Theory of Change
\nIn order to address issues in both the homeownership and investor markets for two- to four-unit buildings, the Small Building Initiative should resist the urge to focus entirely on homeownership or rental housing. In fact, this is a false choice because a newly renovated two- to four-unit building adds rental housing even when bought by homeowners. By working to promote homeownership, namely addressing the market-oriented challenges that work against it, and supporting stronger and more neighborhood-minded developers and landlords through financial and non-financial means, Woodlawn can anticipate some material improvements in the housing values and vacancy associated with the market for two- to four-unit buildings. Pursuing changes to the non-vacant housing stock will also make important strides in improving the market for vacant properties.<\/p>\n
Planners in Woodlawn should seek to revitalize through market-means, making actions that are directly tied to a stronger market where purchases, investment and leasing are more prevalent in the two- to four-unit building market. This is not to detract from the importance of demand-side (or supply-side) subsidies that facilitate income transfer and social welfare, but it stresses the importance of conditions that allow additional market transactions to take place. The targeting of efforts on specific blocks and the anchoring of work on existing strong blocks can create stronger sub-markets in surrounding areas. Successful development in tax increment districts will create future flows that can be leveraged for investment today.\/n
\nIn addition, paying close attention to the relationship between general neighborhood health and the two- to four-unit building market is important. Making Woodlawn an area where people desire to live for several reasons will improve the two- to four-unit building market. These are not entirely economic factors, but they are just as important to reducing vacancy in the building stock. Enhanced public safety, higher quality of life and retail amenities will highlight the neighborhoodÕs various assets, overcome the challenges, and reverse the population loss that contributed to neighborhoodÕs decline.\/n
\nBuilding neighborhood consensus around better rental housing within two- to four-unit buildings and local economic development that builds wealth for existing residents will facilitate an equitable strand of revitalization. For example, rental housing with shallow subsidies and effective property management, and potentially housing that actively transforms tenants into homeowners, can tie the income diversification goals of homeowners with the goals of maintaining housing affordability. Expanding efforts to target construction work to local residents generates wealth and can lead to incumbent upgrading that will alleviate poverty and lead to other gains by existing residents rather that simply pushing poor people into other communities, a common consequence of unbalanced gentrification.\/n
\nLastly, a multi-faceted approach is best for addressing the multitude of issues present in the two- to four-unit market, one that acknowledges the importance of synergy. Destabilizing factors in the market that artificially lower property values create gaps that must be filled by capital, gaps that are increased by the absence of homeownership education and counseling that enable households to adequately save and otherwise prepare for ownership. Incentives created by public policies may favor patterns of development that prompt community concern and opposition, and policies meant to improve urban markets may succeed in addressing one segment of challenges at the risk of neglecting others. This includes demolishing buildings to stem the drug trade, only to introduce more vacant land in the market that weakens the property values of nearby residents.<\/p>\n","protected":false},"excerpt":{"rendered":"
Theory of Change In order to address issues in both the homeownership and investor markets for two- to four-unit buildings, the Small Building Initiative should resist the urge to focus entirely on homeownership or rental housing. In fact, this is … Continue reading