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Mariposa 1038 (Lorcan O’Herlihy Architects)

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The AIA Housing and Community Development Knowledge Community (HCD) is a network of architects and allied stakeholders that promotes equity in housing, excellence in residential design, and sustainable, vibrant communities for all, through education, research, awards, and advocacy.

Revitalization without displacement

  • 1.  Revitalization without displacement

    Posted 05-23-2018 03:30 PM

    The desired outcome

    The holy grail of successful neighborhood revitalization is a vibrant community in which lower income homeowners and renters of all races can enjoy the increased quality of life, better services and increased wealth of revitalization without being booted in the process.

    Yes to positive change but No to displacement requires an intricate combination of investment resources, protections for homeowners and renters and the willingness to accept change in the community.

    Investment without displacement. (Reinvestment Fund)

    The problem

    Investment resources need to be large because in disinvested communities money coming in for small, scattered improvements can disappear like a drop in the bucket. Only strategically placed  investment can leverage an increase of assessed values, a necessity in terms of making investments economically sustainable. Only if depressed real estate values increase will investment in the area make sense, even if the sources are public. It is not economically feasible to prop up real estate that remains "under water", i.e. where the assessed value in the end is lower than the cost of the improvement.  An increase of assessed value is also desirable in terms of wealth creation for homeowners. Homeowners in disinvested or "redlined" areas have lived for decades with the artificially depressed value of their homes and thus been excluded from America's foremost instrument of wealth creation. But it is precisely this increase in assessed value which also causes displacement.

    If the new property values rise at a rate that would price homeowners and renters out, it will effectively displace them. The conflict needs to be resolved with a set of regulations that manage tax and rent increases for existing residents. Protecting homeowners from being priced....

    Read full article HERE

    [Klaus] Philipsen FAIA
    Archplan Inc. Philipsen Architects
    Baltimore MD
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