City Heights: A Rehabilitative Plan for Homeownership Abstract: Homeownership not only contributes to the stability of a neighborhood but also, provides residents with a financial stake in the city. Under the City Heights Redevelopment Plan enacted in 1992, the Redevelopment Agency for the City of San Diego recognized that there was a high incidence of overall residential transience rate and low homeowner occupancy in the community of City Heights. Therefore, the redevelopment agency made it their highest priority to increase homeownership by establishing programs that enable housing opportunities for low-income and displaced residents. This study examined the repercussions such programs have on prospective homebuyers and whether the redevelopment agency has sufficiently carried out their goal of increasing homeownership in the community of City Heights. Using Geographic Information Systems mapping, I was able to compare homeowner occupancy rates before the Redevelopment Plan was enacted to current standing. Withstanding literature denotes that homeownership assistance programs, in actuality, pose major implications for low-income buyers. Others contend that loan agencies should focus on providing affordable housing while attracting middle class residents. Furthermore, opposing arguments contend that redevelop agencies should focus on development-oriented approaches as well as, consumer choice when addressing issues of homeownership occupancy. Sarah Hu l March 10, 2011 l Senior Research Project l Submitted in Partial Satisfaction of a BA in Urban Studies and Planning l University of California, San Diego Data and Methodology: Data Sources: City Heights Redevelopment Plan Enacted in 1992 to be effective until Objectives included: integrate commercial & mixed use, provide affordable and market-rate developments and rehabilitation, youth recreation and service centers, create transportation facilities, enhance living wage job creation, and increase homeowner occupancy and 2000 Census Data analysis on homeowner and renter occupancy in City Heights. “Home in the Heights” First Time Homebuyer Program Established by the Redevelopment Agency in light of high transience rate and low homeownership rate in the redevelopment area. Granted loans starting at a minimum of $5,000 to a maximum of $30,000 to eligible first-time homebuyers. Conclusion: Though the Redevelopment Agency had the intention of increasing homeownership in the Redevelopment area of City Heights, it is evident based on GIS mapping that their goal was not met. Homeownership rates not only failed to increase but also, renter rates decreased, which could be attributed to the Redevelopment Plan or what Kromer denotes as, “reshuffling of the same desk of cards.” Residents are moving from older neighborhoods to newer, redeveloped ones; however, the net total of residents is not increasing. City Heights high transience rate proves that residents are more inclined to rent rather than buy in the community of City Heights. Homeownership policies need to be centered around development oriented approaches, as well as, consumer choice approaches. Hence, allowing residents the flexibility to choose their own living quarters within the redevelopment area. In addition, tax abatement and incentives must be provide to encourage middle income residents into the area. Findings: The purpose of this research project was to determine if the Redevelopment Agency of San Diego was adequately carrying out their goal of increasing homeownership in the redevelopment area in City Heights. Using Census data recorded in 1990 and 2000, it was found that no significant changes in housing stock had been made since the Redevelopment Plan was enacted in Renting, in contrast to owning, continued to be the preferred method of occupancy even after first-time homebuyer loan programs were established. Figure 1 exemplifies housing patterns according to the Census data recorded in 1990, before the Redevelopment Plan was enacted in City Heights. It is apparent that the housing stock was much more dense compared to the homeownership rates recorded in the 2000 Census. Homeownership rates were at a high of 3,245 households in 1990 compared to 2,272 households recorded in Figure 2 is a depiction of the homeownerships rate recorded in Homeownership is less dense in the Redevelopment area, proving that loan programs did little to mediate the situation. Figures 3 and 4 exemplify renter rates in the community of City Heights recorded in 1990 and Renting has gone down from 13,765 in 1990 to 13,451 in 200; however, differences in the results are not significant enough to cause any visible changes between the maps. Instead of establishing permanence, residents of City Heights are more inclined to rent even after favorable loan options are established. The reasons for such patterns are unknown; however, it could be because the first-time homebuyer loan programs are exclusively reserved for those who are new buyers. In addition, households that have been displaced during redevelopment projects hold precedence.