Gentrification

[achinhibitor.livejournal.com]

Paul McMorrow writes about gentrification in Union Square. He notes that with the arrival of the Green Line, it will be much more desirable to live in. This will cause an increase in demand for housing there, and that there are two choices: Allow enough additional housing to be built to prevent prices from rising insanely, or preserve its "character" (appearance) at the cost of pricing out just about everybody who already lives there.

"Desirable, inexpensive, low-density -- choose any two!"

Comments

[somervilleguy.livejournal.com]

One solution that I think is being tried in Philly is to keep the taxes for longer term residents lower. Taxes are a significant reason those on fixed incomes leave. A city is very unlikely to leave money on the table however, so it doesn't gain much traction at a city government level.

[achinhibitor.livejournal.com]

I just ran into this article on the subject: http://www.nytimes.com/2014/03/04/us/cities-helping-residents-resist-the-new-gentry.html?hp&_r=1

My understanding (which may be wrong) is that Mass.'s Proposition 2-1/2 limits the rate that the tax bill on an individual residential property can rise, so it may have the effect of "keep the taxes for longer term residents lower".

Of course, city governments hate to leave money on the table, but it seems that in some places the wave of gentrification has been so fast that the tax take is rising fast enough that the government is willing to forego some of the increase. Of course, it helps motivate the government that long-term and elderly residents generally have a high voting turnout...

Normally I'm strongly anti-NIMBY and believe in a relentlessly level playing field, but I do feel some sympathy for people who are getting priced out like this. OTOH, it's worth checking how much money they could get by selling out. There were cases like this in the 1950s, when the farmland on the outskirts of cities was forcibly turned into subdivisions because the farmers couldn't pay the property tax on the hugely increased value of their land. But the farmers made millions selling their land, so they really weren't damaged overall. In gentrification, it's the long-term renters that are most likely to take a hit.

[cos]

No, Prop 2 1/2 places limits on the total *levy* - the aggregate amount the city raises in taxes for the year. It does not place restrictions on how they tax individual properties, as long as the final sum doesn't exceed the limits.

[somerfriend.livejournal.com]

I'm not comfortable giving tax breaks to wealthy people (at the expense of people just starting out who are moving to the area) just because they have a liquidity problem. Rent out a room, get a HELOC, move to a smaller place. Personal choice has to come into play. Also the idea of the government favoring a certain class of people over others is a little disconcerting.

[somervilleguy.livejournal.com]

The government favors a certain class of people all the time. Low income housing comes to mind. Do you wan to do something about gentrification or not? You will need to give some people more help than others, no way around that.

I have no problem with limiting taxes on longer term owners.

Rent out a room? How about my couch? Maybe the closet? Fuck that.

[somerfriend.livejournal.com]

At least with subsidized housing there is some attempt to means test it. Lower taxes depending on how long you live there gives tax breaks to wealthy people. People with large equity, and also people with equity plus other assets.

It also feels a little bit like "England for the English" Just replace England with Somerville. I'm just not comfortable with that kind of exclusive attitude. The government shouldn't be choosing who gets to live where and who is not welcome. We make our individual life choices.

[somervilleguy.livejournal.com]

Well I don't know how long you lived there but say it was 1980 when you moved there, you would deserve to pay less in taxes then the people that moved there after say 2000 or what ever year there that assements skyrocketed in that area. If you owned a multi family house that would be different since you could raise rents but some us don't have that option. I've lived here since 1969 and I put up with so much bullshit it would make your head spin and now I'm being rewarded with high taxes. it's not my fault I'm house rich. Yes one day my family will sell the house and make a lot of money and if you want to charge them back taxes have at it. But I put up with a Somerville that would make most people here piss down there leg and run away and now I get to reap the rewards of $3 doughnuts and yoga classes and a tax rate that just went up 20%. Oh and I don't care what you're comfortable with.