellectual disability; –– Enterprise Green Communities individuals with less than a high school diploma; lesbian, gay, bisexual, transgender, Designated Space –– Active Design Guidelines and queer (LGBTQ) individuals; racial and ethnic minorities; religious minorities; • Designate space for a community asset –– Universal Design seniors 65 and older; single parents; and women. However, there are many other that meets a demonstrated need –– Design and Construction groups adversely affected by inequalities, and the guidelines will include practices • Designate space that is accessible, Excellence 2.0 designed to improve conditions for these and other groups where relevant. affordable, and culturally relevant –– LEED
6 7 Equitable Development Guidelines
Planning Process
The planning process lays the groundwork for all of the decisions and strategies that contribute to equitable development; for this reason, the guidelines begin with this section. An equitable development project must be responsive to existing neighborhood conditions and people who may be affected by the project, including the occupants of the building, the people who live and work in the neighborhood around the project, and citywide groups that can potentially benefit from development decisions.
Guidelines for an equitable planning process fall into three areas that correspond to three critical components of groundwork: 1) researching the neighborhood and community where development will take place; 2) pursuing partnerships with local community-based organizations; and 3) engaging the community. All of these components are designed to make a development project as inclusive of and responsive to those most affected by it as possible, with each providing another layer of depth to the process. At the end of the planning process, a developer will have identified key stakeholders, potential partners, community assets, community needs, and larger inequalities that can be addressed through the project.
While comprehensive community engagement and neighborhood planning efforts are crucial components of equitable development, these processes are not always possible for every development project, especially those that are smaller in scale or are located in communities
8 9 Equitable Development Guidelines Planning Process
that have already completed assessments and plans. Alternatively, in some cases, such as large-scale publicly funded projects, a full community engagement process is a requirement included in the government contract. These guidelines are not meant to serve as a substitute for these efforts; instead they are intended to work in Planning Process conjunction with them. In situations where substantial engagement Guidelines efforts are already in place (e.g., rezoning in New York City), it is the developer’s responsibility to identify ways in which a project can 1. RESEARCH THE NEIGHBORHOOD also include community-based organizations, respond to these efforts. AND COMMUNITY local government entities such as commu- nity boards and elected officials, and local Where possible, the guidelines in this section should be followed first, Most development projects already include businesses. All planning processes should as they inform the applicability and potential impact of the guidelines in some form of a market or feasibility study. start by identifying these stakeholders and other sections. An equitable development project requires considering how the project will affect them, more specific research into stakeholders both positively and negatively. Although and community assets, as well as commu- most stakeholders are place-based and will nity needs and existing inequalities. The be affected by neighborhood-level impacts type of research that developers choose will of the project, others might be affected at a THIRD depend on multiple factors (such as, timeline, larger scale, such as through a citywide work- Fully engage the resources, or investor demands). Regard- force initiative. Most of the guidelines in this community if the less of type, however, the findings from section apply to place-based stakeholders, SECOND project permits this research can guide development deci- but development decisions can also address Pursue important sions that either leverage the strengths of a inequalities faced by disadvantaged groups community community or address its needs. The research citywide. These opportunities will be high- FIRST partnerships also provides greater legitimacy to develop- lighted in other sections of the guidelines. Learn about ment decisions by tying them to thoughtful the community considerations regarding the local context of 1b. Consult existing neighborhood through research a project. plans or studies
1a. Identify stakeholders For projects located in neighborhoods that have been the subject of recent plans and Stakeholders include anyone who might studies, substantial information that may Highest level of commitment be affected by a new project, from building inform the planning process is available. By occupants, to people who live and work in the consulting existing resources and recog- surrounding neighborhood, to individuals and nizing the work that has already been done, businesses that will be involved in the design developers have a greater opportunity to and construction of the project. Stakeholders address community concerns and needs that
10 11 Equitable Development Guidelines Planning Process
have already been raised. It is important to early as possible in the planning process and volunteer groups, schools, hospitals, and socioeconomic data as well as data on public consider how an individual project fits into the be open to testing their underlying assump- parks are examples of community assets. It health and access to services and ameni- larger strategy and plan for a neighborhood. tions about the neighborhood or community. is important to understand a community’s ties, such as parks, transportation, and food Studies led by local government agencies, strengths before determining what interven- outlets. Academic institutions and research academic institutions, and research organi- Community Needs Assessment: When deter- tions are necessary to improve a neighborhood organizations are also important resources for zations can provide critical information about mining the types of spaces, services, and or community. Community asset mapping is a data. When research capacity is not available the priorities of a neighborhood and how a programs developers can provide in a project, method of creating an inventory of community in-house, developers can work with external project can provide programs, services, and it is important to understand the needs of assets and analyzing them. Mapping can take researchers to unpack the information avail- employment opportunities to support various the local community. A community needs many forms, from an actual map that locates able from various data sources. stakeholders. Plans and studies that have assessment is an important tool for identi- physical assets to a database that includes received both community input and commu- fying the challenges facing a neighborhood social, economic, and institutional assets. This research can provide developers with a nity approval should be prioritized. For an and prioritizing solutions to those challenges. Mappings are most useful when they are better understanding of the local context of example, see the East Harlem Community Examples are endless, and could range from made publicly available and can be adapted as a project, at both the neighborhood and city- Plan case study at the end of this section. providing childcare facilities to meet the neighborhoods change over time. wide scales. Data and maps can shed light on disparities between neighborhoods as well Community needs and assets should be iden- as citywide inequalities faced by different Where possible, the guidelines in this section should tified with a diverse group of stakeholders disadvantaged groups. Data sources on city- be followed first, as they lay the groundwork for because different people will have varying wide inequality in New York City include the equitable development. perspectives on what contributes positively Equality Indicators, Measure of America’s to a neighborhood or what is needed most Data2Go, and several sources available from urgently. When done thoroughly and with the NYC agencies, including the Department of Another reason to consult existing plans and needs of working parents, to improving the help of the community, these tools provide Health and Mental Hygiene’s EpiQuery and studies is to avoid engagement or consulta- safety of sidewalks for children traveling useful information to developers, communi- Community Health Profiles, the Mayor’s tion fatigue among community members. In to and from school, to increasing access to ties, and local government agencies for future Office of Operations’ Social Indicators neighborhoods that have already participated open space for the health and wellbeing of plans and projects. They also build capacity Report, and the Center for Innovation through in engagement efforts, it is important not to all community members. The format and and knowledge about local priorities and Data Intelligence’s Disparity Report. Data burden stakeholders without considering the scale of these assessments vary widely, from resources for other stakeholders. on demographics and racial and economic input that they have already provided. The informal conversations to full public surveys. inclusion from the 100 largest cities and 150 time and expertise already shared in previous Steps include identifying the purpose of the 1c. Analyze existing data and maps largest metropolitan areas are available from engagement processes is highly valuable, and assessment and the questions that need to the National Equity Atlas maintained by Poli- the developer’s focus should be on learning be answered; designing and implementing In neighborhoods that have not been planned cyLink and the USC Program for Environ- from that expertise when it is available. the assessment; interpreting the results; and or studied recently, or where conducting a mental and Regional Equity, while a range using the results to inform project plans. new community needs assessment or asset of local data from across the United States Two particularly relevant types of neighbor- mapping is not possible, developers can take is available from the U.S. Census Bureau’s hood studies are community needs assess- Community Asset Mapping: The opposite of advantage of other resources such as data American FactFinder. Depending on the type ments and community asset mappings. These community needs are community assets—the and maps to inform development decisions. and scale of a project, citywide analysis can neighborhood study methodologies are people, places, institutions, or services in a Demographic data are available for every point to development decisions that may described below. If developers are conducting community that have the potential to improve city and metropolitan area in the country, address needs and priorities at a larger scale. either of these studies, they should start as residents’ quality of life. Local organizations, and most local governments maintain
12 13 Equitable Development Guidelines Planning Process
