USA

Competition between urban districts

There are many very run-down urban areas in the USA. They are characterised by social housing and private rental housing that has been neglected for decades. One of the fundamental problems in deprived urban areas has been that the banks have been unwilling to lend there. In the 1970s they were designated as red-line areas and people living there could not get a loan - no matter how good the economy of the individual household. That was naturally an untenable situation and led to legislation with a view to forcing the banks to change this policy and to the establishment of an organisation that could arrange loans with public co-financing. The revitalisation efforts are also characterised by many different programmes and foundations. The programmes are all based on the idea of public-private partnership and are only implemented if it can be proved that the public funds can be supplemented by private money. On the one hand, the many different programmes mean great breadth and many different instruments that the individual local area can use. On the other hand, they can also split the organisation and ruin the integrated approach. There is not always coordination but, on the contrary, competition between the projects.

The Ministry of Housing and Urban Development, also called HUD, has launched a range of programmes that are often supplemented by states and cities. We have chosen two programmes (Hope VI and CORP). In addition, we have chosen to describe a central organisation that plays a very active role in revitalisation work - the Neighborhood Reinvestment Corporation.

Hope VI

Hope VI is a HUD programme for revitalising social housing. The homes are built by autonomous companies - so-called Public Housing Authorities - that receive grants from Congress and the state administrations. Most of the housing is in the form of high-rise developments and suffers from serious problems. Hope VI has been created to solve some of these. The individual companies can apply for around DKK 320 million, and the annual budget is approx.

DKK 3 billion. The money is used either for refurbishment of existing buildings or for demolition and construction of new housing units. In addition, up to 20% of the money can be used for social projects. The main objective of the programme is to create communities in which different social groups live side-by-side - so-called mixed-income communities. The idea is that the homes must be identical in appearance, whether they are occupied by low-income families or by others. Some of the homes are thus subsidised, while others are paid for on market terms. Some of the original residents have to move out and they receive subsidies that follow the people themselves and not the bricks and mortar. This is thus a two-pronged strategy.

The initial experience with refurbishment of social housing was poor because the action was limited to housing. It is now known that one must include all aspects, although experience also shows it is a constant battle to achieve an integrated approach.

Community Outreach Partnership Centers (CORP)

This programme has been set up to promote expanded cooperation between universities and organisations in nearby residential areas, e.g. resident groups, religious institutions and public institutions at all levels. The objectives are to strengthen the scientific basis for planning in the areas, to raise the level of education, to develop local trade and industry, to improve housing and to improve health and safety. As one example, the School of Architecture is contributing design expertise, the School of Nursing is contributing health projects, and the Engineering Faculty is providing technical assistance in the designated areas. The universities can also support local communities by opening their facilities to them.

The programme requires a new research strategy and a new examination system.

The main objective must be formulated locally. It must not be the universities' interests that govern the projects. The applicants must prove that they are cooperating with local residents' organisations.

The programme started in 1994 and the time frame for the individual projects is 10 years, although they only receive support for the first 2-3 years. Up to the present time, 60 programmes have been initiated.

Neighborhood Reinvestment Corporation (NRC)

NRC is an important organisation. Its main objective is to revitalise low-income areas showing signs of decay. It was created by Congress in 1978 and now has 171 projects in progress all over the USA. The majority of the members of each branch office board are residents. The organisation was created in order to support an alternative loan market. Its branch offices arrange loans composed of a public part and a private part. In this way, they support and increase home ownership in the areas. NRC is a unique organisation. It is supported by Congress but is totally independent and can therefore bypass bureaucracy. NRC receives about DKK 400 million a year and is very popular because the co-financing is much bigger than in HUD projects. If a HUD project achieves a ratio of 1/1, it is regarded as a success, whereas NCR has an average ratio of 10/1. It has thus been very successful in involving other foundations and private investors. The organisation has very wide powers. Its buys up many properties and makes extensive use of local manpower to refurbish them. It experiments with different forms of housing and besides supporting home ownership it works to preserve a proportion of cheap rental housing. Lastly, it puts a lot of effort into supporting local leaders, regenerating local pride and building up investor faith in the local community. The projects are continuously assessed and must achieve a measure of success in order to continue. The areas chosen therefore tend not to be the weakest. Both barriers and potentials, problems and resources must be clarified in order to set up a local branch office.

Neighborhood Housing Services in Chicago is one of the largest and most successful of the Neighborhood Reinvestment Corporation's offices. It works in 17 different areas. Little Village and Back of the Yards are examples of projects at different stages. One is in the start-up phase, while the other has been discontinued because it has been a success. Little Village got a local office in 1979. At that time there was a need for investments, and NHS offered information on investment and favourable loans, together with translation of documents. The office closed in 1995. Its work is regarded as ended and the area can now manage on its own. Little Village has 95,000 inhabitants, 95% of whom are of Mexican extraction. Most live in large families in properties with 23 flats. As mentioned, the area used to suffer from lack of investment and physical decay. In addition, there were problems with gangs and crime. NHS established two model blocks and started 25 block clubs that worked on various projects, including the establishment of quiet roads and repair of pavements. Very cheap loans were arranged for facade refurbishment on shopping streets, and the special Mexican character of the area was accentuated through decorations in surfacing and on facades. Today, the area is lively and the ethnic concentration is seen as a stronghold. It has become a busy shopping area. Within a 10-year period the number of registered shops has doubled and investments are still being made in the area. Back of the Yards got an office in 1995. Here, the problems are still overwhelming.

