University Neighborhood Housing Program30th Anniversary Report • May 1, 2013

Nowhere to Go

A Crisis of Affordability in the Bronx

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Preface

Nowhere to GoA Crisis of Affordability in the Bronx

University Neighborhood HousingProgram celebrates its 30th Anniversary in theNorthwestBronxthisyear.Ourrootsrundeepinto the community reinvestment movement,which came out of neighborhood organizingwork in the 1970s. Thiswork transformed theBronxfromaboroughwithburnt-outbuildingsand vacant lots to a vibrant community thathundredsof thousandsofworkingfamiliescallhome.

University Neighborhood has trans-formed itself a few times toadapt to theneedsofourneighborhoods. Whileourearliestworkwas as a community development lender, weevolvedtoincorporateloanpackaging,technicalassistanceforcommunitycontrolledhousing,andsupportforcurrentandprospectivehomeowners.As we worked with local homeowners at-risk of foreclosure, we were alarmed by theextent of predatory financial products in ourneighborhoods.Inresponse,wenowprovidearangeofservices toresidents includingfree taxpreparationandfinancialeducationthroughtheNorthwestBronxResourceCenter. Thepeoplewhouseourprogramshelpedinspireandinformthis report aswe seemore andmore residentsworkinghard,butunabletomakeendsmeet.

In the lastdecade,wehavekeptupourtechnical assistance work including serving asa development partner for new or renovatedaffordablehousing,andtakenonneighborhoodbased research as a key component of ouractivities.Thisresearchextendsfrommultifamily

pricingtrendstoouracclaimedBuildingIndicatorProject database, to the demographic data thatprovidesthefoundationforthisreport.

Since our founding, we have witnessedtheresilienceofthepeopleoftheBronxastheyfought to bring their borough back from thebrink,battlingahostofissuesincludingnegligentlandlords, private disinvestment, reduction incityservices,andspeculativeinvestors.Despitethemanyvictorieswonby community leaders,negative economic indicators not only persist,but havepushed theBronx to apoint of crisis.Therisingcostof livingcoupledwithdecliningreal income is unsustainable. As in the past,only organizing efforts by Bronx residents andcommunitygroupswillcatalyzethewidespreadstructural changes needed to preserve ourneighborhoods. This report is part reflectionon how andwhy indicators in the Bronx haveevolved over time and part recommendationon policies to reverse negative trends movingforward.

ThestateofaffordabilityintheBronxhasNowhere to Go.TheBronxisinafulloutcrisisofaffordability.New data reveals that more than half of all households in Bronx Community District 5 now pay more than 50% of their income on rent, something unprecedented in the history of New York City. Thistrendofpercentofincomespentonrentcannotgo any higherwithout a significant increase inovercrowdingandhomelessness.Costsoflivinghave increased much more than inflation, andBronx incomes are in decline. What can andmostlikelywillincreaseisthepercentoffamilies

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University Neighborhood Housing Program2751 Grand ConcourseBronx, NY 10468718.933.3101www.unhp.org • mail@unhp.org • @UNHP

payinghalfoftheirincomeonrentandheadedtowardhomelessness.

If theBronx isnotaffordable, thenNewYork City’s working poor have Nowhere to Go. TheBronxhastakenontheroleof the last“affordable” borough, with the lowest askingrents in theCity. However, the Bronx has thelowest median income in New York City, anddespite the occasional article to the contrary,theBronxisnotgentrifying.NewcomerstotheBronx, from abroad and from otherNewYorkcounties,actuallyearnlessthanthepeoplewholiveherenow.Giventheserealities,theboroughis in fact the least affordable when it comes topercentofincomespentonrent.

Agrowingnumberofhomeless familiesalso have Nowhere to Go. As affordabilitydisintegrates, Bronx housing court cases haveexploded,evictionshaveskyrocketed,andNewYorkCity’ssheltersystemisburstingattheseams.Furthermore,therearenonewrentalsubsidiestomovehomelessfamiliesintopermanenthousing,creating, among other problems, a backlog ofresidentsintransitionalshelters.Meanwhile,theCity’sanswerhasbeentocontractwithlandlordsand service providers to convert permanentrent stabilizedbuildingsandunits into shelters

reducing the market availability of lower rentunits.