The NYC Department of Health and Mental COMMUNITY HEALTH PROFILES 2015 of a larger approvals process, such as projects There are different models of community Hygiene publishes Community Health Profiles Brooklyn Community District 3: that require government approval for zoning engagement, including public meetings, inter- for all NYC neighborhoods (including Bedford BEDFORD changes, following best practices in commu- active brainstorming and planning sessions, STUYVESANT Stuyvesant, pictured here) to provide localized (Including Bedford-Stuyvesant, nity engagement can lead to stronger stake- and visioning workshops. There are also many Stuyvesant Heights and Tompkins Park North) information on demographics, neighborhood conditions, and health outcomes. These holder buy-in and a smoother, more stream- resources for urban planners that provide findings may be useful for developers as they lined approvals process. guidance for developers as well. The Commu- research the local context of a project. nity Planning Toolkit includes methods and Engagement efforts should begin as early as techniques for designing an effective commu- Source: NYC DOHMH, https://www1.nyc.gov/ possible in the planning process to ensure nity engagement process. Rebuild by Design assets/doh/downloads/pdf/data/2015chp- that stakeholder input is properly incorpo- produced a collection of best practices based Health is rooted in the circumstances of our daily lives and the environments in which we are born, grow, play, work, love and age. Understanding how bk3.pdf community conditions affect our physical and mental health is the first step toward building a healthier New York City. rated into project plans and proposals. The on the two-year engagement process for current public engagement process in New resilience planning after Superstorm Sandy. York City and elsewhere has been criticized And the NYC Department of Housing and space for the Harlem Congregations for for often approaching communities after key Preservation published a Neighborhood Plan- 2. PURSUE PARTNERSHIPS WITH Community Improvement (HCCI) Construc- decisions in a project have already been made, ning Playbook that provides detailed steps for COMMUNITY-BASED ORGANIZATIONS tion Trades Academy, a training and job place- making the engagement reactive rather than engaging communities in an inclusive way. ment program that provides Harlem residents proactive. Treating community engagement Community-based organizations (CBOs) with access to careers in the construction as simply a box to be checked in a long list of In New York City, there are a number of are important stakeholders in the planning industry. HCCI is a nonprofit interfaith consor- requirements diminishes the opportunity for organizations that specialize in community process, and in some cases they can become tium of more than 90 congregations and, as a a project to be responsive and accountable to engagement processes, including the Center partners in projects. A partnership might partner in the planning process, identified the the results of the engagement. Furthermore, for Urban Pedagogy and Hester Street Collab- mean that the CBO provides insight into a need for employment programming. engaging the community early in the process orative. Developers can learn from the work neighborhood to supplement the research can foster trust between the development of these organizations and partner with some outlined above. A CBO can also facilitate 3. ENGAGE THE COMMUNITY team and the community. of them depending on the type, scale, and broader community participation, serving as requirements of a project. Similar organiza- a liaison between developers and community Community engagement is a resource- and tions are working in communities and cities members. CBOs can also be co-developers or time-intensive process, but it can provide a around the country. key service providers, such as in a supportive crucial backbone for equitable development. housing project that requires mental health It is an opportunity for different stakeholders or employment services. Partnerships with to provide valuable information about the trusted institutions provide legitimacy to a kinds of spaces, services, and programs they project and can help to garner support for need and want. A single development project The NYC Department of Housing Preservation development decisions, which in turn can help cannot meet all of a community’s demands, and Development, in collaboration with other City agencies, designed the Neighborhood to ease project approval processes. but if an engagement process is carried out Planning Playbook to guide these agencies and thoughtfully, it can produce findings that can others through effective and inclusive planning In some cases, partnerships can directly inform future projects and larger neighbor- processes. inform the design and use of physical spaces hood planning efforts in addition to informing December 22, 2015 in the project. The David & Joyce Dinkins the individual project itself. In addition, when Neighborhood Source: NYC HPD, http://www1.nyc.gov/site/ Planning hpd/community/nyc-neighborhood-planning- Gardens is a residential project that includes projects require community support as part Playbook playbook.page
14 15 Equitable Development Guidelines Planning Process
Community engagement should be planned through flyers, phone calls, and face-to-face 3c. Ensure a transparent process carefully based on the research findings and canvassing. and a responsive project partnerships outlined in the guidelines above, as well as information available from other Outreach and engagement should be Transparency is a crucial component of a resources. The following guidelines highlight conducted in multiple languages, depending community engagement process. Findings best practices around three important goals on the community. Issues related to language from the process should be documented and for community engagement: inclusiveness, access should not prevent stakeholders made available to the public, whether in a phys- comprehensiveness, and transparency. from participating, so it might be necessary ical report, on a website, or through another to involve translators and other partners to medium. Similar to the multi-dimensional 3a. Ensure outreach and help facilitate communication. In general, a outreach effort outlined above, communica- communication are accessible to multi-dimensional outreach effort can help to tion about development decisions should be all stakeholders ensure that more stakeholders are informed accessible to different stakeholders. about the project and given the opportunity Developers should aim to reach as many to be involved in the engagement process. different stakeholders as possible, inclu- The ultimate measure of success for a community ding the most vulnerable and hard-to-reach 3b. Provide opportunities to engage engagement process is the extent to which the populations. Information about the project at different stages in the process findings are incorporated into the project. and opportunities to provide input should be available through multiple channels. The A comprehensive community engagement increasing use of technology-based plat- process should gather input continually, not The ultimate measure of success for a forms for engagement, including interactive only at the beginning of a project. Building in community engagement process is the websites, mobile apps, and crowdsourcing opportunities for stakeholders to engage at extent to which the findings are incorporated platforms, makes it possible to reach people different stages in the project allows devel- into the project. In order for developers to be who might not be able or willing to attend opers to respond to input, revise a project, accountable to the community, they should in-person meetings. However, unequal access and remain accountable to the concerns document the ways in which community input and ability to use technology means that this and needs of the community. This feedback has informed project decisions. kind of engagement can exclude other key loop can also help to establish trust with the stakeholders. Public meetings, focus groups, community and strengthen support for the A community benefits agreement (CBA) is and workshops are still important vehicles project. Each stage of engagement is also an one way to ensure that a community’s priori- for community engagement and should be opportunity to reach more stakeholders. ties and concerns are addressed in a develop- planned at different times of the week and ment project. CBAs are discussed in greater day in order to capture stakeholders with It is especially important to schedule addi- detail in the Employment and Procurement different schedules. It is also important to tional meetings and other outreach efforts section of the guidelines, though many of remember the possibility of engagement when significant changes have been made these agreements also include terms related fatigue and be careful not to schedule unne- to a project. In addition to ensuring that the to other sections such as Designated Space cessary meetings. When there are specific community has the chance to respond to the and Housing. stakeholders who are still left out of these changes, continued engagement also contrib- engagement methods, it may be necessary utes to the transparency and accountability of to meet stakeholders where they live or work the project, as outlined in the next guideline.
16 17 Equitable Development Guidelines Planning Process
Case Study: East Harlem Neighborhood Plan
In 2014, NYC Mayor Bill DeBlasio announced Housing New York, a plan to rezone In the case of East Harlem, City Council Speaker Melissa Mark-Viverito formed 15 neighborhoods for higher-density development as part of his vision to build or a steering committee of community and government stakeholders to develop a preserve 200,000 units of affordable housing. While this plan is a step towards the comprehensive neighborhood plan. WXY Studio and Hester Street Collaborative, creation of more affordable units, many neighborhoods worry that encouraging specialists in urban planning and engagement, facilitated visioning sessions with denser development will ultimately privilege real estate investors and developers committee and community members throughout a two-year engagement process over residents. The City has expressed a commitment to integrating community that resulted in the East Harlem Neighborhood Plan (EHNP). The plan contains 232 needs and perspectives in its rezoning plans, and the Department of City Planning recommendations across the following topics: arts and culture; open space and (DCP) has been working on tailored proposals for each neighborhood. Meanwhile, recreation; schools and education; pre-kindergarten, daycare, and afterschool; many neighborhoods are undergoing their own community planning efforts as a way public housing; housing preservation; small businesses, workforce and economic to ensure that the rezoning plans take into account local needs. development; affordable housing development; zoning and land use; transportation, environment and energy; safety; and health and seniors.
By many accounts, the structure of the process, the number and diversity of FEBRUARY 20161 engaged stakeholders, and the long-term commitment of all parties involved resulted in an inclusive and comprehensive process and community development plan. However, the recent rezoning proposal for the neighborhood has received criticism for not incorporating enough of the EHNP priorities. While it was ultimately approved, the public review process for the proposal raised questions about the value of community planning and engagement if the outcomes are not incorporated into final plans and proposals for development. This case study highlights the impor- The East Harlem Neighborhood Plan is the tance of all three of the community engagement goals described above: inclusi- result of a recent community engagement veness, comprehensiveness, and transparency. Developers should aim for these process that has been held up as a good goals when following all of the guidelines in this section, especially when using these example of inclusiveness, comprehensiveness, guidelines to inform development decisions in other sections. Office of City Council Speaker Melissa Mark-Viverito and transparency. Manhattan Community Board 11 Community Voices Heard Manhattan Borough President Gale A. Brewer
EASTHARLEMPLAN.NYC Source: http://www.eastharlemplan.nyc/
18 19 Equitable Development Guidelines
Employment and Procurement
Equitable employment and procurement practices can expand economic opportunity for local communities and disadvantaged groups. These practices are relevant for all of the various employers involved in a project, including developers, designers, contractors, suppliers, and others. All of these employers have the opportunity to commit to responsible business practices that contribute to equity in different ways.
All types of projects can incorporate these guidelines: residential or commercial, small-scale or large-scale, for-profit or non-profit. While some of these guidelines will be more feasible for developers working on large-scale projects, projects of any size can incorporate aspects of each guideline. For instance, developers with fewer resources or working on small-scale projects can still make a good-faith effort to hire a diverse workforce, even if more intensive guidelines, such as providing job training, are out of reach.
