Loading...
HomeMy WebLinkAboutItem #09 - Discussion Itemr~. ----------------- Joseph R. 3rassie City ' ahager '11 JUL 22 AM 9: IS ■ Richard L. Fosmoen, Director Plahhing Department July 191 1977 Housing and Neighborhood 1thp2-oVement Workshop For some time the Planning and Community Development staff has been working on a set of issue papers which will form the basis for a possible 4th year CD project of neighborhood conservation and rehabilitation.;s a prelude to specific recommendations I would like to present to the City Commission a brief background report on some of the City's major housing issues at their July 28th City Commission Committee of the Whole meeting. '4aterials are currently being prepared and will be distributed at the Committee of the Whole meting. HOUSING ISSUE PAPER #1 MIAMI'S HOUSING PROBLEMS: AN OVERVIEW IntroduC:tion City of Miami residents, aware of the housing problems affecting low and moderate income households, passed a $25,000,000 Housing Bond Issue to help provide safe and sanitary dwelling units to those unable to satisfy their housing needs under normal (unsubsidized) market conditions. As housing costs out -pace changes in disposable income, Miami's housing problems will not only remain but will become aggravated unless the City, in coordination with the private sector and other governmental entities, develops strategies and programs to insure the best use of its present and future housing stock. The Housing and Residential Neighborhood Element of the City of Miami's Ccirrehensive Neighborhood Plan, 1976-1986, provides the first step in the development of a com- prehensive housing and neighborhood treatment strategy. This series of Housing Issue Papers being developed by the Planning Department will update, refine and complement the findings and recommendations contained in the MCV'P. With a clearer understanding of the issues and the alternatives available, the City will be better able to develop an effective housing treatment strategy which makes the best use of all available resources. HOUSING ISSUE PAPER #1 MIAMI'S HOUSING PROBLEMS: AN OVERVICW The purpose of the first Issue Paper is to provide a general understanding of the Trost pressing housing problems which exist in the City of Miami. This initial in- formation base is a pre -requisite to the development of a meaningful housing strategy. Housing programs have been developed in the past to deal with physical deterioration of the housing stock. More recently, program developers have come to realize that housing problems are a result of a gap between the characteristics of the existing units, the condition of the neighborhood in which they are located and the needs of the people who demand housing services. Within this context, a housing problem can result from one of the following situa- tions: 1. A structurally unsound housing unit (deterioration). 2. A structurally sound unit which does not provide appropriate shelter to its users because of its high cost (overpayment) or small size (overcrcwc' i ng) . A structurally sound unit in which there is no overcrowding or overpayment, but which is located in an unsuitable living envi- ronment (neighborhood). betet ioration T'k independent windshield surveys have been conducted to determine the condition of housing stock in the City of Miami. The first was a cursory survey designed to update and spot-check the Community Improvement Program's Blight Survey, a 1970 housing survey for Dade County. The second windshield survey is a land use survey for the City of Miami conducted in 1975 by the Planning Department which resulted in a more refined data base to measure housing conditions. The result of the City's Land Use Survey indicated the following distribution of housing units by condition (see Appendix A): Condition Number A (good) 100,313 S (needs minor repairs) 22,068 C (needs major repairs) 10,342 D (dilapidated) 2,946 Clearly, housing condition is not the City of Miami's main housing problem. With 9.8% of the units in need of major repair or dilapidated, the City enjoys a substantial advantage relative to the great majority of American cities, many of which have a much older and, therefore more deteriorated, housing stock. Nevertheless, over 34,000 units within the City are either suitable for rehabilitation or need to be demolished because rehabilitation is economically infeasible. Without close attention to the structural problems of the housing stock, deterioration will continue in those units which are presently in need of repair but capable of being rehabilitated, and it will begin in many of those units which are presently in good condition. This process of accelerated decline is and will become more acute in low and moderate income areas where household income levels are not high enough for pri- vate rehabilitation and improvement efforts to occur. -3- t addition, although the City of Miami has a basically sound housing stock, the problems of deterioration and dilapidation are concentrated in certain areas of the City (Appendices C & D). This level of decay, in conjunction with other problems (income, neighborhood condition) will determine the type and intensity of treatment each particular neighborhood requires. (A further discussion of neighbor- hood treatment strategies will follow in the next issue paper). Overcrowding Overcrowding is defined as an inadequacy of internal shelter space to meet the needs of its users. The standard unit of measurement, as recorded by the U. S. Census, is any house in which there is more than one person per room. The population of Miami between 1960 and 1970 experienced significant changes due primarily to the Cuban in -migration and changes in the age distribution of the popu- lation. In contrast to national and regional trends during this period, the median household size increased from 2.64 to 2.73 persons per household. However, during the same period the median size of dwellings in Miami decreased by 10% from 3.9 to 3.5 rooms per unit. These two conflicting trends are responsible for furthering the problem of overcrowding. Between 1960 and 1970 the number of overcrowded units increased by 122%. Whereas in 1960 approximately 10% of the housing stock was over- crowded, today the percentage has doubled. Overcrowding is one of the most severe housing problems in the City of Miami. While local structural housing conditions compare favorably with nationwide distributions, overcrowding in Miami is almost three times as high as the national average. Over- crowding is particularly acute in areas of low and moderate income Latin concentra- tions such as Little Havana, Allapattah and , Inwood, and score of the lowest income Black areas such as Culmer and parts of Model City. (See Appendices C & D). 