Group Members: Mansha Sadh, Lenny Yeung, Yigal Adhami, Chynelle Menezes

Topic: Gentrification in Crown Heights

Williamsburg is a Brooklyn neighborhood most well-known for its transformation into a “hipster” neighborhood through gentrification. As you can see above, in the short span of five years, the previously run-down and graffiti-covered old factory transformed into a well constructed and nicely decorated 70-room hotel that charges from $335 a night up. Photographer Kristy Chatelain, documented more of these Williamsburg ‘updates’ in her “Brooklyn Changing” collection. Gentrification is not only occurring in Williamsburg, but also throughout other neighborhoods in the outer boroughs, like Crown Heights.

What is Gentrification?

There are many different definitions for gentrification. According to Dictionary.com, gentrification is “the buying and renovation of houses and stores in deteriorated urban neighborhoods by upper- or middle-income families or individuals, raising property values but often displacing low-income families and small businesses.” Meanwhile, in the 2015 report “The State of New York City’s Housing and Neighborhoods” gentrification was defined as “rapid rent growth in low-income neighborhoods” (Abbey-Lambertz, NYU Furman Center for Real Estate and Urban Policies). Though similar, these definitions of gentrification highlight its different aspects. The positive definition from Dictionary.com discusses the “renovation” of “deteriorated” neighborhoods, much like the rejuvenation of the old factory building into a 70-room hotel in Williamsburg. The NYU report’s definition of gentrification focuses on the negative impact of gentrification, which is the rapid rent growth that the increase in property values brings forth. The NYU Furman Center created this definition because they wanted to “focus on dramatic rent growth, which is the change that is of greatest concern in lower-income neighborhoods”, as explained by a faculty director, Ingrid Gould Ellen, of the Furman Center (“Report Analyzes New York City’s Gentrifying Neighborhood”). For the purpose of this essay, we will also highlight the rapid rent growth in gentrifying neighborhood in order to shape a policy that can mitigate the adverse effects of gentrification.

Where is Gentrification Happening in New York City?

Gentrification is concentrated in several neighborhoods in New York City, but most neighborhoods in New York City are already gentrified. In the Furman Center report, New York City neighborhoods are separated into three categories: gentrifying, non-gentrifying, and high income.

These categories are based off the changes in the neighborhood’s median income in 1990. Gentrifying neighborhoods are “those that were low-income in 1990 and experienced rent growth above the median between 1990 and 2010-2014” (Florida). Non-gentrifying neighborhoods are “those that started off as low-income in 1990 but experienced more modest growth than gentrifying areas” (Florida). Higher-income neighborhoods are “those that had higher incomes in 1990 and thus were already gentrified” (Florida). Out of the 55 neighborhoods the report monitored, 60 percent are already gentrified (high income), while 27 percent are gentrifying and 13 percent are non-gentrifying. Due to the huge difference between the number of gentrified neighborhoods and number of those that are in the midst of gentrification, the effects of gentrification in previously low-income neighborhoods are magnified.

Why is Gentrification Happening?

(In a) A study done by Veronica Guerrieri, Daniel Hartley and Erik Hurst found that “poor neighborhoods close to rich neighborhoods experience larger increases in neighborhood income, larger increases in the educational attainment of neighborhood residents, and larger declines in the neighborhood poverty rate than do otherwise similar poor neighborhoods that are farther away from the rich neighborhoods” (Guerrieri, Hartley, Hurst). This explains why most of the gentrifying neighborhoods in New York City are near high-income neighborhoods in Manhattan. Usually the most popular poor neighborhoods have easy transportation access to gentrified areas where lower-income people may work but cannot afford to live. Williamsburg is a great example of this since Manhattan is just a short train ride away.

Once a neighborhood becomes attractive to people, there will be more outside investments. Old buildings will be reconstructed, new buildings will go up, and infrastructure will be fixed or upgraded – all of which makes the neighborhood more attractive. This in turn makes more people want to move in.

Who does Gentrification Involve?