Many of the guidelines in this section stem from the terms included in community benefits agreements (CBAs) that developers and stakeholders (such as community members, labor organizations, and government agencies) have established for projects around the country. CBAs are contracts that outline a developer’s contributions to the community, including efforts to offset potential negative impact,
20 21 Equitable Development Guidelines Employment and Procurement
in exchange for the community’s support of the project. CBAs may be narrow or expansive, depending upon the scale of the project, and they often include equitable employment and procurement practices.
A key issue that hinders the effectiveness of CBAs is lack of Employment enforcement and accountability. This issue pertains to many of the guidelines in this section. Some of these guidelines are already and Procurement common practice in certain industries, but state and local policy often Guidelines determines how widely they are implemented. Developers should consider selecting a point person or team to strategize and execute 1. PROVIDE LIVING WAGES TO ALL through contracts with local governments these practices, including a strong and enforceable written agreement. PROJECT EMPLOYEES or negotiations with labor unions some- times require higher wages for workers than Paying fair and sufficient wages to workers the state minimum wage. The wage neces- according to the local cost of living is one vital sary to match the cost of living is called a piece of the equitable development puzzle. “living wage.” The minimum wage is set by federal and state regulation, but in much of the United States, A report from the Economic Policy Institute the cost of living far exceeds the federal and found that communities and municipalities state minimum wage. As a result, some cities in which workers earn a living wage benefit have their own wage standards that are better economically, with comparatively little cost suited to higher costs of living in these local- to the municipality itself. While their study ities. In addition, projects that are developed focused on government contracts and
Federal and New York State minimum wage
Federal minimum wage: Since July 24, 2009, the federal minimum wage has been $7.25 per hour. Many states have their own minimum wage laws, and employers must comply with both the federal and state laws.
New York State and New York City minimum wage: Since December 31, 2017, the minimum wage in New York State has been $10.40 per hour, with $11.00 for Long Island and Westchester, $12.00 for small employers (10 or fewer) in New York City, and $13.00 for large employers (11 or more) in New York City. By the end of 2019, small and large employers in New York City will be required to pay a minimum wage of $15. Long Island and Westchester will have a $15 minimum wage by the end of 2021 and the remainder of New York State at a later date, based on an annual increase.
22 23 Equitable Development Guidelines Employment and Procurement
budgets, the positive impact of living wages project because women are underrepre- This sample label from the JUST Program in low-income communities suggests that sented in the development and construction includes the various indicators of social
SM justice and equity by which this rating system providing living wages to development project industries and are typically paid less than their measures businesses. Pay-scale equity is one of Organization Name: International Living employees can help to address income dispa- male counterparts. Wage equity for women Future Institute and Cascadia Organization Type: Charitable Organization those indicators. Headquarters: Seattle, Washington rities faced by disadvantaged groups in the has been included in various federal, state, and Satellite Facilities: Portland, OR, Vancouver, BC Number of Employees: 23 surrounding neighborhood and citywide. local legislation, and equitable development Social Justice and Equity Indicators: Source: Just, https://living-future.org/ Diversity Worker Benefit requires that employers remain committed to Non-Discrimination Worker Happiness just/#sample-just-label Gender Diversity Employee Health Care Many CBAs include living wage provisions. For equal pay for equal work paradigms. Ethnic Diversity Continuing Education Equity Local Benefit Full Time Employment Local Control example, the Lorenzo Project CBA required Pay-Scale Equity Local Sourcing Union Friendly Living Wage Stewardship that workers hired for certain construction Another area of wage equity that is less Gender Pay Equity certain city contracts are required to parti- Responsible Investing Family Friendly Community Volunteering jobs earned at least a living wage as deter- researched but also important to consider Positive Products cipate in HireNYC, a program that connects Safety Charitable Giving Occupational Safety Animal Welfare mined by the City of Los Angeles. In addition, is pay-scale equity. The JUST program Hazardous Chemicals Transparency unemployed or underemployed workers to
60% of the project’s permanent workers includes a measure of pay-scale equity in its THE SOCIAL JUSTICE LABEL entry- and mid-level job opportunities in both INTERNATIONAL LIVING FUTURE INSTITUTESM earned a living wage. The Gates Cherokee assessments of equitable organizations. In temporary (e.g., construction) and permanent MANUFACTURER IS RESPONSIBLE FOR LABEL ACCURACY Project CBA not only created living wage jobs order to qualify under the pay-scale equity (e.g., on-site retail) jobs. for the construction of the project, but it also measure, the wage ratio between the most- prohibited the inclusion of big-box stores and least-compensated employees must not First source hiring policies or local hire ordi- (which tend to pay low wages) as tenants in exceed a certain threshold. While this measure regardless of its type or scale. Diversity in the nances aim to maximize the employment of the development, thus contributing to long- is not as widely implemented as broader wage workforce can mean many different things, local residents and contribute to the economic term economic benefits. equity practices, it is an important one to from racial and ethnic diversity to socioeco- development of a neighborhood, city, or consider in the context of the profit-driven nomic diversity. Projects that prioritize work- metropolitan area. While there are no federal 2. ENSURE WAGE EQUITY development industry. force diversity can help to address inequali- or state policies requiring first source hiring, ties in employment, income, and economic many major cities have local hire guidelines Wage equity ensures that employees receive 3. HIRE EMPLOYEES FROM DIVERSE, opportunity for many different groups. or requirements for publicly-funded projects. fair pay in accordance with their rank and LOCAL, AND DISADVANTAGED Policies often specify the geographic area performance, regardless of their race, gender, GROUPS Policies that relate to workplace diversity from which workers can be hired, but others sexual orientation, or any other distinc- (such as the Civil Rights Act of 1964 and the identify local workforce development part- tion. Wage equity for women is particularly Workforce diversity should be a corners- Equal Pay Act of 1963) are often those that ners that can connect unemployed or unde- important to consider in a development tone of every equitable development project, prevent discrimination, but it is also important remployed residents to project jobs (such as to consider those that incentivize or promote HireNYC, as noted above). proactive inclusion and diversity. Proactive initiatives include targeted hiring programs, Many CBAs include benchmarks for targeted Resources that in some cases are required for publi- hiring of different groups of people, including Living Wage - Partnership for Working Families: Basic information on living wage cly-subsidized projects. In New York City, for local residents, racial and ethnic minorities, legislation and policies and tips on how employers can exceed the minimum example, agencies like the Economic Deve- women, and low-income individuals. Some requirements. lopment Corporation have workforce targets CBAs include benchmarks that are even more Living Wage Calculator - MIT: Estimate the cost of living in your community or for their real estate development projects, specific. TheStaples Center CBA, for example, region. The calculator lists typical expenses, typical wages, and the living wage including targets for hiring low-income New included hiring requirements for individuals for the selected location. Yorkers. Developers building projects through displaced by the project. The aforementioned
24 25 Equitable Development Guidelines Employment and Procurement
Lorenzo Project CBA included temporary and of a project, there are ways in which develo- developers can contribute to the economic to support the work of capacity-building permanent hiring requirements for “at-risk” pment teams can diversify their own work- opportunity of these groups. Equitable deve- programs, can collaborate with one of the individuals who face certain barriers to emplo- forces. There are programs dedicated to lopment should strive for equal access to many national and local organizations dedi- yment, including homelessness, low educa- diversifying the real estate industry, including procurement contracts and the business cated to supporting these businesses and tion, and involvement with the justice system. the Real Estate Associate Program, a profes- development and economic empowerment connecting them with contracting opportu- sional development program aimed at provi- that comes with them. nities. The National Minority Supplier Deve- The recent publication Building America While ding networking opportunities to connect real lopment Council (NMSDC), for example, Building Our Middle Class outlines best prac- estate companies and minority real estate A Minority and Women-Owned Business advances business opportunities for certified tices for designing and implementing equi- professionals. The Urban Land Institute’s Real Enterprise (MWBE) is a business that is at minority business enterprises, connecting table hiring programs that have the poten- Estate Diversity Initiative is another profes- least half owned, controlled, and operated them to clients and facilitating their integra- tial to benefit underserved neighborhoods. sional development and career-mentoring by a member (or members) of one or more tion into corporate and public-sector supply These practices include community engage- program available to women and minorities designated minority groups including Black, chains. NMSDC offers a Minority Business ment (see the Planning Process section of who want to enter the real estate develop- Hispanic, Asian Pacific, and Asian-Indian; or Enterprise Certification and other educational the guidelines), designation of a coordinator ment field. While these initiatives focus on by a woman (or women). programs. In New York City, the Business to oversee the program, and clear and enfor- overcoming employment barriers for indivi- Outreach Center supports small businesses ceable accountability measures. This report dual professionals rather than directly helping An Emerging Business Enterprise (EBE) is a in