1111 The problem of overcrvwaing in Miami, as in the rest of the United States, is directly related to income (i.e., the inability to pay for shelter large enough to adequately accommodate user space requirements). Nevertheless, the massive influx of Cuban population since 1960 brought about three changes in Miami which contributed to the severity of the current problem, making it a distinctive and unique local situation. First, Cuban migration in the sixties represented an increase in housing demand that was unmet by increases in housing production. From 1960 to 1970 Miami's population increased by 15% while the housing stock only indicated a 9% growth rate. This disparity is evident in the change of vacancy rates fLom 10.1% in 1960 to 2.5% in 1970, a level which is unacceptably low for efficient market equilibrium to occur between supply and demand without causing undue problems of overcrowding, overpayment and restricted mobility. Second, Cuban households are substantially larger than the American households they replaced as they moved into the existing housing stock. In 1960, when the majority of Miami was composed of non -minority Whites, nraian household size was 2.64 persons. In 1970, the median household size for Latins was 3.34 persons. Thus, in the sixties Miami experienced not only increased housing demands unmet by new production, but the utilization of its housing stock by families larger than the ones the houses were originally intended to accommodate. Finally, the family life-style of the new Cuban migrants differed from the one exist- ing in Miami. While the nuclear family was basically the only form of family living unit in the area, the Latins brought extended families which often resided in common quarters. Although related to the income level of the migrant, the extended family is also a cultural phenomenon which still remains today. As such, p.rt of the over- crowding "problem" is not a matter of necessity but of choice. -5- • • 1 Closely related to the problei of overcrowding is overpayment for housing, Criteria for overpayment is more than 25% of the monthly income for rental housing or more than twice the yearly income for owned housing. While little reliable data is avail- able to pinpoint the problem, it can be assumed that inflationary pressures combined with Miami's high cost of housing has forced many residents to over -extend themselves in securing housing. As evidence, median rents in Miami increased faster than the median income -- 47% as compared with 35% between 1960 to 1970. While the increase in median value of owned units was somewhat slower in the sixties, a precipitous in- flationary period for single family housing occurred during the early 70's. Costs of housing in the City of Miami are somewhat lower than for the metropolitan area. In 1970, Miami have values, according to the U.S. Census, averaged $16,720 or 87% of the metropolitan average. Similarly, average rents for the City were $114 or 84% of the metropolitan average. Although housing costs are somewhat lower in Miami, income levels are even lower, representing only 79% of the 1970 Dade County median income. Thus, overpayment for housing has been more critical in the City of Miami than for the region. Indications are that housing costs continue to rise faster than income, thus worsen- ing the overpayment problem. Recent data corroborates this trend. Since 1970, the average price of new homes sold in Dade County increased from $32,000 to $52,000 (62.5%); for used homes from $26,350 to $47,500 (80.3%); and, the price of condomin- iums from $26,300 to $40,500 (54%) -- (see Appendix E). Average County rents in- creased from $136 as recorded by the census in 1970 to $276 in 1976. (Appendix: E). The ift lications of this trend are clear. With an estimated median family incotte for a family of four of $11,300 for the City of Miami and $14,000 for Dade County (1976), over 50% of all families would be excluded from buying a new or used home, unless they have built a substantial amount of equity and/or are willing to assume an undue level of housing expenditures. In the rental market, a family or household would need to earn over $13,250 to lease, without overpayment, a unit at the average market rent. Again, well over 50% of the families in Miami earn less than this base figure. A high rent/income ratio has severe implications to the maintenance and upkeep of the existing housing stock. As households, especially those of low and moderate income, reach their maxima possible income allocation toward housing, increased MO maintenance costs required to keep the housing stock in good repair become prohibi- 11 tive. Therefore, rehabilitation and improvement efforts will not only necessitate 1111 sacrifices from residents with lirdted resources, but will also need public assistance in the forms of loans, grants, and rent and mortgage subsidies. The problem of overpayment is particularly acute in all low income areas. But, unlike overcrowding and deterioration, many of the middle income areas within the City are faced with this problem. (See Appendix D). Neighborhood Environment This last major housing problem can cccur even when an individual unit is not dete- riorated, or overcrowded and the occupant is nct paying over 25% of his income for shelter. Neighborhood environment refers to a whole array of factors which affect the immediate life situation of a housing user. As opposed to the specific dwelling unit which he/she occupies, individual owners and renters have little control over their neighborhood environment. Neighborhoods which are economically, socially and physically deteriorated usually Captain a combination of conditions detrimental to the life of its inhabitants. The concentration of poverty and physical decay tends to breed a series of social Maladjustments resulting in high crime rates, low educational levels, drug related problems, juvenile delinquency, broken hoes, and a number of sanitary, health and psychological problems. In addition, areas of concentrated deterioration are almost invariably faced with what has been referred to as "the prisoner's dilemma", where individual property owners and users shun any investment efforts due to the level of decay of the surrounding property and environment. This disinvestment mentality, arising from a negative perception of the existing condition of a neighborhood and its future is perhaps the most important single consideration in developing treat- ment strategies for highly deteriorated areas. A great majority of rehabilitation programs utilized in problem areas such as these have failed in other cities because of a lack of understanding of the neighborhood's market and investment dynamics. Each area of concentrated deterioration differs according to the specific type and intensity of the environmental problems it contains. In Miami, portions of Culmer, rbdel Cities and Coconut Grove have reached levels of decay which constitute unsuit- able residential environments. Nevertheless, actions can be taken to improve the economic and physical conditions of these areas. A separate issue paper will deal in greater detail with types of neighborhoods and their recommended treatment stra- tegies. Scope of the Problem The City of Miami as part of its third year Community Development Application sub- mitted to the Federal Government a Housing Assistance Plan which assesses the housing needs of low and moderate income households. Using the most recent available infor- mation, it was estimated that 68,056 households in the City of Miami had incomes -8- below 80% of the County median, a proportion used by the Federal Government ih defining low and moderate income households eligible to receive some form of housing assistance. Of these low income households, 54,444 were estimated to be experiencing one or more forms of housing deprivation: Living in substandard conditions, living in overcrowded conditions (over 1.01 persons per room) or paying over 25% of their income for housing. This figure represents 42% of all households residing within the City of Miami. Housing deprivation in the City of Miami is more severe than for the region, as the City contains both an older housing stock and a poorer population base. The segments of the population which are most affected by housing problems include renter, female - headed, elderly and minority households. (Appendix F). The geographic distribution of housing need is shown in Appendix D and will be further discussed in a separate issue paper. Causes: An Overview A brief review of the most important factors causing the present housing conditicns will be useful in providing a clearer understanding of the situation and the issues involved. Incone, or lack thereof, is at the root of all housing problems. In a free enter- prise market economy housing is perceived as another consumer (,o.d. The bundle of services supplied, their quality, size and location are the result of the effective demand of housing consumers. With buyers and renters bidding for the best housing stock within their incu,_ ranges, the poorest segments of the population, without public assistance, are left with the most deteriorated housinc7. The market merely adjusts the type of product offered to the buying power of the consumers. 