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1. the Lower East Side's Ident

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1. the Lower East Side's Ident 1. NEEDS ASSESSMENT OF COOPER SQUARE SERVICE AREA completed April 28, 2009 A. HOUSING NEEDS OF THE COOPER SQUARE AREA: 1. The Lower East Side’s identity as a very diverse, working class and immigrant community, is in transition. Historically, the housing stock (which is 83% rental housing) has provided affordable housing to generations of low and moderate income residents, particularly immigrants. However, the speculative housing market of the first decade of the 21 st century, (which has recently come to a halt in the wake of the sub-prime mortgage meltdown and the ongoing crisis in the credit markets), has fueled displacement of low income tenants, deregulation of rent stabilized housing, and a development boom that has reshaped the landscape of the Lower East Side. Gentrification has changed the racial and economic demographics of the community and made it virtually impossible for the children of local residents to remain in the community, unless they live in government assisted housing. The loss of rent stabilized housing must be stopped if we are to preserve an economically diverse community. The 1997 and 2003 changes in the Rent Laws, along with a speculative housing market, fueled displacement and deregulation in many NYC neighborhoods, in particular the Lower East Side. The area’s demographics had already been changing by 2000, and the trend has continued through the first decade of the century. In particular, the Latino population has been in decline in the Cooper Square Committee’s catchment area (14 th St. to Delancey St., the Bowery/3 rd Ave. to the East River) from 1990 to 2000, while the Asian population has moved north from Chinatown and new Asian ethnic groups have moved into the area. The White population has remained relatively stable, increasing slightly. Table 1. Changes in Racial Demographics of the Cooper Square Area Change in Racial CSC Service CSC Service CSC Service CSC Service Demographics Area (1990) Area (1990) Area (2000) Area (2000) (1990 and 2000 Census) Population Percent Population Percent White (Non-Latino) 33,748 34.3% 36,136 35.7% Latino 39,191 39.8% 33,489 33.1% Black 9,518 9.7% 8,285 8.2% Asian/Pacific Islander 15,296 15.6% 20,285 20.0% Bi-Racial NA NA 2,373 2.3% Other 605 0.6% 719 0.7% Total 98,358 100% 101,287 100% The racial demographics of the Cooper Square Area as of 2000 were 35.7% White Non-Hispanic, 33.1% Latino, 20.0% Asian American, 8.2% African American, 2.3% Bi-Racial and 0.7% Other. While the Lower East Side is the most diverse community in Manhattan, the Latino population is more heavily concentrated in the NYCHA projects along the eastern edge of the community, comprising 72% of the population in the NYCHA buildings east of Avenue D and about 25% of the remaining parts of the Lower East Side. Similarly, the Asian American population is more concentrated south of Houston St. in our CSA, where they comprise 34.5% of the population, while comprising 11.1% of the CSA north of Houston St. 1 While the Lower East Side is still home to a sizeable immigrant and working poor population, as well as people on public assistance, its population has become more affluent relative to New York City as a whole. From 1999 to 2005, NYC’s median household income increased 21% from $33,000 to $40,000 whereas the median income of the Lower East Side/Chinatown increased 50% from $22,000 to $33,000, moving closer to the City’s median income overall, at 82.5% of the City’s median income. The percentage of households on the Lower East Side living in poverty has dropped slightly from 26.8% to 24.5% of households, although the percentage of households receiving public assistance has increased from 22.3% to 27.7% from 1999 to 2005. With this rise in median income, the racial/ethnic demographics have continued to change since the 2000 Census. The Furman Center’s survey sample of the Lower East Side/Chinatown (a larger area than the Cooper Square Service Area) found that the White population has increased from 25.3% to 33.6% of the area’s population from 1999 to 2005. Meanwhile the Black population has remained relatively constant as a percent of the total, increasing from 6.2% to 6.4%. The Latino population has declined substantially from 37.9% to 29.9% of the total population, and the Asian population has declined from 30.5% to 28.3% of the total population. The foreign born population has also declined from 56.3% to 42.7% of the population. This is a strong indication that the Lower East Side’s historic role as a destination for new immigrants is in transition. Not only does it suggest that immigrants are being