REVITALIZING MEMPHIS Economic Growth without Displacement through Housing and Economic Development Policies

Transcription

1 REVITALIZING MEMPHIS Economic Growth without Displacement through Housing and Economic Development Policies Dee-Dee Huang (sponsored by Community LIFT and Princeton Internships in Civic Service)

2 Outline Introduction Memphis Gentrification Displacement Recommendations Increase neighborhood income Institute equitable development policies Conclusion Closing Remarks Q&A Acknowledgements

3 Memphis Assets Cultural and economic rebirth in the past few years Historically and culturally rich- Great food! Low cost of living Barriers Flight to the suburbs = population decrease in inner core Plagued with crime, poverty, blight, poor roads Tensions between urban and suburban, black and white Introduction- Memphis

4 $ % Gentrification- What is it? Quick and simple: when lower-income areas experience significant growth in home values and educational attainment 250, , , ,000 50,000 0 Median Home Value Bachelor s Degrees Introduction- Gentrification

5 Gentrification & Memphis Nascent Gentrification Is it currently happening in Memphis? Only ~8.8% of census tracts are gentrifying Examples: Downtown near the Civil Rights Museum Potential hotspots for future gentrification Introduction- Gentrification

6 Areas that show tendencies of gentrification: Soulsville Westwood U of M area Downtown Uptown Medical District Introduction- Gentrification

7 $ % The Charts Again 250,000 Median Home Value 60 Bachelor s Degrees 200, , ,000 50, Introduction- Gentrification

8 When is gentrification an issue? Displacement Who gets displaced? Renters Home-owners, especially the elderly Why should we start thinking about antidisplacement measures in Memphis now? Issues other than displacement Introduction- Displacement

9 What should we do? (General) Two wrong approaches to gentrification Let the market regulate itself, displacement is natural Discourage any outside investment in fear of gentrification 1. Attract caring corporations and investors into the community that will adopt equity policies (hardest step!) 2. Adopt affordable housing policies that compliments development 3. Encourage community leaders to embrace technology to help those without technological access 4. Focus on smaller, but more frequent investments Recommendations-General

10 What should we do? (Specific) My recommendations fit into two general categories: 1. Increase neighborhood income and empowerment Bottom-up community building Inform residents of existing opportunities Entrepreneurship and job creation Neighborhood databases 2. Institute equitable development policies Educate and notify residents on existing policies that relieve financial burdens Maintain affordable housing in the face of new development Recommendations- Specific

11 1. Neighborhood Empowerment Existing 8(a) Business Development Programs Advance Memphis- Entrepreneurship Program Future Neighborhood Database in areas Network of Neighborhood Associations 1. Neighborhood Empowerment

12 Existing Opportunities 8(a) Business Development Programs Advance Memphis Federal SBA program meant specifically to help economically disadvantaged entrepreneurs Series of requirements that must be met Small business, potential for success, proof of social and economic disadvantage, etc. Local non-profit Provides various programs to promote economic development in a specific struggling area Entrepreneurship program helps increase neighborhood self-sufficiency 1. Neighborhood Empowerment

13 Proposal: Neighborhood Database What does this have to do with limiting displacement? Importance of technology Networking tool to enable access to residents Extensive databases in targeted areas Soulsville has an existing neighborhood database What information will it contain? Who will have access? Created by community leaders preferably the Neighborhood Association 1. Neighborhood Empowerment

14 Proposal: Network of Neighborhood Associations Could either just be for distressed neighborhoods or for all Monthly meetings for community leaders Could be organized through an outside non-profit or a particularly strong neighborhood association Benefits Creates a space where leaders can talk about issues, possible solutions, etc. and share ideas Already established associations can guide newer associations Extends sense of support throughout all of Memphis 1. Neighborhood Empowerment

15 2. Equitable Development Policies Existing Senior Property Tax Freezes (Trustee s Office) Earned Income Tax Credits (EITC) Section 3 Future Tax-Increment Financing (TIF) Districts (Commercial) Community Benefits Agreements (CBAs) (Residential) Housing rainy-day fund in targeted neighborhoods City-Wide Middle Housing Development Fund 2. Equitable Development Policies

16 Existing Policies Senior Property Tax Freezes Must be 65+ Only for home-owners in Shelby County Collective income < $38,360 m/index.aspx?nid=101 EITC Earned Income Tax Credit Boost financial stability For residents making under $10,000 Many people do not claim this tax credit Higher non-claim rates in low-income areas Costing city of Memphis $30-70 mil. 2. Equitable Development Policies

17 Existing Policies Section 3 Sponsored by federal government (HUD) Residents include those in public housing or those who live in an area with a HUDassisted project Also can be applied to businesses Helps provide job training, employment and contracts Immediate Opportunity with South City and the redevelopment of Foote Homes, which is a recipient of a HUD Choice Neighborhood Grant 2. Equitable Development Policies

18 Proposal: TIF and CBAs First part: Tax-Increment Financing (TIF) Districts Attract businesses and investors with incentives Comparison to PILOT programs Could fund home improvement grants for residents Potential barriers and pitfalls How to attract businesses in the first place How to ensure that new developments benefit current residents 2. Equitable Development Policies

19 Proposal: TIF and CBAs Case Study: Highland Row TIF near the U of M How we can replicate in other areas of Memphis Why this isn t a perfect analogy 2. Equitable Development Policies

20 Proposal: TIF and CBAs Second Part: Community Benefits Agreement (CBA) Inevitable that Memphis will implement large-scale projects Promotes community inclusion in future development projects Affordable housing generally a part of agreement Specificity in standards (e.g. Affordable Housing Definition) Can include consequences that cancel out benefits gained from TIF if standards aren t met Potential barriers and pitfalls Discourage resourceful developers because of strict regulations 2. Equitable Development Policies

21 Proposal: TIF and CBAs Case Studies: Oak to 9 th CBA (Oakland, CA) Pittsburgh Hill District CBA (Pittsburgh, PA) Why both were successful: Strong community present and wide array of community groups Specific definitions to minimize loopholes Caring developers 2. Equitable Development Policies

22 Neighborhood Housing Rainy-Day Fund More idealistic Funds collected from various sources for specific neighborhoods could be TIF taxes, could be ~the government~ For transitive periods in people s lives (e.g. unemployment, family addition, rent spikes) Temporary relief to help people pay the difference in rent changes or property tax spikes Jane Jacobs rent control alternative to ensure affordable housing 2. Equitable Development Policies

23 City-Wide Middle Housing Development Fund City government sets aside tax revenue specifically for middle housing development, not just vague affordable housing Ex: duplexes, townhouses, multiplexes, live/work etc. Lack of middle housing is an issue in most cities Another rent control alternative this housing is affordable by nature 2. Equitable Development Policies

24 Conclusion Great city full of caring and committed people and immense potential Best way to stop gentrification s negative effects: Prior preparation and planning Establishing a policy framework for affordable housing and fair employment before peak commercial development For more successful and happy cities, we want all Memphians to benefit from new revitalization! This presentation is available at: JubLM/edit?usp=sharing Contact: Dee-Dee Huang deedeeh@princeton.edu Conclusion

25 ????????????? Q&A Conclusion

26 Acknowledgements Community LIFT Princeton Internships in Civic Service Soulsville residents and community leaders Lynn Osgood Jackelyn Hwang Josh Poag 95 The Internet and the library Conclusion