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HOUSING, OPPORTUNITY & RACE: THE CASE OF THOMPSON V. HUDIN BALTIMORE, MDJason Reece, AICP

Senior Researcher

The Kirwan Institute for the Study of Race & Ethnicity

Reece.35@osu.edu and www.kirwaninstitute.org

Guest Lecture May 7th 2009

City and Regional Planning 815: Urban Planning Case Studies in Housing

Case Studies in Housing

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TODAY’S CLASS & DISCUSSION

Thinking about our History: Planning, Housing, Opportunity & Race Access to Opportunity Matters

Baltimore, MD at the time of Thompson v. HUD The Litigation & Judicial Decision Moving Past Litigation - Crafting a response New Housing Challenges in the Region Discussion: How would you respond?

Discussion: Supporting regional housing solutions What are the factors driving and impeding regional housing

challenges? What role should planners play?

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THINKING ABOUT OUR HISTORYPlanning, Housing, Opportunity & Race

PLANNING’S EVOLUTION OF CONFRONTING URBAN PROBLEMS

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• City Beautiful

• (Burnham and Others)

Late/

Early

19th Century

• Euclidean Zoning

• “City Efficient”

• First Suburbs Emerge

• Garden Cities

• First public housing

1920’s and1930’s

• Urban Renewal and Modernism

• Birth of Super Block Public Housing

1950-

1960’s

• Birth of Advocacy Planning (Davidoff)

• The CDC movement emerges

• Regional Fair Share Strategies

• Model Cities

Late 60’s and 1970’s

• Smart Growth

• New Urbanism

• Sustain-ability

1990’s

• Opportunity

• Based Planning and Community Dev.

• Planning for the Green Economy

The Future

?

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URBAN PROBLEMS: VIEW FROM 1968 This finding from the 1968 Kerner Commission

(“Report of the National Advisory Commission on Civil Disorders”) is still compelling and applicable to the current challenges facing marginalized urban communities of color.

“…the single overriding cause of rioting in the cities was not any one thing commonly adduced – unemployment, lack of education, poverty, exploitation – but that it was all of those things and more…”

Source: The Kerner Report. The 1968 Report of the National Advisory Commission on Civil Disorders. Introduction by Tom Wicker. Page xvii.

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URBAN PROBLEMS: VIEW FROM 2008

This description is repeated nearly 40 years later in a recent study of concentrated poverty released by the U.S. Federal Reserve and The Brookings Institution: “Each of the headline issues examined in this chapter – schools and

skills, housing, lack of mainstream investment, and limited community capacity – plays a role in perpetuating the disadvantage confronting these high-poverty urban and rural areas today. Together, these issues entangle many high poverty communities in a Gordian knot…. The U.S. Federal Reserve Bank. “The Enduring Challenge of Concentrated

Poverty In America.” Produced by the U.S. Federal Reserve and The Brookings Institution. page 191. Accessible online at: http://www.frbsf.org/cpreport/#

History matters We are still struggling with many of the same challenges facing

urban communities and housing

THE 1960’S AND TODAY: URBAN UNREST AND URBAN DISTRESS IN DETROIT

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Detroit: 1967Detroit: Today

WHY DID THIS HAPPEN?HISTORICAL POLICIES CONTRIBUTING TO RESIDENTIAL SEGREGATION AND ISOLATION9

Segregation as policy Jim Crow in the south

The Great Migration North FHA policies upholding segregation

Redlining, discouraging mixed race neighborhoods Blockbusting, racially restrictive covenants and other forms of

discrimination in the housing industry Urban renewal, highway construction and public housing policy Suburban sprawl and white flight

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POLICIES ENFORCING INEQUITY:HISTORICAL GOVERNMENT ROLE

“If a neighborhood is to retain stability, it is necessary that properties shall continue to be occupied by the same social and racial classes. A change in social or racial occupancy generally contributes to instability and a decline in values.”

–Excerpt from the 1947 FHA underwriting manual

REDLINING MAP OF PHILADELPHIA

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THE “WAILING WALL” IN DETROIT

http://www.albany.edu/jmmh/vol2no1/sugrue.html

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THE RISE OF SUBURBIA:BUT NOT ACCESSIBLE TO EVERYONE

In the suburb-shaping years (1930-1960), less than one-percent of all African Americans were

able to obtain a mortgage.