1 ffi larly, the level of upkeep and maintenance once the units have been contracted for are directly dependent on the income of the users. In the case of a homeowner, the amount of money he will be able to set aside to maintain his home in good repair is a function of the income he receives and his other non -housing expenditures. In rental property, maintenance depends on the income flow produced by monthly rents. Almost invariably, low and hard to collect rents and the location of buildings in economically depressed areas are accompanied by maintenance reductions which allow landlords to maintain an economic rate of return. The alternatives available to low income households faced with a shortage of financial resources are the same as the problems previously discussed: a) to live with some level of deterioration; b) to Trove to better quality but smaller units and experience some degree of overcrowdina; c) to over -extend themselves in housing expenditures; or d) to find neighborhoods which offer fewer amenities and therefore lower rent struc- tures. Miami, being Dade County's inner city, has experienced the pressures of reduced dis- posable incomes more than the rest of the region. As was previously stated, the 1970 median family income in the City was only 79% of the County's median. The problem seems to become aggravated as the City becomes a receptor of only the rich and the poor. A direct result of this trend has been the increased levels of deterio- ration, overcrowding and overpayment that Miami is currently experiencing. In addition, as single family homes become too expensive to upkeep, and as the middle and upper income households migrate to other parts of the region, the level of homeownership, one of the most important community stabilizing factors, declines. 47% of Miami's households awned homes in 1960, by 1970 the proportion had decreased to 35%. tiadequate income levels are aggravated by the enormous increase in housing Costs experienced in Dade County since 1970. As we indicated previously (see Appendix E) costs for all types of housing have sky -rocketed in the past few years. Between 1970 and 1974, average household effective buying income rose 6.4% in Dade County. Housing prices, however, increased some 50% during the same period. Similarly, national trends indicate that costs associated with the maintenance of housing units have outpaced both the disposable income of the population and the income derived flow rental units. This trend, which probably holds true for Dade County, implies a reduced level of maintenance as landlords make adjustments to continue an acceptable profit flaw. The age of structures also has a direct bearing on the level of housing decay. The process of housing decline can be temporarily stopped and the life cycle of a house can be extended for long periods of time with proper and timely maintenance and re- habilitation efforts. Nevertheless, with age, the expenditures needed to adequately maintain a house increase. At the same time, through the filtering process, upper income households rove from the older and many times obsolete structures to newer and more functional units located in other sections of the community. Households of a lower income level then begin to occupy the stock ;.which is left behind. This mismatch between the houses that need the greatest care and the persons who can least afford maintenance expenses accelerates the rate of deterioration of the housing stock. Compared with the housing stock in the South Florida Region, Miami's housing is relatively old. In 1970, 30% of Miami's housing was more than thirty years old. Only 15% of Dade County's housing was in this category. Included in Miami's portion of ET - the housing stock are those remaining wood frame dwellings particularly susceptible to deterioration. MC- idome, cost and age of structures are the most critical determinants of housing condition and its rate of decline. In addition to these factors, several tradition- al theories* explaining the existence of substandard living conditions apply to the local market. A brief description of these is offered to complete our understanding of the housing problems and the issues that must be tackled in developing viable treatment programs. Certain external effects (increased dirt or noise from neighborhood industrial or retail firms) cause a decline in demand for affected area, causing price decline, under -maintenance and quality deterio- ration. The housing market's prisoner's dilemma is described as the phenomenon in which it is profitable for an owner to improve or maintain his building quality only if all the buildings in the neighborhood are improved. If he proceeds alone he will have a large investment and little increase in rents -- his rate of return will fall. In an open market, the obstacles to coordinating the improvement of all buildings in a neighborhood lead to an increase in the supply of low quality housing. The prisoner's dilemma will become of crucial importance in the selection of improvement and rehabilitation areas, as it implies that in order to be successful an effort at improving neighborhood conditions must include comrutrrents from a substantial proportion of the property owners in the area. * Pynoos, Schaefer & Hartman, Housing Urban America, Aldine Publishin Chicago, 1975, p. 207 -12- tft recital markets serving fa-nilies with relatively high income levels, general price inflation and swollen operating costs usually have been acconpanied by higher property values, so that entrepreneurs look to capital gains and accompanying tax benefits for profit. By contrast, property owners in the low to moderate income rental housing market tend increasingly to take profits out of current rental receipts. This puts an additional squeeze on the often limited rental income, causing decreased maintenance and increased deterioration*. nigher interest rates (as is the case in today's market) or the unavail- ability of loans on property in declining areas (red -lining) increases the number of low quality housing units as maintenance becomes prohibi- tive to households of low and moderate income. Federal income tax laws on depreciation of residential real estate create incentives for retaining a building (especially rental property) in the housing stock beyond its useful life. Depreciation fosters turnovers that extend the building's existence without comnensating renovation. As a result, the number of low quality housing is increased. -- Local property tax policies discourage renovation and maintenance by increasing the assessed value of a property when it is rehabilitated. -- Premature rezoning of land to higher densities has in many neighborhoods led to deterioration of the