The table above shows that since 1990, average household income has increased for gentrifying neighborhoods and decreased in both non-gentrifying and higher-income neighborhood. “Gentrifying neighborhoods also had the biggest increase in share of residents over the age of 24 with college degrees,” which indicates a trend toward higher education and higher salaries (Abbey-Lambertz). The authors of the Furman report noted that the increase “is driven by educated people moving in, rather than by existing residents becoming more educated” (Abbey-Lambertz). Therefore, there is an influx of young, educated and well-off residents into gentrifying neighborhoods.

Gentrifying neighborhoods have witnessed a “significant racial transformation, losing a large numbers of black residents while gaining a substantial white population” (Florida). Despite “a citywide decrease” of white population, gentrifying neighborhoods have witnessed the inverse, as you can see in the graph above (“Report Analyzes New York City’s Gentrifying Neighborhood”). From 1990 to 2010, the white population in gentrifying neighborhoods increased from 18.8 percent to 20.6 percent (Florida). Meanwhile the black population decreased from 37.9 percent to 30.9 percent (Florida). The data shows that gentrification has a big influence on demographic shifts in those neighborhoods.

Although the overall number of residents below the poverty line has been decreasing, those poor residents still make up a large portion of the gentrifying neighborhoods. However, it is important to note that the supply of affordable housing for those residents is also decreasing. In a Huffington Post article, it is mentioned that “while higher-income neighborhoods have the smallest portion of units affordable to low-income families, the percentage of affordable units declined most in gentrifying neighborhoods” (Abbey-Lambertz). The decline of affordable housing in the gentrifying neighborhoods is alarming to long-time pre-gentrification residents because these residents are mostly low income. The limited amount of affordable housing drives these low-income residents out of their neighborhood without offering many alternative areas to live in a mostly high-income gentrified city.

Why is Gentrification Happening?

Gentrification in New York City is the outcome of a series of new economic and demographic trends. Its roots can also be found in the surge of educated, affluent, younger, and single people headed back to the city (Florida).  This surge can be seen in Crown heights, Brooklyn. In this geographic region, developers began buying land and revitalizing neighborhoods while simultaneously creating condominiums. David J. Maundrell III, the president of aptsandlofts.com states,“It’s a natural progression to move down into Crown Heights after going through Bushwick and then Bedford-Stuyvesant. The land in this area was very reasonably priced at the time, and the rental rates have been pretty solid.”(Gregor) This naturally created a desire for newcomers – especially young, single students and professionals – to inhabit the area. The main goal of these developers is to create luxurious apartment buildings that ranged from $2,000 all the way up to around $4,000 per month (Gregor). Although this is profitable for developers, lower income families and individuals have a hard time adjusting to rent increases and thus, owners are trying to push them out. The owners’ main goal that is perpetuating gentrification is their drive for profit, as they are fully cognizant that someone is always willing to pay a higher price.

Another attractive aspect of Crown Heights is the abandoned and underutilized industrial buildings. As you can see in the image above, Crown Heights has blocks of brownstones and rowhouses as well as many of the elements that make Brooklyn unique and eye catching. Prashant Gopal, writer for Bloomberg.com states, “A surge in Brooklyn home values is fueling rapid gentrification in Crown Heights, where apartment prices are up more than 50 percent from a year ago and rents are rising at the fastest pace in the borough.” Relatively, Crown Heights has become more affordable for the well-off.

This video and a narrative written by two Brooklyn-based authors shows the highly racially diverse and now commercialized perspective of Crown heights. Not only are there more new restaurants but overall there are more places to spend your leisure time like shopping, parks, and recreational activities. The community revitalization is apparent in the bigger houses and museums. Moreover, you can see the mix of cultures such as the West Indian Grocery next to an American cafe. Not only are there more diversified cuisines but in totality there are more high end restaurants and cafes in competition with one another. Business owners, even those adapting to capitalize on changes, are saying that, “rising commercial rent has played a role in pushing out long-standing establishments.” (Rotondaro and Ewing) This increase in gentrification has diversified the community population as well. In the picture below for the street scene in Crown Heights you can see two older African American women walking alongside a Caucasian millennial. Gentrification breaks down bubbles of cultures. This also shows that there is a variety of races and ages for newcomers to Crown Heights.

