Blog: Nikki Schippel

As Lansing moves further into the process of place-making to attract new residents and industries to the area, concerns will arise about the negative impact that revitalization efforts can sometimes have on neighborhood diversity.

“Gentrification” is used to describe the arrival of wealthier people into an existing urban neighborhood. Often times, this is followed by increased rents and property values that can make the neighborhood unaffordable for lower-income residents.

It is important to remember that 50 percent of city residents in the United States moved between 1995 and 2000, suggesting that city neighborhoods see turnover in their population quite often. The reasons for this turnover often vary and may have nothing to do with gentrification and many individuals’ distaste for it.

However, there are methods and practices that citizens can engage in to keep a neighborhood from erasing living space for lower-income residents.

Policy Link, which is a research and advocacy group, suggests that cities need to regulate the private housing market to prevent low-income residents from being displaced. Many feel that devaluation of property by the government would be going too far. Thankfully, there are other much more creative options available, including tools such as nonprofit development companies and limited-equity affordable housing co-ops.

Nonprofit development companies can purchase houses while property values are still low. The Westside of Lansing is fortunate to have this type of involvement in the form of the Greater Lansing Housing Coalition (GLHC). By utilizing both public and private funds, the GLHC has purchased, renovated and sold existing homes to income-eligible neighbors who are looking to purchase their first home. The positive implications of ownership include better upkeep of the home and a greater involvement with neighbors and the community.

The only issue in solely encouraging homeownership is that once the property is turned over, it is not guaranteed that it will be sold below its appraised worth to another lower-income family. The GLHC is a catalyst in creating new development with the intention of renting the units out to very low, low and moderate-income families.

Another option is a limited-equity affordable housing co-operative, in which the individual household owns a share of the co-operative housing corporation. By owning a share, the household has the right to lease a unit and acquires co-op voting rights. Upon moving, the share owner may sell his or her share for either a restricted price, or the income of the possible purchaser, depending on rules that the co-op members create.

Similarly, limited-equity condominiums offer households the chance of owning a unit while a condo association owns the rest of the building. The advantage of having this type of affordable housing development is that households reap owner benefits that come with having a mortgage, including tax benefits. Because the condo association owns the building, there are restrictions on selling prices for units if residents choose to move.

The Westside doesn't technically have a limited-equity co-operative, but many neighbors meet to discuss Westside issues. They also share a community garden. Though this isn't a formal limited-equity co-operative, it draws from components of this option.

Residents of all incomes should view diversity among income levels in a neighborhood as a positive. A diversity of income levels in a neighborhood erases the negative effects associated with concentrated poverty, and improves the tax base, allowing for increased government services. It also promotes better understanding across income levels.

In some instances, current residents may feel angered or threatened by a change in the character or culture of their neighborhood. But carefully managed, increasing cultural diversity can intensify the charm that attracted new residents to the area in the first place.