Building ONE

America www.buildingoneamerica.org

CHANGING THE RULES OF THE GAME

White House Forum on First Suburbs,

Sustainability, Inclusion and Economic Growth

July 18, 2011

A presentation byDavid Rusk

Building One America4100 Cathedral Avenue, NW #610

Washington, DC 20016(202) 364-2455

davidrusk@verizon.net

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State law &

Federal dollarshave created the

“Geography of Opportunity”

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• How and where local governments are organized• What revenue sources and powers

they have

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Billions of Federal dollars shape what gets built wherefor whose benefit …and at whose cost

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For decadesFederal “urban policy”

may have targetedcentral cities…

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But for decades Federal dollarshave promoted

sprawling new development in exclusive outer suburbs.

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the streetcar-era, post-WWII suburbs and the older metropolitan towns – have been neglected

and today they are struggling.

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The current political reality:No increase in Federal money

to help the First Suburbs

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We don’t need to increase the deficit to

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Change the “rules of the game.”

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Alter how Federal funds are allocated:

• To promote & reward diversity• To promote & reward Smart Growth• To promote & reward cooperation and

regional planning• To leverage state and local investment

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Federal leverage (2009)

• $145 billion in HUD-DOT-EPA grants-in-aid• $214 billion in tax subsidies for housing• $700 billion in FHA-guaranteed mortgages• $5.1 trillion in Fannie Mae & Freddie Mac

mortgage portfolio

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Not all suburbs are the same

• First Suburbs are economically and racially diverse, but with rising numbers of low income families• First Suburbs have small, shrinking

or stagnant tax base

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Result: The First Suburbs have low tax

bases and high school costs -

Lower opportunity communities

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Economically & racially exclusive

Growing regional job centers Large commercial tax bases High performance schools, good local

services, and lower tax rates

Higher opportunity communities

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Changing “rules of the game”starts with mapping the

“Geography of Opportunity” for any region

(example: Municipal Opportunity Index for Philadelphia region)

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Factors for aMunicipal Opportunity Index

 

• Jobs 35% Schools 35%

Tax Base 10% Neighborhoods 20%

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ONEAmerica Southeastern PA is divided into:

• 23 maximum opportunity towns 37 high opportunity towns 43 medium opportunity towns 59 low opportunity towns 75 minimum opportunity towns 1 central city (Philadelphia)

238 cities, boroughs, and townships

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Let’s eliminate rural townships that are not part of Philadelphia or Pottstown

Urbanized Areas to focus on true First Suburbs

and to emphasize need for farmland preservation/anti-sprawl policies to protect

rural communities.

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3 BIG CHALLENGES facing First Suburbs:

•  Job sprawl• Too much affordable housing• Low performing schools

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Two guiding principles for changingFederal rules of game

to stabilize & strengthen First Suburbs:

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FIRST:

Use regional opportunity mapto allocate more federal dollars to

medium, low, and minimum opportunityFirst Suburbs that are the most

environmentally sustainable and racially & economically inclusionary.

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SECOND:

Use regional opportunity map to shape Federal policies and incentives

to slow/stop suburban sprawland diversify high and maximum opportunity suburbs that are still

racially & economically exclusionary.

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But that’s notwhat has been happening…

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Fueled by Federal highway funds, in 95 out of 98 largest metro areas, percentage of regional

jobs located more than 10 miles from downtown increased. By 2006, more than 45%

of all jobs located more than 10 miles out

(67% in metro Philadelphia)

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AFFORDABLE HOUSING

Outer suburbs’ exclusionary practices & HUD housing voucher policies

make First Suburbs’ homes and rentals only choice for low/moderate income families

that are “moving up & out.”

Affordable Minimum Opportunity Towns by current HUD housing voucher rent limits

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#1 Ridley Chester City Sharon Hill

Schwenksville East Greenville Aldan

Hatfield Eddystone Marcus Hook

West Pottsgrove Parkside Clifton Heights

Ambler Green Lane Darby Township

Upper Frederick Lansdowne Chester Township

Pottstown Bridgeport Collingdale

Ridley Park Glenolden Lower Chichester

Upper Darby Yeadon Trainer

Red Hill Folcroft East Lansdowne

Norristown Upland Millbourne

Prospect Park Norwood #37 Colwyn

Darby Boro

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Current HUD housing voucher Fair Market Rent (FMR) limits

shut low-income families out of19 of 25 largest job centers

in Delaware and Montgomery counties.