securing construction contracts through business that is at least half owned, controlled, financing, networking, and training. and operated by a person (or people) who can Projects that prioritize workforce diversity can demonstrate social and economic disadvan- In addition to MWBE and EBE requirements, create job opportunities and help to address tage, such as chronic and substantial negative some states and cities have local procurement treatment due to diminished access to capital requirements as well. There is evidence that inequalities in employment, income, and economic and credit. The net worth of disadvantaged cities that prioritize local procurement and opportunity for many different groups. owner(s) must be less than $1 million. establish the appropriate pipelines to engage businesses and connect them to opportu- A Locally Based Enterprise (LBE) is a busi- nities have more successful programs. This focuses on infrastructure jobs, but the defini- development companies hire a diverse work- ness that conducts at least one-quarter of its work is also being done at the grassroots tion of infrastructure includes public buildings force, developers can engage in partnerships work in an economically depressed area, or level. The Bronx Cooperative Development and can be extended to include development with professional development programs employs economically disadvantaged individ- Initiative recently created BronXchange, projects more generally. Because infrastruc- like these in order to expand their recruiting uals in at least one-quarter of its workforce. “an online marketplace that connects Bronx ture is one of the few industries that provides networks and access a more diverse pool of institutions and nonprofit organizations with opportunities for people with lower levels of candidates. Requirements for procurement from MWBEs high-road, local businesses in order to meet formal education or who experience barriers and EBEs appear frequently in federal, state, their local purchasing goals and support a to employment, as stated earlier, develop- 4. PRIORITIZE LOCAL OR and local contracting, and for publicly-funded more sustainable, equitable, and democratic ment projects are a unique opportunity to DISADVANTAGED BUSINESSES WHEN development projects. Sometimes, these local economy.” Indeed, anchor institutions address employment inequalities for many PROCURING MATERIALS OR SERVICES requirements are paired with capacity-buil- are emerging as leaders in local procurement. different groups through targeted hiring. ding programs for contractors. Developers can tap into the growing network Contracting or subcontracting businesses of organizations committed to equitable In addition to diversifying the workforce owned by women, minorities, or other disad- Developers that require assistance identif- economic development. employed in the construction and occupation vantaged populations is another way that ying qualified MWBEs and EBEs, or that want
26 27 Equitable Development Guidelines Employment and Procurement
Some CBAs include requirements for MWBE project. A labor peace agreement is a contract available to local or disadvantaged residents. high school students. In the Hollywood and and local procurement. The Kingsbridge promising that an employer will not interfere Furthermore, the construction trades have Highland redevelopment in Los Angeles, CA, Armory CBA, for example, established a local with its employees’ organizing. Developers historically lacked diversity, excluding racial the developer created a job center on site so procurement plan that is designed to continue and communities can create their own labor and ethnic minorities and women from their that employment specialists could funnel after construction and requires the developer agreements that benefit the community and ranks. The recent push for apprenticeship and qualified applicants into jobs on the project to appoint a senior procurement official to include some of the requirements described pre-apprenticeship programs has seen an and direct those who needed training to work- implement the plan. in this section. increase in young people of color and women force development programs. pursuing careers in construction. 5. INCORPORATE THE ABOVE As noted above, CBAs include many of the PRACTICES INTO THE LEASE guidelines in this section. Establishing a AGREEMENTS OF COMMERCIAL new CBA with a community may not always Developers have the opportunity to expand access to TENANTS be possible, but when developers have the good jobs in local communities by collaborating with resources available, it is the best practice. Developers working on non-residential proj- There are a number of resources to help organizations (union and otherwise) that provide ects can support long-term equitable employ- create a successful CBA, including analysis apprenticeships, career-oriented job opportunities, ment practices in the spaces they build by of what has not worked in the past. The Part- and professional development. incorporating the above guidelines into the nership for Working Families is a leader in this leases they issue to commercial and industrial area of work. tenants. Developers (or subsequent owners Developers have the opportunity to expand of a project) can require, as a condition of Any agreement signed by the developer and access to good jobs in local communities occupation, that any tenant who leases space other stakeholders should have clear terms by collaborating with organizations (union in the project abide by the same wage, hiring, for enforcement and accountability. Clawback or otherwise) that provide apprenticeships, and procurement practices that the devel- provisions are an example of an accountability career-oriented job opportunities, and profes- oper implemented. measure in which public subsidies can be sional development. In the Midtown Exchange reclaimed by government agencies if devel- Project in Minneapolis, MN, for example, Examples of CBAs that required commercial opers fail to adhere to the terms of a contract. the developer worked with the Minneapolis tenants to hire local and minority workers in Employment and Training Program and the addition to the developer’s commitment to do 7. PROVIDE APPRENTICESHIP local building trades council to establish a so include the LAX redevelopment, and the PROGRAMS (IN PARTNERSHIP WITH strong pre-apprenticeship program for local Oakland Army Base project. LABOR UNIONS)
6. SIGN AND ENFORCE A PROJECT Labor agreements, which are typically nego- Resources LABOR AGREEMENT, LABOR PEACE tiated by union representatives, can be AGREEMENT, OR COMMUNITY controversial in some cases. Requiring union The Building America While Building Our Middle Class report examines in detail the value of apprenticeship programs and recommends apprenticeship BENEFITS AGREEMENT labor helps to ensure that unionized workers receive good wages and benefits, including utilization requirements for infrastructure projects. A project labor agreement is a collective job and safety training. However, labor unions There are a number of guides for employers looking to create apprenticeship bargaining agreement that essentially guaran- have specific employment pipelines, meaning programs, including guides from the American Institute for Innovative tees that developers will use union labor for a that those “good jobs” will likely not be Apprenticeship and the Manufacturing Institute.
28 29 Equitable Development Guidelines
Designated Space
All publicly-accessible spaces in a development project have the potential to contribute to the social and economic wellbeing of neighborhoods and disadvantaged groups. A designated space can address a wide range of inequalities, from access to services to economic opportunity. A project that includes an affordable health clinic, for example, can help to address inequalities in health care access and health outcomes. Designating space for a Minority and Woman- Owned Business Enterprise (MWBE) can help to address inequalities in business development.
These guidelines provide different options for designating space. Designated space can be included in almost all types of projects, except for those with limited public use such as heavy industrial projects. Every example of designated space included herein is accompanied by examples of inequalities that can be addressed by including the space in a project.
30 31 Equitable Development Guidelines Designated Space
Examples of designated space: health, education, and other areas that evolve as communities change and grow. The joint zz A community center may address inequal- partnership between University Settlement ities related to civic engagement, neigh- and the Chinatown YMCA highlights the borhood cohesion, and access to services benefits of providing flexible space that can Designated Space provided by community organizations. be used in multiple ways. A space that can be shared by different groups of people, such as Guidelines The Houston Street Center is an example children, adults, and senior citizens, can help of a community center created as part of a to foster relationships among neighbors. mixed-use development that includes both 1. DESIGNATE SPACE FOR A In addition to identifying the needs of the local luxury and affordable housing, in addition to zz A school or educational nonprofit may COMMUNITY ASSET THAT MEETS A community, developers may also consider retail. The Center is owned and operated by address inequalities related to education DEMONSTRATED NEED citywide inequalities and priorities that can a partnership between University Settlement outcomes. be addressed through their projects. Citywide A community asset can be a physical space and neighborhood disparities exist in many that fosters civic engagement, a service that different areas of urban life, including those With an understanding of the needs of the addresses an existing inequality, or a busi- identified in the Equality Indicators: economy, local community and the inequalities faced by ness that supports the local economy. In education, health, housing, justice, and disadvantaged groups at the neighborhood or city order for a community asset to qualify as a services (e.g., transportation, parks, and arts). designated space, it must meet a demon- level, developers should then demonstrate how the strated need. Demonstrated needs should be With an understanding of the needs of the creation of a designated space responds to one or identified through research, consultation with local community and the inequalities faced by more of those needs or inequalities. local partners, and/or direct engagement with disadvantaged groups at the neighborhood the community, as described in the Planning or city level, developers should then demon- Process section of the guidelines. strate how the creation of a designated space and the Chinatown YMCA. From the begin- The East Harlem Center for Living and Learning responds to one or more of those needs or ning, these partners worked with the devel- is a mixed-use development that includes the inequalities. oper to maximize the utility of shared space DREAM K-8 charter school, which serves 450 so that it could be used by both organizations students with a preference for children living for different purposes, including fitness facil- in nearby public housing or the East Harlem ities, continuing education classes, meeting neighborhood. The project was developed spaces, and after-school programs. in partnership with Harlem RBI, a local youth organization. Harlem RBI helped to identify The Houston Street Center is an example of a The Houston Street Center is also a good the community need for educational facili- community center that was built in partnership example of the added benefit of creating ties. The project also includes office space for with community-based organizations and that partnerships with and among communi- Harlem RBI, fulfilling a separate guideline in uses flexible space to serve different groups of people in the neighborhood. ty-based organizations (CBOs) and of making this section. space flexible to serve multiple purposes. It is Source: Wikimedia Commons: https://commons. based on the settlement house model, which zz An arts or cultural institution may address wikimedia.org/wiki/File:University_Settlement- is rooted in a history of service provision in inequalities related to access to arts educa- Houston_Street_Center.jpg