This transition sentence very confusing. Who is Crow Hill? Also, it needs editing.  Crow Hill was formed in 1984 began in pursuit to revitalize Franklin Avenue in 1999. It worked diligently to, “beautify the blocks, planting trees, removing graffiti, and asking homeowners to install gates instead of iron doors,” (Rotondaro and Ewing) Crow Hill put a strict end to criminal activity which included littering and loitering. “If you look at the people who come to Crow Hill meetings, it’s not the guys who are getting stopped and frisked. It’s property-owning people, often women, often retirees, who’ve been here a long time, and who have very little nostalgia about what the neighborhood used to be.” (Rotondaro and Ewing) This brings an alternative and underlying effect of gentrification to light which is racial discrimination or stereotyping. Overall, the reconstructive beautification of Crown heights as ensued a surgence of a more affluent class moving into the neighborhood. Previous sentence needs editing By 2008, this population included primarily white people, which were still a minority, however they had developed a noticeable presence.

As the summer of 2009 approached, there was a series of  black-on black shootings which disrupted Crown heights. “Concerned residents, local elected officials, and the Crow Hill Community Association made a vigorous, and successful, push to reapply an increased police presence, known in N.Y.P.D.-speak as an ‘Impact Zone.’”(Rotondaro and Ewing) This increased police presence which undoubtedly made the neighborhood feel and eventually become safer. As they patrolled crime infested areas, this paved the way for further gentrification to spread. “With luxury development of that scale already rising, even the most die-hard community activists admit this stretch of Crown Heights may not have a place for low-income residents much longer.”(Rotondaro and Ewing)

Strict land-use regulations, including but not limited to housing and zoning requirements, are accelerating the gentrification process. Moreover, there is a surge in demand for area and housing developers need to respond quickly by building more housing units. (And) In addition, the strict regulations delay these developments thus skewing the market limits and number of units built. This causes supply to stagnate while demand rises dramatically which causes prices to rise artificially. “Capping supply will only cause prices to rise. Instead of newcomers filling newly-constructed units, they will quickly flood the existing stock of housing, quickening gentrification.”(Gonzalez)

Moreover, the potential rezoning plans that do ensue do not have a varied range of income levels, thus residents are not truly able to afford living in those areas. In the areas in which rezoning occurs, most of the lower income levels arise from residents of color, which perpetuates  a systematic discrimination in race as well. Jenny Dubnau, an artist with a studio in Dutch Kills states, “She worries that even if new zoning requires a portion of new units be affordable, it would ultimately create more expensive, market-rate apartments in the process.”(Dnainfo.com)

What has been done already?

One of the most influential policies regarding gentrification is the new wave re-zoning laws. New York City’s zoning laws originated in 1916 (Zoning). The idea was to plan out the city. Through a series of laws, NYC Council was given the power to delegate exactly which plots of land were to be used as industrial, residential, or commercial space (Zoning). In recent years, New York City Council has been working to turn more and more areas into residential areas. One example is the Hudson Yards Project. In January of 2005 Bloomberg was able to rezone the Hudson Rail Yards. Instead of being a holding terminal for MTA trains, Hudson Yards is planned to be the site of 13,000 condominiums and 12 million square feet of office space (Eye). The rapid rezoning of New York City is mainly due to the expected population increase. The New York City Department of Planning estimates that New york City will be home to 400,000 more residents in the next 25 years (City).  In order to provide appropriate and affordable housing for all its residents, New York City has begun to rezone certain areas.

However, many critics argue that the new rezoning policies are encouraging gentrification. According to Metrofocus, Bloomberg was able to enact 115 rezoning projects (Eye). One of the largest rezoning projects took place in the Greenpoint-Williamsburg area. The project led to developers buying the land to, “…build tall luxury condominiums along the waterfront…” (Eye). Critics of of the new rozing zoning plans argue that the new apartments lead to higher rents. This would then lead to people being pushed out of their communities.

