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Send to printer Close window Are We Growing Together or Growing Apart? GILDA HAAS 4 Questions to Consider Last year, my hometown of Los Angeles was awarded the dubious distinction of being the most unequal city in the country. The gap between L.A.’s richest and poorest residents is greater than in any other U.S. city. In 1970, according to the Brookings Institute, 52 percent of L.A. neighborhoods were middle income. By 2000, that dropped to 28 percent, ranking lowest among the top 100 metropolitan areas in the country. In the process, Los Angeles had achieved an economic inequality index equivalent to that of Mexico. What’s more disturbing about this sorry state of affairs in L.A. is that it marks a national trend. Economic inequality is on the rise throughout the country, fueled by domestic policies and global economic forces that have radically changed the context of city life and growth since the 1970s. Deindustrialization, the loss of unionized core industries and the growth of the service economy have created very large lowwage employment sec tors. Investors pulled billions of dollars from an unstable stock market and put their money in urban real estate, inflating land prices and the cost of housing. Meanwhile, federal investment in cities has declined 80 percent since the 1970s, making it necessary for city managers and city councils to find new sources of revenue. As a result, the number of redevelopment areas has skyrocketed, and so has the "fiscalization of land use" the practice of viewing land first and foremost as a revenue generator. In many major U.S. cities, tenants have become the majority of the population: 70 percent in New York; 68 percent in Boston ; 65 percent in San Francisco; more than 60 percent in Washington, D.C. , L.A. and Oakland; and 57 percent in Atlanta. Not surprisingly, this shift is accompanied by increased housing costs, "gentrification," and increased and rapid displacement of historic workingclass neighborhoods and communities of color. These trends also exist in cities like Mia mi that have not yet reached the tenantmajority tipping point but are steadily moving in that direction. A Question of Imbalance The new inequality poses problems and questions for urban democracy with respect to who controls the deci sions that affect everyday life. Can cities be democratic when entire neighbor hoods are absentee owned? Does it matter that downtown redevelopment projects continue to consolidate ownership into fewer and fewer corporate hands? As the middle class diminishes and cities become increasingly segregated by income and class (what the United Way of Los Ange les , in a recent farreaching report, calls a "Tale of Two Cities"), how do we grow with common purpose and vision? In thinking about growth, the most important question for policymakers today is, "Are we growing apart or are we growing together?" There are many ways to adjust the increas ing imbalance. Absentee ownership can be offset by increasing local ownership or increasing tenants’ rights (or both). Growing consolidation of downtown property ownership can be balanced by policies that elicit clear community benefits, capture windfall property values for the public good, and then intention ally direct resources toward producing goodpaying jobs and affordable housing for people who possess neither. Common purpose and vision can be accomplished when people across classes once again share common public experiences, such as excellent public schools, mixedincome communities and reliable, affordable public transportation. Over the past few years and throughout the nation, the crisis of a widening divide within cities has evoked a grassroots re

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Short article on the key question for urban policy-makers: "Are we increasing or decreasing inequality?"

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    Are We Growing Together or GrowingApart?G ILDA HAAS

    4QuestionstoConsider

    Lastyear,myhometownofLosAngeleswasawardedthedubiousdistinctionofbeingthemostunequalcityinthecountry.ThegapbetweenL.A.srichestandpoorestresidentsisgreaterthaninanyotherU.S.city.In1970,accordingtotheBrookingsInstitute,52percentofL.A.neighborhoodsweremiddleincome.By2000,thatdroppedto28percent,rankinglowestamongthetop100metropolitanareasinthecountry.Intheprocess,LosAngeleshadachievedaneconomicinequalityindexequivalenttothatofMexico.

    WhatsmoredisturbingaboutthissorrystateofaffairsinL.A.isthatitmarksanationaltrend.Economicinequalityisontherisethroughoutthecountry,fueledbydomesticpoliciesandglobaleconomicforcesthathaveradicallychangedthecontextofcitylifeandgrowthsincethe1970s.Deindustrialization,thelossofunionizedcoreindustriesandthegrowthoftheserviceeconomyhavecreatedverylargelowwageemploymentsectors.Investorspulledbillionsofdollarsfromanunstablestockmarketandputtheirmoneyinurbanrealestate,inflatinglandpricesandthecostofhousing.Meanwhile,federalinvestmentincitieshasdeclined80percentsincethe1970s,makingitnecessaryforcitymanagersandcitycouncilstofindnewsourcesofrevenue.Asaresult,thenumberofredevelopmentareashasskyrocketed,andsohasthe"fiscalizationoflanduse"thepracticeofviewinglandfirstandforemostasarevenuegenerator.

    InmanymajorU.S.cities,tenantshavebecomethemajorityofthepopulation:70percentinNewYork68percentinBoston65percentinSanFranciscomorethan60percentinWashington,D.C.,L.A.andOaklandand57percentinAtlanta.Notsurprisingly,thisshiftisaccompaniedbyincreasedhousingcosts,"gentrification,"andincreasedandrapiddisplacementofhistoricworkingclassneighborhoodsandcommunitiesofcolor.ThesetrendsalsoexistincitieslikeMiamithathavenotyetreachedthetenantmajoritytippingpointbutaresteadilymovinginthatdirection.