32 33 Equitable Development Guidelines Designated Space
tion for children and youth. Research from meet a growing demand for both space and employment center, connecting people to the ally-relevant goods, services, and programs the National Endowment for the Arts touts programming. The library expanded annual thousands of jobs the industrial park provides for the community. When building a project in the benefits of involvement in the arts, partic- circulation and created the Latino and Puerto and providing job training in partnership with an immigrant community, for example, a retail ularly among students with low socioeco- Rican Cultural Collection of bilingual books. Brooklyn Workforce Innovations. space that caters to the local immigrant popu- nomic status. Furthermore, an institution that It also provides a range of services, including lation might qualify as a designated space. In provides culturally relevant programs and English classes, financial counseling, and an 2. DESIGNATE SPACE THAT IS neighborhoods experiencing displacement features the work of local artists can serve as auditorium that hosts public events for the ACCESSIBLE, AFFORDABLE, AND of local businesses, particularly ones that an important community space for education community. CULTURALLY RELEVANT provided culturally relevant retail, this consid- and engagement. eration is even more important. zz Manufacturing space can provide jobs for In most projects, designated space should The Children’s Museum of Pittsburgh was disadvantaged groups directly, addressing be open to the wider community, with the Examples of designated space: recently featured in the New York Times as inequalities in employment and income. exception of retail or office space for certain one of a number of museums around the Depending on the types of manufacturing businesses and organizations. Spaces that zz An affordable grocery store can help to country that are leasing space to other organi- jobs created, the disadvantaged groups that are accessible only to the occupants of a address inequalities related to food access, zations. The Children’s Museum of Pittsburgh might benefit include individuals with a low building, such as a private garden or recrea- health, and poverty by increasing the avail- includes space at reduced rents for a public level of education or involvement with the tion facility, do not qualify as designated ability of fresh food. Depending on the local school, an educational nonprofit, and a radio criminal justice system. space. Some private spaces might qualify neighborhood context, ensuring that food organization. under guidelines in other sections, such as items are both affordable and culturally rele- The Brooklyn Navy Yard, a city-owned indus- spaces that house supportive services in vant might be an additional consideration. zz A library may address inequalities related trial park generating $2 billion in annual affordable housing projects or that follow to education, internet access, economic economic output, is undergoing an expansion active design standards. Designated space, CUNY Graduate School of Public Health and opportunity, and civic engagement. that aims to double employment by 2020. however, must serve the public, including Health Policy research recently illuminated Four of the development projects listed on the surrounding neighborhood and citywide the need for affordable and culturally relevant The Bronx Library Center opened in 2006 the Brooklyn Navy Yard website promise to disadvantaged groups. grocery options in East Harlem. In 2013, with to replace the former Fordham Library and create 9,000 jobs. The Yard also includes an the help of Food Retail Expansion to Support Another crucial component of designated Health (FRESH) incentives for developers space is that it is affordable to the people it to designate ground-floor space for super- is meant to serve. A high-end grocery store markets, Super Fi Emporium opened in East Retail diversity & co-location within a mixed-use development in a low-in- Harlem, increasing food access in the neigh- come neighborhood, for example, would not borhood and creating local jobs. Another In some neighborhoods, demonstrated needs might include retail diversity. qualify as a designated space. Although it FRESH project, Strivers Plaza, was recently Particularly in areas experiencing the proliferation of a limited type of retail (for example, restaurants, bars, and coffee shops), ensuring that different types of would provide healthy food options, if those completed in Central Harlem. retail remain accessible to local residents is an important way of addressing options are not financially available to groups community needs. Preserving and enhancing retail diversity in a neighborhood facing food insecurity or other economic and zz A health center may address inequali- can also address inequalities in commuting and transportation when more of a health inequalities, this grocery store would ties related to access to and quality of health resident’s daily needs are in close proximity to home. Locating retail and other not contribute to equitable development. care, including indicators of mortality and services near each other can decrease necessary travel time and improve wellbeing. access, especially for disadvantaged groups such as senior citizens and Finally, developers should make an effort to individuals with physical disabilities. select building tenants that provide cultur-
34 35 Equitable Development Guidelines Designated Space
The proposed Healthview Pavilion in Flushing is become a partner in the project. The East assets. Business owners with a stake in the an example of a project that would address the Harlem Center for Living and Learning project community can also contribute to neighbor- health needs of the local neighborhood through noted above, for example, both provided hood safety and cohesion. culturally relevant services. space for Harlem RBI and worked with them
Source: NYC EDC, https://www.nycedc.com/ to identify community needs. As with other guidelines in this section, poten- press-release/mayor-de-blasio-announces- tial tenants can be identified in the Planning plans-65-million-community-health-center- 4. DESIGNATE SPACE FOR Process, described earlier. In neighborhoods flushing DISADVANTAGED BUSINESS OWNERS experiencing new development and gentrifi- cation, developers can prioritize businesses There are several categories of businesses that that have recently been displaced, including operates abroad would not qualify as a desig- would qualify as tenants under this guideline: long-standing “mom-and-pop” stores or busi- nated space, nor would a national research Minority and Women-Owned Business Enter- nesses that provide culturally-relevant goods organization that does not provide direct prises, Emerging Business Enterprises, and and services to the local community. services. Mission-driven for-profit organiza- Locally Based Enterprises (see the Employ- The Charles B. Wang Community Health tions also do not qualify under this guideline, ment and Procurement section for more infor- Center recently announced plans to build a but they may qualify under another guideline mation about these types of businesses). new facility in Flushing, Queens. Charles B. in this or another section. Wang has been a leader in health care for Asian and Asian American New Yorkers Designating space for CBOs can help them Designating space for underrepresented or for decades. It provides affordable health provide needed services, support community disadvantaged business owners can help to care as a federally qualified health center, advocates’ work in the neighborhood, and address inequalities in business ownership and and its staff are fluent in many languages, promote civic engagement among neighbors. including Mandarin, Vietnamese, and Korean. Developers might also accompany designated economic opportunity. Its services help immigrants and English space with substantive financial support in language learners to overcome language the form of a monetary donation, an in-kind barriers in accessing health care, and its donation such as furniture and furnishings, Designating space for underrepresented or community health programs help to address or a rent or mortgage deal that reduces the disadvantaged business owners can help to health outcomes that disproportionately financial burden of the organization. A rent or address inequalities in business ownership affect Asian and Asian American New Yorkers mortgage deal should include clear terms in and economic opportunity. Selecting local- (such as chronic Hepatitis B). order to avoid future issues such as short-no- ly-owned businesses as tenants can also help tice evictions. This guideline can benefit the to preserve and support the local economy 3. DESIGNATE SPACE FOR A LOCAL developers or owners of a project by filling because local businesses tend to recircu- NONPROFIT OR COMMUNITY-BASED hard-to-rent spaces and, in some cases, late more revenue within the community ORGANIZATION allowing them to qualify for a tax benefit in the than national chain stores do. Furthermore, form of less taxable gross income. locally-owned businesses have been tied to Developers may designate space for a local enhanced community wellbeing and civic nonprofit or a CBO that serves the sur- The organization(s) to be housed in a project engagement. Local businesses can serve rounding neighborhood or citywide disadvan- might be identified in the Planning Process, as meeting places and unofficial landmarks, taged groups. An international nonprofit that and in some cases, the organization might carrying local significance as community
36 37 Equitable Development Guidelines
Housing
Housing contributes to equitable development in many ways. Building affordable housing can help to address a growing concern for many communities, and this section will discuss some of the challenges and opportunities that developers should take into account. There are also a number of housing models and strategies, such as supportive housing and community ownership, that further serve and empower communities, increasing a project’s potential to have a deep and long- term impact.