Finally,asapositiveexpression,Nowhere to Go,harkensbacktothelateNorthwestBronxleader Anne Devenney’s cry to “Don’t Move- Improve!”Thirtyyears later and theBronx isstillworthfightingfor.Itisahomeforworkingfamilies with a range of housing from singlefamilyhomestoart-decomultifamilybuildings.It is a place for traditional businesses, homebusinesses and street businesses andaplace toworship, work, commute, shop and play. Thecommunitywork in the 1970s and ‘80s createdthehousingthatprovidedanaffordableplaceforthegrowingnumberofpeoplewhocametoNewYorkCityinthe1980sand‘90s.ThispopulationgrowthintheBronxandthroughoutNewYorkCityhelped to revive theCityeconomically. IfAnneDevenneywere here today shemight bethefirsttosay,“Weain’tgoingnowhere!”TheanswertothiscrisisisnottoabandontheBronx,andnottocedeittoforcesofdisplacement,nortoletthingscontinueinthedirectiontheyaregoing.Rather,itistimetorecognizetheimportanceofall workers to our local economy and fight tomakesuretheycanaffordtoliveindecent,safe,affordable housing in a livable, vibrant NewYorkCityboroughliketheBronx.

Acknowledgements

Thisreportisatrueteameffortbythestaffand interns atUNHP.Themajorityof researchandwritingwasperformedbyElizabethWismanandGregoryLoboJost,withmajorcontributionsfromJimBuckley,CatherineClarkeandKristenO’Neil.Ourdirectinteractionswithcommunitymembers through the programs of theNorthwestBronxResourceCenterandourFreeTax Preparation Programs—headed by Jumelia

AbrahamsonandsupportedbyJohannaKletter,Jessica Castro, Michelle Virgin and FernandaCampos—coincidedwithandgreatlyinfluencedthisreportandourconnectiontotheresidentsoftheBronx. Wealso acknowledgeourBoardofDirectors,nonprofitneighborhoodpartners,andfundersfortheirsupportandcombinedeffortstocreateanaffordableandlivable,thrivingBronx.

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IntroductionEconomichardshipsandgrowingincome

inequalityarewelldocumentednationally,andare especially acute in the Bronx. The 2008recession highlighted the growing incidence ofpovertyintheUnitedStates,althoughrealincomesamongmiddleandworkingclassfamiliesbeganfallingdecadesago.Theparadoxoftherecoveryisthatmorepeopleareonfoodstampsandoutof work. The National Low-Income HousingCoalition’s2013 Housing Spotlight documentstheunsettling trend of the affordable housing gapacrossthecountry.Asincomesfortheworkingclass stagnate or decline, the cost of livingcontinuestorise,andasaconsequence,growingnumbers ofAmericans are spending increasingproportionsoftheirincomeonrent.Evenwhatis accepted as affordable has changed over thedecades. In 1981, the Department of HousingandUrbanDevelopmentraisedtheaffordabilitythreshold from25% to30%of incomespentonrent. About half of all renters nationally, andnearlytwo-thirdsofrentersintheBronx,liveinunaffordablehousing,andbothofthosenumbersareincreasing.

Here inNewYorkCity, thedata showsthathousehold incomeshavedeclined faster intheBronxthaninanyoftheotherboroughs.Asaresult,althoughtheBronxhasthelowestrentlevels,rentersherefacethehighestrentburdensin the City. Rent burden is the percentageof income allocated to rent, and the nationalstandardofaffordabilityisstill30%.ThemedianrentburdenintheBronxis40%forallrenters,and50% for low-incomeunsubsidized renters. Theconsequencesofthesehighrentburdensincludeanincreasedriskofhomelessness,overcrowding,familiesgoingwithoutessentialssuchashealthcare,anddependenceonpublicassistance.Thehigh concentration of households with heavyrent burdens fuel other negative indicators inthe Bronx, such as public health problems andpooreducationalopportunities, interconnectingfactorsthatcontributetolowearnings.

Whatweseektofindinthisreportiswhythese negative trends persist and how we canreversethem.UniversityNeighborhoodHousingProgram’s main focus is affordable housing,and we continue to believe that affordable

housingisthecornerstonetoeconomicstabilityfor familiesand individuals. Thedemographicdata combined with our work on the groundwith neighborhood residents has given us aheightenedsenseofurgency.TheBronxisnowat another critical juncture just as itwas in the1970s.

