Thursday, December 9, 2010
YMCA Housing Proposal Hits a Barrier
Not sure of all the details yet, but apparently the YMCA housing proposal is running into trouble. Apparently the issue is a historic gas station (you didn't know such a thing was possible, did you?) that some feel should be preserved.
Wangard Closer to Building in Oconomowoc
Yesterday, the Oconomowoc Common Council approved the final plans for Wangard Partners' Meadows at Prairie Creek. This is not Wangard's first project in Oconomowoc as they previously did the retail shopping center Prairie Creek Shoppes. The proposed apartments will have either 204 units in the first phase, eventually 352 units total or 208 units, depending on who's reporting. Apparently they will be spread out over 12 buildings on either 27.8 or 60 acres, again, depending on who's reporting. (My guess is the site is 60 acres, but the buildings will occupy roughly half of that site.)
What's a bit unusual about this development is that a portion will be financed with Midwestern Disaster Area Revenue Bonds (due to the 2008 floods) which will be issued through Oconomowoc. Essentially the City is arranging for a loan to Wangard through the bonds. With the bonds comes the requirement that 20% of the units will be affordable to people with 60% of the Area Median Income.
Some people would charge, like Alderman Gary Kohlenberg did, that this is a government subsidy. If this is subsidized, it is a developer subsidy rather than a tenant subsidy as those bonds have a lower interest rate, saving the developer money. The bonds just happen to come with strings attached in the form of affordability requirements (just as tax credits do). As Mr. Derosa from Wangard noted, those bonds are no different than the routinely used industrial revenue bonds, and I can't remember any protestations over the use of those.
What's a bit unusual about this development is that a portion will be financed with Midwestern Disaster Area Revenue Bonds (due to the 2008 floods) which will be issued through Oconomowoc. Essentially the City is arranging for a loan to Wangard through the bonds. With the bonds comes the requirement that 20% of the units will be affordable to people with 60% of the Area Median Income.
Some people would charge, like Alderman Gary Kohlenberg did, that this is a government subsidy. If this is subsidized, it is a developer subsidy rather than a tenant subsidy as those bonds have a lower interest rate, saving the developer money. The bonds just happen to come with strings attached in the form of affordability requirements (just as tax credits do). As Mr. Derosa from Wangard noted, those bonds are no different than the routinely used industrial revenue bonds, and I can't remember any protestations over the use of those.
Tuesday, December 7, 2010
Proposed Changes by Walker May Affect Housing
I, when being asked to give a summary of housing-related issues in the state for a paper to be distributed at a conference, never dreamed of saying watch what happens to housing when the Department of Commerce is dissolved. Yet that's what Governor-elect Walker is proposing-replacing the Department of Commerce with a quasi-private economic development agency.
The question is, what happens to the various divisions within the Department of Commerce such as the regulatory oversight and the technical assistance providers. Of particular concern is the Division of Housing and Community Development which administers the various federal and state programs related to housing. To be sure, this Divison was been under the Department of Administration in the past, and there's no reason why it can't be again.
But something that advocates have been talking-in a sort of wishful thinking way-is for the various housing programs that are scattered within the state agencies to be consolidated within one department. If Governor-elect Walker does what he is proposing-replace the Department of Commerce and spin off some of the responsibilities into other Departments, , it might be a good time to advocate for the consolidation of housing programs.
I also wonder, though, wouldn't it simply be easier to expand WHEDA's programs and services? After all, it's already a quasi-private agency, and its title is Wisconsin Housing and Economic Development Authority.
The question is, what happens to the various divisions within the Department of Commerce such as the regulatory oversight and the technical assistance providers. Of particular concern is the Division of Housing and Community Development which administers the various federal and state programs related to housing. To be sure, this Divison was been under the Department of Administration in the past, and there's no reason why it can't be again.
But something that advocates have been talking-in a sort of wishful thinking way-is for the various housing programs that are scattered within the state agencies to be consolidated within one department. If Governor-elect Walker does what he is proposing-replace the Department of Commerce and spin off some of the responsibilities into other Departments, , it might be a good time to advocate for the consolidation of housing programs.
I also wonder, though, wouldn't it simply be easier to expand WHEDA's programs and services? After all, it's already a quasi-private agency, and its title is Wisconsin Housing and Economic Development Authority.
Ghettos of the Mind
Ghettos of the Mind is a line from this article about the redeveloped Regent Park in Toronto.
Many people view it as “if you change the neighbourhood, you change what happens in the neighbourhood" which, I think, has some truth. But it's not that simple. Take people who used to live in housing surrounded by others living in the same circumstances-concentrated poverty- and place them into a mixed-income housing, and some will have difficulty making the transition to a "new normal" as evidenced by the fact that there have been four homicides in Regent Park in two months. But there are efforts.
To their credit, the Housing Authority of City of Milwaukee also seems to have recognized that this is not a bricks & mortar effort alone. I previously discussed some of the programs and services they have for their tenants.
I have been an advocate for more mixed-income housing, although for a different reason. Mixed-income housing makes for more integrated housing for persons with disabilities.
Update: Someone pointed out that I may be scaring some people by talking about crime in public housing and mixed-income housing. I should clarify that this type of dysfunction that was in Toronto and Chicago are extreme examples. Those are in neighborhoods in census tracts of concentrated poverty; the problem is largely related to the additional social ills that come with concentrated poverty. Brookings Institute summarizes concentrated poverty as thus:
The point I was hoping to make was that it is not realistic to believe that shiny new buildings are the answer; there has to be programs and services for people as well.
Across North America, dysfunctional public-housing projects are being razed and redeveloped in hopes of cutting crime. In Chicago, the last residents of the infamous Cabrini-Green have finally been forced out to make way for the bulldozers. Like Regent Park, the new, improved Cabrini-Green will include mixed-income private housing with better lighting, better street patterns, more amenities and better ties to the city. The idea is to transform these blighted ghettos into “normal” neighbourhoods.
Many people view it as “if you change the neighbourhood, you change what happens in the neighbourhood" which, I think, has some truth. But it's not that simple. Take people who used to live in housing surrounded by others living in the same circumstances-concentrated poverty- and place them into a mixed-income housing, and some will have difficulty making the transition to a "new normal" as evidenced by the fact that there have been four homicides in Regent Park in two months. But there are efforts.
The most successful “normalization” project ever launched in Regent Park has nothing to do with bricks and mortar. It’s an all-encompassing program called Pathways to Education, which mentors and coaches secondary-school kids through graduation and beyond, and guarantees them a bursary (college scholarship) if they graduate.
To their credit, the Housing Authority of City of Milwaukee also seems to have recognized that this is not a bricks & mortar effort alone. I previously discussed some of the programs and services they have for their tenants.
I have been an advocate for more mixed-income housing, although for a different reason. Mixed-income housing makes for more integrated housing for persons with disabilities.
Update: Someone pointed out that I may be scaring some people by talking about crime in public housing and mixed-income housing. I should clarify that this type of dysfunction that was in Toronto and Chicago are extreme examples. Those are in neighborhoods in census tracts of concentrated poverty; the problem is largely related to the additional social ills that come with concentrated poverty. Brookings Institute summarizes concentrated poverty as thus:
Poor individuals and families are not evenly distributed across communities or throughout the country. Instead, they tend to live near one another, clustering in certain neighborhoods and regions. This concentration of poverty results in higher crime rates, underperforming public schools, poor housing and health conditions, as well as limited access to private services and job opportunities
The point I was hoping to make was that it is not realistic to believe that shiny new buildings are the answer; there has to be programs and services for people as well.
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