The differential impact of gentrification on communities in Chicago (original) (raw)

2006, Loyola University Chicago Center for Urban …

The cycle of community reinvestment and displacement of low-income residents is a process present in cities throughout the U.S., Europe and other developed nations. It has been well documented in numerous studies (Dreier et al 2001; Nelson 1988; Palen and London 1984; Schill and Nathan 1983; Smith and Williams 1986). Also referred to as gentrification and displacement, it has been the source of considerable policy debate in Chicago at both community and citywide levels. 1 Displacement can also move affected populations further away from the very housing, educational, and employment opportunities that could ameliorate the problems of past social and economic exclusion. A recent study (primarily of Chicago's suburbs) completed by the Leadership Council for Metropolitan Open Communities found that "Households with limited incomes have very few housing options in parts of the region with the greatest opportunities: 87% of the housing affordable to households earning 25,525/yearisin′lowopportunitycommunities′"(Lukehartetal.2005,1).2Theauthorsofthestudyaddthat"BlackandHispanichouseholdsarelocatedalmostentirelyinlowopportunity′communities:9425,525/year is in 'low opportunity communities'" (Lukehart et al. 2005, 1). 2 The authors of the study add that "Black and Hispanic households are located almost entirely in low opportunity' communities: 94% of Black residents and 83% of Hispanic residents live in these communities" (1). This current study of the impact of gentrification different groups of Chicagoans is undertaken at the request of the City of Chicago Commission on Human Relations. In particular, the experiences of different racial, ethnic, and economic groups are examined. 4 Tax increment financing districts (TIFs) are used in Chicago as well as in many other cities and states. Typically, a specific geographic area is defined as "blighted" or in need of economic assistance. Once created, an annual tax revenue benchmark is established. Over the life of the TIF (typically 23 years), any tax revenue received over this benchmark is earmarked for use on TIF improvements. These can include community infrastructure enhancement, building improvements, residential or business construction, or other public benefits such as parks. Close to 30 percent of Chicago currently falls in a TIF (Neighborhood Capital Budget Group 2005) and at 25,525/yearisin′lowopportunitycommunities′"(Lukehartetal.2005,1).2Theauthorsofthestudyaddthat"BlackandHispanichouseholdsarelocatedalmostentirelyinlowopportunity′communities:94329.5 million, TIF district revenues represent one-third of the City's total property tax income (Hinz 2005). More information is available at Neighborhood Capital Budget Group (2005) and City of Chicago (2005).