Lack of affordable housing is an issue in cities and states across the country. The Joint Center for Housing Studies of Harvard University reported that in 2014, more than one-third of U.S. households were cost-burdened, spending more than 30% of their income on housing; more than 16% of households were severely cost-burdened, spending more than 50% of their income on housing. A closer look at the housing affordability crisis reveals that renters, particularly extremely low- income and racial and ethnic minority renters, are more likely to struggle with the costs of housing. Almost half of renters in the United States are rent-burdened (spending over 30% of their income on rent), and a staggering 83% of the households with the lowest incomes (those making less than $15,000) are rent-burdened. Indeed, no county in the United States provides enough affordable housing for extremely low- income renters. In New York City, severe rent burden is experienced most acutely by Hispanic (30.1%), Asian (29.7%), and black (27.8%) New
38 39 Equitable Development Guidelines Housing
Yorkers, compared to white New Yorkers (22.7%), although rates do not Housing trust funds are public sector tools designed to provide financial fall below one in five for any of these groups. resources for affordable housing development. A state or local agency is normally responsible for the collection and distribution of the fund’s Policy Context resources. The fund’s sources might include real estate transfer taxes,
Affordable housing is a complex policy issue at all levels of government. accumulated interest from real estate transactions, and penalties from There are research organizations that specialize in affordable housing real estate excise taxes. policy, including the NYU Furman Center and the Urban Institute, whose None of the abovementioned policies and tools provide a perfect reports are highly relevant to the guidelines in this section. Some of the solution to the growing need for affordable housing. In New York policy tools used by the public sector to incentivize and subsidize the City and other places facing affordability crises and the pressures of development of affordable housing are explained here. gentrification and displacement, it is difficult to meet the needs of all
The Low-Income Housing Tax Credit program is the largest federal stakeholders. Although developers may not be able to incorporate program designed to produce and preserve affordable rental housing. all of the following guidelines in one project, each best practice can The program offers investors federal tax credits (equity) in exchange contribute to equitable development in some way. It is important to for the development of affordable housing units, typically managed by consider what the trade-offs are when prioritizing which guidelines the state. State and local administrators set the program goals, which to follow, including the potential impact on different disadvantaged allows them to customize the program to the local needs of the area. groups. Ultimately, these guidelines aim to push new development Some states might focus on target populations of renters while others projects beyond the minimum requirements for public incentives. might focus on certain types of projects or certain geographic areas.
Inclusionary zoning requires new market-rate development projects to include a minimum percentage of affordable units that remain affordable for a set period of time. Local governments might offer incentives to offset the extra cost of providing affordable units, such as density bonuses that allow developers to build taller buildings and gain more revenue. New York City recently enacted Mandatory Inclusionary Housing, requiring developers building residential projects in certain neighborhoods to set aside a portion of the units for permanently affordable housing.
40 41 Equitable Development Guidelines Housing
3. INCLUDE DEEPLY but meeting this target might come at the AFFORDABLE UNITS expense of affordability for the lowest-in- come New Yorkers. Recent changes to the Development projects should also maximize housing plan and the 2017 plan update indi- the level of affordability of housing units, cate progress toward addressing this issue. Housing making them accessible to low- and extreme- ly-low income residents. This guideline is In some neighborhoods, the affordable Guidelines sometimes at odds with the first guideline in housing debate focuses on the tension terms of financial feasibility, and developers between the affordability of new units and should be intentional about which guideline the income levels of neighborhood residents. 1. MAXIMIZE THE NUMBER OF 2. MAKE HOUSING UNITS to prioritize. The level of affordability is partic- For example, if a project provides units that AFFORDABLE UNITS PERMANENTLY AFFORDABLE ularly important in a place like New York City are affordable at 60% of the area median where affordable housing is in short supply income (AMI) but the majority of neighbor- Development projects that include housing One component of the affordable housing for individuals and families in multiple income hood residents have incomes at 30% AMI, should maximize the number of units that crisis in New York City and other places is the brackets. The Housing New York plan aims to the question becomes for whom is the project are affordable. A project that is 100% affor- expiration of affordable housing units. Many build or preserve 200,000 units in ten years, affordable. At the same time, tying the level of dable is the ultimate goal, but it is often more forms of publicly-subsidized, privately-owned financially feasible to balance a combination affordable housing are only affordable for of affordable and market-rate units in one a set period of time. A 30-year life span is Area median income in New York City project. There are existing policy mechanisms touted as long-term affordability, but the to create more affordable housing units, recent and upcoming expiration dates on proj- Area median income (AMI) is the metric calculated by the U.S. Department of including the Low-Income Housing Tax Credit ects developed in New York City in the last few Housing and Urban Development (HUD) to determine the appropriate level of affordability for subsidized housing in a given region. A region’s AMI is program and inclusionary zoning. decades will exacerbate an already dire need calculated annually and is based on the combined average household income for affordable housing citywide. Therefore, it of its residents at different household sizes. All household incomes can then be is critical to include permanently affordable measured as a percentage of the city’s AMI. For example, New York City’s 2017 units in projects. In some cases, permanent AMI was $95,400 for a four-person household, so a household of the same affordability can be achieved using alterna- size that earned $28,620 annually had an income at 30% AMI. New York City’s tive housing models, some of which will be Department of Housing Preservation and Development creates local standards discussed later in this section. for affordable rental properties based on HUD’s AMI calculations. For example, a four-person household at 100% AMI should be able to afford $2,406 in monthly rent for a three-bedroom unit, while a household at 30% AMI can afford $594 in monthly rent for a three-bedroom unit. In 2014, Mayor de Blasio released the Housing The challenge with using AMI in New York City is that the calculation includes New York plan to create and preserve 200,000 the median income of several wealthy suburbs within the metropolitan region, affordable housing units in ten years. In 2017, the Mayor released Housing New York 2.0, effectively skewing the numbers so that more than half of NYC households committing to a new goal of 300,000 units actually sit below the city’s assigned AMI. This means that even when developers by 2026. or city agencies create housing projects that meet the set standards of affordability, it is often the case that those “affordable” rents are still too high for Source: NYC HPD, http://www1.nyc.gov/site/ the people living in certain neighborhoods. hpd/about/housing-plan.page
42 43 Equitable Development Guidelines Housing
housing. As affordable housing becomes and expansion of CLTs in certain neighbor- Joint Ownership Entity scarcer and existing policy is unable to meet hoods. As with many other equitable devel- Nonprofit developers are perhaps best suited to meet the demands of the lowest increasing demand, developers should opment initiatives, successful partnerships income residents; however, it is challenging for them to compete for financing and consider alternative housing models. These are critical, and there are NYC-based orga- public contracts. In New York City, the Joint Ownership Entity (JOE NYC) aims to models are also important tools for mitigating nizations leading the way for CLTs. The NYC address this issue. JOE NYC was founded by a group of community development displacement in gentrifying neighborhoods. Community Land Initiative, for example, is a corporations to assist in securing financing for their development projects, thus network of organizations dedicated to estab- ensuring the long-term affordability of their properties and increasing stability in The first such model is the community land lishing CLTs and providing resources and the communities in which the projects are located. trust (CLT). CLTs establish affordable resident education for interested stakeholders. ownership of housing units and local control of land and other resources. A nonprofit Developers interested in building projects in affordability to neighborhood income levels Supportive housing is incredibly important usually obtains the land at low or no cost and partnership with CLTs can utilize some of the may not achieve the intended outcome when in neighborhoods with residents facing maintains control over the land for the benefit resources provided by local organizations, as an affordable housing project is located in displacement and homelessness, as well as of the community. When housing is devel- well as national-level research such as a report a moderate- or high-income neighborhood. in naturally occurring retirement communities oped on the land, prospective homeowners from the Institute for Community Economics. Therefore, this guideline calls for “deeply” with aging populations. affordable units that are available to low- and extremely-low income renters specifically, 5. EXPAND OPPORTUNITIES FOR Beyond individual homeownership, community regardless of where a project is built. HOMEOWNERSHIP AND COMMUNITY ownership is an even stronger model for building OWNERSHIP 4. PROVIDE SUPPORTIVE permanently and deeply affordable housing. HOUSING UNITS Much of the debate and policy around afford- able housing focuses on renters, which is Supportive housing units benefit specific appropriate for a city like New York in which enter into a long-term, renewable lease of the In a limited equity housing cooperative, resi- disadvantaged groups that need affordable two-thirds of the population rent rather than housing unit (excluding the land), instead of dents form a corporation that shares owner- housing as well as on-call services to maintain own. However, expanding opportunities for a traditional sale. The CLT determines resale ship over a building. This model is different a healthy lifestyle. These groups include the homeownership to disadvantaged groups values for all units in the project, keeping from a traditional co-op in that it limits the formerly homeless, those with mental illness that have faced historical, structural barriers the units affordable for future owners. CLTs purchase price and appreciation rate of a or substance use issues, and those with is also an important component of equitable are typically governed by building residents, share to maintain affordability. While owners chronic illnesses. On-site services range from development. Projects that include affordable community members, and other stakeholders. enjoy most benefits of ownership, they are health management programs, to job assis- units for homeownership can help to address not allowed to sell their units at market price. tance, to educational classes. Supportive stark inequalities faced by groups such as There are around 250 CLTs operating in the Owners are shielded from market fluctu- housing typically requires a nonprofit partner racial and ethnic minorities and lesbian, gay, United States today, and local governments ations, so that while they do not reap the to provide and manage the services. Settle- bisexual, transgender, and queer individuals are starting to prioritize this model in their benefits of market increases, they are also ment houses are important service providers and couples. efforts to provide permanent, communi- protected from market decreases. and potential partners for developers. In addi- ty-owned affordable housing. In New York tion, some community development corpo- Beyond individual homeownership, commu- City, for example, the Department of Housing Both CLTs and limited equity housing coop- rations specialize in supportive housing, nity ownership is an even stronger model for Preservation and Development recently eratives are examples of programs based on including Nazareth Housing in New York City. building permanent and deeply affordable announced funding to support the formation shared equity homeownership, which aims to
44 45 Equitable Development Guidelines Housing
residents to stay in their neighborhoods and Equitable access for affordable housing residents reap the benefits of new investment and In 2013, Extell Development Company released its city-approved plans to development. construct a luxury-housing tower in New York City with 20% of its units priced for households making 60% AMI, allowing the developer to qualify for 7. PROVIDE PROTECTIONS a tax-abatement program. Rather than integrate the affordable units into the FOR EXISTING TENANTS OF overall scheme of the building, however, the developer designated separate entrances and spaces for market-rate renters and residents of the affordable REDEVELOPMENT PROJECTS units. This design effectively created two separate buildings: the luxury side When existing affordable housing projects had access to amenities like gyms, a swimming pool, a movie theater, a door attendant, outdoor space, and a luxury lobby, while the affordable side did not. are demolished or redeveloped, there are a This project sparked a national debate about whether design and development number of practices developers should follow contribute to class divisions, but the practice of excluding rent-regulated tenants to protect existing tenants and minimize direct from services and amenities is not unique to this project. New York City recently displacement. Developers should provide banned this practice for all projects tied to the same tax-abatement program. existing tenants the first right of refusal or
Equitable development requires that building amenities, services, and spaces are accessible to all residents. Developers building affordable housing should avoid “poor doors” and similar exclusive design practices that exacerbate rather than Ultimately, these guidelines aim to push new reduce inequality. development projects beyond the minimum requirements for public incentives.
