Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Biggest problem – poor condition of housing (mostly built before 1940); eventually is demolished & replaced or rehabilitated/renovated – Process of Deterioration “Ghettoization” - # of low income residents increases, territory occupied increases Shift from middle-class neighborhood to low-income can happen quickly – middle-income move out further from city (sell or rent to low-income) Sequent Occupance – change in a place due to successive occupation by different individuals or groups over a period of time – can apply to countries, regions, cities, neighborhoods, buildings – each group changes a place physically and/or culturally in their own unique way – the place is now a product of those historical changes

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Process of Deterioration Filtering – Often large homes are subdividing for occupance by several low- income families – Once homes of wealthy, now controlled by absentee landlords – Renters may change rapidly – Eventually, the property will be abandoned – The better maintenance of property, the longer it will last – Owners stop maintaining as rent collected < cost of maintenance (taxes & upkeep) – Owners may not be able to charge enough rent to pay maintenance; may require renter to pay/perform some/all maintenance – Once not even the poorest will rent, the property is abandoned

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Process of Deterioration Filtering – City codes (Code Enforcement) – fine owners for ignoring zoning ordinances & code requirements – If Code Enforcement is aggressive, it may hasten abandonment – Vacant homes, tax default (do not pay taxes); seized by local government and sold in tax sales – Loss of tax dollars & having to seize property & try to sell leads to increased tax burden on city/county – Abandoned buildings also often sites of drugs, homeless (squatters), crime, blight/eyesores – Inner-city neighborhoods – 100 years ago were filled with residents, immigrants; NOW have fewer inhabitants, closing of schools & shops – Low-income residents move to less deteriorated neighborhoods further from center city (process continues) – Tenements – multi-family dwellings, substandard, in urban core

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Process of Deterioration Redlining – Illegal practice of banks drawing lines on a map for areas they refuse to loan money (hard to get loans to own or to rent out) – Difficult to borrow for renovation of older housing in certain neighborhoods – Still practiced, although illegal – enforcement is difficult – U.S. Community Reinvestment Act requires bank to document that they have provided a fair share of loans to inner-city census tracts – Urban Renewal (Redevelopment) Local government demolishes substandard housing and acquires property in blighted areas Relocates residents & businesses, clears site, builds new roads/utilities Turns over to private developers or public agencies to construct new buildings, homes, or services

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Urban Renewal Public Housing – Public housing in U.S. reserved for low-income (30% of income paid as rent) – Section 8 Housing – Managed by local gov’t housing agency; Federal gov’t pays costs of construction/repair/management – Accounts for less than 2% of U.S. dwellings, but possibly a high % of inner- city neighborhoods – In U.K. – 20% of dwellings are public housing (higher in northern cities); called “council estates” or “council tenancies” – Western Europe – public housing is paid for publicly (subsidized) and privately owned (non-profit like a church/labor union or for profit corporations) – Most public housing built in U.S. & Europe in 1950s & 60s were mid or high-rises and now considered unsatisfactory (especially for children) » Drugs, broken elevators, crime, juvenile crime » Concentration of low income in high density may have created increased problems » Many older public housing has been demolished recently

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Urban Renewal Public Housing – More recent public housing has been built as 2-3 story apartments or row houses » Recent high-rises have been reserved for elderly » Public housing has been more “scattered-site” – dispersed throughout city rather than concentrated in one large “project” – U.S. gov’t has stopped funding new public housing » Still help pay rent and help with renovation but not building new » Supply has decreased by 1 million units » # of households needing low-rent housing has increased by 2 million over same time – In Britain, as supply decreased, units were sold to occupants » Expanded subsidies to nonprofits for housing for special needs (single mothers, elderly, disabled, immigrants, poor)

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Urban Renewal Public Housing – Criticism of Urban Renewal » Destroys social cohesion of older neighborhoods (old building torn down, new ones built in place) » Decreases supply of low-cost housing » In 1960s U.S., urban renewal was called “Negro Removal” as African Americans were a large % displaced (considered a racist practice) » Many cities turned away from urban renewal since 1970s as national gov’t stopped funding Renovated Housing – Alternative to demolishing – Sometimes renovated and rented or sold to low-income BUT more often sold to middle-class

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Urban Renewal Renovated Housing – Some areas never deteriorated (elite maintained enclaves of expensive property) – Some areas may not have built in initially – new homes built on unoccupied territory in the urban core is called infilling – Gentrification – middle class move back into renovated neighborhoods of inner city » Homes may be large, more substantially constructed, have more architectural character/detail » Homes may be cheaper than similar-sized homes in suburbs » Proximity to CBD (for work); avoid crowded freeways; have access to more public transportation » Proximity to bars, restaurants, cultural & recreational amenities downtown

