Why Fair Housing Matters For Regional Economic Prosperity Danielle Bergstrom, Program Associate, PolicyLInk Jason Reece, Director of Research, The Kirwan Institute for the Study of Race & Ethnicity Southeast Michigan Fair Housing + Equity Summit Detroit, MI 11 December 2013 2 Introduction PolicyLink Mission PolicyLink is a national research and action institute advancing economic and social equity by Lifting Up What Works.® Our Work Founded in 1999, PolicyLink connects the work of people on the ground to the creation of sustainable communities of opportunity that allow everyone to participate and prosper. Such communities offer access to quality jobs, affordable housing, good schools, transportation, and the benefits of healthy food and physical activity. The Kirwan Institute: Solving Problems & Building Opportunity 3 Introduction Why Equity Matters Now The face of America is changing. Our population is rapidly diversifying. And By 2042, we will be a majority people-of-color nation. The fate of the nation hinges on how we invest in communities of color. As the country witnesses new extremes of inequality alongside the emergence of a new people‐of‐color majority, equity has become an economic imperative as well as a moral one. The way forward: an equity-driven growth model. To secure America’s prosperity, we must implement a new economic model based on equity, fairness, and opportunity. Regions are where this new growth model will be created. Regions are the key competitive unit in the global economy, and the level where strategies are being incubated that bring about robust job growth that is linked to low-income communities and communities of color. 4 Economists are finding a correlation between economic and racial inclusion and regional economic growth. Manuel Pastor, “Cohesion and Competitiveness: Business Leadership for Regional Growth and Social Equity,” OECD Territorial Reviews, Competitive Cities in the Global Economy, Organisation For Economic Co-Operation And Development (OECD), 2006. Manuel Pastor and Chris Benner, Been Down So Long: Weak-Market Cities and Regional Equity Retooling for Growth (New York: American Assembly and Columbia University, 2008). 5 Introduction Inequality is Bad for Sustained Economic Growth Source: Andrew Berg & Jonathan Ostry, International Monetary Fund 6 Economists have found that racial segregation and income inequality impedes economic mobility. Raj Chetty, Nathaniel Hendren, Patrick Kline, Emmanuel Saez, “The Equality of Opportunity Project,” University of California Berkeley and Harvard University, 2013. Why Does Fair Housing Matter: Because Place Matters in Profound Ways “Point to a group of toddlers in a low-income neighborhood, and — especially if they’re boys — they’re much more likely to end up dropping out of school, struggling in dead-end jobs and having trouble with the law. Something is profoundly wrong when we can point to 2-year-olds in this country and make a plausible bet about their long-term outcomes — not based on their brains and capabilities, but on their ZIP codes.” Nick Kristof, “For Obama’s Second Term, Mr. President Start Here”. New York Times. January 23rd 2013 Thriving Neighborhoods = Thriving Children Struggling neighborhoods = Struggling Children Neighborhood conditions and childhood development are intricately intertwined Opportunity structures are vital to combating the impact of poverty, creating strong neighborhoods and an environment in which children can become successful adults. Confronting the “wicked triangle” (family poverty, neighborhood poverty, broken opportunity structures). Fair Housing, Place & Health 10 Introduction Segregation is Bad for Economic Mobility Detroit: 5.1% 11 Context The Region is Growing Increasingly Diverse Percent Change in People of Color by Census Block Group, 2000 to 2010 12 Context Sprawl Continues to Exacerbate Regional Inequity Average Travel Time to Work by Census Tract and High People of Color Tracts, 2006-2010 Typical Neighborhood Conditions for Various Racial Groups: Detroit Metro Area (Source: Brown University) Neighborhood Unemployment Rate Neighborhood Vacancy Rate 30 20 25 15 20 10 15 10 5 5 0 White African American Latino Asian 0 White African American Neighborhood Poverty Rate 30 25 20 15 10 5 0 White African American Latino Asian Latino Asian Neighborhood Opportunity Index: Detroit Metro Area (Source: The Kirwan Institute) Supported by the Kresge Foundation Neighborhood Opportunity Index & Racial Isolation: Detroit Metro Area (Source: The Kirwan Institute) Supported by the Kresge Foundation 16 Moving Forward Advance Fair Housing as an Economic Growth Strategy Expand mobility options in higher opportunity neighborhoods - Focus on reducing barriers to affordable housing (zoning, parking requirements) - Establish affirmative marketing programs for low-income and people of color - Allocate transportation funds to jurisdictions that reduce barriers to fair housing - Focus transportation funding on transit to connect workers to job centers and schools Reinvest in high poverty communities - Create strategic reinvestment plans for high-poverty communities that leverage public, private, and philanthropic dollars - Build partnerships with community organizations and residents to prioritize highest need investments - Be dogged about measuring people and place-based outcomes of programs and funding to ensure that they are directly benefitting low-income communities of color Investing in People Investing in Places Supporting Linkages People, Places and Linkages: A Broader View of Fair Housing & Equity Asset & Wealth Building Vacant Land Redevelopment, Land Banking & Blight Removal Assuring Housing Mobility Through Regional Housing Strategies K 12 School Reform Community Land Trusts & Housing Stabilization Supporting Fair Housing Enforcement Magnet Schools Community Development & Infrastructure Investments Supporting Inclusionary Housing Development Civic & Youth Engagement Coordinated Service Delivery for Service Providers & Organizations Developing Transit Infrastructure Mentoring & Leadership Training Foreclosure Prevention Pedestrian & Bicycle Infrastructure Investments Job Training & Labor Force Development Small Business Development & Business Incubation Supporting Strong Professional & Business Networks Reentry Programs for Ex Offenders Community Health Investments & Fresh Food Initiatives Transit Oriented Development Early Childhood Care & Education Services Improving Infrastructure and Open Space Bus Rapid Transit Systems Family Supportive Services Community Crime Prevention & Supporting Safescapes Developing Regional Greenways & Non Motorized Paths Fair Housing & Our Society’s Health & Well Being: Raising Awareness of our Interdependence We are all caught up in an inescapable network of mutuality, tied in a single garment of destiny. Whatever effects one directly effects all indirectly. The Rev. Dr. Martin Luther King, Jr. -Letter from a Birmingham Jail, 1963 18 19 Contact Information Danielle Bergstrom PolicyLink danielle@policylink.org 510-663-4389 Jason Reece The Kirwan Institute for the Study of Race & Ethnicity Reece.35@osu.edu