Reducing Poverty:Place Matters Opportunity Dividend SummitDetroit, Michigan<br />Todd Swanstrom<br />Des Lee Professor of ...
Todd:  Mr. President,  I have good news:  we can reduce the number of poor people significantly without spending a nickel ...
Why Place Matters for Poor People <br />
Place of Residence <br />Income <br />Our income influences where we live but where we live also strongly influences our i...
<ul><li>Purchasing Power
Quality of Life </li></ul>Place of Residence <br />Income <br />Our ability to use our incomes to purchase valuable goods ...
Many Poor People Live in Neighborhoods of Concentrated Poverty <br />
The Concentrated Poverty “Tax”<br />HIGH-POVERTY CENTRAL CITY AREA VS. LOW-POVERTY SUBURB<br />Loss of wages ................
Inclusionary Zoning <br />as an Anti-Poverty Strategy <br />Instead of excluding poor people by minimum-lot zoning and out...
<ul><li>Exclusionary zoning laws in 100 largest metropolitan areas, 1980-2000
15 percent set-aside
Result:  2.6 million additional affordable units
37 percent reduction in economic segregation
Dramatic reductions in poverty, crime, and other social problems without any new taxes or spending programs.</li></li></ul...
Inclusionary Zoning Will Not Work in Weak Market Areas Like Detroit<br />Table 1. Top 10 older industrial cities in popula...
Small is beautiful…..<br />But Bigger is Better!<br />
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Todd Swanstrom_Opportunity Dividend Summit

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Todd Swanstrom_Opportunity Dividend Summit

  1. 1. Reducing Poverty:Place Matters Opportunity Dividend SummitDetroit, Michigan<br />Todd Swanstrom<br />Des Lee Professor of Community Collaboration and Public Policy Administration<br />University of Missouri – St. Louis <br />March 2, 2010<br />
  2. 2.
  3. 3. Todd: Mr. President, I have good news: we can reduce the number of poor people significantly without spending a nickel of taxpayers’ money.<br />President Obama: Todd, this is change I can believe in! What is it?<br />Todd: All we need to do is change where poor people live. <br />
  4. 4. Why Place Matters for Poor People <br />
  5. 5. Place of Residence <br />Income <br />Our income influences where we live but where we live also strongly influences our income. <br />
  6. 6. <ul><li>Purchasing Power
  7. 7. Quality of Life </li></ul>Place of Residence <br />Income <br />Our ability to use our incomes to purchase valuable goods and services and achieve a high quality of life is influenced by our place of residence. <br />
  8. 8. Many Poor People Live in Neighborhoods of Concentrated Poverty <br />
  9. 9.
  10. 10. The Concentrated Poverty “Tax”<br />HIGH-POVERTY CENTRAL CITY AREA VS. LOW-POVERTY SUBURB<br />Loss of wages .................................................$3,000<br />Cost of cashing payroll checks .......................$340<br />More expensive groceries ............................... $453<br />More expensive homeowner’s insurance …....$200<br />Higher property taxes .......................................$600<br />TOTAL ...............................................................$4,593<br />
  11. 11. Inclusionary Zoning <br />as an Anti-Poverty Strategy <br />Instead of excluding poor people by minimum-lot zoning and outlawing apartments, cities can enact zoning laws that require a certain number of units be set aside for affordable housing. <br />
  12. 12. <ul><li>Exclusionary zoning laws in 100 largest metropolitan areas, 1980-2000
  13. 13. 15 percent set-aside
  14. 14. Result: 2.6 million additional affordable units
  15. 15. 37 percent reduction in economic segregation
  16. 16. Dramatic reductions in poverty, crime, and other social problems without any new taxes or spending programs.</li></li></ul><li>Right-Sizing as an <br />Anti-Poverty Strategy<br />
  17. 17. Inclusionary Zoning Will Not Work in Weak Market Areas Like Detroit<br />Table 1. Top 10 older industrial cities in population loss and their 2000 residential vacancy characteristics.<br />
  18. 18.
  19. 19.
  20. 20. Small is beautiful…..<br />But Bigger is Better!<br />
  21. 21. The Options<br />1. Ignore shrinking city.<br />2. Fight shrinkage: demolitions, tax abatements, anti-flipping laws, etc. <br />3. Embrace shrinkage: decommissioned infrastructure, re-greening large parts of the city, targeted investments, relocations to urban villages. <br />
  22. 22. Public Transit as an Anti-Poverty Strategy<br />
  23. 23. Investments in Regional Systems of Public Transit Can Be an Effective Anti-Poverty Strategy<br />Low-Income people are more dependent on public transit<br /><ul><li>Families making less than $20,000 in 2001</li></ul>represented 14% of population but 38 <br />percent of all transit riders. <br />(Poor people are green!)<br /><ul><li>Cost of owning an auto: $9,498 in 2007</li></ul>Average American family spends 19 percent of household income on transportation<br />Poorest households spend 55 percent<br /><ul><li>Job-Housing Mismatches : Poor People Have Not Been Able to Follow Jobs out to the Suburbs
  24. 24. Moving from a transit-poor to a transit-rich neighborhood in Minneapolis-St. Paul would save the average household $5,940 per year. </li></li></ul><li>Mixed-Income TOD As an Anti-Poverty Strategy<br /><ul><li>Light rail creates enhanced land values around stations
  25. 25. Inclusionary zoning can be applied to these transit villages
  26. 26. TOD residents can reduce transportation costs and access jobs</li>

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