The area was originally built for Irish families working in Chicago's slaughterhouses. The housing - built in the 1880s - was some of the first slum housing in Chicago. Today, the area has about 34,000 inhabitants of mixed origin. 51% are Latin-Americans, 35% Afro-Americans and 13% Anglo-Americans. The predominant type of housing is single-family houses or houses containing two flats. Often, the owner lives on one floor and lets the other floor, but there are also many houses that are owned by people who do not live in the area themselves. More than 80% of the houses are made of wood, so there are big problems with dry rot and termites. The biggest problem is lack of investment. There are many empty houses and shops. In addition, the area is affected by high unemployment, ethnic conflicts, crime, gangs and drug problems. The objectives of the project are to build up trust, achieve stability and create a safe environment. The success criteria are many cheap loans for home ownership, changing the perception of the area and ensuring extensive resident participation. There is no general strategy on which houses are to be refurbished via the home ownership programmes. It depends on where there are active residents. In its concept the project is a bottom-up project. The residents receive support to organise themselves around their housing conditions. The idea is that this organisation will rub off on other areas. 15 block clubs have been established, together with a partnership between NHS, the churches, the schools, the police and a local residents' organisation, which works on developing trade and industry.

The Pilsen project is an example of a partnership between local organisations and the local university. The residents benefit from the university's competence and the students gain practical, interdisciplinary experience. Pilsen is a large residential area near the University of Illinois of Chicago (UIC). The buildings are more than a century old, and the area is one of the oldest in Chicago, having survived the fire of 1878. Many of the buildings are worthy of preservation. Pilsen has about 45,000 inhabitants, 62% of whom are under the age of 29. Large families live in small flats that are poorly insulated, crime and unemployment are high, and the area also suffers from problems with gangs.

The objectives of the UIC project is to bring together those resources that can improve the quality of life in the area, to generate social rehabilitation, and to create educational opportunities, economic development, stability, security and local identity.

The UIC's main success criteria are that they can cooperate with the local population and communicate their knowledge concerning existing programmes and foundations. The project is therefore a patchwork of different programmes.

In the social sector, great importance is attached to teaching and health. A health clinic is going to be established and the university offers teaching. On the physical side, importance is attached to energy improvements and facade refurbishment. In this connection the university registers housing conditions and shop facades. In addition, it communicates knowledge about loan programmes to potential homeowners.

Washington

The Ellen Wilson project is a Hope VI project in Capitol Hills, which is otherwise a prosperous area. It was built as a model housing project for poor families but soon developed into a ghetto with a lot of emigration and many empty flats. At the end of the 1980s a decision was made to demolish the project, and now 154 new homes are under construction.

The project is aimed at integrating mixed-income families. Some the homes are reserved for low-income families, some may only be rented out to middle-income families, and the remainder are reserved for families with an above-average income. All the households pay 30% of their income in rent, regardless of how much they earn. The project also includes 20 units that will be sold on the open market. A community centre is under construction, and the management is planning an extensive resident service. One cannot see from the outside who lives where because all the housing units are of the same standard. The project is very popular and there are long waiting lists for all the categories.

The University of Columbia is helping residents in Harlem to organise themselves around refurbishment of dilapidated housing.

The university has established an information office in the area. It opened in 1995 and serves local resident groups. The office is called Urban Technical Assistance Project (UTAP). One of its first projects was to support a resident group called United Tenant Interim Lease Coalition of Harlem (UTILCH) in its efforts to improve the housing conditions of low-income families in central Harlem.

Harlem has a rather solid housing stock, although it has been neglected for several decades. In the 1970s there was a very serious lack of investment. Many owners abandoned their buildings, which were therefore taken over by New York City. At the start of the 1980s, the City thus owned 40% of properties in the area. Many properties stand empty and there are vacant sites in the area, which is characterised by poverty and crime.

New York City wants to sell the properties back to the residents. The residents can buy them by means of a government-supported programme that provides grants for refurbishment and acquisition. However, the problem has been that the process was forced through and while the standard of refurbishment was too poor. This is why UTILCH was set up as a residents' organisation to support the residents in cooperation with the local authority. The organisation administers the government programme locally and advises on financial and technical aspects in connection with acquisition. The organisation's work has been a success. Properties have recently been refurbished to a very high standard.

UTAP has helped the local residents' organisation prepare strategic plans within housing, design, finance and social services.

In addition, UTAP is helping with building assessments and providing legal advice and teaching services.

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