The motivation for this research project stems from the fact that vacant buildings pose a risk to the ability of POAH and its partners to maximize the benefits of the $30.5 million in Choice funding and the various other financial and non-financial resources.
Despite its close proximity to the University of Chicago, Woodlawn shows many signs of a distressed neighborhood. The presence of vacant housing was noticeably high before the recession, and even more foreclosures have come about due to the onset of housing crisis. Housing demand is weak in Woodlawn, in part because of safety issues and other quality of life factors. While existing efforts have sought to rehabilitate smaller buildings, either through investment from community development financial institutions, Neighborhood Stabilization Program and other governmental funds, they have not solved all the problems and, indeed, may serve as focal points for opposition from homeowners concerned about the amount of tenants with housing vouchers in thee neighborhood. Though POAH owns and manages over 8,000 multifamily units, their portfolio consists of larger (50+ unit) properties and does not currently have the capacity (nor desire) to add scattered site rental housing to its portfolio. A smaller building is a noticeably different development endeavor than 5+ unit properties, much less a large multifamily property. Smaller buildings provide much better opportunities to smaller entrepreneurs who are vertically integrated, performing construction management in-house. In addition, two- to four-unit buildings can be sold to homeowners to occupy the property and rent out additional units, just as they can be maintained entirely as investment properties.
This thesis analyzes the community and economic context around two- to four-unit properties and recommends a series of strategies to revitalization that will credibly reduce building vacancies and complement the larger investment in the neighborhood. It is the hope that this will yield helpful analysis and recommendations for POAH and other stakeholders in their long-term efforts at improving the neighborhood. In this spirit, the following questions have guided this research endeavor:
- What are the causes of vacancy in smaller buildings in Woodlawn?
- What challenges face the market for two- to four-unit buildings in Woodlawn?
- What existing efforts to address vacancy have existed and how have they fared?
- What community goals and most promising recommendations should be factored as a part of the Small Building Initiative to advance broader neighborhood improvement?