To fight against gentrification, many residents are relying on old affordable housing laws. In addition the city has implemented new laws that keep people from being pushed out of their own neighborhoods.  New York City’s affordable housing laws can be traced all the way back to Post-WWII America. One of the oldest NYC housing policies is known as rent controlled apartments, not to be confused with the rent stabilized apartments of the 1970s. By the time the 1980s rolled around, Mayor Edward Koch implemented the the 80/20 describe this the first time it is mentioned split policy. In more recent years, Mayor Bill de Blasio was able to pass his own affordable housing bill.

According to a New York State Fact Sheet, rent controlled apartments were the result of a housing shortage after World War II. The shortage was mostly due to the lack of homebuilding during the depression and the return of World War II veterans. According to Wilson Wyatt, “the federal government’s… Housing Expediter estimated that 3 million houses needed to be built between 1946 and 1947.” (Post). Unfortunately, only 37,000 homes were put up during that time (Post).  

In response to the increased demand for housing among low income and middle class veterans, the city implemented a policy of rent control. The policy only affected homes built before 1947 (New). If an apartment is subject to rent control then the annual rent is determined by the Maximum Base Rent (MBR) system (Division of Housing). This means that the city determines what the maximum rent can be for that specific apartment. Every two years, the rent is reexamined and adjusted to reflect changes in operating costs (Division of Housing). It is important to realize that market costs do not come into play. In New York City, a rent controlled apartment becomes deregulated when the tenant’s income is above $200,000, the MBR goes above $2,700, or the apartment becomes vacant (Division of Housing).

Rent stabilized apartments are often confused with rent controlled units. A rent stabilized apartment must have been built after 1947 but before 1974. Rent stabilization creates a plan for how rent increases. This means that the city takes into account the cost of construction and location of an apartment and uses that to set the initial annual rent. Then the city would determine the maximum annual rent increase. Unlike rent controlled apartments, it does matter if the property becomes vacant. The only way to become deregulated is if the city assesses the apartment to be over $2,800 in monthly rent (Division of Housing).

One of the City’s longest running affordable housing programs that is still active today is known as the 80/20 split. According to the NYU Furman Center, the program was first introduced in 1980 (Directory). The policy is called the 80/20 split because it creates an incentive for developers to set aside 20 percent of their building to low income families (80/20). The rent is then negotiated between the landlord and the city and must not exceed thirty percent of the household’s income (80/20). In exchange for opting into the program, developers are given lower mortgage rates on the building (80/20).

The most recent policy affecting affordable housing comes from the administration of Mayor Bill de Blasio. On March 22, 2016, Mayor de Blasio passed a groundbreaking bill  to combat gentrification in newly rezoned neighborhoods. The bill forces developers to set aside twenty to thirty percent of the apartments within a complex to low income residents. This is different from the 80/20 split because developers no longer have a choice. According to the New York Times, the effects of the new legislation won’t be immediate. However, the de Blasio administration already has its sights on seven soon to be rezoned areas that will fall under the policy (Goodman).

How has gentrification been covered in News and Media?

The news and media coverage of gentrification has generally been negative, focusing on the personal stories of the displaced tenants. The displaced persons all have necessary jobs but do not earn enough income to afford inflationary rent. Their professions range from seamstresses and mechanics to assistants of CEOs. Some have families, others are the remnant of a community that has been driven out with all their childhood friends having moved to East New York or out of the city altogether (Yee).

 

Both homeowners and tenants have suffered greatly from the greed and harassment of developers and landlords. In the Gothamist article titled ‘Gentrification Vultures Are Picking Crown Heights’ Bones Clean,’ long time homeowners or inheritors are regularly harassed with knocks on the door, mail, and flyers imploring them to sell. This experience is repeated over and over, even with rent-controlled apartment tenants. Vaughn Armour, a 17 year resident of Crown Heights and a recent inheritor of his deceased girlfriend’s rent-controlled apartment, was asked to sell the apartment to the landlord even before her memorial service.“She’s not even buried yet, and [the landlord] had the audacity to offer my stepson $5,000 for the apartment,” Armour says. “That is total disrespect.” (Carpentier)

This is a community plight, but more than just sympathizing with those affected, the media draws attention to the predatory practices by landlords. In rent-stabilized apartments with rates below the legal maximum, tenants are sometimes afraid to call 311 to file a complaint against hostile living conditions (leaky pipes, pests, etc.) because the landlord can raise the rent to the legal maximum which may be unaffordable for the tenant. For Robin Taylor, former school secretary and a single mother, a leaky pipe ended up flooding her apartment several times and promoting the growth of mold which exacerbated her health issues. Over the course of four years, the landlord refused to take full responsibility for making necessary repairs as Taylor called 311 and legally (and boldly) withheld rent payments until repairs were completed. In housing court, the judge ruled in favor of eviction after the case lasted several years and she remained homeless for 18 months. Now the apartment is fixed and being rented for a higher rate (Podkul, ProPublica).

