New Bleats tackles some of the big concepts of the day, and challenging ingrained beliefs with new ideas of sustainability. Key interests include: community development; local and state sustainability policy; human behavior, our collective miscreations, and the mess into which they have gotten us. Please post your comments and thoughts, I look forward to the chance for dialog!
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Friday, February 11, 2011

Explorations in Community Development Part 1, Let’s Call a Spade a Spade: Community Development, or just Non-Profit Real Estate Development?

Most projects associated with the concept of “community development” engage in activities like clearing abandoned and condemned properties, cleaning up weed-covered and rubbish-strewn lots, planting trees and establishing green spaces, promoting home ownership, remodeling or building new homes and/or apartments, and establishing programs to keep streets safe and free of ill-intentioned persons. Most people would consider many or all of these activities as having positive impacts and being of overall benefit to a particular neighborhood. These actions are the physical manifestations of the concept, “if we improve the appearance of a neighborhood, the neighborhood will continue to improve in other ways.” Sounds good, right?

Well, no. I posit that these actions undertaken on their own can overall be detrimental to the health and vitality a town, city, or cluster of neighborhoods. My reasoning is this: physical deterioration and visible blight are themselves not the problem, they are merely symptoms of much deeper social ills. I strongly believe that healthy neighborhoods can and will take care of the physical appearance on their own without outside intervention. What determines a neighborhood’s level of health is the well-being of its residents. If residents are mired with problems like substance abuse, lack of education, absence of or inability to keep jobs, broken families, physical and emotional abuse, or institutional discrimination, these scourges will bubble to the surface in many ways, including in the appearance of their surroundings. As described by Maslow’s Hierarchy of Needs, economically disadvantaged people must first address their core needs of food, shelter, and safety before they can truly concern themselves with the needs of the community.

Here’s the rub: in mixed and “edgy” neighborhoods, improving the appearance of a place has the effect of serving the “haves” and not the “have nots.” Improved appearance causes the neighborhood to be more desirable, which is reflected through increased property values, which itself is a reflection of consumer preferences and demand in the marketplace. This increased property value has the power to displace the “have nots” in three ways: 1) by low-income homeowners being priced out a neighborhood because of increased property taxes; 2) by increased rents to non-homeowners, again due to increased taxes, but also to changes in consumer preferences that attract higher-income renters; and 3) by direct real estate speculation of renter-occupied homes shifting to owner-occupied homes. Without having dealt with any of the core problems of the have-nots as described above (lack of education, mental health problems, substance abuse, etc.), these displaced residents are forced to move to more affordable places, which are frequently already-low-income areas (in Pittsburgh, think Homewood, Larimer, Beltzhoover). This increased density of disadvantaged people exacerbates the social problems that already exist in poor neighborhoods by concentrating poverty, whilst the gentrifying neighborhood sees an influx of more middle-class homebuyers (the “haves”).

This phenomenon can happen very slowly and often goes unnoticed. In fact, the traditional physical improvement efforts generally have great outcomes on the surface, which gives the appearance of success when looked out through a narrow aperture. What happens is that most of the undesireables have moved out of the neighborhood, and in turn the physical degradation has abated, while the “upstanding” residents are busy planting trees, setting up community watches, and establishing community parks. But what has really happened on the larger view is that the neighborhood’s problems have been moved, not solved. This is a very troubling trend, especially since the aforementioned actions are often initiated by non-profit “community development” corporations (CDCs).

In Pittsburgh, some specific examples of this can be found in the East End. Both East Liberty Development Incorporated (ELDI) and Friendship Development Associates (FDA) have engaged in programs to acquire, broker, improve, or construct new property in their respective target areas. ELDI has cleared and re-built nearly an entire block on North St. Clair Street, with new “green” homes that appear to be marketed to my demographic (young, middle class, concerned about environmental issues) based on style and pricing. The infill approach to development is admirable, but the long-term outlook is worrisome. Similarly, FDA has brokered redevelopment of numerous properties through its Penn Avenue Arts Initiative, with the goal of fostering the burgeoning arts district by attracting more artists. They have also directly purchased and developed several properties, including the Quiet Storm, new residences at the corner of Penn & Gross, the Glass Lofts, and the forthcoming Bride’s Row redevelopment. The common thread between these two organizations is their exclusive focus on building-based programs for community development, without implementing social programs to complement. The Bloomfield-Garfield Corporation has taken a mixed approach, initially focusing on social programs, but recently expanding into building-based programs by partnering with the URA on the demolition of public housing blocks in Garfield Heights and their replacement with modern-style public housing and alleged mixed-income developments.

