Posts tagged Housing
Empowering Public Property: Simulating New Housing, Economic Development and Greenspace Policy with Newark’s City-Owned Property Inventory

This is a report about how cities can better organize and manage their data about the property they own in order to promote transparency and advance critical policymaking. Newark, like many legacy cities, owns hundreds of parcels through tax foreclosure and abandonment that can be put to more productive use and even generate needed revenue. Because of different inputs from different departments, its property data system contained duplication and gaps that prevented policymakers and stakeholders from getting a clear picture of these public assets. In partnership with city staff, CLiME helped to resolve the data organization problem and set property management on a new, more accurate and user-friendly course. Along the way, we learned details about the nature and amount of city-owned properties, how they’re zoned and where they’re located. We concluded that much more of this significant inventory can and should be put to work advancing long-held goals of equitable development. We built three demonstrations to simulate this usage that cover three major areas of policy: affordable housing production, commercial and industrial development and green space/environmental risk mitigation. Each of these is an area in which the Baraka administration is already active in setting aggressive policies. Some of those policies already make use of the asset of city-owned land. Until recently, it was impossible to see the scope of particular uses because the data did not readily permit it. Now the data is cleaner and clearer.

Individual break-out reports from the full report are also available:

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Limited-Equity Cooperatives: A Primer on Sustainable Affordability and Wealth Building

Limited-Equity Cooperatives: A Primer on Sustainable Affordability and Wealth Building is a research report on a promising alternative to traditional homeownership in a period of scarce inventory and high interest rates. Limited equity cooperatives offer communal ownership at more affordable prices—stabilty, wealth enhancement and long-term affordability. Author Elana Simon details the purpose and structure of such housing vehicles.

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Urban Renewal Archive

Few race-conscious public policies displaced African-American individuals and families like the federal urban renewal program from 1949 to 1974.  Hundreds of cities spent millions of taxpayer dollars engaging in "slum removal" of entire neighborhoods only recently occupied by Blacks from the Great Migration.  Their forced relocation—almost always without statutorily promised relocation expenses and assistance—was a harbinger of the modern ghetto and a blueprint for urban planning approaches that continue to this day. 

As part of CLiME's Displacement Project, we began a broad inquiry into urban renewal in 2021.  The results will follow in the form of academic papers, policy briefs and here, a growing archive of hard-to-find data on the program's implementation in select U.S. cities.  CLiME Fellow and Bloustein graduate Erica Copeland assembled variables on the location, demographic variables and costs associated with primarily African-American displacement for a select period of time.  We hope this contributes to a growing body of academic research on an under-appreciated aspect of systemic racism carried out by the federal and local governments at midcentury, whose wealth-retarding effects persist.

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Losing Ground: The 2020 Displacement Risk Indicators Matrix (D.R.I.M.) Update for Newark

Newark housing is too expensive for its residents.

CLiME’s Displacement Risk Indicators Matrix—or DRIM—originated in 2017 as a tool to measure the risk of Newark resident displacement as a result of gentrification. We found then and now that displacement risk continues to be a serious threat to housing stability in Newark as rents rise dramatically among a city of mostly renters. Yet the cause does not appear to be traditional gentrification, because the demographic profile of who lives in the city, their incomes, educations and poverty rates have not changed as dramatically as rents.

The DRIM is divided into three sets of variables set across the city as a whole, the five wards and, for the first time, neighborhoods: vulnerability, market dynamics and “gentrifier population.” Vulnerability variables ask about the economic stresses that households feel. Market dynamics variables ask about rental affordability and new construction. Gentrifier population variables ask whether the city is seeing an influx in the people whose race, housing wealth and educational attainment is associated with gentrifying populations in other cities.

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Who Owns Newark? Transferring Wealth from Newark Homeowners to Corporate Buyers

This report shows that the national trend in investor buying of 1-4 unit homes in predominantly Black neighborhoods is most acute in Newark, New Jersey where almost half of all real estate sales were made by institutional buyers. The trend grew out of the foreclosure crisis that wiped out significant middle-class wealth in particular Newark neighborhoods. Those neighborhoods became the targets of investors seeking passive returns from rents. Those largely anonymous outside companies now set neighborhood housing markets on terms that primarily benefit their investors.

