Displacement occurs when people or businesses leave an area due to increasing property values and the resulting economic pressures, such as higher rent and taxes. Higher property values often coincide with an influx of new residents, businesses, and development that changes the physical and cultural character of the neighborhood. There has been a significant amount of new development and investment in recent years in Kansas City. As this investment occurs, some Kansas City neighborhoods are voicing concern about rising costs of living and threats of displacement due to gentrification.
The swift pace of redevelopment in cities across the U.S. over the past 25 years has coincided with a rapid rise in inequality. Displacement can cause an area to lose residents and businesses, and it can erode culture and community identity. New development initiatives must aim to minimize the potential displacement of existing residents and to maintain an appropriate level of affordability.
The Regional Plan Association defines gentrification as, “the form of neighborhood change characterized by the arrival of higher-income and often-time higher-educated residents, along with increasing rents, property values and cost-of-living, and decreasing non-white populations,” [1]. The National Association for Latino Community Asset Builders (NALCAB) defines gentrification as, “a type of neighborhood change in real estate price appreciation leads to involuntary displacement and significant cultural change," [2]. Gentrification frequently disproportionally impacts members of nonwhite racial and ethnic groups, particularly within neighborhoods that have historically experienced disinvestment.
While displacement is a significant concern, new development and investment generally produce positive outcomes. Many of the Playbook’s goals support (and even rely on) new investment. Investment and redevelopment in established neighborhoods can benefit the overall economy and the environment.
This is especially true when revitalization efforts are directed to areas suffering from long-standing economic distress and abandonment. But even then, revitalization efforts must be weighed against their potential impact on equity. Without that, long-time residents may not be able to stay in their community and enjoy their improved neighborhood. The city must track indicators of gentrification and identify areas experiencing, or which will experience, displacement. Then the city must work to minimize or prevent displacement where possible.
The city can’t control people’s decisions about where to live, operate a business, or buy property. Many factors can make an area more popular and lead to a surge in the demand for housing, and the city has little or no control over most of those factors.
However, the city can review and guide new development. It can take actions (through incentives, public improvements, or other subsidies and programs) to influence where the private market makes investments. The city (and other governmental/taxing entities) also can take actions to help alleviate challenges related to real estate costs and the availability of affordable housing (see Housing Affordability and Diversity Objective). Additionally, city partners (nonprofit trusts, community development corporations, lenders, anchors etc.) are well-positioned to help put useful measures into action. The city must be intentional in its efforts to work with community members who could be negatively impacted by new development to avoid creating or exacerbating inequities associated with gentrification.
INDICATORS OF SUCCESS
By mitigating displacement due to gentrification, neighborhoods will retain more of their existing community and culture during periods of transition, redevelopment, and physical growth. Residents will have the opportunity to enjoy the positive economic benefits of this reinvestment in their community. This will lead to more equitable outcomes for individual neighborhoods and the entire city.
BENEFITS
Increased diversity in neighborhoods
Equal levels of basic safety, health, and opportunity among all neighborhoods
Less displacement due to gentrification
Assistance for residents to keep the wealth created in their neighborhoods by public investments
CONTEXT
As historic parts of Kansas City receive new investment and attention, it is important to make sure that development pressure does not negatively impact existing residents. Understanding the effects of rising prices on low- and moderate-income residents is vital to developing policy that keeps neighborhoods accessible.
New income-restricted affordable housing units (increase)
KEY CONCEPTS
Measure gentrification and displacement and identify at-risk areas
The city must measure and track gentrification and displacement. That includes identifying areas currently being impacted, those potentially at risk and whether displacement improves or worsens over time. With a clear picture of which areas are affected, the city can most effectively target them with appropriate mitigation strategies. The city should identify a methodology that can be easily replicated, then regularly update the analysis.
Create a displacement proofing policy agenda
There are many tools the city can explore to mitigate displacement. For example, several U.S. cities have fostered partnerships between community organizations, local government, lending institutions, and businesses to provide lending programs that boost neighborhood revitalization and equitable change. Financial products such as refinancing for existing mortgages and loans for home improvement or buying a home can mitigate displacement. These loans are often paired with forgivable loan subsidies and other products to increase buying power.