housing stock. In many cases rezoning has led to higher land costs and speculation. Even though a change in land use has not occurred, often it has resulted in the expectation of conver- sion to higher densities which in turn has led to disinvestment in the existing housing stock. * Norton _sier, Thinkina About Housing, The Urban Institute, Washington, D. C., 1970 -13- Snary and Conclusions The principal housing problems experienced by the City of Miami are deterioration, overpayment, overcrowding and the presence of unsuitable residential environments. Of those, overpayment and overcrowding are the most severe problems, showing no signs of abatement as housing costs continue to outpace increases in the level of disposable income. The problem of overpayment in particular is extending to many of Miami's middle income neighborhoods. The City of Miami has an undue concentration of housing problems in comparison with the rest of the South Florida region. In 1970 Miami's median family income was only 79% of the County's median while average local rents and home values represenficr1 84% and 87%, respectively, of the County average. A total of 55,444 low income households -- 42% of all households -- were suffering fLUm some form of housing depri- vation. Although the causes of housing decline are many and complex, three factors are prin- cipally accountable for the present market conditions: Low income levels, increased housing costs and age of structures. Sharp increases in housing costs in recent years unmatched by income increases are the single most significant determinant of Miami's housing problems. Age of housing in Miami, which compares favorably with the national housing stock but unfavorably with the one for the region, will continue to be a problem, particularly if investment in upkeep and rehabilitation does not occur at the early stages of decline. The first issue paper has attempted to provide a general but informative overview of the housing problems found in Miami, together with a brief analysis of the factors responsible for the existing conditions. This initial document also raised and explained several housing related issues which need to be understood before appropriate treatment strategies can be developed. -14- ■ ■ ■ MIAMI'S HOUSING PROBLEMS: AN OVERVIEW CLASSIFICATION ~.- IN*r'«,11" J\ - Good s .� B ~,Needs Minor Repairs D ~ Di1omidated� -`.� fO� OF 8OUGI0Q_Cg0 CITY OF MIAM1 1975 DESCRIPTION All basic structural elements are adequate. Roof, walls, foundations, and load -bearing elements have no defects. All non -critical exterior elements such as chimneys, porches, doors, windows, eaves and trim are not de- fective. Minor maintenance such as exterior painting should not lower the condition classification. All basic structural elements are sound. Roof, walls, foundations and loadbeariug elements have no defects. Replacement or repair of trim, cornices, eaves, gutters, windows, doors and other non -critical ele- ments may be required. U� This category is similar to the above clas- sification except that there are some lim- ited defects to the basic structural ele- ments. Extensive repairs for several non- critical exterior elements may also be required. o . « _ Structures characterized by extensive otruo-�-� __ tnzal defects to the roof, walls, foundation — or loadbeariog elements. Combinations of N��| several limited defects indicate infeasi- bility or rehabilitation and require clearance. � � � 48 —_ 5802 58.01 0' 2700' 5400' 1 1 SCALE e100' 1501 W 1901 „ sT 15.03 aoa is rT 112 If rM51902 I e.sr 2002 18.01--r- 1 e.o2 i NA „ „ 22 02 122 01 Si 23 Wif 1t,01 : 1702 1803I .2 i at 17 03 24 25 r26 1 - r tl !1 1 ) 1 • 1129 :29 sr :I 7021 "1 :02sr :1'5�) r ` - - •/ 3702 `134 - 5501 5401 152 3601 3 01 AIM IT H.i55 02 54 02 i53 lr 1IT iunn sr 73 .r0111Ct pn.r 1 1 6702/ I 1970 CENSUS TRACTS CITY OF MIAMI PLANNING DEPARTMENT • MAY.1971 46 APPENDIX C (1 of 2) Ell f0. sl 1G PROBLEM INDICATORS CITY OF MIAMI 1970, 1975 Housing Condition % (1) A B C Total Needing Needing IIIM Census Housing Good Minor Major Tract Units (1) Condition Repairs Repairs Over Over Delapi= CroWding Payment dated... 3.... (2) __ % .(3) ■ 13 4,918 98.5 1.1 0.3 0.1 5,3 14 3,475 76.8 15.0 7.0 1.2 13.8 15.01 1,900 78.5 18.2 3.0 0.3 22,4 17.03(pt) 51 68.6 5,9 25.5 24.1 I. 18.01(pt) 218 58.8 39.4 1,8 - 20.6 18.02(pt) 1,065 40.7 44.7 13,6 1.0 31.2 M 18.03(pt) 133 72.1 22.6 5.3 - 18.1 1111 19.01 1,643 3,277 73.6 22.6 3,4 0.4 0.3 31.1 19.02 60.1 34.7 4.9 31.9 III 20.01 1,900 92.8 5.3 1.7 0.2 14.5 20.02 2,402 88.7 9.0 2.2 0.1 19.7 1111 21 1,376 99.1 0.8 0.1 - 4.5 22.01 1,554 95.0 4.0 0.9 0.1 10.1 22.02 2,130 74.3 19.8 4.6 1.3 20.4 23 2,069 52.8 35.9 9.6 1.7 25.5 24 4,049 62.9 29.4 7.0 0.7 29.8 25 2,044 43.8 39.6 14.2 2.4 32.9 26 1,513 64.0 30.5 5.2 0.3 35.6 27.01 3,864 84.7 14.1 1.2 11.9 27.02 1,241 30.6 41.7 17.9 9.8 19.5 28 1,330 22.6 33.6 32.3 11.5 39.2 29 834 36.2 19.8 10.0 6,4 29.3 30.01 1,305 89.8 7.2 2.5 0.5 15.9 30.02 2,801 84.5 14.3 1.2 - 24.2 31 2,041 32.6 21.4 24.7 21.3 29.0 34 3,691 7.5 29.5 43.0 20.0 29.3 36.01 1,233 41.0 18.4 25.6 15.0 22.4 36.02 2,826 45.2 31.0 19.8 4.0 26.5 37.01 999 33.4 25.7 17.3 23.6 13.9 37.02 1,025 7.8 9.4 67.5 15.3 12.4 49 3,424 97.0 2.7 0.3 - 15.9 50 3,218 97.4 2.5 0.1 - 19.6 51 3,052 97.4 1.8 0.7 0.1 18.9 52 3,233 50.5 25.4 21.9 2.2 32.7 53 6,028 45.0 30.1 23.5 1.4 33.0 54.01 2,523 50.6 36.5 11.2 1.7 27.5 = 54.02 3,159 88.4 7.2 3.8 0.6 30.5 55.01 1,732 82.4 16.7 0.6 0.3 17.3 55.02(pt) 2,181 81.9 17.1 1.0 - 19.6 56(pt) 1,256 98.6 1.3 0.1 -, 9.8 57 6,408 95.2 3.5 1.0 0.3 14.9 p 58.01 1,936 92.4 6.9 0.6 0.1 13.2 58.02 2,458 90.9 8,2 0.9 11.6 Continued Page 2 46.6 51.2 49.6 11.1 32.7 58.9 47.8 43.2 52.8 42.9 42.7 30.0 39.5 47.6 42.9 44.1 47.4 40.4 56.9 48.0 58.3 36.5 45.4 40.0 51.9 51.2 53.1 53.9 64.2 49.8 45.9 39.6 49.1 53.2 50.7 46.1 50.7 54.8 46.4 51.1 47.1 53.3 47.8 • C04TINUED... ,, Census Tract. 63.01 63.02 64 65 66 67.01 67.02 68 69 70.01 70.02 71 72 (pt) 73 Total Housing Units (1) 2,793 1,651 3,672 2,637 4,543 3,940 1,917 2,693 2,353 1,939 2,115 3,275 1,170 1,434 APPENDIX C HOUSING PROBLEM INDICATORS CITY OF MIAMI 1970, 1975 _Housing Condition % (1) A Good Condition 91.6 91.3 52.8 89.3 90.6 99.5 87.3 86.5 89.6 79.6 88.7 63.5 30.7 88.6 0.3 0.6 8 Needing Minor Repairs 8.2 5.2 46.1 9.1 6.8 0.5 10.6 10.8 9.9 16.5 8.1 23.6 32.9 9.6 C D Needing Major D•ilapi- Repairs dated 0.2 3.2 1.1 1.6 2,0 1.9 2.6 0.5 3.5 2.9 11.3 25.0 1.7 (2 of 2) Net of Ovet' Crowding Payment (2)... % (3) 19.3 48.4 11.3 42.2 22.6 49.2 12.2 35.1 21.9 50.2 3.3 57.5 11.0 53.7 4.0 51.3 9.9 47.2 15.9 44.9 13.3 51.5 15.3 54.2 24.4 55.9 1.5 36.6 (1) Housing Count and Condition information gathered from City of Miami Land Use Survey, 1975. (2) Over crowding refers to units with more than 1.01 households per room: Source - 1970 Census of Population and Housing, Census Tracts, Table H-1. (3) Over payment includes only those renting hcuseholds which are paying more than 25% of their income for rent. The percentages are derived from total rental units and do not include owner occupancy, where over payment tends to be considerably less severe: Source - 1970 Census of Housing and Popula- tion, Census Tracts, Table H-2. APPENDIX D N. 4 P 1 q ri 31 G.....,.. •-7.:,Th .4* 4.4 s. 1•.