I have been obsessed with ci0es for almost my en0re adult life. This journey began with an urban sociology class I took in my second year of collage,

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Verity McDonald
6 years ago
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1 I have been obsessed with ci0es for almost my en0re adult life. This journey began with an urban sociology class I took in my second year of collage, that led me to create my own Urban Studies major focused on urban history and policy. AAer gradua0ng, I moved back to the area where I grew up in South Florida and had a series of odd jobs and urban planning internships. I also jumped head first into working with the local Affordable Housing advocacy community, where the issue of the day was gentrifica0on. It was the early 2000s, and the height of the specula0ve bubble in South Florida. Condos were landing like space ships all along the coast, massive suburban developments were shoddily plaied out on the urban fringe, and everywhere prices were going through the roof. Development felt unguided and out of control, and people were suffering under the cost burden of housing. In 2006, feeling a strong desire to expand my skill set, I moved to North Carolina and started a graduate program in City and Regional Planning at UNC- Chapel Hill, with a focus on affordable housing policy. Almost immediately, I was pulled towards Durham and recognized that this was a place I wanted to learn from, and give back to. I ended up interning with the City of Durham Dept of Community Development, and did my master s project on building a Neighborhood Indicator System for Durham. Upon gradua0ng in 2008, I moved to Durham and decided to build my life here. Unable to find a job in the affordable housing field, I accepted a job at Downtown Durham, Inc.- a non- profit started in 1993 to advocate for the revitaliza0on of Downtown Durham, and was able to deepen my knowledge about how and why the central city was changing. Shortly thereaaer, I bought a dilapidated liile mill house in the Golden Belt Neighborhood east of downtown, and spent 6 months fixing it up, and started family there a few years later. All this background info is provided to say, that I have been wrestling with the issue of gentrifica0on in Durham for the beier part of the last decade, personally, professionally, and interpersonally. I place myself in the center of this narra0ve, as an agent of gentrifica0on, and as a white progressive deeply concerned about building an inclusive central city. I bring to this presenta0on a historical perspec0ve and an an0- racist orienta0on. So while I expect some parts of this conversa0on to be challenging, I never want to seem as though I am speaking down from a pedestal. I am squarely in the weeds, and there is nothing I say in this presenta0on that I have thought deeply about and considered for my own life. Also, I would like to note that the primary mo0va0on for this work is to inspire ac0on, on the policy level, within our neighborhoods, in our households, and in our hearts. Mel Norton 1

2 Special thanks to People s Durham, the original sponsor of this project, and The Outreach CommiIee of the Coali0on for Affordable Housing and Transit (CAHT). Also, thanks to the Durham People s Alliance for hos0ng the original public presenta0on. 2

3 Notes on the Narra0ve: - Will start with a basic defini0on of gentrifica0on, so we are all on the same page. - Will then place gentrifica0on in a historical context, as the latest in a legacy of displacements in Durham, and as a direct product of racial policy on the federal, state, and local level. - Will then move the 0meline up to the past 10 years and look at what is causing gentrifica0on in Durham. This sec0on includes original data on sales trends in central Durham neighborhoods. - Then, at the end of the tunnel, we will talk about solu0ons. Looking both at policies, as well as individual and community ac0ons to foster inclusive neighborhoods. 3

4 *Note: while neighborhood revitaliza0on is a boiom- up process that benefits all/most residents, in the process of gentrifica0on, there are definite winners, and definite losers. As such, it is fundamentally a social jus0ce issue. 4

5 Since gentrifica0on is primarily about displacement, it is helpful to dis0nguish between two different types of displacement. Direct and indirect. These two types of displacement are important to keep in mind and will come back into play when we talk about solu0ons. 5

6 Gentrifica0on is the latest in a legacy of displacements of poor People of Color in Durham, and a direct consequence of racial policies on the federal, state, and local levels. While this topic could be a whole graduate seminar, we are going to focus on two main : Urban Renewal and Redlining. 6