Media coverage also spreads the word about tenant efforts to fight back. Community action groups that seek to fight gentrification like Crown Heights Tenant Union, New York Communities for Change, and Real Gentrifiers are highlighted along with information about renters’ rights and initiatives (Carpentier). These groups spread their own reports covering community news, like The Whitening of Crown Heights – How the Bedford Armory Redevelopment Shuts Out Residents of Color.

Most recently, Crown Heights residents protested a deal to develop Bedford-Union Armory, a vacant city-owned armory, into “a mix of market-rate and affordable apartments, as well as offices, community space, and a rec center featuring basketball courts, a swimming pool and an indoor turf field.” (Whitford, Gothamist) The current proposal states 50% of apartments (approximately 165 units) should be affordable housing but critics worry that the large portion of units at 110% of the Area Median Income will put pressure on those in rent-regulated units (see table). Keeping in mind that the 2014 median income for a Crown Heights family of three was $41,867 – $44,961, only approximately 20% of the units will be at a rate that current Crown Heights residents can afford to live in (assuming no household has doubled its income in three years) (NYU Furman).

Residents believe that city land should be developed in the best interests of the residents therefore, 100% of the housing in the former Armory should be affordable and/or the construction project should be turned over to a community-interested non-profit instead of private developer BFC Partners. Recently, the city planned to open another new homeless shelter in Crown Heights but the residents decry that they need more affordable housing, not more transitional shelters without anywhere to transition to. The only person who can advocate for their interests in this proposal is City Councilmember Laurie Cumbo. However, her stance is not firm as she both applauded the project and expressed her concern that the affordable housing is “insufficient.” (Goldenberg, Politico) She would prefer to see the current proposal through and negotiate improvements instead of turning to a community land trust model where buildings cannot be sold for profit for an extended period of time. In April 2017, there was a protest by Crown Heights residents to change her mind. The results of such community efforts (is) are PLURAL yet to be seen.

Solution:

For a smoother transition here, it would be helpful to list problems of gentrification (such as being kicked out) alongside solutions (tenant protections). You’d set these forth, then explain further in paragraph.  

Gentrification is a key factor to New York City’s economic growth and we should let it take its natural and due course, rebranding New York City in order to make it a better place to live. However, the repercussions of it create many disastrous effects that do need solving like market pressures incentivizing landlords to make forceful evictions and displacements, the dismantling of cultural communities, and excruciating increases in rent.

One of the major effects of gentrification is New York City residents being kicked out of their apartments due to the fact that landlords can find tenants who are willing and able to pay higher rent. In business terminology, this is logical because landlords want more profits for the same service. This becomes a problem when landlords start forcing out tenants of rent controlled apartments. In just the past year, NYC landlord, no comma here Steven Croman, was charged with 20 felonies in relation to forcing rent controlled tenants out of their own apartment (Gibson). For landlords to try to force them out of the agreement is unethical and unlawful. One solution we can provide is to enact policies and laws specifically for New York City so that landlords cannot make the tenant’s life miserable by neglecting the maintenance of apartments resulting in tenants being forced to leave due to horrendous conditions. Currently, residents can call 311 to submit a complaint about landlord practices however, their cases may remain in housing court for years while landlords still refuse to maintain decent living conditions. In some cases, the courts still ruled for eviction after years of living in horrible conditions. The government can respond to these calls in a more efficient manner by requesting documentation as proof of harassment or negligence. Law enforcement officials can corroborate with witnesses, use photos as documented proof, and make on site visits.  In extreme circumstances, Landlords will pay for tenants‘ POSSESSIVE temporary relocation. Communities can also create a Tenant Harassment Prevention Task Force which can be responsible for providing legal support for residents who have evidence that their landlords have tried to evict them unlawfully and unethically, not just for profit’s sake, but have actually breached a contract.