••••1 • ' •114. • I PIrc *IN A. HOUSING PROBLEMS 1 1 ;NA Overcrowding (201/4-100%) Overpayment (50%+) F-7771 Overpayment (40%-50%) • _J • 148SNIIM IIIIM Or, NI. '4 Deterioration (70%-100%) Deterioration (50%-701/4) Deterioration (30%-50%) 1976 1975 1974 1973 1972 1971 1970 1969 1968 1967 A itztGES., Off' HOMES SOLD AND, lAt1ERAGE,,RENTg DADE COUNTY 1967-1976 Average Prices of Homes Sold New Homes $52,000 50,000 48,500 38,800 31,500 30,750 32,000 29,700 25,450 23,200 Used Homes Condominiums $47,500 $40,500 43,350 38,750 43,800 37,500 38,850 35,350 34,350 30,500 30,700 26,750 26,350 26,300 23,150 21,950 19,350 16,250 17,300 13,000 Based on average of all size apartments from one to three bedrooms. Source: Homes Sold - Miami Herald, March 20, 1977 p. 42H Average Rent - Miami Herald, December 19, 1976 p. 6L AVetec}e Refits * $276 $267 MIKOM • OFENOtx F .'HniPfMATtb 80UstNG As8 ISTANCE NEEDS OF LOWER ,INCOMB_HOOSEHOPO CITY OF MIAMI 1976 HOUSEHOLD TYPE Low Income Households in Need of Assistance i# /N NEED OF ASSISTANCE 54,444 Owner Households 11,978 Renter Households Female -headed Households Black Households Spanish-American Households Elderly or Handicapped % oFToTAt HOUSING NEE!) 100.0% 22.0% 42,466 78,0% 19,055 35,0% 12,838 23,6% 25,904 16,431 Source: City of Miami's Housing Assistance Plan, 1976 HOUSING ISSUE PAPER #2 NEIGHBORHOOD CLASSIFICATION: STAGES OF DECLINE AND TREATMENT STRATEGIES ITOUSit\t" ISSUE PAPER #2 NtIGHBORHOOD CLASSIFICATION: STAGES OP DECLINE AND TREATMENT STRATEGIES The previous issue paper dealt with the major housing problems in the City of Miami. The concentration of these, and other socio-econcmic problems, provide a basis for classifying neighborhoods or geographical areas according to their levels of decay.1 This system of neighborhood classification is not static, but must be viewed as a progressive continuum, or neighborhood life -cycle, extending from development and healthy conditions to aging and decline. Between these two extremes, the life -cycle can be divided into stages according to relative levels of advancement or decline. Neighborhoods at each stage can change quickly or slowly depending on a series of market conditions. However, unlike the human life -cycle, the neigh- borhood has the power of regeneration: trends toward decline and demolition can be stopped and, in certain circumstances, reversed through adequate treatment strategies. Why is It Important To Classify Neighborhoods According To Their Degree of beeline? In housing, as in other areas where decisions must be made to maintain adequate resi- dential environments, local government's toughest task is deciding where, how much and in what type of projects and programs within the City to spend the scarce funds available. Unfortunately, there never seams to be enough funds to upgrade every city neighborhood. Nevertheless, within the context of capital improvement short- ages, there are various principles that, if followed, can lead to a better allocation of the scarce resources. Neighborhood classifications, such as the ones that will be developed in this document, provide one such principle. In the past, many neighborhood preservation efforts in other cities and in Dade County have been ineffective because several key ingredients have been left out. "These attempts have not had: -- an understanding of the mechanics of how neighborhoods change. Programs were based on inadequate definitions of the problems and results were often the opposite of the designer's expectations; -- an overall city framework that recognized the place of each individual neighborhood within the metropolitan housing market; -- an understanding of doing something early rather than after the problem is already visible; -- a broad focus which addresses the problem of people and organizations as well as the problems of buildings; a realism about the limits of what can be accomplished: some things that trigger neighborhood decline -- like levels of unemployment, interest rates, fuel costs -- often cannot be affected by local action; Aft uhderstanding of the importance of coordinated action; and, _,, adequate funding and access to critically needed resources. The list can be boiled down to three serious omissions -- the failure to see that the decline of neighborhoods is a total process with clearly definable stages; the inability to intervene early, at the preventative stages; and the lack of rec- 2 ognition that neighborhoods are not independent of one another within the process." A neighborhood is then classified according to its conditions in order to develop specific and workable treatment programs suitable to its level of decline (stage). Improvement tactics that work well for one area can be ineffective and even cause great harm when applied to areas in other stages of decline. For example, a vigorous, door-to-door program of code enforcement couples with adequate citizen participation and financial assistance through home improve -rent loans may effectively stop decline in many transitional areas (stages 2 & 3 as will be described shortly), particularly in those where decline is yet incipient. But, in the late stages of decline (stages 4 & 5), owners may respond to the same strategy by walking away flow their build- ings, thus increasing the problem of abandonment. In fact, experience shows that very few programs (almost invariably involving some level of clearance) have been successful in upgrading neighborhoods in the late stages of decline. The level of poverty, degree of physical decay and the negative perception of the area dampen the chances of success. Past national programs after years of effort are increasingly suspect. One expert, after extensive national re- search ever. indicated that "ghetto sited public housing under the 1949 act, slum clearance style urban renewal, 'rehab' and code enforcement in the poorest neighbor- hoods, FHA 235 and 236 in the slums have hastened, not stemmed, center city neighbor- hood decline."3. th Strhiaty# neighborhodd classification is necessary because: a)the level of dedline of a neighborhood will determine the tactics to be used in its upgrading, as each stage is composed of different dynamics, different people and different processes at work; and b)the overall probability of success, regardless of the tactics used, will be negatively correlated to the progression of decline. Why bo Neighborhoods Change? The causes and processes involved in the decline of neighborhoods are extremely com- plex. The usual causality (i.e., a definite cause brings about an effect) is nebulous as causes and effects intermingle and act upon each other to create and accelerate the process of decline. Nevertheless, an understanding of the basic process is necessary to develop workable programs, and, perhaps more importantly, to monitor and rearrange these programs with an understanding of the forces at work, the pos- sibilities of failure and the alternatives available. The simplest way to describe the process of decline is through a series of conditions, decisions and processes which interact to initiate and/or accelerate neighborhood changes. The basic conditions leading to neighborhood deterioration can be summarized as follows: -- Physical: The presence of an older housing stock needing increased maintenance. - Economic: The presence of significant properties of the population who cannot readily afford adequate housing or neighborhood services. Social: The presence of population groups associated with social maladjustments such as crone, alcoholism, drug addiction broken families, etc. -4- • 11 hese ere Lectors which cause neighborhood decline but which may have little to do with its population or housing patterns. Market reasons for decline can include overall decline in the metropolitan or city area, changing job opportunities, shifts in transporta- tion facilities and the rapid expansion of more at- tractive residential opportunities within the city or metropolitan area. The total situation of a neighborhood and its surrounding areas is perceived by different groups who in turn make decisions affecting the direction and degree of neighborhood change. The main actors in the process are owner and renter house- holds, owners/investors and intermediaries. -- Owner and renter residents of an area make the two basic decisions which start or accelerate the process of decline: they Trove or they decrease their hous- ing maintenance. Both of these decisions result from a negative perception of the neighborhood by the household or a mismatch between household needs and neighbor- hood amenities (parks, schools, house size, etc.), or the presence of better residential alternatives in the metropolitan area. — Owner/investors make solar decisions based on their negative perceptions of the area and on a real or expected decline in their income flow and/or value of property. Decisions range fran reduction of maintenance and conversions of struc- tures to higher densities in the incipient stages to mortgage defaults and atendon- vent at the late stages of deterioration. .a ow .