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 1980-2000» # 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.)