provide affordable housing with reasonable community district for units available through right of return for a percentage of new afford- potential for equity growth. In general, this the city’s affordable housing lottery. Propo- able housing units, allowing tenants to move type of ownership places restrictions on the nents of the policy point to the ability of local, back into an improved building and maintain amount of appreciation that a homeowner can low-income residents to avoid displacement their homes. Existing residents should be retain on her/his unit, keeping units affordable as neighborhoods develop. Opponents, on given just compensation and/or adequate even in areas with steep market increases. the other hand, argue that the policy perpet- relocation assistance if asked to vacate their Developers or partner nonprofit organizations uates the segregation of NYC neighborhoods. homes permanently or for the duration of the often subsidize initial home purchases. This debate points to a larger issue regarding redevelopment. Finally, whenever possible, the Fair Housing Act, which mandates nondis- developers should provide temporary housing 6. RESERVE A PERCENTAGE OF UNITS criminatory housing program administration. that is similarly affordable and in close prox- FOR EXISTING DISADVANTAGED Fair housing advocates have brought lawsuits imity to the residence under redevelopment. RESIDENTS OF THE NEIGHBORHOOD against local government in New York City and other places, claiming that their practices In some projects, it might be appropriate further segregation rather than preventing it. to prioritize local residents when selecting The legality and feasibility of this guideline will tenants of new affordable housing units. New depend on case-by-case context, but when York City’s community preference policy used appropriately, this practice could allow grants priority to current residents of the local low-income or otherwise disadvantaged
46 47 Equitable Development Guidelines
Design Standards
The siting, design, and construction of development projects can affect the health and wellbeing of building tenants and neighboring communities in many ways. At the same time, there are already numerous certification and guideline systems in place to measure and evaluate this impact with the goal of enhancing the environmental, social, and economic performance of buildings. While full participation in rating and certification systems like Enterprise Green Communities and LEED is not required for an equitable development project, developers are encouraged to work with project architects and engineers to fulfill as many criteria within these systems as possible. In addition, guidelines that have been established by researchers, designers, government agencies, and other relevant groups should be referenced and followed.
Below are summaries of some of the leading global, national, and NYC-based systems. The criteria in some of these systems, including Enterprise Green Communities, the Active Design Guidelines, and universal design, are all relevant to developers and designers interested in addressing inequalities in their projects. Other systems, particularly LEED, have the potential to address inequalities only if they are applied in conjunction with guidelines in other sections, such as providing
48 49 Equitable Development Guidelines Design Standards
designated space or affordable housing. For all of these systems, we ENTERPRISE GREEN COMMUNITIES other respiratory illnesses. The certification highlight specific criteria that can help to address inequalities. Some system, therefore, is designed to address Enterprise Green Communities (Enterprise) is health inequalities faced by low-income indi- of these criteria exist in multiple systems, but the criteria we chose to a sustainability rating system for new or reha- viduals and families. For example, there are highlight in each system emphasize the wide variety of design practices bilitative affordable housing projects. Enter- criteria related to mold prevention and inte- and principles that can benefit different disadvantaged groups. prise aims to encourage building strategies grated pest management, which are public that are environmentally efficient and benefi- health interventions that have been proven to cial to resident health. The primary difference reduce asthma rates. Furthermore, Enterprise between Enterprise and other sustainability has calculated the cost savings for developers systems like LEED is that it focuses only on and residents of certified projects. affordable housing. The system is based on the idea that affordable housing should be Enterprise has become the industry standard held to the same standards (and reap the for affordable housing, and the NYC Depart- same environmental and health benefits) as ment of Housing Preservation and Develop- market-rate housing. Enterprise covers the ment now requires all new construction and costs of certification, making green building substantial rehabilitation projects to comply practices more accessible to affordable with Enterprise criteria designed specifically housing developers. for New York City.
In addition to its focus on affordable housing, ACTIVE DESIGN GUIDELINES which inherently addresses inequalities in affordability, Enterprise’s emphasis on resi- The Active Design Guidelines is a manual dent health stems from the fact that low-in- of evidence-based design principles and come populations are more likely to suffer strategies for the built environment that from health conditions related to poor promote physical activity and improve health housing conditions, such as asthma and outcomes. Created in 2010 by a coalition of NYC government agencies, the American Institute of Architects, and academic experts, the guidelines aim to address obesity, type 2 diabetes, and other public health epidemics associated with physical activity. The guide- lines are the result of in-depth literature 2015 reviews conducted by national experts in ENTERPRISE GREEN architecture, construction, and design, and COMMUNITIES CRITERIA input from a series of interactive workshops
Source: Enterprise, https://www. enterprisecommunity.org/solutions-and- innovation/green-communities/criteria
50 51 Equitable Development Guidelines Design Standards
Source: Center for Active Design, https:// Source: NYC DDC, http://www.nyc.gov/html/ ACTIVE DESIGN GUIDELINES DESIGN ACTIVE ACTIVE centerforactivedesign.org/guidelines/ ddc/downloads/pdf/udny/udny2.pdf DESIGN GUIDELINES universal PROMOTING PHYSICAL ACTIVITY new york AND HEALTH IN DESIGN indicates that adhering to the guidelines can design multisensory signage that includes as many help to reduce obesity and diabetes rates languages as possible. among groups that are most affected by
City of New York Department of Design and Construction in these conditions, as well as to increase access partnership with The Mayor’s Offi ce for People with Disabilities Incorporating universal design into develop- Danise Levine, M.Arch. Editor-in-Chief to transit and healthy food. ment projects can help to address inequalities in access to buildings, amenities, and services In 2013, the Center for Active Design (CfAD) for a range of disadvantaged groups, including was created to promote the use of these the concept of universal design emerged individuals with physical disabilities, children, guidelines through research, training, and alongside civil rights issues for people with seniors, and English language learners. annual awards. CfAD produced a policy brief disabilities. As legal requirements around hosted by design professionals. Each guide- in 2017 that highlighted the impact of active accessibility gained much-needed traction, While there is no certification program line is given one of three classifications design in an affordable housing development activists began to call for a broader, more fluid associated with universal design, there are based on the strength of the research under- project in the Bronx. Residents of the building understanding of ability that acknowledged resources such as Universal Design New York, lying it (from most to least evidence): strong showed better health than those at a nearby that people are differently abled at different an initiative that outlines universal design evidence, emerging evidence, and best prac- housing development without active design times in their lives. Universal design goes principles specifically for buildings and urban tice. The focus on highlighting and building features. Stair use was much higher, and beyond the traditional definition of accessi- design projects. These principles include: the research behind the recommendations is residents reported feeling safer and more bility by keeping in mind the needs of all users, a key component of the guidelines’ success. inspired to be active around their residen- regardless of age, size, or ability. 1. Equitable use for all abilities tial area. CfAD has partnered with the Icahn 2. Flexibility in use for a range of The Active Design Guidelines can address School of Medicine at Mount Sinai to conduct Over time, universal design groups have preferences inequalities in many ways, particularly inequal- further evaluations of buildings and spaces identified the standards and practices that 3. Simple and intuitive use that is easy ities in health outcomes related to physical that incorporate active design, which will add provide ease of use for the largest possible to understand regardless of language activity. Many of the guidelines focus on the to the evidence base for these design prac- population, all the while integrating aesthetics or experience design of stairs, walking routes, and indoor tices. CfAD is also now the licensed operator and good design. These standards include, 4. Perceptible information that commu- spaces, such as playgrounds and fitness of Fitwel, a building certification system for and push beyond, the minimum require- nicates clearly regardless of sensory areas, that support physical activity. Others health and wellbeing created by the Centers ments currently mandated by the Americans abilities focus on active transportation infrastructure for Disease Control and Prevention and the with Disabilities Act. Examples of universal 5. Tolerance for error that minimizes (such as bicycle routes and racks) and pedes- General Services Administration. design practices include ramp measure- hazard due to mistaken use trian amenities (such as good lighting, trees, ments that accommodate strollers as well as 6. Low physical effort that does not or street furniture) that encourage activity UNIVERSAL DESIGN wheelchairs, pedestrian crossing areas that cause fatigue outside the building. Still others address maximize safety for children and for slow- 7. Size and space for approach and use the need for grocery stores and other fresh Universal design refers to a design approach er-moving people, emergency exit plans and that is usable by people of all sizes produce outlets in communities that suffer that aims to create environments and prod- routes that are understandable for people of and mobility levels from nutrition-related health issues. The ucts that can be used by anyone without the all sensory abilities and experience levels, and evidence base provided in the guidelines need for adaptations. Starting in the 1970s,