FHA HIGHWAY CONSTRUCTION IN CINCINNATI – DEMOLISHING MUCH OF THE AFRICAN AMERICAN WEST SIDE

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URBAN RENEWAL IN BOSTON

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URBAN RENEWAL & NEW ATTEMPTS AT PUBLIC HOUSING Superblock Public Housing

Stateway Gardens in Chicago being completed in the late 1950’s 33 Acres of Public Housing Eight High Rise Buildings More than 1,600 Public Housing Units

UNPRECEDENTED CONCENTRATED POVERTY:

THE RISE OF CONCENTRATED PUBLIC HOUSING

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FROM MARVEL TO DISASTER: PRUITT-IGOE IN ST. LOUIS

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WHY DOES THIS CONTINUE?CONTEMPORARY FACTORS CONTRIBUTING TO RESIDENTIAL SEGREGATION AND ISOLATION

De facto segregation and opportunity isolation Exclusionary zoning Subtle forms of housing discrimination

Racial steering, editorializing Fragmented school districts and court decisions Economic development policy, infrastructure policy and

subsidized housing policy Continued exurban sprawl and white flight Reverse redlining

Buy here pay here, rent to own, payday lending, subprime mortgage loans

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WHY DO WE STILL PUSH FOR FAIR HOUSING?The Dynamics of Race, Place and Opportunity

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OPPORTUNITY MATTERS: SPACE, PLACE, AND LIFE OUTCOMES “Opportunity” is a situation or condition that places individuals

in a position to be more likely to succeed or excel. Opportunity structures are critical to opening pathways to

success: High-quality education Healthy and safe environment Stable housing Sustainable employment Political empowerment Outlets for wealth-building Positive social networks

Section 2

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OPPORTUNITY MATTERS: NEIGHBORHOODS & ACCESS TO OPPORTUNITY

Five decades of research indicate that your environment has a profound impact on your access to opportunity and likelihood of success

High poverty areas with poor employment, underperforming schools, distressed housing and public health/safety risks depress life outcomes A system of disadvantage Many manifestations

Urban, rural, suburban People of color are far more likely

to live in opportunity deprived neighborhoods and communities

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PLACE HAS A PROFOUND IMPACT ON CHILD DEVELOPMENT, HEALTH AND WELL BEING

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Which community would you choose? To be safe and have positive health outcomes? For your kids to receive a quality education? Which community would be better for employment and have a more sustainable tax base?

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WHAT ARE THE IMPLICATIONS OF OPPORTUNITY ISOLATION?

Individual Poor economic outcomes, lower educational outcomes,

degraded asset development Poor health conditions, higher exposure and risk from crime Psychological distress, weak social and professional networks

Community/Economy High social costs, distressed and stressed communities, fiscal

challenges Weakened civic engagement and democratic participation Underdeveloped human capital, poor labor outlook, poor

economic development prospects

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MORE ON THOMPSON V. HUDFair Housing in the Baltimore Region Today

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WHAT IS THOMPSON V. HUD?

Litigation brought on behalf of class of 14,000 African-American residents of public housing in response to history of racial segregation of public housing and concentration in poor, distressed neighborhoods in Baltimore Plaintiffs include Maryland ACLU and NAACP Legal

Defense Fund Originally defendants included the local public housing

authority and the US Department of Housing & Urban Development

Began in 1995…judge issued liability ruling in 2005 Remedial trial held in 2006

Still waiting for final remedial decision

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FAIR HOUSING IN BALTIMORE Some facts and figures….

Baltimore is the 14th most segregated metropolitan region in the USA (as of 2000)

Approximately 67% of Baltimore’s African American or White population would need to relocate to integrate the region (based on the regional dissimilarity rate of .67

More than 53% of African Americans are physically segregated from jobs in the region

African American neighborhoods on average had poverty rates nearly 3 times the rate found in the average White neighborhood and vacancy rates more than double rates found in White neighborhoods

Nearly 3 out 4 African American kids would need to change schools to integrate the region’s schools

The average African American student attended a school with a 42% poverty rate in 2000, double the average for White students

In 2003, in the Baltimore City Schools: 3 out of 4 students were poor, more than 1/3 of classes were taught by non highly

qualified teachers, less than a 1/3 of students passed proficiency exams

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SEGREGATION, SUBSIDIZED HOUSING IN THE BALTIMORE REGION

Subsidized housing opportunities in Baltimore are generally clustered in the region’s predominately African American neighborhoods

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MORE ON THOMPSON V. HUD In January 2005, US District Court Judge Garbis found HUD

liable for violating the federal Fair Housing Act, for not providing fair housing opportunities to Baltimore’s African American public housing residents "Baltimore City should not be viewed ... as a container for all of the poor

of a contiguous region“ HUD failed to affirmatively promote fair housing by failing to consider a

regional approach to desegregating public housing “[T]he failure adequately to take a regional approach to the desegregation of

public housing in the region that included Baltimore City violated the Fair Housing Act and requires consideration of appropriate remedial action by the Court.” [Hon. Marvin J. Garbis, Memorandum of Decision. Carmen Thompson et. al. vs. US

Department of Housing and Urban Development et. al. January 6, 2005: 104]

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PLAINTIFF’S RESPONSE “We intend to secure a remedy that will help African American

public housing residents undo the harms they have suffered for more than sixty years because of HUD’s discriminatory policies. We believe that this case, in Thurgood Marshall’s hometown, is the most important housing desegregation lawsuit in a generation.”

