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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Showing posts with label Community Development. Show all posts
Showing posts with label Community Development. Show all posts

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...

Monday, November 1, 2010

11/01/10 Letter to the Pgh Post Gazette Editor

In Response to Diana Nelson Jones' article: South Side Real Estate Board Says Mission Accomplished, 11/01/10;
"Call a Spade a Spade"

It seems that in the prevailing definition of "Community Development Corporation",
two concepts have been juxtaposed into one: community and real estate. New real estate development and property values have been relied upon to be the de facto indicators for community health and well-being, but ignore far more important concerns such as high school graduation rates, college matriculation rates, and the number of families lifted out of poverty. We should rename organizations like SSLDC and their kin to be more appropriately called Real Estate Development Corporations, and then channel the dollars they once received earmarked for "community investment" into community programs that actually help people in need, not buildings. It's organizations like these that are hastening gentrification by way of their own measure of success, property values. It's time we re-think this paradigm and more importantly, call a spade a spade.

Penn Ave Community Development: Glass Lofts


This was my comment/response to the following blog post, found on the East End Mutual Aid blog. See the full post after my response.

http://www.eastendmutualaid.org/archives/213



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To whoever posted this, I think you are right on the money in terms of the biased understanding and skewed approach to community development. I've been thinking a lot about this recently, as I watch projects like Glass Lofts and Target go up, and wonder who exactly these projects are helping. The idea that new buildings, which improve the physical appearance of the neighborhood (aka. increase property values) , are somehow considered “community development” is shameful, and takes a narrow view of the problems that afflict our community. To me, the word community is about people, not buildings, and organizations like FDA are not really interested in helping people as they are about developing real estate to attract the type of people they see fit for this neighborhood (complete with snooty coffee shop). This approach may not be as insidious as you imply, it’s just the path of least resistance to achieving the outcomes they desire. It’s also the case of the “haves” not comprehending the needs of the “have-nots”, and instead sticking to what they know best: buildings, sidewalks, lighting, trees (read Penn Avenue PennDOT Renovation).


Where I think you missed the mark is in the solutions you offer. I think you have fallen into the same trap of focusing on buildings as the solution. Derelict and condemned properties are merely the symptom of deeper problems in the community: broken families, lack of education, lack of jobs, substance abuse, personal health and wellness, discrimination, and I’m sure there are more. Home ownership is not the solution to these problems, it merely kicks the can down the road a bit. You are correct that BGC should be lauded for their programs, but not the home ownership program as much as the afterschool, job training, and workforce development programs. These are the programs that are working to restore the social fabric of the community. Fix these, and the buildings will naturally follow on their own (case in point, Shadyside doesn’t need an org to fix up buildings, the affluent residents take care of that on their own). Imagine if we had dumped $6.4 million into social programs instead of a community boondoggle how much difference we could have made in the lives of Garfield residents.


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Broken Logic at Root of Glass Lofts Development

[Note: Blog posts are an ongoing series where EEMA members explore their personal views and experiences relating to issues of development and community organizing. While the general spirit of the postings may reflect the opinions and work of EEMA the views expressed have not been reviewed or agreed to by the group as a whole.]

Who should society reward for building, and buying, property? Is it in the interest of an economically deteriorated community to build new subsidized housing, or could this money be better directed? Are the development strategies being pursued by local organizations about revitalizing the current communities or about displacing and replacing them? How do these developments come about? Who profits? Who loses? Are there alternative models?

Friendship Development Associates (FDA) is currently wrapping up construction of The Glass Lofts, a $6.4 million “Green” Condo complex on Penn Avenue.

The 18 units are available in a variety of sizes, from two small units (831 sq. ft.) for $127,000, up to 1,700 sq. ft. models for a cool $375,000. The majority of the units lie in the $200,000+ range.

The real kicker is in the incentives, which grant buyers eight years of no local real estate taxes and exempt them from local and state income taxes. The more you make, the more you save.

According to the FDA, the real estate tax savings alone will be over $850,000 – money that won’t be going to an already broke government.

These generous benefits come courtesy of Garfield’s designation as a “Keystone Opportunity Zone,” a collaborative program between various state bodies to spur job creation and development in blighted communities.

Take a jaunt over to the project’s showcasing web site and your eyes may be drawn to the prominent section entitled, “The Neighborhood,” ostensibly intended to acquaint prospective buyers with the place they would call home.

The first two paragraphs state, “The Friendship neighborhood offers the diversity, beauty, accessibility, and community that exemplify the best of urban living; in the heart of Pittsburgh’s East End. Friendship is a vibrant, diverse neighborhood in Pittsburgh’s East End, located within a few miles of Downtown Pittsburgh, universities, world-class medical facilities, and thriving residential and commercial neighborhoods such as Shadyside, East Liberty, and Bloomfield.”