That’s the issue of access to good and growing job supply.

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What about the issue of access to high performing schools?

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High performing schools invariably have low percentages of low income students

(as measured by those qualifying forFree And Reduced-price Meals,

or “FARM”). 

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FARM percentages by MOI category

Maximum opportunity towns 5%High opportunity towns 7%Medium opportunity towns 12%Low opportunity towns 21%Minimum opportunity towns 41%Philadelphia Public Schools 77%

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HOUSING POLICY IS

SCHOOL POLICY

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SCHOOL POLICY IS

HOUSING POLICY

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Number of “Red Zone” schools

are steadily increasing in First Suburbs

because of housing policies

and infrastructure-driven

regional growth patterns

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Change “Rules of the Game” to:

•Revitalize central cities •Diversify outer suburbs/stop sprawl•Invest heavily in First Suburbs that are already developed and diverse

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ONEAmerica Main Policy Opportunities:

•Reform housing policies

•Target infrastructure investment

•Reform school funding to reward diversity

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ONEAmerica Model Housing Policies

Montgomery County, MD’s

mandatory inclusionary zoning policy has produced 12,500 affordable units

for very low-income families integrated with 90,000 market-rate units in

250 mixed income neighborhoods.

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ONEAmerica Model Housing Policies

•New Jersey’s Mt Laurel decision and Housing Reform Act of 2008

•All 566 municipalities required to have regional “fair share” of affordable housing; no escape clauses

•20% of all state-assisted housing developments must be affordable (5% for extremely low-income)

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Federal housing policiesmust reinforce state and local initiatives

to create economically integrated neighborhoods and to prevent

concentrations of low-income families.

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Example of a Federal housing policy reform:

HUD’S SMALL AREA FAIR MARKET RENTBY ZIP CODE PILOT PROGRAM

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REMEMBER:

Affordable Maximum Opportunity Towns by current HUD housing voucher rent limits

-

None!

Affordable Maximum Opportunity Towns with Fair Market Rent by ZIP code

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#1 Upper Providence Whitemarsh

Whitpain Upper Gynedd

Lower Merion (not yet) Chadds Ford

Montgomery (not yet) Radnor

Upper Merion #10 Lower Gwynedd

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Example of Federal housing-transportation reform

HUD-DOT-EPA

PARTNERSHIP FOR SUSTAINABLE COMMUNITIES

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SUSTAINABLE COMMUNITIES INITIATIVE (SCI)

 

$150 million in FY 2010$100 million in FY 2011

No Congressional guidelines ($145 billion in total grants)

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SCI grantees should be required or incentivized:

– Regional opportunity mapping

– Mixed-income housing, particularly in higher opportunity towns

– Regional mobility programs to assist low-income families to move from lower opportunity to higher opportunity towns

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• regional opportunity mapping5 pts

• inclusionary housing in hi opportunity towns 5 pts

• regional housing mobility program5 pts

• job and tax-base increases in First Suburbs 7 pts

• better transit access between First Suburbs and major regional job centers

3 pts

HUD-DOT-EPA could also reward through providing bonus points in grading

discretionary SCI grants:

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ONEAmerica Model transportation/land use planning

Multi-county Portland Metro citizen-elected regional government plans and enforces anti-sprawl Urban Growth

Boundary requires higher-density, mixed-income housing

development

shifted Federal funds from highways to First Suburb light rail system

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ONEAmerica Federal transportation reform

Transportation Opportunities Act of 2011

•National Infrastructure Innovation and Finance Fund•Fix It First priority for highway and bridge investments•Directs more funding to First Suburbs infrastructure •Should promote MPO reform•Should link DOT funds to Smart Growth and economic integration

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ONEAmerica Model school funding reform

“Money Follows FARM Child” formula

rewards greater diversity moots “fiscal zoning” stabilizes First Suburbs tax rates

Examples:–New Mexico (1972)–Pennsylvania (2008)–New Jersey (2008)

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ONEAmerica Why Organize The First Suburbs?

Investing in First Suburbs is investing in sustainability, inclusion and in our economic future

State/Federal reforms need strong grassroots support First Suburbs have more members of Congress, more

independent voters, and more competitive districts First Suburbs are where bi-partisan civil civic debate takes

place everyday First Suburbs are a unifying force in our metro regions

and…

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…when organized, First Suburbs

are more powerful

than the sum of our many parts