    AQuestionofImbalance

    Thenewinequalityposesproblemsandquestionsforurbandemocracywithrespecttowhocontrolsthedecisionsthataffecteverydaylife.Cancitiesbedemocraticwhenentireneighborhoodsareabsenteeowned?Doesitmatterthatdowntownredevelopmentprojectscontinuetoconsolidateownershipintofewerandfewercorporatehands?Asthemiddleclassdiminishesandcitiesbecomeincreasinglysegregatedbyincomeandclass(whattheUnitedWayofLosAngeles,inarecentfarreachingreport,callsa"TaleofTwoCities"),howdowegrowwithcommonpurposeandvision?

    Inthinkingaboutgrowth,themostimportantquestionforpolicymakerstodayis,"Arewegrowingapartorarewegrowingtogether?"

    Therearemanywaystoadjusttheincreasingimbalance.Absenteeownershipcanbeoffsetbyincreasinglocalownershiporincreasingtenantsrights(orboth).Growingconsolidationofdowntownpropertyownershipcanbebalancedbypoliciesthatelicitclearcommunitybenefits,capturewindfallpropertyvaluesforthepublicgood,andthenintentionallydirectresourcestowardproducinggoodpayingjobsandaffordablehousingforpeoplewhopossessneither.Commonpurposeandvisioncanbeaccomplishedwhenpeopleacrossclassesonceagainsharecommonpublicexperiences,suchasexcellentpublicschools,mixedincomecommunitiesandreliable,affordablepublictransportation.

    Overthepastfewyearsandthroughoutthenation,thecrisisofawideningdividewithincitieshasevokedagrassrootsre

  • sponse.InJanuary2007,diverseorganizationsfromNewYork,Boston,L.A.,Washington,D.C.,Miami,Providence,SanFrancisco,OaklandandNewOrleansassembledinLosAngelestoformanewalliancethatisgroundedinasetofprinciplesdesignedtoreduceurbaninequality.TheeffortiscalledRighttotheCity,anditsfirstaccomplishmenthasbeentoproduceasenseofcollectivepurposeandhopethatinequalitycanbereduced,democracycanberebornandpeoplecanreclaimtheircitiesandneighborhoods.

    HowDoesYourCityRate?

    InthespiritofRighttotheCity,Iofferfourquestionstohelpyouevaluateyourowncityspracticesandpotentialformovinggrowthpoliciestowardavisionofimprovedurbanhumanrights.

    1.Doesyourcitynotifytenantsaswellaspropertyownersaboutimportantlandusedecisions,planningandzoningactions,andentitlementprocedures?Iftheanswerisyes,giveyourselfa10.Ifitiseasierforagroupofoutoftownprofessionalswhoownpropertyinyourneighborhoodtodetermineitsfuturethanforlongtermtenants,giveyourselfazero.

    2.Doesyourcityroutinelyprovidedeveloperswithentitlementsthatsubstantiallyincreasethevalueoftheirpropertywithoutcapturingaportionofthatvaluetohelpreduceinequalityinyourcity?Ifyoutypicallycaptureaportionofincreasedpropertyvaluesinastrongintentionalwaytoproduceaffordablehousing,goodjobs,childcare,publicservicesorotherbenefitsthathelpbalancethescalesinyourcity,giveyourselfa10.Ifyoujustwatchthepropertyvaluesrise,letthedeveloperreapthewindfall,andhopethatthetrickledowntheorywillworkforthefirsttimeinworldhistory,giveyourselfaverylowscore.

    3.Dorentersinyourcityhaveanyrightstohousingstability?Doesyourcityhave"justcause"evictionlawsthatexplicitlylayoutreasonableparametersforforcingpeopleoutoftheirhomes?Ifpeoplemustbedisplacedthroughnofaultoftheirown,dotheyreceiverelocationbenefitsthatactuallyhelpthemfindanewplacetolive?Ifyouansweredyestoalloftheabove,giveyourselfahighscoreandunderstandthatyourchildren(whowillmostlikelystarttheiradultlivesastenants)thankyou.SodoesyourAuntMargaret,aretiredschoolteacherwhoreallydoesntwanttomoveoutofherapartmentatthislatestageinherlife.Butiftenantsdonthaverightsinyourcity,takeanotherlookatwholivesinyourcity,takealookatyourkidsandyourAuntMargaret,andthinkagain.

    4.Doesyourcitytakeaneducativeposturetowarditspopulation?Isiteasyforpeopletolearnhowtonavigateanenvironmentalimpactreport,aplanamendmentoranewpolicyproposal?Canordinarypeoplewhocareaboutyourcityfindoutaboutthebudgetandweighinonallocationsinameaningfulway?Participationandvotingdonotconstitutedemocracy.Itisinformedparticipationinaprocessincludingdialogue,debateandarticulationofideasthatistheveryfabricofrealdemocracy.Thebusinessofreducinginequalityandpromotinghealthygrowthcanthriveonlyinanarenathatpromotesequalaccessandresponsibility.Forexample,ifeveryoneisresponsibleforsolvingahousingcrisis,andeveryplaceisanequallypossiblelocationforaffordablehousing,asinthecaseofinclusionaryzoning,"NotInMyBackyard"(NIMBY)reactionsloseresonance.Letsbehonest,noneofourcitiesdeserveareallyhighscorehere.Wecanalldobetter.

    Everypolicy,everylanduseentitlementandeverypublicdecisionhasthepotentialtoincreaseordecreaseinequality.Ifwelearntorecognizetheopportunitiestoreduceinequalitythatappearbeforeuseveryday,wecanbetterunderstandthatonlyequitablegrowthmakes"smartgrowth"worthyofthename.


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