7 - This map was created in 1937 by the Durham Public Works Dept, and shows the parts of the City that were originally home to black residents. - Housing Act of 1949 set Federal Housing Policy for the next 30 years. It had 3 main components: 1) Urban Renewal slum clearance - federal monies allocated to local governments who were given discre0on to iden0fy slums for removal 2) Public Housing 3) FHA and VA guaranteed loans (mortgage insurance) The federal government spent $13.5 billion on urban redevelopment and slum clearance projects between 1953 and 1986, and it city aaer city across the country, the areas designated as slums tended to be poor black communi0es 7

The primary casualty of Urban Renewal in Durham was the Hay0 area- part of the largest con0guous area of Durham originally seiled by black folks. This area is located just directly south of downtown.

8 The primary casualty of Urban Renewal in Durham was the Hay0 area- part of the largest con0guous area of Durham originally seiled by black folks. This area is located just directly south of downtown. The arial shot here shows the area between South Roxboro to the west and FayeIeville St to the east. The train tracks provide the northern boundary. No0ce the density of housing and the fine grain street network. 8

Here is the same arial shot aaer Urban Renewal. As you can see, nearly the en0re area was literally wiped off the map, and replaced with very low- density suburban- type development.

9 Here is the same arial shot aaer Urban Renewal. As you can see, nearly the en0re area was literally wiped off the map, and replaced with very low- density suburban- type development. The original streets are shown for reference, although most of them no longer exist. So, we may ask: where did these displaced people go? Many of them went to public housing projects, which by this 0me in history were almost exclusively black. Some may have moved into, or adjacent to exis0ng black residen0al areas, and gradually expanded those boundaries. Where they did NOT go, was the suburbs, which was by design, an op0on available almost exclusively for whites. 9

10 Two 0ered housing policy came out of Housing Act of 1949: public housing for blacks, and homeownership for whites through long- term, low- interest loans backed by the Federal Government and substan0ally subsidizing federal highway projects and suburban development. 10

This is the original lending securi0es map created for Durham in the 1930s. No0ce that the redlined areas correspond exactly to the areas of town seiled and occupied by black residents.

11 This is the original lending securi0es map created for Durham in the 1930s. No0ce that the redlined areas correspond exactly to the areas of town seiled and occupied by black residents. The red star represents the center of Downtown for reference. In the late 1930s the Home Owners' Loan Corpora0on (HOLC), a New Deal agency created to refinance homes and prevent foreclosures, surveyed real estate in the na0on's largest ci0es. Working with local lenders and realtors, they assessed neighborhoods using a number of factors including "infiltra(on of a lower grade popula(on" (by which they meant African Americans, Jews, and immigrants). Using these assessments, they assigned a grade for each neighborhood's "residen0al security." Green "A" neighborhoods were the "hot spots" where mortgages were deemed to be reasonably safe. On the other end of the spectrum, red "D" areas were "characterized by detrimental influences in a pronounced degree," and mortgages in these areas were considered much more risky. This is where the term redlining comes from. In the following decades, the finance industry, the Federal Housing Administra0on, and the Veterans Administra0on adopted these earlier Federal Government s guidelines for mortgage lending, effec0vely limi0ng/denying access to home loans for people of color across the country. 11

12 The effects of racial residen0al redlining were not a limited event in history. This Map shows the legacy of ins0tu0onalized redlining, which limited/denied access to home mortgages within the areas historically occupied by blacks in Durham. As the map illustrates, in 2012, black homeownership remains at low levels in historically black neighborhoods (mostly between 0-30%) in the original redlined areas. 12

13 In the decades aaer Urban Renewal, poor black neighborhoods in the inner- city experienced cycles of disinvestment. 13

Note: it is not the fault of poor people of color or of a culture of poverty that has led to the challenges and social problems located in inner- city neighborhoods over the past several decades.