52 53 Equitable Development Guidelines Design Standards
Universal Design New York has developed facades that welcome visitors, safe and projects, we will be able to better understand a number of criteria, including those that an evaluation tool to audit buildings and comfortable spaces for people to rest, and the impact of prioritizing equity in design. provide enhanced air quality, natural light, spaces, scoring the usability of various design flexible space for multiple uses. In order to and reduced noise pollution. If a commercial elements on a scale of 1-3 and calculating an ensure accessibility, DDC recommends clear LEED building includes retail spaces owned by local overall score for a project. wayfinding (such as signage and navigation small businesses, lower utility costs can help aids) and building entrances that connect to LEED, or Leadership in Energy and Environ- to support these businesses and keep them in DESIGN AND CONSTRUCTION existing forms of transportation. The prin- mental Design, is the foremost green building the neighborhood. EXCELLENCE 2.0 ciples focused on community engagement certification system in the world. Launched reflect some of the guidelines in previous as a pilot project by the United States Green Some LEED criteria can help to address The NYC Department of Design and Construc- sections, including addressing unmet needs Building Council in 1998, the system initially inequalities more directly. While LEED certifi- tion (DDC) recently published a set of guiding and providing public, or designated, space for aimed to formalize sustainability in building cation is now possible for all types of building principles for the design and construction of communities to gather. design and construction. LEED has been projects, the LEED neighborhood develop- public buildings in New York City. The prin- updated several times since its establish- ment (ND) category is particularly relevant ciples are divided into four sections: equity, The principles related to cultural relevance ment and the most recent version, LEED v4, in this context. LEED ND criteria include sustainability, resiliency, and healthy living. highlight some of the design and develop- awards points in several categories: location measures of access to quality transit and The focus of the equity section is the concept ment strategies that can make a project more and transportation; sustainable sites; water proximity between housing and jobs, both of of “design for all,” which mirrors other city- responsive to the surrounding community. efficiency; energy and atmosphere; materials which can benefit communities by reducing wide initiatives to create a more equitable city. One principle calls on designers to engage and resources; indoor environmental quality; commuting times and costs. Criteria related to The equity principles emphasize inclusive- communities through collaborative design innovation; and regional priority. the location of a project and the surrounding ness, accessibility, community engagement, processes in order to enhance local under- neighborhood (for example, brownfield reme- cultural relevance, and flexibility in design. standing of the project and learn from a neigh- Some of the benefits of LEED include diation, walkable streets, or access to civic borhood’s history. Another principle empha- healthier indoor environments and utility cost and public space) also have the potential to Design principles that can enhance the inclu- sizes the importance of engaging local artists savings due to energy and water efficiency. benefit building occupants and the commu- siveness of a building include transparent when including public art in a project. These The potential for LEED to address inequali- nity overall. These criteria can address principles are connected to some of the guide- ties depends on who receives these benefits. inequalities in areas such as neighborhood lines in the Planning Process section, and they For example, if the building is a community quality, safety, and civic engagement. reflect the movement within the field toward center that serves low-income youth in the impact design. neighborhood, the youth can benefit from Critics of LEED point out that certification is not tied to building performance: once a The last set of principles in the equity section building is certified, there is no follow-up recognizes the evolution of communities and to ensure that criteria continue to be met. Guiding the need for public buildings to adapt to these Another criticism is the high cost of LEED, Principles changes over time. Currently, DDC’s guiding which includes high registration and certifica- principles do not have clear mechanisms for tion fees and the option of hiring an accred- implementation, but as DDC clarifies these ited LEED professional to guide a project principles and incorporates them into public through the process. Nonetheless, LEED is
Bill de Blasio Dr. Feniosky Peña-Mora Source: NYC DDC, http://www1.nyc.gov/site/ Mayor Commissioner ddc/about/guiding-principles.page Source: USGBC, https://new.usgbc.org/leed
54 55 Equitable Development Guidelines Conclusion
an important model of building standards, in LEED pilot credits part because of its trajectory from a little- The most recent version of LEED included three social equity pilot credits that known system in a niche part of the design award points for social equity within the community, the project team, and world to a widely recognized and sought-after the supply chain. To earn these credits, a project must either complete the accreditation that has changed the way the Social Economic Environmental Design (SEED) Evaluator or partner with a local building and construction industries approach organization to identify and implement strategies that improve social equity in environmental sustainability. It continues one of these three areas. to evolve and incorporate new measures of This version also included three resilient design pilot credits, spearheaded by sustainability, and it pushes the boundaries of the Resilient Design Institute. They are more specific than the social equity building standards in cities around the world. credits and include assessment and planning for resilience, design for enhanced resilience, and passive survivability and functionality during emergencies.
While the inclusion of these pilot credits is an indicator of progress toward a more holistic assessment that includes measures of equity and resilience, each Conclusion of these credits is worth only one point (out of a possible 110 points).
These Equitable Development Guidelines
Passive House provide best practices for developers that aim to build projects that have a positive impact Passive House is one of the most difficult green building standards to meet, on neighborhoods and cities, with a specific but it is the only certification system that is entirely performance based. While focus on the various disadvantaged groups systems like LEED focus on materials and energy usage during construction, that can benefit from good development Passive House certification measures energy performance and improvement throughout the lifetime of a building. decisions. We hope that these guidelines will be a useful tool for developers, but also for The passive building approach relies on an engineering and design model other development stakeholders, including that maximizes a building’s heating and cooling systems in order to minimize community-based organizations, government its energy needs. All passive buildings incorporate superinsulation, airtight agencies, finance institutions, and neighbor- envelopes, energy recovery ventilation, high performance windows, and solar gain management to create a very low-energy building. Passive house buildings hood residents. have more comfortable temperatures for residents, better air quality due to filtering, and little to no marginal costs. They are also resilient to power outages, The research, resources, and case studies and are nearly carbon neutral. highlighted in this document are intended to
Passive House is a relatively new system and is not yet nearly as widespread serve as the foundation for future research as LEED. There is also an outdated understanding of the cost of Passive House and collaboration to promote and incentivize standards: initially, passive building was said to cost 6% more upfront, but as equitable development. the cost of materials has gone down and design, engineering, and construction knowledge has expanded, the additional upfront costs are closer to zero. To the If you are interested or working in this space, extent that energy cost savings are shared with building tenants, incorporating please send any questions, comments, or Passive House design into affordable housing or projects with designated space suggestions to [email protected]. can help to address inequalities through lower utility bills.
56 57 Equitable Development Guidelines
ACKNOWLEDGEMENTS
The CUNY Institute for State and Local Governance (ISLG) is led by Executive Director Michael Jacobson and Advisory Board Chair Marc Shaw.
Jocelyn Drummond led the creation of the Equitable Development Guidelines, and prepared them together with Victoria Lawson, Elizabeth DeWolf, and Julia Bowling. Rachel Albetski and Maggie Calmes from the Hunter College Department of Urban Policy and Planning contributed research and writing. Mark Fiedler from Fiedler Marciano Architecture and Besiki Kutateladze, formerly of ISLG, were instrumental in conceptualizing and guiding the early phases of the project. Michael Nickerson from Fiedler Marciano Architecture provided additional early research support. Paragini Amin created the report design.
ISLG wishes to thank the more than 50 individuals from government agencies, private and nonprofit organizations, and research and policy groups who offered feedback and guidance at various stages of the development of the guidelines.
FUNDED BY THE ROCKEFELLER FOUNDATION
58 The CUNY Institute for State and Local Governance is a nonpartisan research and policy institute. We bridge the gap between researchers, practitioners, and policymakers to address the challenges and opportunities confronting government.
Developing Expert Solutions
Institute for State and Local Governance City University of New York
islg.cuny.edu @CUNYISLG