Understanding the Nature of Gentrification and Displacement in the Bay Area

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1 Understanding the Nature of Gentrification and Displacement in the Bay Area MIRIAM ZUK, PH.D. THE URBAN DISPLACEMENT PROJECT CENTER FOR COMMUNITY INNOVATION INSTITUTE FOR GOVERNMENTAL STUDIES

2 What is Gentrification?

3 Gentrification Transformation of historically disinvested neighborhoods of the workingclass and communities of color characterized by new real estate investment and an influx of new residents with higher income and educational levels.

4 Displacement When households are forced to move out or are prevented from moving into a neighborhood that was previously accessible to them due to conditions which are beyond their ability to control or prevent (e.g., rent increases).

5

6 Developing a New Methodology for Analyzing Potential Displacement Funded by California Air Resources Board and Metropolitan Transportation Commission,

7

8 +

9 Loss of Affordable Housing Loss of 47% of naturally affordable units from while Number of low income households grew by 10%

10

11

12 Moving to low opportunity

13 Places at risk of gentrification and displacement Employment centers Historic housing stock (pre-1950 buildings) Walkable neighborhoods Places near downtown with established rail stations

14 Displacement Early Warning

15 Displacement in Berkeley

16 Loss of affordability in Berkeley

17 Online Interactive Map

18 Can We Build Our Way Out of the Housing Crisis? San Jose s Reserve Apartments Demolition of 216 rent controlled units Displacement of over 600 people 614 new market rate units

19 The role of development Market rate housing production in 90s resulted in lower median rent today, but also higher cost burden for low income renters Subsidized affordable housing produced in 90s had twice the impact as market rate housing in mitigating displacement

20 LAW/DEVELOPMENT POLICY PLANNING Short-term Building by building, tenant by tenant Long-term City/regional Seek displacement remedies Just Cause, tenant protections Discrimination enforcement Code enforcement Tenant counseling Tenant rental assistance Tenant right to purchase laws Community organizing Preserve and fund new affordable housing Project-based Section 8 preservation Rent control/stabilization Rental building acquisition Condo conversion restrictions Foreclosure prevention SRO regulations One-for-one replacement Mobile home park preservation Permit streamlining/fee reduction Tax exemptions Bonds for housing construction Demolition control Housing rehab programs Stabilize neighborhoods and promote diversity Density bonuses/inclusionary Impact and linkage fees Zoning for density and multifamily Reduced parking requirements Reduced barriers to second units Public land disposition Housing trust funds Land acquisition funds/land trusts Housing elements

21 Regional policy inventory

22 Policy Impact I use the site to assist in writing public policy for the city I represent as a public official.

23 Anti-Displacement Framework Stabilizing Neighborhoods Reducing Income Inequality Inclusive Region Housing Production for ALL Income Levels Preserving Affordability and Improving Quality

24 Potential consequences

25 Thank you!

26 Q & A slides

27 Challenge: Few funds

28 Opportunities Cities sometimes facilitate gentrification (eg. transit investments); policies can recapture that value. Inc. property + sales tax affordable housing Build affordable housing BEFORE gentrification strikes If area gentrifies and schools improve and we are able to keep low-income people in place, greater integration and opportunity

29 Challenge: Costs - In gentrifying places, land is scarce and expensive. - High development costs.

30 Jobs Housing Imbalance

31 Longer Commutes

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