-Theodore M. Shaw, NAACP LDF Director-Counsel and President

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DIRECTOR POWELL’S REMEDIAL PROPOSAL The remedy must provide desegregative housing units in

areas of opportunity The proposal conducted an “opportunity mapping” analysis in the

region to locate high opportunity census tracts The remedy must be regional in scope The remedy must be race conscious The remedial program should be a structured choice model

and voluntary for P.H. residents The remedy must be goal driven, not process driven HUD must consider both vouchers and housing production to

meet the remedy’s goals

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OPPORTUNITY ANALYSIS Use of 14 indicators of

neighborhood opportunity to designate high and low opportunity neighborhoods in the Baltimore region

Indicators of Opportunity (General) Neighborhood Quality/Health

Poverty, Crime, Vacancy, Property Values, Population Trends

Economic Opportunity Proximity to Jobs and Job Changes,

Public Transit Educational Opportunity

School Poverty, School Test Scores, Teacher Qualifications

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African American’s are generally clustered in the Baltimore region’s lowest opportunity neighborhoods

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Subsidized housing opportunities in Baltimore are generally clustered in the region’s lowest opportunity neighborhoods

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FINAL PLAINTIFF’S PROPOSED REMEDY

Plaintiffs propose providing desegregative housing opportunities in the region’s high opportunity neighborhoods to remedy HUD’s fair housing violationsWith the goal of providing nearly 7,000 affordable housing

opportunities in high opportunity communities to public housing residents who volunteer to relocate in ten years

Flexibility in implementation (new construction and vouchers)

Aligned with proposals to provide support services for residents who volunteer for the program

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HUD’S RESPONSE

The judge has not legal authority to impose a remedy, only the ability to recommend a remedy

The remedial proposal is infeasible A regional remedial program is impractical and new housing

production will be too costly The selection of opportunity areas is arbitrary

HUD’s experts arguments Segregation is natural and the result of only income and personal

preference, the government can do nothing about this More African Americans are living in the suburbs therefore segregation

is not a concern in our current society The harms of living in concentrated poverty and the benefits of living

near opportunity structures, are overstated and not provable Too few public housing residents will wish to relocate Mobility based housing programs are not sustainable and “in-place”

strategies are preferable (enterprise zones in urban areas etc.)

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THE CLASS AND SEGREGATION ARGUMENT: WHAT ABOUT LOW INCOME WHITES?

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OPPORTUNITY, RACE AND CLASS

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STATUS OF THE CASE

Remedial phase trial ended in early May of 2006 Awaiting Judge Garbis’s final decision later this year

The HUD/DOJ very likely to appeal Consortium of advocates in the Baltimore region are

starting a campaign to build support for the program and aligning support services for movers

Partial consent decree program is continuing and is very popular

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THE PARTIAL CONSENT DECREE PROGRAM

Approximately 14,000 have applied, smaller scale housing mobility program (which has moved over 1,300 families as of 2008) It places priority on placements in non segregated and

non poor communities Includes rental and homeownership programs, includes

counseling services Also analyzing the number of movers locating to

“opportunity areas” Other changes impacting the Baltimore market

The Foreclosure crisis Widespread foreclosures in Baltimore Creating an additional housing burden

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Initial Moves and Secondary Moves by Thompson Consent Decree Program Participants

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WHAT IF THE BALTIMORE REGION HAD DEVELOPED DIFFERENTLY? According to David Rusk, inclusionary zoning (e.g. the

Montgomery County, MD model of IZ) could have transformed the housing landscape in the Baltimore region (he modeled the impact the ordinance would have had on the Baltimore region) David Rusk’s analysis projected that had Baltimore adopted

inclusionary zoning by 1980, in two decades the region would have produced 15,800 “workforce” moderate income housing units and 7,900 units for very low income households

The majority of these units 90% would have been constructed in the suburban jurisdiction’s in the metropolitan region

The policies could of resulted in the movement of at least 18,500 impoverished residents in Baltimore to non-high poverty suburban areas

It would have resulted in student poverty rates in the City of Baltimore school district to drop from 83% to 53% (as of 2002)

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SUPPORTING REGIONAL HOUSING SOLUTIONSDiscussion

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DISCUSSION: SUPPORTING REGIONAL HOUSING SOLUTIONS What challenges do you anticipate confronting in

implementing regional fair housing programs? How can we address these challenges? How do we deal with the dynamic and fluid nature of housing

markets (how do we address this in program design and housing decisions)

What role should planners play? What is the “public good” and what takes priority?

What’s good for the region? What good for your community? What’s good for marginalized communities? What’s good for the housing industry?

How do you balance these things?

How do planners support change in face of confronting institutional power? Especially in the context of regional decision making or

upholding civil rights concerns?

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