Other options to mitigate displacement include Tenant Opportunity to Purchase legislation. Controls on property taxes and help for seniors and other residents in changing neighborhoods, so they can stay in their homes, are options, too. Slowing neighborhood change by limiting large-scale redevelopment in neighborhoods at risk for gentrification also can prevent displacement.
The city can employ land use regulations, too, to limit displacement. These could include inclusionary zoning reviewing density restrictions in developed areas to see if they should be updated. It could also include expanding the amount of land area in the city with zoning designations that permit a range of housing types by right (e.g., those consistent with incremental development and missing middle housing that are potentially more affordable). Any of these could increase the diversity and amount of housing stock in the city. These types of land use strategies give residents the chance to participate in incremental development that can increase housing availability and build wealth in their neighborhoods.
Several of these strategies also can simplify the approval process, by reducing the number of entitlements required for certain types of development and shortening the time it takes to get through the approval process.
COMMUNITY SUPPORTED ACTIONS (CSAs)
Measure gentrification and displacement and identify at-risk areas
DM-1
Identify and employ a methodology to measure and track gentrification and displacement risk.
Identify areas that are currently threatened as well as areas that could potentially be threatened in the future
Track and monitor changes over time and implement preventive and mitigation measures in at-risk areas
DM-2
Assist with the formation of community coalitions in neighborhoods being impacted, or at risk of being impacted, by displacement due to gentrification to help with community organization, advocacy, access to resources, and to provide direct funding to prevent the displacement of businesses and residents.
Create a displacement proofing policy agenda
DM-3
Employ measures to help minimize and prevent displacement, sometimes referred to as a “Displacement Proofing Policy Agenda” (preferably in advance of displacement problems). Examples of these measures include (but are not limited to) the following:
Programs to provide direct assistance with housing costs, including energy costs
Home repair assistance
Property tax relief
Programs and activities focused on minimizing housing foreclosure
Programs and actions to minimize evictions and provide tenants opportunities to by homes
Support small developers and incremental development
Zoning and land use regulations that encourage or require smaller scale development, missing middle housing, and affordable housing units
DM-4
Consider the potential displacement of existing residents and businesses as an evaluation factor when reviewing development plans or investment decisions, particularly in areas that have been historically disinvested or distressed or areas that are currently threatened by displacement forces (see DM-1).
Consider the use oftools like social impact assessments to evaluate development plans and proposals to identify potential issues early in the process.
DM-5
Engage and advise community members who may be impacted by changes to the built environment so they will be assured an opportunity to participate in designing their future. Create a program that includes awareness, discussion, and engagement with stakeholders to get feedback on proposed investments and development.
DM-6
Enlist the assistance of community partners (non-profits, anchors, etc.) to implement measures within or near potentially impacted communities. Examples include but are not limited to the following:
Promote diverse housing stock.
Review and reform development regulations when necessary to promotehousing diversity in a broader range of zoning districts. Inclusionary zoning practices.
The purchase of properties by non-profit community land trusts who then lease housing to members of gentrifying communities at affordable rates.
Assist tenants in organizing, raisingequity, and purchasing buildings threatened by development pressure.
Assistance from community anchors and philanthropic institutions with funding trusts and other community initiatives to combat displacement.
Encourage inclusive financing by encouraging community development financial institutions (CDFIs) to provide credit to support local businesses and provide other financial services to impacted communities.
DM-7
Partner with cultural anchors and strengthen cultural organizations to promote and preserve the unique histories and cultural identities of Kansas City communities affected by displacement.
[1] Association, R. P. (2017, March 1). Pushed Out: Housing Displacement in an Unaffordable Region. New York City, New York, USA. Retrieved from https://rpa.org/work/reports/pushed-out
[2] Builders, N. A. (n.d.). Guide to Equitable Neighborhood Development. San Antonio, TX, USA.