►,__A/_ INN Intermediaries are those who service neighborhoods, 1,ike shopkeepers, real estate brokers, bankers, contractors and public agencies. Their actions can include biockbusting by real estate brokers; more stringent loan policies, higher interest rates and redlining by bankers; denial of insurance coverage by insurance companies; and, change of business locations by local storekeepers. These decisions reinforce the anxieties of the existing residents and owner/investors and preclude demands from potentially stabilizing groups of new residents. The decision of one group of actors (i.e., households) are both a cause and a result of the decisions by the other actors (i.e., investors and intermediaries), as indi- cated in Appendix A. This negative reinforcement aggravates the problem of decline and necessitates solutions which deal with all the groups involved in the neighbor- hood change process. Finally, once decline begins five separate but parallel processes usually take place. -- Income and occupational levels decline as upper income households are re- placed by lower income groups. -- Ethnicity changes from White to Spanish or Black. Although this is not always the case, almost all neighborhoods that have experienced substantial decline have also undergone ethnic change. --The housing stock deteriorates due to age and lower maintenance levels. -- Changes in attitude on the part of residents, realtors, investors, merchants and public officials lead to increased pessimism about the future of the area. -- The level of new investment capital into the area in the form of new con- struction of businesses and homes decreases. -6- • These probitesses in ttrh aggravate the batiG'- COhditioh8 Of neighborhood decline and the decisions by the relevant group of neighborhood actors. In summary, a comprehensive analysis and understanding of the causality of neigh- borhood decline involves a series of conditions, decisions and processes which interchangeably act as both causes and effects prompting and accelerating the deter- ioration process. The following graphic illustrates the process: CONDITIONS -Physical -Economic -Social -Market DECISIONS - Owners/renters - Investors - Intermediaries PROCESSES - Socio economic decline - Ethnic Change -Physical decline - Attitudinal decline - Capital decline i • • • • Methodology Used in Classifying Neighborhoods The classification of Miami's neighborhoods is the product of data research and analysis complemented by the combined 'knowledge of planners familiar with the different areas within the City. The initial analysis involved an evaluation of 21 urban need indicators (see Appendix B). The combination of these indicators had been previously used in the Miami Comprehensive Neighborhood Plan as the most appropriate measurement of neighborhood decline. Generally, the indicators fall into three main categories: Economic conditions (unemployment, low income, retirees, female heads of house- holds); social problems (crime, death rate, drug use); and, housing problems (overcrowding, deterioration, overpayment, ownership). The housing related in- dicators were emphasized (10 out of the 21 indicators used) as they will largely determine the housing treatment strategy to be utilized. The data analyzed initially was indicative of census tract level problems and often reflected 1970 information. In order to urriate and refine this base, the individual and collective input of planners familiar with the different City neigh- borhoods was utilized. Changes were made reflecting unrecorded shifts that have taken place since 1970 and sub -census tract conditions not made apparent by the census tract information available. MS- memR Ili e neighborhoods The City of Miami is broken down into four different types of neighborhoods accord- ing to their level of decline and their treatment needs: Healthy areas, areas of incipient decline, areas of clear decline and areas of accelerating decline. A final category, abandonment, has been used in most analyses of central city neigh- borhoods to describe the ultimate stages of deterioration. Fortunately, the presence in Miami of such areas is minimal and does not warrant a separate category. Nevertheless, sone sections within the accelerating decline classification are presently in the abandonment category. The neighborhoods within the City should be viewed as a continuum or life -cycle, moving from growth and stability to decline and deterioration in the following manner: AGGREGATE VALUE 1 Withinthis content, Miami's neighbothoads cats d1.assificd as: 1, HPalthy Areas These areas are characterized not only by over of economically sound households and a constant in -migration and hPal thy turn- firms but also by good quality housing and positive resident attitudes. Typical of new and older, well -established neigh- borhoods, at this stage almost no decay is occurring, properties are well maintained and the neighborhood has a good reputation in the general community. Economically, there is a high level of owner investment as insurance and conventional financing are available and properties maintain high values. (See Appendix C for specific descriptors). Treatment for these areas should include maintaining the services as well as some high visibility improvements to cern. Basic code enforcement and a pre -sales inspection flow of basic City/County show continued public con- program6 will ensure the conservation of areas containing the majority of the City's owner -occupied dwelling units. Basic Treatment Components for Healthy Areas Include: - - Basic public services -- Basic code enforcement - - Pre -sales inspections - - Strategic "high visibility" improvements (trees, parks, lighting, etc.) -10- The areas west of S.W. 27 Avenue (Flagami), south of Shenandoah, Coconut Grove and Bay Heights) and the N. between Biscayne Boulevard and Biscayne Bay comprise healthy areas in the City of Miami as illustrated by ing page. S.W. 16 Street (Roads# E. section of the City the majority of the the map on the follcW- NtEALtirmv AAN m•A- --•=7= City of Miami planning Department Transitional Areas (Incipient and Clear Decline) Characterized by initial and progesssive decline and changes from one type Of household use and occupancy to another, these areas have the potential of provid- ing the greatest benefit per public dollar spent as the level of decline is clear- ly reversible through a combination of public and private actions. Incipient decline