14 Note: it is not the fault of poor people of color or of a culture of poverty that has led to the challenges and social problems located in inner- city neighborhoods over the past several decades. Rather, chronic disinvestment and discrimina0on enabled other types of challenges and dispari0es to develop over 0me. For example, I cannot imagine how the current War on Drugs and the aggressive hyper- policing of poor communi0es of color would have come to be without chronic disinvestment in racially segregated neighborhoods across the country, same goes with the dispari0es in schools/ educa0onal aiainment, same in dispari0es in health outcomes, etc. 14

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Neil Smith in a classic text on gentrifica0on called The New Urban Fron0er, spends the en0re first chapter talking about the language and imagery of gentrifica0on.

16 Neil Smith in a classic text on gentrifica0on called The New Urban Fron0er, spends the en0re first chapter talking about the language and imagery of gentrifica0on. He describes how the fron0er mythology pervades percep0ons of gentrifica0on, where white pioneers bravely set out to the wild fron0er to civilize and tame the land for (white) seilement. What does this language imply? I believe this language is dangerous because it erases the collec0ve history of the communi0es that have existed in urban neighborhoods for decades. It also places a high social status on white gentrifiers, whose privilege, access to resources, and social power affords ways to capitalize on the decades of disinvestment in these neighborhoods. 16

17 This is the founda0on of gentrifica0on. 17

How Downtown Durham has transformed over the last 10 years is nothing short of extraordinary, and has brought a lot of value and buzz to our central city.

18 How Downtown Durham has transformed over the last 10 years is nothing short of extraordinary, and has brought a lot of value and buzz to our central city. It is also important to recognize that this transforma0on could not have happened without a plan/vision with substan0al public buy- in, sustained advocacy, a track record of well executed public- private- partnerships, and commiied public investment. The growing concentra0on of jobs and ameni0es has created a premium on geographic proximity to Downtown. 18

19 Snapshot of Downtown growth/change. 19

20 Over the past 20 years, the downtown economy has also transformed. Instead of being predominately comprised of public sector and non- profit workers, the new economy is largely shiaing to crea0ve class work. The Crea0ve Class is a term coined by Richard Florida in 2002 to describe the types of work/workers that are driving the economies of successful ci0es and regions across the country. These workers are involved in fields like technology, research and development, adver0sing- preiy much anything that deals with the realm of ideas. It is also significant to note that these crea0ves are part of a broad shia in tastes and preferences favoring urban environments/living. These preferences are in large part a reac0on to the predictability and homogeneity of suburbia and suburban values. Instead, they want unique historic homes, close to urban ameni0es, in diverse seqngs. Note: I put diverse in scare quotes, because I believe there are some tensions and contradic0ons contained within this value that we will delve into later on. 20

21 Durham, like most ci0es, certainly does not have a stellar track record when it comes to historic preserva0on. Over the years, we have lost tremendous historic resources and urban fabric that are impossible to replace. However, I believe there has been a sea change in preserva0on efforts in our urban neighborhoods, fueled by preserva0on advocacy, increasing knowledge of how to use state historic tax credits to renovate older urban homes, and a shia in tastes and preferences re: urban living and unique historic homes. To be eligible for historic tax credits, a house must be in a Federally recognized historic district. Just for reference the following neighborhoods are federally recognized historic tax districts (not a complete list): WaIs Hosp0al Hillandale, Old West Durham, Trinity Park, Duke Park, Old North Durham, Golden Belt, Cleveland- Holloway, Old East Durham, Burch Ave, Morehead Hill. 21

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The Triangle region, was home to a liile over 1.5 million people in 2010, and is projected to grow rapidly to over 2.5 million by 2035.