What is missing is the entire neighborhood of Garfield. You know, the neighborhood the structure is actually located in and the reason the development qualifies as a Keystone Opportunity Zone project.

Now, there would be nothing wrong with a description that made clear the lofts sit at the crossroads of a number of communities, but it is this kind of snake oil salesman verbiage that adds to the perception that the development strategy along Penn is not so much about improving Garfield as it is about erasing it.

In fact, as of this article’s publication, you won’t find Garfield referenced even once on the website.

There is an obvious tension inherent in how development is occurring along Penn Avenue. Pretending people don’t exist can be the worst and most disrespectful position of all.

The project itself was built with millions of taxpayers’ dollars in the form of loans from the Urban Redevelopment Authority (URA), and taxpayers will pay the price for attracting the eventual buyers.

Certainly this is not the first, and doubtfully the last, such project along Penn Avenue.

This is the basic cycle: The mayor appoints favored individuals to run the URA. Taxpayers fork over large sums of money to the URA through a regressive sales tax. The URA doles out loans to development corporations. Development corporations give the mayor, and other politicians, significant campaign contributions. The politicians create special zones and inducements that further distort markets and plump up profit margins, favoring certain companies and ensuring products (in this case housing) can be produced and sold with an advantage relative to other similar products for sale. So-called “community organizations” work hand-in-hand with the development corporations to advertise the product while building and providing the appearance (and sometimes reality) of community support for the process.

What is so insidious about the arrangement is that it obscures that there might be any alternatives, and diverts attention from who is profiting in such a blatant form of trickledown community development.

If residents of Garfield were asked to vote on where to allocate $2.2 million in loans for development, or who should reap over $1 million in tax breaks, it is doubtful they would clamor for loft housing or reward a buyer who is already able to afford a $300,000 house.

Neither is it likely that residents of Friendship who have homes for sale would view their community as best served by incentives favoring buyers who choose new lofts over acquiring beautiful properties on S. Atlantic Avenue.

The reason there is little outcry is because people believe it is this or nothing, that there is no chance money could be directed towards other kinds of programs.

This is a shame, because there are a number of buildings for sale on Penn Avenue and there are a number of local small business owners that are known to be looking for property but have trouble finding financing.

There are nice houses deteriorating year after year, and Garfield could use a boost in its home ownership rate. And there are people losing homes to foreclosure. There are dozens of lots that could be turned into green spaces, community gardens, parks, farms, apiaries, and more with a couple hundred thousand dollars in seed money.

And while the general uptick in property values and activity along Penn Avenue will surely benefit some stores there is a reasonable skepticism this will trickle down to those businesses currently serving the still predominantly African American residents. High income individuals enticed into distressed neighborhoods by housing incentive programs are among the least likely to support existing small businesses.

It’s important to acknowledge that class and cultural differences are real, and that they drive divergent buying patterns. New residents with unmet consumption desires become an untapped market, leading to new businesses and upward pressure on rents. Stop into Voluto for a morning cup of Joe and it is not hard to see this phenomenon playing out.

Alas, few interesting questions are being raised in the sparse coverage emanating from the media and community organizations. PopCityMedia.com has covered the issue with some regurgitated press releases and cheerleading befitting the fact its development “news” is sponsored by the URA.

The only minor exception has been media mention of the builder’s use of steel from a company under sustained attack by labor and human rights organizations.

So what should be done?

The goal of neighborhood development should be to encourage and support those already in a community, who’ve stuck with it through the hard times and give them the reasons and resources they need to help guide its rebirth.

To do otherwise displays an extreme pessimism towards the capacity of the existing community to better its own situation. This paternalism becomes even more perverse when looking at the role other well-intentioned forces played in previous redevelopment schemes that failed in East Liberty and decimated the Hill District.

Long-term residents are the bedrock of neighborhood stability. If millions of taxpayer dollars are to be spent anywhere it should be to help renters become owners, to help existing owners fix up and improve their properties, to help small business owners expand, and to improve the general quality of life through funding the good ideas already germinating.

I would be remiss if I didn’t mention that there are already some good efforts along these lines, including some of the efforts of the, albeit often problematic, Bloomfield Garfield Corporation. The BGC has, for instance, been a genuine advocate of improving home ownership among existing residents.

The soon to occur official opening is not a time for celebration because the benefits are unclear and the costs to all but a few are high. It is folly for neighborhood revitalization efforts to use millions on providing incentives to continuously move around the small portion of the population who are interested in, and can afford, new loft style housing.

Let us hope that the next time a similar project is proposed our communities are better organized, that there is a more substantive debate through which many more voices are heard, and different policies are pursued.