Displacement occurs when people or businesses leave an area due to increasing property values and the resulting economic pressures, such as higher rent and taxes. Higher property values often coincide with an influx of new residents, businesses, and development that changes the physical and cultural character of the neighborhood. There has been a significant amount of new development and investment in recent years in Kansas City. As this investment occurs, some Kansas City neighborhoods are voicing concern about rising costs of living and threats of displacement due to gentrification.
The swift pace of redevelopment in cities across the U.S. over the past 25 years has coincided with a rapid rise in inequality. Displacement can cause an area to lose residents and businesses, and it can erode culture and community identity. New development initiatives must aim to minimize the potential displacement of existing residents and to maintain an appropriate level of affordability.
The Regional Plan Association defines gentrification as, “the form of neighborhood change characterized by the arrival of higher-income and often-time higher-educated residents, along with increasing rents, property values and cost-of-living, and decreasing non-white populations,” [1]. The National Association for Latino Community Asset Builders (NALCAB) defines gentrification as, “a type of neighborhood change in real estate price appreciation leads to involuntary displacement and significant cultural change," [2]. Gentrification frequently disproportionally impacts members of nonwhite racial and ethnic groups, particularly within neighborhoods that have historically experienced disinvestment.
While displacement is a significant concern, new development and investment generally produce positive outcomes. Many of the Playbook’s goals support (and even rely on) new investment. Investment and redevelopment in established neighborhoods can benefit the overall economy and the environment.
This is especially true when revitalization efforts are directed to areas suffering from long-standing economic distress and abandonment. But even then, revitalization efforts must be weighed against their potential impact on equity. Without that, long-time residents may not be able to stay in their community and enjoy their improved neighborhood. The city must track indicators of gentrification and identify areas experiencing, or which will experience, displacement. Then the city must work to minimize or prevent displacement where possible.
The city can’t control people’s decisions about where to live, operate a business, or buy property. Many factors can make an area more popular and lead to a surge in the demand for housing, and the city has little or no control over most of those factors.
However, the city can review and guide new development. It can take actions (through incentives, public improvements, or other subsidies and programs) to influence where the private market makes investments. The city (and other governmental/taxing entities) also can take actions to help alleviate challenges related to real estate costs and the availability of affordable housing (see Housing Affordability and Diversity Objective). Additionally, city partners (nonprofit trusts, community development corporations, lenders, anchors etc.) are well-positioned to help put useful measures into action. The city must be intentional in its efforts to work with community members who could be negatively impacted by new development to avoid creating or exacerbating inequities associated with gentrification.
INDICATORS OF SUCCESS
By mitigating displacement due to gentrification, neighborhoods will retain more of their existing community and culture during periods of transition, redevelopment, and physical growth. Residents will have the opportunity to enjoy the positive economic benefits of this reinvestment in their community. This will lead to more equitable outcomes for individual neighborhoods and the entire city.
BENEFITS
Increased diversity in neighborhoods
Equal levels of basic safety, health, and opportunity among all neighborhoods
Less displacement due to gentrification
Assistance for residents to keep the wealth created in their neighborhoods by public investments
CONTEXT
As historic parts of Kansas City receive new investment and attention, it is important to make sure that development pressure does not negatively impact existing residents. Understanding the effects of rising prices on low- and moderate-income residents is vital to developing policy that keeps neighborhoods accessible.
New income-restricted affordable housing units (increase)
KEY CONCEPTS
Measure gentrification and displacement and identify at-risk areas
The city must measure and track gentrification and displacement. That includes identifying areas currently being impacted, those potentially at risk and whether displacement improves or worsens over time. With a clear picture of which areas are affected, the city can most effectively target them with appropriate mitigation strategies. The city should identify a methodology that can be easily replicated, then regularly update the analysis.
Create a displacement proofing policy agenda
There are many tools the city can explore to mitigate displacement. For example, several U.S. cities have fostered partnerships between community organizations, local government, lending institutions, and businesses to provide lending programs that boost neighborhood revitalization and equitable change. Financial products such as refinancing for existing mortgages and loans for home improvement or buying a home can mitigate displacement. These loans are often paired with forgivable loan subsidies and other products to increase buying power.