involves beginning deterioration. Areas at this stage still provide decent housing for the majority of the City residents but initial disin- vestment and changes from one occupancy to another start taking place. The more affluent members of these areas migrate and are replaced by middle and moderate inane residents. There is a waning confidence in the future value of the neighbor- hood and a decline in its social status. (See descriptors, Appendix C). In clearly declining areas, deterioration becomes more apparent as the rate of turnover to lower income and/or minority groups increases. There are further cut- backs in maintenance and repairs due to the lower income of residents and the decreased availability of private financing. Home and land values begin falling (at least relative to other prices) as neighborhood reputation declines. Conver- sions of the housing stock lead to greater densities and increased utilization. Residents became more dependent on public services. (See descriptors, Appendix C). Areas of incipient and clear decline should receive similar treatment; nevertheless, the level of investment and chance of success will vary with the degree of deteriora- tion. Although basic public services and assistance should be provided to all transitional areas, implementation of a concentrated improvement and rehabilitation -13- program sh6uld be dei eloped ifi phases, using wfel1.idefined, Manageable demonstration areas. While area -wide rehabilitation programs (i.e., subsidized loans as current- ly administered) bring about improvements to individual dwelling units, the con- centration of investments in small sub -areas can produce an impact of enough visibility to bring about neighborhood change. Basic Treatment Components For Transitional Areas Include: Systematic, concentrated code enforcement. Technical assistance for preparation of specifications and contracting for dwelling improvements. -- Rehabilitation loans and grants (private and public). -- Development of sub -area community organizations. Property acquisition/relocation/disposition (spot clearance). Increased hone -ownership opportunities in existing units through greater mortgage financing accessibility. Creation of new home -ownership opportunities through sensitive, in -fill construction. -- Provision of public improvements. Optional treatment elements could include mobile -tool loan program, building materials programs, and social and economic services, co-op, volunteer assistance, "sweat equity" r o� as necessary. Transitional areas make up most of clude Little Havana, Edison -Little Coconut Grove and parts of Culmer. of these areas. the Community Development target areas. They in - River, Allapattah, most of =bdel City, Wynwood and The map on the following page shows the location o ernAmonToomAL- ANIMAS - Itieipient Declirte Clearly lee ...r •.•.•.. i. •. •.r it 14_•. •r two f u.t.....t •...•. • in ^^yiyAnA r A. .,,,,,,r ; ST --..-•- - . • . -..... - is. - City Q . • • t planning Department it 1. t 11,r: t:.vL; ,�•, uin .I »• :' ee • O ) .1 yt— Gr�M• • 1, Addelerating Decii± a Areas Tise areas are characterized by major physical decline, unhe'1thy residential environments and a poor and dependent population. There exists in these areas a critical lack of supply and demand for property financing as the neighborhoods future as a residential place is viewed negatively by investors and residents alike. The results are minimal ;intenace, population decline and increases in the number of abandoned and marginal apartments, homes and businesses. Most residents with any option to relocate will move and go The treatment goals for these areas are provision of direct social and economic as clean and sanitary an environment as grams (area maintenance) . elsewhere. to make households self-sufficient by the benefits (in-putnefits) and to maintain possible through intensive assistance pro - It should be kept in mind that programs designed to upgrade areas at these stages of decline are costly and have failed repeatedly in the past. Not only is deteriora- tion widespread and the climate for individual investment lacking but, usually, the rental structure in depressed neighborhoods is such that improvements to the exist- ing stock would have to be almost totally subsidized. Otherwise, improvements could lead to prohibitive overpayment by existing renters or a displacement of existing households who are unable to afford the increase in rents caused by the capital outlay necessary to make the improvements. As such, a thorough understanding of the complicated dynamics of the real estate market in accelerating decline areas is nec- essary to avoid creating programs whose negative side -effects outweigh the intended benefits. tatid_treatrrient Components For A celerati.hq Declite Areas, Maude: e: Area Maintenance: - Control of junk and debris on private property, • Intensive street clean-up and trash collection, = Clearance and upkeep of vacant lots. - Rodent control. - Basic but flexible code enforcement - Spot clearance of severely blighted structures and abandoned buildings. - Redevelopment, when feasible and appropriate (relocation as necessary). •-- In -put Benefits: - Skill training programs. - Job placement programs. - Social and welfare services. - Health maintenance. - Day care services. - adolescent programs. - Crime prevention programs. - Recreational programs. There are basically three areas, shown on the map on the following page, in the accelerating decline stage. They include portions of Culmer, Coconut Grove and two relatively small sections within the Model City neighborhood. -17- ...' •.i..t ..►.. ............. t i • ._ City of Miami Planning Department 4 G.i .t yt1M i•••••••••• r— MEM MEM — Si It is iir octant to classify neighborhoods because their level of dedline will det.- ermine the appropriate upgrading tactics to be used and because the overall probab- ility of success, regardless of the tactics used, will diminish as deterioration worsens. The process of neighborhood decline involves a series of conditions, decisions and processes which interact to initiate and accelerate neighborhood deterioration. The presence of physical, economic and social decay (conditions) is perceived by key decision -makers (households, investors and intermediaries) whose actions start and promote processes leading to changes from one type of household, occupancy and use to another. This filtering process inevitably leads to the concentration of lower income households in areas with high maintenance needs and, consequently, to decreased maintenance and increased deterioration. For classification purposes, the City of Miami has been broken down into four types of areas: healthy, incipient decline, clearly declining and accelerating decline. A fifth category, abandoned, is so minimal in Miami that it does not warrant a separate category, but has instead been included within the accelerating decline areas. Healthy areas are characterized by a constant in -migration and turnover of econo- mically sound households and firms as well as good quality housing and positive community attitudes. To maintain these areas, the local governments should continue to provide hasic services. Transitional neighborhoods are made up of incipient decline and clearly declining areas characterized by initial and progressive de- cline and changes from one type of household, use and occupancy to another. The level of decline in these areas is clearly reversible through a combination of -19- pfiVabd and public actions a iphasizitig the Consetvation and rehabilitatiOn Of the housing stock. Areas of accelerating decline are characterized by major physical deterioration, unhealthy environments and a poor and dependent population. The treatment goal for these areas is to make households self-sufficient by providing direct social and economic benefits (in -put benefits) while maintaining a clean and sanitary environment through an intensive assistance program (area maintenance) . • i ■ the Cohcept of classifying neighborhoods according to theit level of decay and programming treatment tactics based on such classifications is a fairly new approach arising, to a large extent, from the research conducted by Dr. Anthony Dols and the Real Estate Research Corporation under the backing of the U.S. Department of Housing and Urban Develop- ment. The material presented in this report borrows heavily from the concepts and strategies developed by Dr. Downs. 