Displacement, which is an effect of gentrification, is especially a threat in particularly crowded areas which have convenient transportation systems, job access, and most importantly a flux of minorities. Displacement is especially affecting minority residents and that is primarily due to unethical landlords. These areas have seen an 11%  surge of six-figure household incomes since 2000. Tanvi Misra, from Citilab, also states, “At the same time, the share of residents making less than $100,000 in these parts has dropped by 2 percent. Those who are even further down the income spectrum have increasingly started living in less accessible areas. These far-flung neighborhoods have seen an 18 percent increase in residents who make less than $25,000 annually. This fanning out of poorer, residents of color is well-documented in previous research on gentrification.” (Misra) This research supports our solution because it accurately documents the effects of gentrification on lower-income people, making it more difficult for them to live closer to their work and have a better opportunity for social mobility. It also solidifies our proposal to protect displaced tenants as it truly does happen and is a serious problem. It shows that landlords are taking advantage of tenants who cannot afford to pay higher prices. Simultaneously, landlords are finding better opportunities from higher paying tenants and using tactics to drive lower-income residents out.

In addition to protecting tenants, we believe that it is important to protect cultural landmarks. A major argument against gentrification is that it dilutes the cultural history of the area. According to an article from the Guardian, “much of New York’s residential zones are already built on”, thus developers often have to tear down existing small buildings (Carpentier). Tearing down existing buildings and building up new luxury condominium buildings can change the look and flavor of the neighborhood significantly. Such concerns are expressed by Bomopregha A. Julius define who this commentator is when she says, “Displacement has the direct effect of physically separating cultural communities in disregard to their unique interdependencies.” In response to these concerns, we propose making the application to turn cultural institutions into landmarks much easier so communities can act immediately when they recognize that their neighborhood is losing its culture. Then the Landmark Preservation Committee could visit these gentrifying neighborhoods or attend the community board meetings to find out which buildings should be considered landmarks. After a building or area is considered a landmark, “any new construction or alterations are subject to review by the Landmarks Commission” (Carpentier). The developer’s plan has to be” aesthetically compatible with the neighbourhood” and within the zoning law height limits for new buildings (Carpentier). This may help the neighborhood keep its architectural look which ultimately serves our goal of preserving the culture of the neighborhood for the locals. For instance, the Crown Heights South Association is currently applying for the whole neighborhood of Crown Heights to be a landmark status. Although the evaluation process is relatively long, with the last two steps alone taking 6 months after landmark/historical designation status, it may eventually help preserve the culture of Crown Heights.  Here you make preserving landmarks = preserving culture.  Are they the same thing?  Sometimes landmark status limits the residents, and makes it expensive for them to maintain their buildings affordably

There are many studies and statistics that support our hands off approach. For starters, the Philadelphia Federal Reserve has found out that low income residents are no more likely to move from gentrifying areas than non-gentrifying areas (Gillespie). Indeed, many low income residents push back against leaving by not taking buyouts and prevent developers from taking over their building. Low income residents able to remain in a gentrifying neighborhood can benefit from the changing landscape. Richard L. Cravatts, Phd. argues that “gentrification does not put new pressure on housing markets and create scarcity; and an upgrade in the quality of life in neighborhoods serves as a catalyst for overall growth and development.” This means that new developments would improve the overall community and allow it to grow. He goes on to argue that newcomers have to live somewhere so the demand constantly increases and they will take the homes of lower income residents if developers don’t build new buildings and increase the supply accordingly. Cravatts goes on to say that a concentration of poor communities, “serves as a permanent barrier to neighborhood growth.” This means, that if poor communities are only surrounded by poor communities than there will not be any room for growth. To build a community there must be a positive inflow of money that comes from its residents (Cravatts).

To curb the impacts of Gentrification, we need to unify the communities in New York City as well as gather the government’s support. With this combination, we believe that Gentrification can help New York City rather than divide it.

 

 

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