Rising housing costs are an importantpiece of the affordability gap, but so is theproblemoflowwages.“They put more money on the rent and never give you a raise,”saidonetenantinterviewed in front of his deteriorated BronxbuildingbyBronx News 12asa followupstorytoUniversityNeighborhoodHousingProgram’s2007 Shrinking Affordability Forum. Thingshaveonlygottenworse since2007with furtherincreases in rents and declines in incomes andhousingquality.

TheBronxandthepeoplewholivehereareanessentialpartoftheNewYorkCityeconomy.The legacy of redlining and disinvestment hashad an enormous impact on the Bronx andcontributed to poor housing conditions andpoverty.Reinvestmentworkstartinginthe1970sthwartedthethreatsforplannedshrinkageintheBronxandcreatedthehousingthatbecamehometoimmigrantsandothersseekingtoliveinNewYorkCity. Justascommunity-ledreinvestmentby the public and private sectors transformedtheoldBronx,investmentisstillneededtodaytopreservethenewBronx.Investmentisespeciallyneeded in the lowwageworkers that keep thefiveboroughsrunningsothattheseworkerscanaffordtoliveandthriveinNewYorkCity.

TheorganizingworkintheBronxwaspartofanationalmovement that led to thepassageof the Community Reinvestment Act as wellas widespread reinvestment in neighborhoodsacrossAmerica.MartinGruenberg,Chairmanofthe FDIC, recently said, “If [reinvestment] canbedoneintheBronx,Ithinkit’sfairtosayitcanbe done anywhere.”1 The Bronx again has anopportunitytolead.

1  American Banker. “Gruenberg Gets Personal in NCRC Speech.” March 22, 2013. http://www.american-banker.com/people/gruenberg-gets-personal-in-ncrc-speech-1057789-1.html

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NewYorkCitySubBoroughAreasWithNamesforReferenceinthisReport

South Shore

Mid-Island

North Shore

Coney Island

Sheepshead Bay /

Gravesend

Bensonhurst

Bay Ridge Flatlands / Canarsie

FlatbushBorough

Park

SunsetPark East

Flatbush

S. CrownHeights

Park Slope / Carroll Gardens

N. Crown Heights / Prospect Heights

Brooklyn Heights /

Fort Greene

Brownsville / Ocean Hill

East New York /

Starrett City

BedfordStuyvesant

Bushwick

Williamsburg / Greenpoint Middle Village /

Ridgewood

Sunnyside / Woodside

Astoria

JacksonHeights

Elmhurst /Corona

Rego Park /Forest Hills

Ozone Park /Woodhaven

South OzonePark /

Howard Beach

Flushing /Whitestone

Bayside /Little Neck

Hillcrest /Fresh Meadows

Jamaica

QueensVillage

Throgs Neck /Co-op City

Williamsbridge /Baychester

PelhamParkway

Soundview /Parkchester

Riverdale /Kingsbridge

Kingsbridge Heights /Mosholu

UniversityHeights /Fordham Belmont /

Morrisania

Mott Haven /Hunts Point

Highbridge /South

Concourse

Washington Heights /Inwood

MorningsideHeights /Hamilton Heights Central

Harlem

EastHarlem

UpperWestSide Upper

EastSideChelsea /

Clinton /Midtown

StuyvesantTown /

Turtle-Bay

Lower EastSide /

Chinatown

Greenwich Village /Financial District

Rockaways

Map created by University Neighborhood Housing Program

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Data Analysis

This sectionhighlights trends inthe data to explainthe current economicsituation in theBronxand to help informpolicy decisions froma community basedperspective. Bronxn e i g h b o r h o o d sare diverse, well-populated, andvibrant thanks to agrowing populationand revitalization ofhousing stock andcommerce.Theengineof reinvestment inNew York City,beginninginthe1980sand 1990s drove a20%growthinpopulationintheBronx.Duringthe last decade, the Bronx addedmore peoplethananyotherborough,andisalmostbacktoitspeakpopulationin1970.

The population increase in the Bronx isdue inpart toa risingpaceofnew immigrantsmoving into the borough. The increase inpercentageofforeignbornpopulationissteepestintheBronx,dueinparttoloweraskingrents.