While CLiME detected no illegal activity, the threats to Newarkers and government policy goals are significant. They include rapidly rising rents, decreased homeownership, higher barriers to affordable housing production goals, renter displacement and less stable communities. Sadly, this reality continues a long pattern of economic threats to predominantly Black and increasingly Latino neighborhoods in a state whose communities are among the most segregated in the country. From racial exclusion to predatory lending, from foreclosure to the extraction of rents, Newark’s experience demonstrates what can happen when local economies ignore equity.

CLiME’s analysis documents a dramatic increase in institutional investor activity in Newark’s residential market starting around 2013. As of 2020, almost half of all Newark’s residential sales were to institutional buyers.

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The New Jersey Housing Crisis in a COVID Era: Mapping Strategic Processes

Affordable housing is increasingly scarce within the United States, and COVID-19 has dramatically exacerbated the simmering crisis in affordable housing. In New Jersey, the risk of eviction is greater than across the country, as 393,000 households are delinquent on their rent, (22.3% of households in renter-occupied housing units in New Jersey as compared with 15.8% across the country). ¹ In New Jersey, eviction pressure is faced disproportionately by residents of color, by households with children, and in urban municipalities, where more renters and more low-income households are especially vulnerable.

The New Jersey Housing Crisis in a COVID Era: Mapping Strategic Processes was a research project funded by the New Jersey State Policy Lab to explore strategic development and organizational learning in the provision of emergency rental assistance funding during the COVID-19 pandemic. This research focused on five New Jersey municipalities: Camden (Camden County), Elizabeth (Union County), Jersey City, Newark, and Trenton (Mercer County).

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Investor Buyers, A Brief Primer

Housing markets rebounded after the 2007-2009 housing crisis, but homeownership rates never did. Research explains this by the rapid spread of investor buyers into housing markets following the foreclosure crisis. Large investors bought significant numbers of properties that were foreclosed on, at very low prices, frequently converting single-family (1-4 units) into rental properties. They often acquire properties in low-income and moderate-income neighborhoods. ¹

Coming out of the foreclosure crisis, these investor buyers created a new industry around large-scale single-family rental, and have been increasingly active in rental markets generally. These limited liability companies (LLCs), or “corporate landlords”, have reshaped the legal landscape of rental ownership, in part because they limit investor liability. ² Research shows they are less likely to take care of the properties, causing them to fall into disrepair or remain vacant. ³ They are also associated with higher rents and higher rates of eviction. ⁴ Meanwhile, several reports document that the largest among them (e.g.; Invitation Homes, Equity Residential) are making enormous profits even as we experience a profound housing affordability and eviction crisis. ⁵

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Housing Gaps in Cities of Color: Affordability Trends in Newark's Inner-Ring Suburbs of Irvington, Orange and East Orange

Orange, East Orange, and Irvington are Black working-class suburban communities. While home to just under 20% of Essex’s population, they are home to almost 40% of all Black residents and only 2% of White residents. These communities are also growing fast, with surging Latino and immigrant populations from the Caribbean.

These inner-ring suburbs are challenged by elevated rates of poverty and a growing unaffordability, and they have few resources to address these pressing needs. In 2020, Orange, East Orange, and Irvington residents generated only $30,000-$40,000 in tax basis for essential public services, such as police, education and sanitation. Meanwhile, nearby Summit residents generated almost four and a half times as many resources as any of these communities, and to serve a much smaller population.

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Homes Beyond Reach: An Assessment and Gap Analysis of Newark's Affordable Rental Stock

CLiME conducted an affordability and gap analysis of Newark's housing stock and found a severe gap in low-rent units. We estimate that the City needs an additional 16,234 units renting for about $750 per month to meet residents' existing needs.

CLiME’s approach to assessing affordability is rooted in the local context. We calculate a Newark Median Affordable Rent (NMAR) of $763 per month. This is $330 less than Newark’s median market rent, and more than $600 less than Fair Market Rent (FMR), created by the Department of Housing and Urban Development. We also develop a methodological innovation to integrate the City’s rental housing subsidies into the affordability analysis. This procedure, the first of its kind as far as we know, provides a much closer picture of affordability in a City where at least 28% of all units are subsidized.

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Land Banks as Instruments of Equitable Growth: CLiME’s Recommendations to the City of Newark

Land banks are government-created institutions whose mission is to return vacant, abandoned and tax-delinquent properties into productive use. Land banks are empowered to acquire land, eliminate back taxes and tax liens attached to a property in order to create a clean title, maintain the land in compliance with local and state ordinances, and convey the property back into active use. As a mechanism for expediting the disposition of city-owned and/or abandoned properties, land banks can be a significant local government tool either for equitable growth or for more conventional economic development.