Other options to mitigate displacement include Tenant Opportunity to Purchase legislation. Controls on property taxes and help for seniors and other residents in changing neighborhoods, so they can stay in their homes, are options, too. Slowing neighborhood change by limiting large-scale redevelopment in neighborhoods at risk for gentrification also can prevent displacement.
The city can employ land use regulations, too, to limit displacement. These could include inclusionary zoning reviewing density restrictions in developed areas to see if they should be updated. It could also include expanding the amount of land area in the city with zoning designations that permit a range of housing types by right (e.g., those consistent with incremental development and missing middle housing that are potentially more affordable). Any of these could increase the diversity and amount of housing stock in the city. These types of land use strategies give residents the chance to participate in incremental development that can increase housing availability and build wealth in their neighborhoods.
Several of these strategies also can simplify the approval process, by reducing the number of entitlements required for certain types of development and shortening the time it takes to get through the approval process.
COMMUNITY SUPPORTED ACTIONS (CSAs)
Measure gentrification and displacement and identify at-risk areas
DM-1
Identify and employ a methodology to measure and track gentrification and displacement risk.
Identify areas that are currently threatened as well as areas that could potentially be threatened in the future
Track and monitor changes over time and implement preventive and mitigation measures in at-risk areas
DM-2
Assist with the formation of community coalitions in neighborhoods being impacted, or at risk of being impacted, by displacement due to gentrification to help with community organization, advocacy, access to resources, and to provide direct funding to prevent the displacement of businesses and residents.
Create a displacement proofing policy agenda
DM-3
Employ measures to help minimize and prevent displacement, sometimes referred to as a “Displacement Proofing Policy Agenda” (preferably in advance of displacement problems). Examples of these measures include (but are not limited to) the following:
Programs to provide direct assistance with housing costs, including energy costs
Home repair assistance
Property tax relief
Programs and activities focused on minimizing housing foreclosure
Programs and actions to minimize evictions and provide tenants opportunities to by homes
Support small developers and incremental development
Zoning and land use regulations that encourage or require smaller scale development, missing middle housing, and affordable housing units
DM-4
Consider the potential displacement of existing residents and businesses as an evaluation factor when reviewing development plans or investment decisions, particularly in areas that have been historically disinvested or distressed or areas that are currently threatened by displacement forces (see DM-1).
Consider the use oftools like social impact assessments to evaluate development plans and proposals to identify potential issues early in the process.
DM-5
Engage and advise community members who may be impacted by changes to the built environment so they will be assured an opportunity to participate in designing their future. Create a program that includes awareness, discussion, and engagement with stakeholders to get feedback on proposed investments and development.
DM-6
Enlist the assistance of community partners (non-profits, anchors, etc.) to implement measures within or near potentially impacted communities. Examples include but are not limited to the following:
Promote diverse housing stock.
Review and reform development regulations when necessary to promotehousing diversity in a broader range of zoning districts. Inclusionary zoning practices.
The purchase of properties by non-profit community land trusts who then lease housing to members of gentrifying communities at affordable rates.
Assist tenants in organizing, raisingequity, and purchasing buildings threatened by development pressure.
Assistance from community anchors and philanthropic institutions with funding trusts and other community initiatives to combat displacement.
Encourage inclusive financing by encouraging community development financial institutions (CDFIs) to provide credit to support local businesses and provide other financial services to impacted communities.
DM-7
Partner with cultural anchors and strengthen cultural organizations to promote and preserve the unique histories and cultural identities of Kansas City communities affected by displacement.
[1] Association, R. P. (2017, March 1). Pushed Out: Housing Displacement in an Unaffordable Region. New York City, New York, USA. Retrieved from https://rpa.org/work/reports/pushed-out
[2] Builders, N. A. (n.d.). Guide to Equitable Neighborhood Development. San Antonio, TX, USA.
Displacement occurs when people or businesses leave an area due to increasing property values and the resulting economic pressures, such as higher rent and taxes. Higher property values often coincide with an influx of new residents, businesses, and development that changes the physical and cultural character of the neighborhood. There has been a significant amount of new development and investment in recent years in Kansas City. As this investment occurs, some Kansas City neighborhoods are voicing concern about rising costs of living and threats of displacement due to gentrification.