displaced, but that new immigrants from China, the Dominican Republic and Eastern Europe are settling elsewhere. The loss of rent stabilized housing is a major contributor to displacement of low and moderate income residents. From 1996 to 2005, according to the Furman Center, the percentage of rent regulated units on the Lower East Side/Chinatown declined from 52.6% to 43.4%, a loss of over 7,000 rent stabilized units out of 77,366 units in Community Board 3 . Much of this loss has taken place in the Cooper Square Committee Service Area north of Delancey Street which contains over 40,000 housing units. Market rents have increased dramatically from the mid-1990s to 2005. The median contract rent on the Lower East Side was $657 in 2005, compared to a median contract rent of $1,000 in Manhattan in 2005. However, while this median rent seems relatively affordable in contrast with the rest of Manhattan, 45.8% of Lower East Side residents pay more than 30% of their income towards rent, and 24.0% pay over 50% of their income towards rent placing them at high risk of displacement. 59.6% of low-income households in Manhattan earning less than 80% of the median income had a severe housing cost burden (over 30% of income). In addition, there is a widening disparity in rent stabilized rents between long-term residents and newer arrivals to the community. A 2004 survey by the Cooper Square Committee found that the median rent of people who had moved into their unit in 1997 or later were paying a median rent of $950 whereas people who had moved in prior to 1997 were paying a median rent of less than $500. Given these disparities between “market rents” and rents of long term residents, it has become clear that there is a lot of incentive for speculators to purchase buildings with relatively low rent rolls in order to try to vacant units with long term tenants through aggressive displacement tactics in order to achieve market rents. A typical studio apartment that rented for $800 in the mid 1990s, was renting for twice that much by 2008. This increase in rent has far outpaced increases in income for Lower East Side residents. 2. A large portion of current residents are at risk of displacement over the coming decade if housing costs continue to outpace incomes. Abusive practices by speculators and the abuse of 2 regulatory loopholes have created a hostile environment for tenants. Education and counseling of tenants at risk of displacement is increasingly critical to preventing the abuse of tenants’ rights and needless evictions. The Cooper Square Committee surveyed 180 local households (comprising 346 people for an average household size of 1.9 people) in the 2 nd half of 2008. We found that the median rent was $600 per month. Our survey included a significant portion of tenants in the Cooper Square MHA housing (27.3%) which skewed the results downward, since their median rent was less than $500 per month. When MHA tenants were excluded, the median rent was $815 per month. 86.3% of survey respondents said that their housing costs were rising faster than their incomes, regardless of income level. The median income of survey respondents was $25,000 per year. Excluding MHA tenants (whose median income was less than $20,000 per year), the median income of respondents was $39,000 per year. Regardless of housing type, the majority of respondents were paying at least 25% of their income towards rent. 44.4% of respondents said their housing was becoming unaffordable to them. Heightening tenants’ displacement concerns, allegations of tenant harassment are being made with increasing frequency. 11.1% of the tenants surveyed said they are currently being harassed by their landlord. More than 25% of rent stabilized tenants said that this was the case. The Cooper Square Committee’s Housing Specialists have observed an increase in the number of tenants coming into our office alleging harassment over the past 5 years, and addressing this issue, which is difficult to adequately document, has taken up a growing amount of our staff’s time. There is a widespread perception that weaker rent regulations, inadequate governmental supervision of landlord practices, and the migration of speculative capital to the NYC real estate market of the past decade has created a hostile climate for tenants paying below market rents. Among the displacement practices CSC has observed are the following: 1) Phony demolitions - whereby tenants are forced to permanently vacate their buildings when landlords claim to DHCR and DOB that their building has structural problems that require “demolition” or substantial renovation so that the building can be renovated, and apartments can be reconfigured and deregulated.
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