23 The Triangle region, was home to a liile over 1.5 million people in 2010, and is projected to grow rapidly to over 2.5 million by We will add more people in the next 25 years than the exis0ng popula0on of our 10 largest municipali0es. Our growth rates have outpaced popula0on growth for the na0on and for North Carolina. This high growth is resul0ng in a housing supply shortage that is driving up prices across Durham. 23

24 As I talk to people across the community about the topic of gentrifica0on (which I do oaen), I tend to hear a lot of stories and anecdotes about the process: a story of a neighbor who was displaced, shock at a recent home sales price, images of new luxury condos. These stories are potent and powerful, and I think it is important that they begin to be collected in an inten0onal way. However, to help elevate gentrifica0on to a policy issue, I thought it would be helpful to pair those stories with some concrete data showing where change is happening, how fast, and where it is headed. 24

To start with, I pulled every individual home sale in Central Durham over the past 10 years. I excluded duplexes, mul0- family proper0es, and vacant lots. I then organized the sales by neighborhood.

25 To start with, I pulled every individual home sale in Central Durham over the past 10 years. I excluded duplexes, mul0- family proper0es, and vacant lots. I then organized the sales by neighborhood. In order to standardize the data, I converted it to price per square foot. I then looked at year over year averages to determine change. Since my 0me was limited, I ul0mately focused on 6 main neighborhoods, chosen because they fit each of the qualifica0ons on the Gentrifica0on Checklist: Walltown, Old North Durham, Cleveland- Holloway, Burch Avenue, West End, and Old East Durham. Note: all of this data goes from the first quarter of

26 Self- Help/ Duke Revitaliza0on effort: renovated/ built 77 homes in the neighborhood, bringing about major neighborhood transforma0on. However, these 77 homes have a 15 year affordability period, which will be ending over the next several years. At which 0me, those homes will start to trickle back into the open market. Note: no homes are permanently affordable. 26

27 OND was interes0ng because it is so long, horizontally, going essen0ally from Washington street on the west to Avondale/Alston on the east. There is definitely more striking increases in the property in the western half of the neighborhood. However, the momentum is quickly moving east year over year. Note: OND is also a good example of how all of these neighborhoods had extremely bi- modal sales trends; where there is a very low sales price trend, and a higher sales price trend (post- renova0on). Year aaer year, the low sales are dropping off, and I an0cipate this will result in much higher overall averages in the forthcoming years. 27

Cleveland- Holloway is certainly them most shocking case study; both because of how low property- values started out, and how quickly they escalated over the last 3-4 years.

28 Cleveland- Holloway is certainly them most shocking case study; both because of how low property- values started out, and how quickly they escalated over the last 3-4 years. Factors at play in C+H: neighborhood contains larger houses with more architectural interest than many other neighborhoods, many vacant proper0es, considerable concentrated investor ac0vity ( flipping ), and extremely close proximity to Downtown. Note: no homes in C+H permanently affordable. 28

Note: Federally recognized historic district went into effect in 2010.

29 Note: Federally recognized historic district went into effect in I suspect that the dis0nct jump from 2011 to 2012 is a result of investors moving in to capitalize on historic district status. Note: approximately 15% of homes in Burch Ave permanently affordable through Durham Community Land Trust (DCLT). 29

30 While prices have more than doubled over the past 10 years, you will no0ce that the price escala0on curve is much flaier in the West End. I believe the reason is that the Quality of Life Ini0a0ve, including Self- Help, Builders of Hope, Habitat for Humanity and the Durham Community Land Trust have been extremely ac0ve in the neighborhood. Today, approximately 25% of the homes in the neighborhood are a part of DCLT and thus affordable forever. So even though investment ac0vity has increased, especially since the opening of the new Co- op Grocery Store, there is a stabilizing force of affordability in the West End that you don t see in any other neighborhood. 30

31 While we certainly have not seen the same level of price escala0on in Old East Durham there are a few important notes. First, all of Northeast Central was pummeled by foreclosures, evident in the dip in sales price in I was shocked to find that some blocks had 50% of homes foreclosed on in this period. OED is also a bit further away from walkable ameni0es. However, at the 0me of this presenta0on there were currently 3 homes for sale for over $200,000 in OED. I believe this is where the gentrifica0on wave is headed, and should be the focus of concentrated efforts at land- banking and long- term affordability strategies. 31

This map shows the difference in racial and ethnic make- up in each Durham County census tract between home buyers in 2012-2013 and exis0ng home- owners.

