Protecting affordable housing: Two strategies emerge near Mercedes-Benz Stadium
By David Pendered
Two strategies seem to be emerging around the issue of affordable housing near the Falcons stadium – 1) Give up the neighborhoods and work to keep the name and statue of a Confederate officer out of a planned park; or, 2) Quickly impose public policies to protect current and future residents who have lower incomes.
Clearly, the issue of Atlanta’s dwindling numbers of affordable homes in long-established lower income areas – particularly near the Mercedes-Benz Stadium – is approaching a flash point. Speculators are raising rents and longtime homeowners see the day when they won’t be able to afford property taxes as appraisals increase.
As area resident Pamela Flores said last week at a meeting of the Northwest Community Alliance: “When will [protective] provisions go into effect?” No answer was forthcoming.
Joe Beasley, who is Jesse Jackson’s longtime representative in Atlanta, said the fight is over for affordable housing near the stadium.
“In English Avenue and Vine City, I think the die is cast on this gentrification issue,” Beasley said Monday. “Where black people live has always been dictated by society’s laws.”
The fight is not over for over a proposed statuary park in Vine City, Beasley said.
This is the park that Rodney Mims Cook and the National Monuments Foundation envision as a place for statues. They are to include Cook’s ancestor, Livingston Mims, who joined the Confederate army, reached the rank of major, and later served as Atlanta’s mayor from 1901 to 1903. Another proposed honoree is Yamacraw Chief Tomochichi, who served as a liaison between Native Americans and the arriving British colonists in the 1700s.
“I don’t think Mims earned a place in the park,” Beasley said. “Tomochichi was a disgrace to his people. … The same thing that happened to Tomochichi’s people is the black removal that’s happening now.”
Of note, the stadium isn’t the only magnet for investors in these neighborhoods. Some were rife with investors long before Falcons team owner Arthur Blank announced the stadium in 2012.
Consider three houses south of Beckwith Street from Washington High School, in southwest Atlanta. They are close to the Atlanta BeltLine and Washington Park, which is one of the prime parks along the BeltLine trail.
The three houses have been bundled and were purchased by Colonial Capital, LLC in January for a total of $200,000. They were bundled in 2009 by Vincent Terry, who paid a total of $72,650 for the three parcels – $19,750 for one house; $30,000 for another; and $22,900 for the third house in the assemblage. The three properties have had four owners since Terry, according to Fulton County property tax records.
The second approach in preserving affordable housing calls for providing some sort of tax relief to property owners.
In exchange for tax relief, those owners who rent the homes agree to hold the line on rent; homeowners who participate could have the higher taxes waived until the home is sold, at which time the accrued taxes would be paid.
Georgia Tech Professor Dan Immergluck and graduate student Kevin Mara have suggested a number of these sorts of possible courses of action. They presented their report in April to the Westside Community Alliance, a communications network sponsored by Georgia Tech.
Incidently, Immergluck released a report this month on the stadium neighborhoods that shows some home rental prices this year alone have spiked by 27 percent, on an annualized basis.
The Immergluck/Mara report cited a number of government programs that could be implemented over time. The trouble with many of them is that they expire over time. That means some new initiatives have to be devised. Some examples include:
- Reducing property taxes on properties that provide affordable rents, as has been done in Cook County, home of Chicago;
- Applying city funds to repay a bond sold to establish affordable housing through construction and renovation;
- Deferring property taxes for eligible owners until the dwelling is sold, as is done in King County, Wash.
“There are way to protect low income homeowners in terms of property tax increases, and possibly to protect renters,” Immergluck said.
“If Atlanta had a program like that, like other cities do, you could educate folks to op into the program and they would not be so frightened of losing their home,” Immergluck said. “It creates a sense that they get to benefit from this benefit of development in their neighborhood – they can afford to stay there.”
The time to act is before neighborhoods begin attracting attention from investors, he said. The issue faces all of Atlanta, not just the stadium neighborhoods.
“It’s something we needed at the start of the BeltLine,” Immergluck said. “It takes the edges off the downsides of gentrification and benefits people already there. The point in the [recent research] piece is that this has to be the first thing you think of when you do large-scale interventions.
“Otherwise, speculators are going to swarm into the places before you get a shovel in the ground,” Immergluck said.
Atlanta needs to put some of this strategy in place now!Report
As far as renter protection, why are there no discussions of rent control in Atlanta? If we’re going to even begin aspiring to the levels of density and commensurate diversity of New York and Los Angeles, shouldn’t we be talking about preserving the rents of longtime residents?Report
David: Several points about the article: 1.) what does the name of the park have to do with affordable housing? This is a side issue in addressing the needs for affordable housing in the Westside communities. Why not just call it “PARK” and avoid all of these endless discussions about our history that are ultimately counter productive to achieving the real objective of creating affordable housing for the residents of the area. 2.) Property owners of modest incomes get a $40,000 homestead exemption from the city and county, so if your house is worth $100K market value and has an assessed value of $40,000, which is 40% of market value, you pay no or little in taxes as long as your income is below $40,000. Also, you can get other property tax exemptions as long as you are the owner of the home and over 65 years old. 3.) It costs over $125,000 to deliver a new rental housing unit. If you don’t get rents in excess of $850 per month on that unit you can’t borrow the money to build it because it doesn’t’ cash flow. Creating affordable housing at rents below $850 a month requires some form of subsidy in either the land, the rents (vouchers) or the financing (HUD, tax credits) but limited funds are available in these programs. Solve that issue and you solve the affordable housing question. 4.) How do you get young households to buy and invest in the inventory of vacant and deteriorated housing in the Westend? Many of the initial urban pioneers were badly burned in the Great Recession who made their home in these areas, what will bring them back and ensure that their investment will not be lost a second time? 5.) What were the lessons from the NSP program about the ability to secure dilapidated housing and converting them to affordable rentals and their eventual sale to new homeowners? ANDP could shed lots of light on their experience with NSP. It appears to me we have lots of great examples to learn from, but rather than understanding and absorbing those real world lessons we retreat into our respective corners and engage in the same old name calling.Report
It will require state legislation. State law currently bans local rent control.Report