Up 4.9%

Down 0.4%

Down 0.6%

Up 2.3%

Up 4.5%

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The Bronx isfull of working classneighborhoods.Seventy-four percent of Bronxhouseholdshaveat leastonepersonwithwageorsalaryearnings,whichisnearthenationalaverageof 79%. Many BronxCommunity Districts,including those withsevere affordabilityissues, have evenhigherproportions of thepopulationworkingforawageorsalary.

Despite thefact that people in theBronx are working,they typically earn lessthan workers in otherboroughs, and morehouseholds in theBronxare dependent on only

one wage earner. Amajority of thesehouseholdsareledbywomenwhoaremorelikely tobeemployedparttime,andbecauseof thewagegap,earnlessthanmen.

What are the trends in Bronx incomes?

From 1989to 2011, the nominalmedian income in theBronx increased byonly $10,000. Whenadjusted for inflation,the real median income has actually declined by 23%. Brooklyn, Queens,and Staten Islandalso experienced realdeclines of 12%, 17%,and 15% respectively,

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while Manhattansawanincreaseofmorethan8%.

This dra-matic decline in real income is shocking.To make mattersworse, familiesnow often usemore of themost expensiveservices suchas child care,health care andeducation thantwodecadesago.

Why have real incomes declined faster in the Bronx?

The opposite of gentrification is happening in the Bronx. Peoplemoving to theBronx fromabroadandfromotherplacesinNewYorkState

have lower incomes than current residents.Newcomers arriving in the Bronx also havelowerincomesthanthosemovingtootherpartsof the City,widening the income gap between

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the Bronx and other boroughs. Creating andpreserving affordability is thus important notonly for current residents, but also for low-income families priced out of other areas ornewlyimmigratingtotheUnitedStates.

Anotherexplanationfortherapiddeclinein real income is that the Bronx has a highproportionofworkingpoorresidentsemployedintheservicesector.Servicesectorjobsincludethoseinretail,foodservice,hospitality,securityand health care assistance, and have typicallylowwagesandinvoluntaryparttimework.

Thirty-five percent of Bronx workersare employed in the service sector, comparedto thecitywideaverageof24%. These jobsare

essential to keep our City functioning, but thepayislowandthehoursareoftenunpredictable.Although people are employed, they may notbeabletomeettheirmostbasicneeds,letalonebuildwealth. For instance, nearly one in fourBronxworkers does not have health insurancecoverage,andmanyareforcedtoturntopublicassistance to compensate for low wages. The number of Bronx households receiving food stamps increased from 23% in 2007 to 35% in 2011.2

2 U.S. Census American Community Survey (ACS) One Year Estimates, 2007-2011.

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Why are so many Bronx residents employed in the service sector or low wage jobs?

Low levels ofeducational attainmentand the high percentageof new immigrants limitemployment optionsavailable to Bronxresidents. Educationalattainment directlyrelates to employmentopportunitiesandearningpotential. TheBronxhasthe lowest proportionof the population with ahigh school diploma orequivalentat68%andonly18% of Bronx residentshold a bachelor’s degree.As shown earlier, 34%of the Bronx populationis foreign born, andeducation systems and opportunities abroaddiffer. This, in addition to potential languagebarriers, create obstacles to employment forimmigrants.

TherehasbeenashiftintheUnitedStateseconomyfrommanufacturingtoservice.Severaldecadesago,unionizedfactoryjobswithdecentwages and benefitswere available to unskilled

laborers. Thesemedium wagejobs have beenreplaced with lowwage jobs often inthe service sector.The NationalEmployment LawProjectreports3thatin the recession of2008, low-wagejobs accounted foronly 21% of jobslost, but 58% ofnew jobs createdin the recovery.Mediumwage jobs

3 “The Low Wage Recovery and Growing Inequality.” August, 2012.

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accounted for mostof the jobs lost inthe recession at 60%,however only 22%of jobs recovered aremediumwage.Giventhe national numbersand demographics intheBronx, theshift tothe low wage sectorhas a bigger impacthere.

What about people who are out of work entirely?

On top of thewageissues,theBronxhas had higher levelsof unemploymentthan the rest of NewYorkCityfordecades,and unemploymentrates everywhereremain higher thanpre-recession levels.These numbers do not include underemployedworkers, thoseworkingmultiplepart-time jobstomakeendsmeet,anddiscouragedpeoplewhohavelefttheworkforceentirely.

Unemployment remains higher in lowandmoderateincomecommunitiesofcolor.

54%

96%

45%29%

54%

48%

What is the impact of low-wage jobs and low incomes on housing affordability?

Increases inrent have greatlyoutpaced inflationthroughout New YorkCity. The chart belowshows the differencebetween rents in1987 adjusted to 2011dollarsandactual2011rentlevels.(Thesteepdifference betweenthe two represents theincrease in rents overinflation.) These are

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mediangrossrents,whichincludeapartmentswherepeoplehavebeenlivingforalongtime.Askingrentscanbesignificantlyhigherineachborough given the nature of rent regulationand loosening of these regulations since themid1990s.4

Onemightthinkthathavingthelowestmedian and asking rents in the City wouldmake theBronx themostaffordableborough.In fact, the Bronx is the least affordable borough! In Community District 5, for example, over50%ofhouseholdspaymorethanhalfoftheirincome on rent, and neighboring districts are

4  The Rent Regulation Reform Act of 1997 allowed additional rent increases upon vacancies and allowed for complete deregulation of high end rents.

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close behind. This represents a full blown crisis of affordability.

The percent ofhouseholds spendingmorethan50%oftheirincome on rent hasbeenrisingthroughoutmuch of the City, asshowninthemapsonthe preceding page.Rentburdenscanonlygo up so far before afamily is at a greaterrisk of homelessness.This trend has beenhappening for manyyears,butwearenowatapointwheremoreandmorefamiliescanno longer make theirrent.

Poor housing quality also contributesto rising rents. Tenants are driven to leavedeteriorating apartments, and high turnoverleadstolargerandmorefrequentrentincreases.UNHP’s Building Indicator Project databaseshows the highest concentration of physicallydistressed apartment buildings in the CitycontinuestobeintheBronx. Buildingsscoringat or above 800 points in the BIP database areidentifiedasbeinglikelydistressed.

How much does it take to afford rent in the Bronx?

The median monthly contract rent inthe Bronx, according to the 2011 Housing andVacancy Survey, is $942. When the cost ofheatingandfuel is included, themonthlygrossrent is $1,050. In order for a single person toaffordahousingexpenditureof$1,050,meaningtheywouldspend30%of their incomeonrent,theywould need tomake nearly $20 per hourand be employed full time for the entire year.5This is close to what the federal minimumwagewouldbeif itkeptpacewithincreasesin

5  Affordable rent levels were calculated by finding 30% of monthly income, assuming the employee worked 8 hours per day for 22 days each month.

workerproductivity.Belowisachartcalculatingaffordablerentsatdifferenthourlywagerates.

Table: Affordable Rents at Various Wages6

Hourly Wage

Rent Affordable at 30% of Income

Current Federal Minimum Wage

$7.25 $383

New York State Minimum Wage in 2015

$9.00 $475

Living Wage $11.50 $607Productivity Wage $22.00 $1,161

What happens when people can not afford their rent?

Theminimumwage inNewYork Stateissettoincreaseto$8.00perhourinDecember2013,$8.75inDecember2014,and$9.00in2015.Minimumwage workers will see some benefitoverthenextfewyears,butthereisstillahuge

6 Living Wage is defined as $10.00 per hour with benefits, or $11.50 without benefits. Productivity wage is minimum wage from 1960 adjusted for increases in worker productivity, as cited by Senator Elizabeth Warren (D-MA) in March 2013.

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gap between whatis affordable at theincreased wage leveland the cost of rent.The result could be agreater portion of thepopulationvulnerabletohomelessness.City-wide, the number ofhomeless families inNew York City hasincreased 66% since2002, according tothe Coalition for theHomeless.

Thestepbeforea family becomeshomeless is often anevictionorpossession.Both evictions andpossessions are actions by the landlord toremovetenantsusuallyfornonpaymentofrent.The difference is that in cases of eviction, thetenants’belongingsareremovedfromthehomeandinpossessions,thebelongingsremaininthehome.Thechartaboveshowsthetotalnumberofresidentialevictionsandpossessionsovertimeineachborough.TheBronxhasamuchhighernumbereventhoughwehavefewerrentersthanBrooklyn,Manhattan,andQueens.

The chart below shows the number ofevictionsandpossessionsadjustedforthenumberofrentalunits.In2010and2011combined,therewereevictionsorpossessionsinmorethan5%ofBronxrentalunits.

When the landlord gains possession ofanapartmentthroughevictionorpossession,thetenantcanappealtheactioninhousingcourtandpotentiallygetbackintotheapartment.However,housing court is increasingly backlogged withthe uptick in evictions and possessions, and

the tenant is notallowed back intothe apartment untilthe case is resolved.Additionally, a 2013reportbyCASA7foundthat 83% of Bronxtenants in housingcourt did not havelegal representation.Tenants withoutrepresentation aremuch more likely tobeevicted.

7 “Tipping the Scales.” New Settlement Apart-ments’ Community Actions for Safe Apartments and Urban Justice Center. March 2013.

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What happens once a family becomes homeless?

There is no longer a reliable path backto permanent housing for currently homelessfamilies.TheCoalitionfortheHomelessreportsthat in 2005, the City of New York stoppedprovidingSection8rentalvoucherstohomelessfamiliesleavingtransitionalhousingandsheltersandcreatedanewprogramknownasHousingStability Plus, later replaced by the AdvantageProgram, a two-year voucher program. Dueto a refusal of the State to continue fundingandthefailureoftheCitytofill inthegap,theAdvantage Program was discontinued in 2011forbothcurrentandprospectiverecipients.TheCoalitionfortheHomelessalsoreportsthat6,500familiesthathadbeenintheAdvantageProgramreturnedtothesheltersystembytheendof2012.WhilehousingadvocateswerecriticalofaspectsofAdvantage, the loss of the program and thefailure to provide any similar rental assistanceleaveshomelessfamilieswithlittletonochanceoffindingaffordable,decentapartments.

In the current budget year, the City isprojecting an expenditure of $955 million forshelter and services for the homeless.8 One ofthe programs supported by New York City’sDepartmentofHomelessServicesistheCluster

8 “State of the Homeless, 2013.” Coalition for the Home-less. March 2013.

Siteprogram,whichallowsahomelessservicesprovider to rent a large portion (or all) of theunits in a conventional apartment building tohousehomelessfamilies. TheservicesproviderispaidaperdiemratebytheCityofupto$115a day and theprovider thenpays the landlorda substantial percentage (65%–80% by someestimates)ofthatmoneytorenttheapartments.

The City spends an average of over$3,000 amonth to shelter one homeless familyin an apartment in a conventional building,creating financial incentives for owners toremove permanent units and replace them astemporary shelter. The most recent availabledata on the location of these sites in the CityindicatesthatasubstantialnumberoftheseunitsarelocatedintheBronx.DNAinfo.comreportedinJanuary2013thattherewere2,011clustersiteapartmentslastyearand1,424ofthose,or71%,were located in theBronx.9 While requests forupdated information directly from DHS havenot been answered, conversationswith tenantsinanumberofnorthwestBronxareabuildingswould strongly suggest that theBronxnumberhascontinuedtoriseinthefirstpartof2013.

9 “City Sends More Homeless Families to Shelters Inside Apartment Buildings.” January 8, 2013. http://www.dnainfo.com/new-york/20130108/new-york-city/city-sends-more-homeless-families-shelters-inside-apartment-buildings

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Policy Recommendations

After 30 years, our goal remains tohave livable, affordable neighborhoods withhigh quality housing and services for Bronxresidents. Our borough is home to 1.4millionpeople, many of whom are new arrivalsfrom abroad or gentrifying neighborhoods inother parts of theCity. As the last expanse ofneighborhoodsaccessibletoworkingpoorNewYorkers,thefutureofourboroughandourcityare threatened by this affordability crisis. Thepolicy recommendationsbeloware intended tocontributetothediscussionoftherootcausesofthecrisisandwhatcanbedonetohelpreversethese negative trends so that New York City’sworking class families can both survive andthrive.

Wages must increase, especially in the service sector.

The affordability gap must be closed.Wagesaretoolowtoaffordcurrentrents,evenin the least expensiveborough. Sincewehavemany residents working for the minimumwagetosupporttheirhousehold,weknowthatchanges to the minimum wage could have amuch larger impact in theBronxthan inplaceswithmorehighwageearners. Since theBronxhas the highest percentage of householdswithchildren of any borough, policies such as sickleavewillalsolikelymakeahugedifferenceforBronx families. And sincewe have a growingnumber of immigrants, a path to citizenshipwouldensurethattheirwagesareprotectedbylaw.

Tellingpeopletojustgetbetterjobsfailstorecognizetherealityofthecurrentjobmarket.Low levels of educational attainment meanthat many Bronx residents have fewer optionsfor employment outside of the service sector.Additionally, the New York City economydepends on service workers to keep hotels,restaurants, and stores open for business. OurCity’s success depends on the ability of theseworkerstosupportthemselvesandtheirfamilies.

Move towards less dependence on subsidies.

Subsidies are masking the widespreadstructuralproblems in theBronx. TheBronx isheavily dependent on subsidies in the form offood stamps, housing vouchers, and publiclyfunded health insurance. These subsidies arevitaltokeepingfamiliesafloat,butaresubjecttopoliticalwhimsandfailtoaddresstherootcauseoftheaffordabilitycrisis.Ashortterminfusionof public funds for permanent housing for thehomeless, job creation, and education woulddecreaserelianceonsubsidiesinthelongterm.

The Department of Homeless Services’ClusterSiteProgramisaperfectexampleofthemisallocation of public subsidies. Cluster sitescompound homelessness in two ways—by notproviding real permanent housing solutions tohomeless families and converting the existinghousing stock to homeless shelters. Ourrecommendation is to shift funding away fromclustersitesandintoaprogramthatwillprovidea pathway to permanent housing for homelessfamilies. If there is a judicious allocation ofresources to affordable permanent housingprograms,alongwithincreasedjobopportunitiesandhigherwages,wewouldneedlesssubsidiesintheBronxinthelongrun.

Fund community organizing.

Current funding sources for non-profitsfocus on number driven outcomes in specificissue areas, without enough emphasis on overarching change. There is great societal benefitto social services and charity, but these do notproducethekindofsystemchangeoursituationdemands.

We recommend more funds be madeavailableforcommunityorganizingefforts, likethose that helped bring the Bronx back fromthebrink in the 1970s. Communityorganizinguses participatory approaches to get localresidents involved in the transformation oftheir neighborhoods. These approaches lead

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to individual empowerment, more personalresponsibility, and community ownership—whichareoftennotaseasytomeasure,butcancatalyzefundamental,systemictransformation.

Create and support new economic initiatives.

Therearemanyrecentpositiveexamplesof community driven changes with incrediblepotential here in the Bronx. For instance, therecent Community Benefits Agreement (CBA)signedbyKingsbridgeNational IceCenter, thenew developers of the Kingsbridge Armory,promises living wages for all employees, localhiring, opportunities for minority and womenownedbusinesses,andcommunityspace. Thisagreement offers more benefits to the localcommunitythananyother in thehistoryof theUnitedStates,anditwasaccomplishedrighthereintheBronx.Thishistoricsuccesscameoutofthecommunityorganizingeffortsof theNorthwestBronx Community & Clergy Coalition, theirpartner organizations, and residents in ourneighborhoods.WewouldliketoseethetypesofbenefitsincludedintheCBAbecomethenorm,notjustforspecialprojectslikethedevelopmentoftheArmory.

The Bronx Cooperative DevelopmentInitiative (BCDI) offers an alternative economicmodelaltogether.Thisinitiativeseekscommunityinvolvement in creating cooperatively owned

businessesthatoffergoodjobs,benefits,andprofitsharingtoourneighborhoods. BCDIharnessesthepurchasingpoweroflargeBronxinstitutionsto create socially minded, environmentallysustainable,and/orworker-ownedbusinesses.

These dynamic initiatives, along withmany others, can potentially be replicated andexpandedtohavelargescale impact. Theycanalsoinspireustothinkoutsidetheboxtocreatefurther innovative solutions to theaffordabilitycrisis.

Always think about the Bronx.

Inthesamewaythatmakingcommunityreinvestment work in the Bronx 30 years agoresulted in vibrant neighborhoods across thecountry, creating policies and structures thatwork for the Bronx today will translate intolivableneighborhoodsandthrivingcommunitiesacrossournationinthe21stCentury.

The Bronx is essential to New YorkCity and can once again serve as a model onthe national scale. As the Bronx continuesto highlight national issues at an acute level,keeping theneedsof theBronx in the forefrontofbroaderpolicydecisionswillleadtoanationwhereeconomicopportunityexists forallof itsresidents.