32 This map shows the difference in racial and ethnic make- up in each Durham County census tract between home buyers in and exis0ng home- owners. Under the terms of the Home Mortgage Disclosure Act, the Federal Government makes available some basic data about all home mortgage applica0ons. By aggrega0ng this data to the Census Tract level and comparing it with demographic data about the general popula0on from the American Community Survey (an annual telephone survey of a sample of the popula0on), this map provides a rough es0mate of how the race and ethnicity of homebuyers in Durham County compares with the race and ethnicity of the exis0ng home- owners. Home- buyer race and ethnicity is calculated from the primary mortgage applicant only. While it is difficult to draw hard conclusions, no0ce that white ownership is increasing in the central city, that is, the neighborhoods surrounding downtown (the areas in dark pink around the star). This map also shows that the only parts of the county with a rela0ve increase in homeownership for non- white households are predominantly in areas on the eastern and western edges of the county (areas in dark green). 32

I was not able to do a comparable rental analysis because rental data is exceedingly hard to come by there are not repor0ng requirements for land lords and most are reluctant to share their data.

33 I was not able to do a comparable rental analysis because rental data is exceedingly hard to come by there are not repor0ng requirements for land lords and most are reluctant to share their data. However, I want to clearly acknowledge that the loss of affordable rentals is one of the primary concerns of gentrifica0on- especially since the wage gains of lower- income workers are rela0vely flat in rela0on to the increases in housing prices. Further, many of the neighborhoods featured in the sales data analysis are the areas of the City that tradi0onally contained higher- levels of affordable rental units. I believe we are loosing affordable rentals on a large- scale, and there is no replacement units coming into the market. In a high- growth region such as ours, this should be of huge concern to affordable housing advocates, policy makers, and the Durham community. 33

34 In so many of my conversa0ons about Gentrifica0on, I get a feeling of hopelessness. Things seem to be happening so fast, and people do not know what can be done, or what is within their power to influence. I want every person in this room to leave tonight with a sense of empowerment that an inclusive central city is not a lost cause. While none of the solu0ons I am presen0ng represent a magic bullet, they are a place to start, and I believe, hold much promise. 34

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The amount of land owned by the City, County, and non- profits such as churches are one of our community s main assets for future affordable housing/ mixed income housing

36 The amount of land owned by the City, County, and non- profits such as churches are one of our community s main assets for future affordable housing/ mixed income housing developments. I believe that we need to advocate that the City place statements of intent, or deed restric0ons on key parcels of publically- owned land for affordable housing. 36

37 We are lucky in Durham to have a tremendous resource in the form of DCLT- which is one of the oldest urban land trusts in the country. DCLT currently has over 250 units in their poryolio; which includes both affordable rentals and affordable home owner- occupied units. Addi0onally, they have been strategically focused on the Burch Ave, the West End, and Lyon Park neighborhoods for almost 30 years, and have thus been able to partner on a host of posi0ve community assets: building a community center, improving drainage issues, installing bus shelters, organizing community clean ups, etc. THIS IS WHAT NEIGHBORHOOD REVITALIZATION LOOKS LIKE! 37

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41 This next set of solu0ons is really directed at the second type of displacement: indirect/ exclusionary displacement. What I have seen, is that high- income families (mostly white), moving into gentrifying neighborhoods, bring a different set of values and norms that oaen results in an ongoing tension about quality of life. 41

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43 Support Spirit House! 43

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Rail-Volution NEERAJ MEHTA

Rail-Volution NEERAJ MEHTA Rental Housing Affordability in Minneapolis Neighborhoods Median Rent: $809 Change in Rental Affordability by Race/Ethnicity 2000 and 2014 Median Renter Income: Affordable Threshold: