How postwar DuPage County used zoning to limit poorer and non-white residents

I was recently reading the 1976 political science book Poliscide and part of Chapter 8 on the postwar zoning practices of DuPage County caught my attention:

Although no county can place guards at the county line to inspect the socioeconomic and racial characteristics of newcomers, such powers as zoning and control over subdivision and building codes make the county a highly effective arbiter of the types of structures to be built and, hence, the final arbiter of the types of people who will live in its jurisdiction.

For example, DuPage County enacts a subdivision ordinance requiring a developer to retain a large portion of his prospective subdivision for public facilities such as parks and schools; the county combines this with a zoning ordinance requiring single-family dwellings and a large minimum lot size. This effectively prohibits a developer from profitably building anything but high-cost housing not accessible to lower-income persons.

Stringent county building code standards, requiring expensive building materials and high-quality plumbing, wiring, and heating systems, also serve to increase housing costs. The county’s industrial zoning policy restricting heavy industry serves to limit job opportunity for lower-income persons and to prevent a decline in residential property values surrounding an industrial development – which might create housing opportunities for lower-income groups. Moreover, the county’s relations with various financial institutions make it difficult for a developer to secure financing for a project not approved by the county. Indeed, because of the obstacles the county is capable of placing in the path of a developer, the county’s objection may be sufficient to convince a financial institution that investment in a project would be unwise.

The county’s relations with other units of government give it yet another means of influencing the course of residential and industrial development. It is not, for example, an uncommon practice in Illinois for the county forest preserve district to condemn, at the count government’s behest, land on which an unwelcome development is planned…. And courts have made it a point not to intervene. If the acquisition was for a “public purpose,” there is no inclination to examine the underlying motives. (179-180)

And, as the political scientists point out, these were all legal procedures. Local governments, whether at the municipality, township, or county level, often have the power to dictate what can be built on the land over which they have jurisdiction.

At the same time, there have been court cases seeking to reverse these zoning powers. In 1971, DuPage County residents and a local fair-housing group brought suit against the county for exclusionary zoning practices. The Mount Laurel cases in New Jersey led to famous decisions suggesting municipalities cannot completely restrict cheaper housing (even if implementation has been messy).

More broadly, Sonia Hirt argues zoning in the United States serves one primary purpose: single-family homes. When wealthier suburbanites or urban dwellers get the opportunity to live in the homes they want or ones that have plenty of desirable traits, they tend to resist efforts to include cheaper housing nearby. (For a more recent urban case, see Portland.)

To some degree, the plan worked for a while in DuPage County. The authors of Poliscide say the county was the 3rd wealthiest in the nation, businesses were growing, and much of the development was relatively high-end. Yet, things changed over time. In the 2010 Census, DuPage County was the 62nd wealthiest county in the United States. (It would be interesting to analyze what role zoning played in vaulting all those other counties above DuPage County.) In the same census, the white along population was just over 70%. Some of this might be due to how the authors of Poliscide suggest municipalities fought back against the county: they moved to incorporate themselves as well as annex land so that they took over jurisdiction of land and DuPage County had less control over new development.

How a foreclosure can slow momentum toward the American Dream

The effects of foreclosures after the burst housing bubble may be long-lasting for many individuals and households:

A foreclosure is a one-time event, but for many families it’s something that never ends, wrecking years of their lives and the hopes they once had. The story of the Santillans’ foreclosure illustrates the way that the recession changed the American economy, and for millions of Americans, forever changed their lives. Some nine million families lost their homes to foreclosure or short sale between 2006 and 2014. But many lost more than that: They lost their momentum, too. Families like the Santillans had been moving up a ladder towards the American Dream, and fell off into a deep pit. They’re still at the bottom of the ladder a decade later, trying to get back to where they had been…

A foreclosure set them back them even further. Academic studies point to the many negatives associated with foreclosure: Families in foreclosure have more frequent emergency-room visits and worse mental-health outcomes. Their children do worse in school and have higher truancy rates. They are more likely than other families to rely on the social safety net. Losing a home can also mean becoming disconnected from the community where you lived, and the connections that might have helped you find a new job or get a loan, Roberto Quercia, the director of the Center for Community Capital at the University of North Carolina at Chapel Hill, told me. It’s for these reasons that many of those families are still struggling today. White families had largely recovered financially from the Great Recession by 2013, according to the Federal Reserve, while even today, the median income for black and Latino households has still not reached 2007 levels…

But they learned what many American families did during the financial crisis—that while America prides itself on being a place where people can climb up the economic ladder, it’s also a place where people can fall fast, and far. “We just can’t forget, that in any given moment, things can change,” Karina told me. This has implications beyond the fates of these individual families. The American economy thrives when people are in the jobs they want, being as productive as they can, and when they feel financially stable enough to make purchases that will raise their standard of living. The aftermath of the foreclosure crisis and recession means that many families have not felt secure like that in a long time.

Three points stick out to me:

  1. Social mobility in public conversation usually means moving up the class ladder but people also can fall down that ladder, particularly with major changes like loss of a job, foreclosure, or a major medical issue.
  2. It will be interesting to see how long it will take to truly recover from the burst housing bubble. Ten years? A full generation or two?
  3. There has long been a gap in homeownership and wealth between whites and both Latinos and blacks. The foreclosure issues only seem to have exacerbated these issues as whites as a whole have recovered while blacks and Latinos have not. How will these long-lasting ill effects of foreclosures affect inequalities between racial and ethnic groups?

Chicago’s 29 year old white flight reassurance program has paid 5 homeowners

A Chicago program to help protect homeowners on the Northwest side has collected millions of dollars since 1988 and only been used 5 times:

The Northwest Home Equity Assurance Program was enacted via public referendum in 1988 in a bid to prevent white flight in a handful of bungalow belt neighborhoods. A tax-based fund was created to guarantee homeowners within its boundaries they would at least get paid the assessed value of their houses when they sold them.

In the years since, every one of the roughly 48,000 homes within its boundaries has kicked in a few extra dollars each year on its property tax bills to the equity fund. As the Chicago Tribune reported in May, the program has paid just five claims by homeowners who couldn’t sell their houses for the assessed value while amassing $9.57 million in two accounts…

Bucaro, who like other board members receives no salary, cautioned against starting to make home loans. The organization has neither the expertise nor the staff to figure out how much money it’s appropriate to lend people or to assess the risk of such loans…

Bucaro said the Northwest Home Equity Assurance Program has somewhat been a victim of the housing success in the neighborhoods it covers, since most people simply get more than the assessed value of their homes when they sell. Maybe the program has outlived its usefulness as a bulwark against white flight, he said.

I do not know the details of this program but it sounds like the money was simply not necessary. Even as Chicago still feared white flight in the 1980s – and the decades after World War II led to a significant population decrease in the city – the home prices in these neighborhoods did not fall. Even as numerous Chicago neighborhoods changed from white to black after 1950, the Northwest side did not. The neighborhoods in this area are still primarily white (though the Latino population has grown).

One ongoing issue is what will happen to this money but another is when the city of Chicago will officially put an end to a white flight deterrence program.

Once the housing line has been crossed, time to fight over the schools

An interim school superintendent in a suburb north of Chicago recently summed up the battle over redistricting in the school district:

Rafferty broke into a school board discussion on school boundaries Tuesday to express shock at the “exclusionary” attitudes that he said have surfaced in recent weeks. Rafferty said many of the emails and comments from parents and community members regarding proposed boundary changes have been “shocking, embarrassing and ugly.”

“We have families telling us they do not want this population of kids with their population of kids,” said Rafferty, a retired Schaumburg superintendent who has shared superintendent duties in District 112 since February.

“We have other families telling us, ‘Don’t you dare move my students or my neighborhood, but I would love for you to move X, Y and Z to another school to achieve a balance,'” Rafferty said…

His remarks came during a school board discussion of the administration’s recommended boundary changes to accommodate students from Lincoln Elementary School and Elm Place Middle School, which are closing at the end of the school year. Board members set aside the proposed map for a variety of reasons, including the discontent voiced by some parents over the number of low-income pupils attending Northwood Junior High.

This reminds me very much of what I thought was the best chapter in anthropologist Rachel Heiman’s recent book Driving After Class (see my quick review here). That chapter described how a large suburban district in New Jersey decided to move students around based on capacity in schools as well as by race and class. In that case, as a number of the less wealthy and non-white residents of the districts had suspected might happen, the wealthiest community was able to keep its students nearby and severely limit how many outside students were able to attend.

Wealthier and whiter suburbs – Highland Park has a median household income of over $122,000 and is over 92% white – tend to first try to limit poorer residents by limiting the number of cheaper housing units. If that is not completely successful, the next battleground can be schools as residents of such communities tend to prefer that their children go to school with other wealthier children.

Eight (unlikely and unpopular) policy options for addressing housing issues

After a recent conversation with colleagues prompted by reading together the sociological work Evicted as well as my own thinking about residential segregation, I wanted to put together a blog post summarizing possible policy solutions to housing issues. I am not optimistic but here are the possible options I see at multiple levels:

  1. Provide incentives for developers and builders. This is a common strategy across different government levels: builders and developers are given access to choice properties or are able to build higher-end housing if they build cheaper housing or provide monies that could be used for cheaper housing. A number of major cities, including Chicago, have such incentives. However, it does not seem to have made a major dent in the amount of affordable housing that is needed. I have heard that argument that governments have simply not offered big enough incentives – there is a tipping point where this could really push builders and developers to construct cheaper housing. I don’t think I buy this argument. Even though there is clearly a market right now for cheaper housing, why would builders and developers not try to build the priciest stuff they can to bring in more profit?
  2. Other market-driven solutions beyond incentives. I’m on the record here as skeptical that free markets can address issues of residential segregation and housing. Vouchers have their supporters since they theoretically would allow poorer residents to access areas of the housing market they otherwise could not. At the same time, introducing vouchers leads to other issues such as inflated prices/rents and negative reactions to those with the vouchers.
  3. Local government action. Municipal officials have a good amount of control over what can be built within their boundaries. However, they are constrained by (1) local residents who want to protect their community (examples of NIMBY in action here and here) and (2) limited budgets and revenues so they are typically trying to maximize property and sales taxes while minimizing use of social services. The biggest tool municipalities have are local zoning guidelines that often constrict what can be built (see recent suburban non-housing examples here and here). One way that wealthier areas exclude those who are not so wealthy is to not allow multi-family housing or set guidelines requiring larger lot sizes.
  4. Metropolitan action. Housing is really an issue that spans municipalities as the majority of people live in one place and commute to another for work (plus drive elsewhere for other amenities). Yet, metropolitan governance does not exist on a large-scale in the United States. Outside of a few regions, this is not a viable option: people in different communities do not have ways to collaborate nor would they necessarily want to. This is particularly true of wealthier communities. Residents would argue that this is the purpose of local government: local residents should get to make decisions about their own communities rather than handing off money and/or control to an outside body that wishes to damage their quality of life. See examples of how this can play out regarding affordable housing in one region and another involving transportation across a whole region.
  5. State governments. States could decide to impose regulations and guidelines but then they would have to overrule municipalities. This is difficult. For example, Illinois in 2004 an affordable housing guideline where every community was supposed to have a certain percentage of their housing stock within affordable limits. The guidelines could have been useful but they had no teeth and what counted as affordable was loosely defined. As this 2015 Chicago Tribune article suggests, wealthier communities did not submit to the guidelines and “Lee acknowledged that the agency has no authority to enforce the mandate if municipalities do not submit affordable housing plans.” Nothing really changed – and I’m guessing this was intentional.
  6. Federal government. Even though the United States has public housing, it was difficult to get off the ground and is not viewed favorably by many. That whole single-family homes fights communism thing plus the American ideal is everyone owning a home. Even if public housing had some successes, on the whole federal efforts have promoted white suburbs mortgages for single-family homes are subsidized. Results for federal initiatives involving vouchers, such as Moving to Opportunity, are mixed as many of the residents end up in similar poor neighborhoods and it is not clear if certain long-term outcomes such as education and employment are positively affected. Federal efforts consistently draw negative responses from conservatives. Operators in the housing industry – the National Association of Home Builders, the National Association of Realtors, lenders, and others – mobilize to protect the mortgage interest deduction and single-family homes. American Apartheid suggested we lack the political will to enforce the 1968 Housing Act and thus we still have discrimination in housing (from mortgages to real estate agents to landlords and more).
  7. The court system. Given the relative lack of action by local and state officials, housing and zoning cases do occasionally make it to state and federal courts. I argued a few years back that I could envision the Supreme Court approving inclusionary zoning (I’m not sure I still think this given the current makeup of the court). They can indeed take action and compel other governmental bodies to address issues. Some famous cases include the Gatreaux case in Chicago where a court ordered scattered-site housing and the Mount Laurel cases in New Jersey combating exclusionary zoning. The problem with these is that they require taking legal action in the first place, they can take a long time to litigate, and while the results may be compelling, they are still often viewed unfavorably and putting the changes into action are not easy.
  8. Non-profits and religious groups. Either sets of groups have limited resources – housing is a very expensive proposition on a large scale – or are more interested in other concerns. Groups like Habitat for Humanity may do good things but they can only build so many houses and not all communities or neighborhoods are welcoming to their projects. Churches, particularly big ones, could access a good amount of resources but housing is more of a structural issue that many conservative Christians may not want to get into.

All of these options are difficult to implement. On the whole, many wealthier suburbanites and urban residents do not want any kind of cheaper or subsidized housing in their neighborhoods or community.

If I had to pick two levels that provide the best opportunities, I might go with local government and the courts. Zoning guidelines are often developed by average citizens sitting on local committees. Get named to such committees and you can influence this process. The courts are a way to get around the unpopularity of introducing cheaper housing as such measure are unlikely to find broad support. At the same time, as noted above, the court route has its own challenges.

Perhaps the most daunting option in my mind is trying to influence the federal level. Does any political party talk seriously about housing? After all, one journalist captured this quote:

The former governor of the Bank of England, Mervyn King, told me this: “Most countries have socialized health care and a free market for mortgages. You in the United States do exactly the opposite.”

It will be hard to alter an entire system based on providing socialized mortgages for the middle-class and above.

A deep American social problem: residential segregation

This post is about a crucial American social problem. It is not about uncivil discourse, increased immigration, political polarization, a decline in social trust, consumerism, or other regularly-discussed options. Rather, underlying many other American issues is residential segregation which occurs by race and class. Here are just some of the social spheres it affects:

  1. Schools. While Americans tend to see more education as a silver bullet to all social problems, the fate of schools is closely tied to their neighborhoods and communities. This is not mainly about funding. It is more about mixing kids of different socioeconomic backgrounds together. Read about the Coleman Report from 1966.
  2. Social networks. Even in a digitally connected, who you live near affects who you and/or your kids see on a regular basis. Live near people like you and you will interact with people like that more.
  3. Quality of life in the community and availability of social services. Factors like crime, public parks, health care, local amenities (libraries, park districts, civic organizations), and local programs (through local governments as well as non-profits and other civic organizations) are connected to the wealth and resources of a community.
  4. Access to jobs. Spatial mismatch describes situations where jobs available to lower-skilled workers are far in distance from lower-skilled workers. Live in a wealthier community and you are likely closer to better jobs.
  5. Access to good housing. Affordable and quality housing is difficult to find in many places in the United States but those with more resources and whose race and ethnicity are viewed more favorably have more housing opportunities.
  6. Building wealth. Since wealth creation is tied to homeownership and good jobs, those who have harder times accessing these two things have a harder time developing and passing along wealth. The disparities between the wealth of whites and blacks as well as Latinos are huge.
  7. Concentrated poverty. As wealthier communities are able to keep poorer residents out through a variety of methods (even as poverty increases in the suburbs), poorer residents can be limited to certain neighborhoods and communities which can exacerbate problems.

It is difficult to truly address a number of American social problems if this problem of residential segregation is not addressed. Read more about how this residential segregation came to be in an earlier post about the development of American suburbs.

Of course, residential segregation cannot be said to be the deepest American problem since beneath residential segregation is the uglier issue of the “American dilemma” or “America’s original sin“: racism.

 

Responding to “The Disturbing History of the Suburbs”

A recent episode of Adam Ruins Everything addressed how racism helped create the American suburbs. Here are my quick thoughts in response to “The Disturbing History of the Suburbs.”

-Using the Settlers of the Suburbs game as a visual tool is a clever technique with its Monopoly appearance (though I could also imagine linking it to Settlers of Catan). Urbanists over the years have developed numerous classroom activities involving games to help show students who development works. Like games, development tends to follow certain rules or patterns (even if from the outside those rules are hard to see or, in the case of the suburbs, it all looks fairly haphazard). Also, for a simulation of residential segregation, see the modeling of economist Thomas Schelling where the preferences of individual residents to live near people like them can add up to a racist system. For a good board game that gets at suburban development (though there is only a limited racial dimension), see my quick review of Suburbia.

-The main emphasis here is on redlining: federal guidelines for making loans based on the neighborhoods the home was in was then also picked up by private developers. There is a lot more to this story including what were the patterns already in place that make redlining seem logical to the government in the 1930s (the book Sundown Towns can help explain a lot as black Americans had truer geographic dispersion from roughly 1865 to 1890 but then were restricted in where they could live in the North) as well as what other groups were discriminated against with these policies. Redlining certainly did a lot but it was not the only technique used to limit where non-whites could live. Other options included restrictive covenants, provisions written into deeds, racial steering, blockbusting, and riots and bombings. And the groups targeted included blacks, Jews, Asians, Mexicans, and others. In other words, redlining was an important part of a large package used by white structures and individuals to keep their communities all white.

-The video then nicely suggests that the effects of redlining compounded over time: growing individual wealth for white homeowners, new development in whiter communities, limited wealth in redlined communities, and segregated schools in the long run. This is the Matthew Effect in action.

-At one point, Adam suggests Levittown is still mostly white. This may be the case yet minorities have moved in increasing numbers to suburbs in recent decades. At the same time, the legacy of housing discrimination lives on as racial and ethnic groups are not necessarily evenly dispersed across suburbs. And, as noted later, black and Latino residents still have a harder time obtaining loans and continue to face housing discrimination. This is despite the 1968 Housing Act which was intended to eliminate such discrimination; the sociologists who wrote American Apartheid suggested that we lack the political will to see the Housing Act through.

-Nikole Hannah-Jones of NYT makes an appearance to talk about school funding and how white suburbs can draw upon a larger property tax base. Yet, Hannah-Jones goes much further in a 2015 episode of This American Life titled “The Problem We All Live With.” I highly recommend this and have had multiple classes listen to the story of segregated schools in Ferguson, Missouri and other nearby suburbs of St. Louis. By a loophole in state law, Ferguson students were allowed to attend a wealthier white district and it worked…until the loophole was closed. School funding is not the major issue. The deeper issue is the segregation of schools which we know can help minority students. And we know that integration – the 1966 Coleman Report made this clear and busing was tried in a few places for a few years until the outcry was too great – would work but few suburbanites want to consider it as a legitimate option.

-The video closes with these two lines: “The suburb you live in was built on a foundation of segregation. And we can’t close our eyes to that.” I imagine many white suburbanites would still object. At least two good academic books addressing two different contexts (White Flight in Atlanta and Colored Property in Detroit) show how white suburbanites in the 1960s made a switch from race-based arguments for segregation to economic-based ones. Now, if you ask suburbanites about race and ethnicity in their community, they will tend to say that they do not know of any issues or do not contribute to the problem yet they are more willing to talk about quality of life, property values, and good schools. Additionally, suburbanites tend to associate certain classes with certain racial and ethnic groups, leading to different treatment. Of course, race and class are intimately intertwined in the United States and class can often be used as a proxy for excluding by race or ethnicity.

-Just a note on sources: the video uses an interesting mix of scholarly and journalistic sources. There is a lot of excellent academic literature on race and the suburbs and I have tried to point to some of those in this review.

In sum, this video could be a great start to a discussion of ongoing racial disparities in the suburbs. Residential segregation is not just present in large cities and it has long-lasting consequences. Even though the oft-cited histories of the American suburbs – such as Crabgrass Frontier – acknowledge redlining and discuss its implications, many Americans may be unaware of how race strongly influenced the creation of suburbs. (There were other influential factors present as well but that is a long story.) Going further, there are easy ways to go beyond this video and draw upon more complex studies of race in the suburbs.