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Pandemic Remedies

In this first installment of a faculty essay series, CLiME asked Rutgers professors affiliated with the center to provide brief analysis on some of the many institutional crises exacerbated by the Coronavirus pandemic and to offer solutions. Law Professor Rachel Godsil discuses the loss of public revenues to struggling communities and offers a pipeline to millions. Political Scientist Domingo Morel reveals the growing crisis in public pension fund commitments and a possible path to meeting those obligations. Law Professor Laura Cohen takes readers inside juvenile justice to show the increased risk of viral infection incarcerated youth face as well as the steps advocates are taking on their behalf. Director David Troutt looks into the future to interrogate claims that “we are all in this together” and offers an alternative set of policy priorities we would pursue if mutuality really mattered.

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Inequitable Gentrification: A Form of Exclusionary Zoning that Violates the New Jersey Constitution

From the perspective of many low-income families, gentrification is the ultimate social injustice; where “wealthy, usually white, newcomers are congratulated for "improving" a neighborhood whose poor, minority residents are displaced by skyrocketing rents and economic change.”

A social injustice promulgated by local government action, gentrification is no longer confined to our big cities and is increasingly impacting smaller cities and towns as municipalities seek to increase their tax base by luring wealthy residents in search of urban amenities and replace low income residents in the process.

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Newark’s Right to Counsel: A Proposed System Design for Indigent Tenants Facing Eviction

As a member of a local affordable housing coalition and partner to Mayor Baraka's effort to implement the second right-to-counsel (RTC) ordinance in the country, CLiME led the research design of such a system and the supporting basis for its legality under New Jersey law.  

This memorandum was submitted to the City of Newark in early February, with recommendations for implementing a system of free legal services for indigent Newarkers (incomes below 200 percent of the median) facing imminent eviction proceedings in Essex County court.  

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The Cost of New York City’s Hudson Yards Redevelopment Project

ABSTRACT: Tax increment financing (TIF) has exploded in popularity on the municipal finance landscape as cities compete for scarce public resources to fund economic development. Previous studies evaluate TIF’s efficacy and ability to spark economic growth.

This research expands the evaluation of TIF by questioning the widespread understanding of TIF as a “self-financing” tool through an analysis of its risks and costs to taxpayers. We present a case study of the Hudson Yards redevelopment project in New York City, the country’s largest TIF-type project.

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Making Newark Work for Newarkers: Housing and Equitable Growth in the Next Brick City

Making Newark Work for Newarkers is the full report of the Rutgers University-Newark Project on Equitable Growth in the City of Newark, written by CLiME and incorporating research conducted in conjunction with a university working group whose work began last April. We viewed the goal of equitable growth first in the context of housing issues before expanding to think about the fabric of community life and economic opportunity in the city.

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As Other Districts Grapple With Segregation, This One Makes Integration Work

MORRISTOWN, N.J. — When the morning rush begins at Alexander Hamilton Elementary School here, students lugging oversize backpacks and fluorescent-colored lunchboxes emerge from the school buses that roll in, one after another, for 15 minutes. By the time it ends, children from some of this area’s most privileged enclaves, and from some of its poorest, file through the front doors to begin their day together.

The Morris School District was created in 1971, after a state court decision led to the merger of two Northern New Jersey communities — the mostly white suburbs of Morris Township, and the racially mixed urban hub of Morristown — into one school district for the purpose of maintaining racial and economic balance.

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A Vision For An Equitable D.C.

What would an equitable DC look like? Communities of color have faced decades of systemic racism and discriminatory policies and practices. These actions have barred people of color from certain jobs and neighborhoods and from opportunities to build wealth, leaving a legacy that persists today. If the nation’s capital were free of its stark racial inequities, it could be a more prosperous and competitive city—one where everyone could reach their full potential and build better lives for themselves and their families.

Washington, DC, is one of most racially segregated cities in the United States, stemming from public policies and private actions that once limited where black residents could live, whether they could secure mortgages, and whom they could buy homes from. Today, Wards 4, 5, 7, and 8 on the east have a majority of black residents, and Wards 2, 3, and 6 on the west are majority white. About half of Hispanic residents live in Wards 1 and 4.

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