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Urban Renewal Renovated Housing – Ethnic patterns altered in gentrified neighborhoods » Example: Chicago – increase in white % & total population in inner city and a decrease in suburbs; Hispanic & African American % has decreased in inner city & increased in suburbs – Renovation can be as expensive as buying newer home in suburbs – cities encourage by providing low-interest loans & tax breaks – Critics – subsidize middle-class at expense of lower-income » Low-income may be priced out of neighborhoods as rents/taxes/property values increase – Cities try to reduce hardships on poor families forced to move » U.S. law requires reimbursement for moving expenses & rent increase over a 4-year period » Cities renovate specifically for lower-income through public housing or other programs (mixed use & mixed income developments) – by renting renovated homes, city disperses low-income families throughout city instead of concentrating in large inner-city projects

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Inner City Social Problems Underclass – Permanent, unending cycle of economic & social problems – High unemployment, higher rates of alcoholism/drug addiction, high illiteracy, high crime & juvenile delinquency – Deteriorated schools, hard to find affordable housing – Lack of adequate police, fire, shops, hospitals, clinics, or other healthcare facilities – Lack of Job Skills » Cannot compete for jobs (lack of skills & education) » Fewer than ½ completed high school or GED » Live in culture/atmosphere that ignores good learning habits & good work habits Little emphasis on education Lack good study habits, regular attendance, proper work/behavior in school

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Inner City Social Problems Underclass – Lack of Job Skills » Gap between inner city skills & employer skill demand is widening In the past – those with limited education could still work in factories, as clerks, custodians, fast-food, etc. Factories are now more skill-oriented (technical, computer, electronics, post-Fordist) OR outsourced to LDCs Clerks require computer skills Custodial & fast food most needed in suburbs (far away & limited public transportation) – Homelessness » Estimated 1 million spend any given night in U.S. on the street (more than 3 million throughout year) » Cannot afford housing, have no regular income

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Inner City Social Problems Underclass – Homelessness » Some have possible family problems or job loss (not a permanent homelessness) » 1/3 of people are unable to cope in society after release from mental hospitals, prisons, or other institutions » ¼ of homeless are children » Serious problem of homelessness in LDCs Culture of Poverty – 2/3 of babies in U.S. inner-cities are born to unwed mothers – 80% of inner city children live in single-parent homes – Inadequate child care services – single mothers may have to choose whether to work or stay home – Highly mobile, may move in with extended family temporarily – Little to no gov’t incentive for fathers to live with wives/children – Only a small % of “dead-beat” dads tracked down for failure to pay child support (if father moves back home, mother may lose welfare benefits)

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Inner City Social Problems Culture of Poverty – Crime » Some in inner-city may turn to crime, gangs, drugs » Drugs are a problem in suburbs & rural areas as well » Rapid growth of drug use in inner-cities; money often gained illegally to buy drugs » Illegal drug trade (often distributed by violent gangs, turf wars) » Dayton, OH – higher % of drug arrests occur in neighborhoods with higher % of low-income African Americans; however, drug use may be as high or higher among white male high school students » Inner-city – drugs more likely to be sold or used in plain sight of police vs. suburbs more likely in secret (so fewer arrests)

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Inner City Social Problems Culture of Poverty – Ethnic & Racial Segregation » In U.S., African Americans & Hispanics typically cluster in 1 or 2 large continuous areas; whites cluster in suburbs » This is true in large or small cities » People tend to live near others of similar social, ethnic, & economic backgrounds – causes patterns in voting districts (ethnicity, political party, etc.) – Inner City Economic Problems Concentration of low-income in cities has caused financial problems (require services, pay little in taxes due to inability to pay/low property values/failure to pay) Gap is growing in cost vs. available funds 2 choices: reduce services/costs and/or raise tax revenues

Key Issue #3: Why Do Inner Cities Have Distinctive Problems? Inner-City Problems – Inner City Economic Problems Annexation – Legally adding land to city land – Rules vary among states (voters in affected area may have to vote for or not, depending on state laws) – Cities cannot annex other cities/incorporated territory – 1800s-early 1900s – people desired annexation for better services (running water/better water quality, sewer, garbage collection, paved roads, street lights, police/fire, public transit, electricity) – Chicago 10 square miles in 1837 to 190 square miles in 1900 – Recent years – many residents of peripheral area do not prefer city » Want to organize on own, have own city; don’t want to pay city taxes » Growth of suburban cities (wish to remain independent) » Legal challenges to fight annexation » Close to city to enjoy benefits but do not want to be a part of the city – Some cities (St. Louis) are trapped by suburbs/state/county lines (can’t annex) – Expensive to annex – must provide city services within a few years (must extend & upgrade services like roads, sewer, police, fire, lights, etc.)