2. The Dynamics of Neighborhood Change, prepared for U.S. HUD by Public Affairs Counseling, San Francisco, 1975. Pages 2-3 3. Roger Montgomery, AIP journal, book review of "Recommendations for Community Development Planning" by RERC, AIP, January, 1977, p. 76. 4. Reco mendations for Community Development Planning, Real Estate Research Corporation, Chicago, Illinois, 1975, p. 3. 5. Richard B. Andrews, Urban Land Economics and Public policy, Free Press, New York, 1971. 6. A pre -sales inspection program is not currently in use in Dade County but has been used in other cities to ensure the conservation of the housing stock, partic ularly single family owner -occupied units, as it changes hands (filtering) . vig STAOV t fin Shalt v• S.rtel• w t:rnP•r is : cnN:RAr. Dfy_RtrIti Py WTIN:I DP lIF.1141ry.P1k7111 rEC4mC Mf!l.Tliy ,.I rr.q•elty Wear Saul Str....nul enre11tinn i..l location Dew61nn,r•n•I Well Mllntalne4 Mld•Iln to nigt. social States M.Irrera to PIT•er lucrao. IPVe11 Nlyn S. hoot Graduate. a Stove rosily Oriented ut Cb114less Mudls wl.ae collar OS*111el Moe Collar i114r In Nelght,ehod L 'tense ,lon.1 Nel•Ihb.rl...d repotatlrni tl••1•Il.tr,r Mv-a rercelve4 .. Safe Cn. lei 1 “heelvrneas Nigh Itm, Investment t.nd f.•ivurty Velure Inso, ■nc- Sv,tlahle Convent i.nnel Financing Avetlabic Nigh e..ntl teno a in Foto,► Valli. II.C1PICNT IN-L1IN► Slot INlnt..an,. tI..Ileet Aging 'loosing Stark Some New nm-,esl•irnttal 'MPS trey Mel►able location Decline In .nisi statue Declining iio . l..ld income influs nt M1441n 'notes. ,IIOO ltlel Decline In Gt•ratl•unal Level Hire Seel•sktllrl tsvlrtral.loyed Often Fear of Loa.1a1 Ttan.Ltlnn v.cline In WnIyh1.,rMv4 nrrutation Some Cutback in Maintenance loIntea Inre►rsIngDiffi Difficulty netting Financing Some glffnfiden Waning Cnnfiden•-e In rntnre valor Plnperty Tr* eatden Increaser More Venter. In Sin.fl. Family Area 1. _CT.FARI.T nKLI MS larny Mlnnr, nn.n Maine Peticlenale1 Nigher Dennity Le.t•H to VI.1h1er Wear Relatively Pone t•►Inn lca Connerelet Maine D.clina In Social hate. Lenore tnrowe•. Mnre welfare aal e-Lteetvdds large Fealties. Often dmi rn'.reaelny linos►Ills/ a IS.nwpinyed Fa if to Poor Nelght.,rlvod Sep..htlnn Lack of Pride InlM w• IkeIleinhhnth,d Increasing fete t enartre for timer Cutne tto,rllne int Repairs Prnperty Valoes M• Pine. •• Inpnrare-e Prohlhlt the Serino. Prnhlenn In carting Flnsnrinq Fa*, Inc future Vain of Investment rrnloslnantly Renter.' Incr.•a'lnq Oferatlnrt Conte Swell Scale Investor owners S.encet TI_e Saito of Neightothewvl Change. I.repare•1 fee N.W. IRe. by Pnblte Affairs Inenseling. ----- lew►nte.t to wore reallsticallY P.rrrny Nlaml•s San flenct.rn, 1915 - NMllf led a.elavP eit,atlon. 5iimplom rI7 R1.�Inn II ICI III H. iIIRUI IIIIIl!IFlllM1q „ ,'k'1ll 1,111 1111111111111111 A. ArcmtEPArINi: t1/7.LINt: General Minor. Many litter oefl.:ieneire Pr..rnre of 'Concrete te,nvtvr I 1 I,, Van•tallsr.l Property Nears! rablr location lncrrto 1 Residential Va. an••les Some Abandoeeeet low Social Sento. fre.Invtin.mt ly ley Income Nln.,r Ity Tvnante Increevino M ltl-Prnhit+ Fannie, Ih.sk l l I ed Workers. 111yh 1nrepl..yr•nt Pont Tenant/LA.11.rd Pelat Inns Pn.r 1/e14l,T,h.,.l ael•.n •r loon Al.solute Peeling In Pupnlat tun F••ar for Pe.•nnn.l SOLety Increasing fire 4 Crime tittle Maintenance and Pef.Hrn lark of neyers tuavr.ue-e neold N. limit !tut Pn,nl FinanelOnt rrr.luent Over•eenevament inereaniny n'a.h flow Problem Skyrocketing Operating 4r:te 111gi. Pre ry+rt Ion of aint•o.tee ts.aetw. CO revue pef.lwlsw Toward. Prevent G. Pututy 5.__ 1111r24W Sevcus Dllapl.I.thwt. Widest teat Abandl.mwnr voluntary ur Inv..luntaryy Dumnl It*4, IF.I se, al.andnned• Cars vacant filleted Int• General area Decay Lowest nv..al Status Poverty level Incomes Squatter Population Malrl Pt••hiew Welt.te lanai's. Prevalent Na.I ne 1•Ilu.,rlsad FYPurILIDf IWurclul,lv with Options Leave Fete. Apathy Nlyl. Crime L the lucldtoue '.Napa.-/ Pv..ta1 M Serious Petit Cwllvrtnn P.r.hlr.r Negative Cash Flown APPEND I X B NEIGHBORHOOD PROBLEMS MATRIX Census Tracts . • • - k 66 allall Mal simisaiinswo memmumna simmmulimmummos mum minnuunia num 49 ammo sommin ammo ima ommumma mums 55.01 55.02 11111•1111 11•111111111111111 1111111111111 NMINN • 1111111111111111 IIIIIIIIIIIII 57 ERIS Ililliallialla MINIM 58.02 allaallaalialla MEM INNIMINIMIlla 11111111111 El _aaaaaaaIa1aaalla IIMINIMIMIEME 1111111111111111•MUOIMEN 63.01 samauao.aaaauau 66* 111111111111111 1111111111111•1•1110111111010 73 111111111111•1111 11111111111111111111111111111 ! 14b 21 IMMO 11111111111111111111H111•111 •MEM 1 11101111111 27.01 56 111111•1111111 1111111111111•10110111111111 67.01 somuni Mom 111111111 1111•1•111111111MINION IMMINIMII • MIRO 22.01 MUM IN 01 MIM 1 'OHIO 54.02 NMI • --4, NM • 4111111111 70.01 III •.414 1 illn *1-'4"11111 70.02ma • ,olso 51 40.AA101111111111 • 011CM1111 64 • '910.• Mull ,0 MIMI 22.02 el I_ _,_i • son .;• 1011111:1111100 30.02 MI kw___loe•• MI • IMMO 54.01 • t si•T-44. po 0 ..aumum 23 EEO 011 Ma 01111.111001ai 26 • ,0 • .• . am .1 i•gurai 30.01 En _ "10 • • DU • Ol 111111110 a • ifiro.111•111IN a •••1111 MI 111C1•1111 MO • a.•III as as i _4_ 1_,•+e as 110140 66* MR . :;_•401 M, a iik. 4_ i .• 25 Er2o.o2 • oior I nomin•• I ,*lel_ 18,01 • • __Ip 1 • 20.01 *10 24 RD • .140 • 0 • • 53 --11 •Iforl• 14 -10 Olt. .0.10 15.01 III •01714 letIS 19.02 4_4111 lit• -144,0 .• 67.026 A 1. 41104 (It .0 18.02 • 01 1 1•1•1.1i4 36.02 1•141_•1•1-7-lo 71 • 41041 10-4 • • • • • • 19.01 • • •rtoie • i • lo olip.iiii • 27.02 01110-1•410r10-41111 '• • • • • • • 3721_4_ t.• Iiiirei Oio_iitio • woo • • • • 28 t• 01•11/10 1• O•TO• • • • • 37.02 I 01 101010,10 1p 4111 -0 • ei• •••is• •••• 72 •(iiloi• 4 • olio iiiko • • • • 31 10 t', t• • 010 t01- • OTP10 • • • 34 t-II 111101,11•01•Ell• • ••••• 36.01 .0 07.1. 0,Aiel II • • • • *-Egtiroots for a onciloo of Conikts Tr* 0 only, ....... HOUSEHOLD DECISIONS INVESTOR DECISIONS PUBIC/PRIVA DECISIONS 2. INCIPIENT DECLINE REJECTION OF NEIGI IBORI U.)OD BY SIMILAR I101JSTJ 10IJ)S PUBUC,TRIVAIE IRESPONSE T() CI IANGING PIT IGI IBORI KX►D R. L..• A•d•r• ti.w APPENDIX A DECISIONS AFFECTING NEIG1113ORIIOOD CHANGE 3. CLEARLY DECLINING RFSSII►ENT 11OUSU 1011) RESPONSE TO CI IANGING NFJGI IBORI 1(X)I) 1Jrw•v.AM OWNER/INVESTOR SI'ECUTATIVE RESPONSE TO CI IANGING EIGI IBORI KX)1 Plarlk Aim*. 4MP•• P..►... (7.11. • n•o PUBUC/PRIVAIF. RFACIIUN TO DECLINING NEIGHBOR! 4. ACCELERATING DECLINE 1 IO11SFJ 1011)5 WIHII OPTIONS REJECT I)KUNING M:IGI IBORI Icx)D OW NER/ INITSTOR RlA(110N 70 DECIJNING NCIGI MORII(X)D PUBl1C11'BIVATE RESPONSE TO NFJGI MBORII(x)D PROBLEMS 5. ABANDONED TENANT REJECTION OF DEIFJRIORAlING STRIJCIURES OW'NFJI ABANDONMENT ()F INVESTMENT Pl lB11C-1'IINA IF. RFSPONSF. 10 ABANDONMFNT