It is unclear to me why social programs have not gained traction in the CDC world. Perhaps it is because of socioeconomic discrimination, where lower-income residents are considered a blight on the community and not a part of it. Perhaps it is because it is a more difficult sell to government agencies and grantmakers, with outcomes that are less measurable and can take much longer to show results. Physical improvements are visible and provide instant gratification, and therefore may also be a favorite of politicians as a faster way of proving their commitment and value to the community. Whatever the origin of the dysfunction, community development agencies that focus exclusively on physical appearances are doing a disservice to their community and the communities around them. In fact, the term “community” directly implies people, but often gets mistaken for the streets and buildings that people occupy. To focus on the well-being of buildings is essentially real estate development, and should be disassociated with the word community. So why don’t we call it what it is, and instead of dumping so much public money into these so-called “community improvement projects”, let’s redirect all of that public money into real programs that can make real changes in the lives of the people that need it, not the stable middle-class homeowners.

Coming soon: Part 2, Disrupting the Conventional Model, a New Paradigm

Friday, February 4, 2011

Wealth Creation in Rural Communities: A Framework for Holistic Community Revitalization & Empowerment

I attended a workshop several weeks ago on Wealth Creation in Rural Communities conducted by Yellow Wood Associates out of Vermont. The exploration of this concept was supported and championed by the Ford Foundation, who is keenly interested in finding a framework for measuring social programs and ensuring that their investments in programs have a lasting impact. In particular, the Ford Foundation has focused on a few key areas of intense poverty: Appalachia, the Deep South, and the Lower Rio Grande Valley.

The ultra-distilled version of the framework is as follows:

Problem

The term “wealth” need to be rethought in a broader sense that the traditional financial definition. The types of wealth defined in this framework are: individual, social, intellectual, natural, political, built, and financial. Furthermore, income is not the same as wealth.

The core problem is that many, if not all, of the types of wealth are extracted from rural areas and moved into urban and suburban areas. Think of things like food (commodity crops, livestock, produce, etc.), energy (coal, petroleum), timber, but also the labor force (leaving to find education and jobs). This extraction could also be described as exploitation, similar to what we witness in many developing countries.

Goal

Create wealth that “sticks”. How can we stem the flow of wealth out of rural areas and then set in place the building blocks for the communities to improve themselves?

All types of wealth must be addressed in any concerted effort. One type of wealth shall not be gained at the expense of another.

Approach

Collaboration is a must. Given the wide range of problems facing these communities and the variety of various types of initiatives needed, no one agent will be able to handle it all. All investments made should be made in the context of a larger wealth creation initiative.

Programs and initiatives must use a “pull” model instead of a “push” model. This is the difference between demand-side and supply-side interventions. The conventional approach to community development is to push programs onto communities without first determining whether it is needed, and whether the community is in a place where it can utilize the program or service effectively.

We must develop and leverage the idea of “value chains”, which are the counterpoint to traditional supply chains. In a traditional supply chain, one company in a step in the supply chain only interfaces with the next step upstream and downstream and the relationships are purely transactional. In a value chain, all of the steps in the chain collaborate, and thereby share in both the risk and the reward. A limited example of this would be consumer-supported agriculture (CSAs), where the farmers and the consumers share in the cost but also in the fruits of the harvest. This model is less transactional and more communal.

Rural communities and urban areas must be understood as being part of the same system, and that they depend on each other. The relationship between the two must be strengthened and equalized.

I found this presentation to be, well, mind-blowing. This truly is a disruptive concept to the traditional model of community development, and transforms it from the piecemeal approach to a comprehensive and holistic methodology that is truly invested in successful and measurable outcomes. This is the change we need!

As described at the outset, this concept was specifically developed around rural communities. But is there is a way to utilize this same framework with poor inner-city neighborhoods? These distinct types of communities share many of the same challenges of disenfranchisement and public health, though the problem of resource exploitation is typically not as prevalent in urban communities. In fact, inner-city communities have a stronger foundation to build upon, with better access to jobs, health care, and schools to certain extents. So this should be easier, right? We shall see.

Let’s consider the community of Larimer in the East End of Pittsburgh. Here is a matrix of the status of the seven types of wealth in the community:

Type of Capital

Community Strength

Community Challenge

Individual


Adverse health effects

Social

Strong religious institutions, community organizations like Kingsley Association

High rate of ex-offenders, High percentage of elderly residents.

Political

Lots of publicity recently, strong support and attention from State Sen. Jim Ferlo and US Rep Mike Doyle.

Disenfranchisement due to high number of felons.

Financial


High percent of residents below poverty line. Low property values.

Built

Generally flat topography, higher quality building stock than many neighborhoods. Good access to public transit and business centers.

Numerous abandoned and derelict buildings and empty lots

Natural

Limited environmental contamination.


Intellectual


No schools within the boundary of the neighborhood

This lens offers an important perspective on the assets and challenges of the community. But how do we interface and overlay this with the oft-building-focused community strategic plan, which typically focus on streetscapes, green space, land use, and building types? Does one inform the other? Should they overlap or should they complement one another? Are they sequential? Should they be developed together? Are both really necessary? These are hard questions to answer, but the ability to reconcile these two concepts is crucial to their adoption. We need to build the framework by which the wealth creation model can be understood and digested by the designer and planner types, as well as everyday people. Perhaps Yellow Wood Associates has already grappled with this, but I look forward to bringing these two worlds into alignment. More to come on this...