Of Gentrification on Communities in Chicago (original) (raw)
Related papers
The differential impact of gentrification on communities in Chicago
Loyola University Chicago Center for Urban …, 2006
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).
2015
In January 2009, the East-West Gateway Council of Governments (EWGCG) issued an interim report assessing the effectiveness and fiscal impacts of the use of local development incentives in the St. Louis region. In that report they concluded that among the massive tax expenditures over the past twenty years (approximately $1.3 billion in tax commitment to tax increment financing (TIF) projects alone), there had been little real growth associated with that public investment over the long term. The report went further to conclude that the overwhelming majority of that investment focused on retail expenditures and that while in the short term, retail development generated considerable local revenue, in many places in the long-term the regional fiscal benefits were much more questionable. As another case in point, according to a 2005 St. Louis Metropolitan Forum analysis of the 2002 Census of Governments’ statistics for the region, 17% of the regional municipal tax revenue (23% on the Mis...
Urban Studies, 2013
Chicago uses tax increment financing (TIF) to promote economic development to a greater extent than any other large American city. This paper conducts a comprehensive assessment of the effectiveness of Chicago’s TIF programme in creating economic opportunities and catalysing real estate investments at the neighbourhood scale. This paper uses a unique panel dataset at the block-group level to analyse the impact of TIF designation and investments on employment change, business creation and building permit activity. After controlling for potential selection bias in TIF assignment, this paper shows that TIF ultimately fails the ‘but-for’ test and shows no evidence of increasing tangible economic development benefits for local residents. Implications for policy are considered.
Chicago uses tax increment financing (TIF) to promote economic development to a greater extent than any other large American city. This paper conducts a comprehensive assessment of the effectiveness of Chicago's TIF programme in creating economic opportunities and catalysing real estate investments at the neighbourhood scale. This paper uses a unique panel dataset at the block-group level to analyse the impact of TIF designation and investments on employment change, business creation and building permit activity. After controlling for potential selection bias in TIF assignment, this paper shows that TIF ultimately fails the 'but-for' test and shows no evidence of increasing tangible economic development benefits for local residents. Implications for policy are considered.
Capacity Building for Neighborhood Development. An Analysis of the Chicago Approach
1994
Recent urban redevelopment efforts in Chicago (Illinois) have often come at the expense of current low-income residents as upscale living replaces businesses and homes and raises rents. Local Community Development Organizations (CDOs) offer an alternative path to economic development by being a foundation for neighborhood efforts that meet the needs of community residents. Resources for CDOs come from a variety of sources, chief among them being the public sector and the Federal government. Data for Chicago show that funding for neighborhood-level economic development activities in Chicago has been relatively meager, because of both competing interests in the city budget and a lack of Federal commitment to rebuilding the inner city. Data also show that the economic neighborhood development resources expended through the City of Chicago's corporate budget are concentrated in high-income areas. This report highlights neighborhoods that should receive greater levels of support for economic development. If sufficient proposals have not come from these communities, the City, foundations, and civic organizations should take the lead to create and assist CDOs to generate development. Five appendixes provide tables of data about neighborhood development. (Contains 2 tables, 5 maps, and 20 appendix tables.) (SLD)
The death and life of Tax Increment Financing (TIF)
Property Management, 2014
Purpose – The purpose of this paper is to draw out interesting nuances and lessons when using a Tax Increment Financing (TIF) model in San Francisco given the abandonment of California's redevelopment agencies (RDAs) created via TIF funds. Design/methodology/approach – This research is based on secondary literature review, desk-based study and primary interviews with professional interviewees that have been heavily involved in TIF projects in San Francisco over the last decade. Findings – The abolition of the RDAs in California may be inadvertently cutting-off the principal supply of funds for redevelopment that includes much needed affordable housing. Originality/value – Reflective lesson learning for the management of land and property development in the USA and UK. Particularly with respect to funding mechanisms and agencies that can implement and develop affordable housing.
Low Income Housing Tax Credits and Neighborhood Change: Case Study of Three Projects in Indianapolis
In this research neighborhood change is explored through the study of three neighborhoods in Indianapolis that accommodate Low Income Housing Tax Credit projects. Specifically, this research focuses on the quality of life indicators between 1990 and 2010. The case studies show that in addition to the presence of the LIHTC units, the location of the neighborhood and the presence of revitalization projects were key to explaining the observed trends. Unity Park and West Indianapolis neighborhoods experienced positive changes (increase in median household income, increase in property value and higher educated residents) while the third neighborhood where Hanna Village is located, a suburban project, was exposed to more negative changes (increase in poverty and unemployment among its residents and decrease of real median household income) since the LIHTC project was implemented.
1991
This dissertation is dedicated to my wonderful husband Marc, whose steadfast support was paramount to my success, and to my daughter Fay, who can now call me "Dr. Mommy". ACKNOWLEDGEMENTS I wish to thank my dissertation chair, Dr. Mark S. Rosentraub, for providing consistent and sage advice throughout this entire process, and saving my academic life. I would like to gratefully acknowledge Dr. William M. Bowen. Words can not fully express the deep respect, admiration and gratitude I feel for having had the pleasure of learning from him throughout my time in the program. I wish to thank Dr. Julia Beckett, whose comments and perspective were instrumental in the formulation of this final document. I want to acknowledge what an honor it had been to work with the faculty, staff and students of the Maxine Goodman Levin College of Urban Affairs, especially Dr. Roberta Steinbacher. Such a supportive environment has been instrumental to my success.
Do Tax Increment Finance Districts Stimulate Growth in Real Estate Values?
Real Estate Economics, 2011
We use data on all Wisconsin municipalities during the period [1990][1991][1992][1993][1994][1995][1996][1997][1998][1999][2000][2001][2002][2003] to study the effect of tax increment finance (TIF) on economic development. We use appropriate statistical techniques to measure the impact of TIF and control variables on aggregate property values. We also examine the possibility communities that use TIF are self-selected. We find little evidence that TIF has led to significant increases in aggregate property values or that TIF increases the total value of residential and manufacturing property within a community. Surprisingly, we find positive impacts for commercial TIF districts.