What happens to fixed or low-income housing when a neighborhood gentrifies? (crime, market)

[Econolodge-911]

I've been looking at homes for sale in an urban neighborhood currently undergoing transition. Over the past 6 or 7 years, the neighborhood (mostly historic townhomes) has gone from a ghetto/warzone to "not a terrible place to live". As the city continues to expand and gentrify, many of the homes in the neighborhood which were $60k-$100k shells have been bought up by investors, renovated into beautiful $400k homes, and sold to working professionals and young families.

However, there is still a large apartment complex on the main street for subsidized, low-income housing, which continues to be an epicenter of crime in the neighborhood and makes it still unsafe to walk through the neighborhood at night.

My question is: As housing prices in the neighborhood continue to rise, what will happen to this subsidized low-income apartment complex?

[JR_C]

I think it depends on what the local housing authority wants to do with their property, if it's their property. If it's privately owned by a landlord who has Section 8 tenants, I think s/he can increase their rents for new tenants, as units become available. (I don't know how that works--if they can stop accepting Sec. 8 on certain units in their buiding)

[Econolodge-911]

My understanding is that the complex is not a "public housing" project, but is managed by a private corporation which rents all the units at below-market value to tenants under strict income restrictions.

[MrRational]

Originally Posted by Econolodge-911

However, there is still a large apartment complex on the main street for subsidized, low-income housing...

your phrasing implies that this property is, and perhaps always was, intended solely for this purpose...
when the reality is far more likely that it devolved into this purpose as the neighborhood deteriorated.

My question is: As housing prices in the neighborhood continue to rise, what will happen to this subsidized low-income apartment complex?

It will also get (RE) gentrified with the current tenants moved out.

[Hemlock140]

Unless the owner is receiving compensation in some form (such as tax breaks) from the city, they will likely end up selling out to someone who will renovate and start renting it out at market rates. The new homeowners are probably going to start pressuring the city to do something about it, anyway.

[wburg]

Low-income properties don't necessarily have to be high-crime, but often landlords of low-income housing don't have much incentive to maintain their properties or be selective about tenants. One thing that happens when a neighborhood gentrifies is the new residents are often more willing to complain--to police, to code enforcement, to city council members. Or they can get directly involved with neighborhood watch efforts. This can have very positive results if managed persistently--and if the new reasidents can join forces with those already in the neighborhood. Often there rae plenty of decent working folks in a poor neighborhood who are very sick of gangs and dealers but just felt powerless or there weren't enough to make the difference. And if efforts to improve and fix up the neighborhood come from the neighbors, it usually means more economic opportunity for those in the neighborhood, meaning some of those poor folks have more economic opportunities.

[Ohiogirl81]

But usually it means the low-rent folks get booted out, because those doing the gentrifying don't want "those people" anywhere near them.

[JordanJP]

Originally Posted by Ohiogirl81

But usually it means the low-rent folks get booted out, because those doing the gentrifying don't want "those people" anywhere near them.

Oh, well... not much you can do about that. Why would you want people who cause trouble living in the neighborhood, regardless of how long they've been there?

[jade408]

Hmm, well it really depends. I have seen all kinds of things happen:
1. low-income people are completely pushed out and priced out
2. low-income housing serves as a "ghetto" for poor residents, and everyone pretends that area doesn't count or exist
3. The low-income housing is renovated and starts to look like market-rate housing tenants of a similar socioeconomic background
4. The housing is replaced with something mixed-income and the lower-income residents aren't segregated into a single block

It really also depends on what the city or neighborhood values. Some cities want to remain "Affordable" and work hard to maintain some low-income housing.

And just like the other posters mentioned. low-income doesn't always mean high crime. I can think of both high crime low income areas and low crime low income areas in my city.

If things can work out the right way, the low income residents get access to great amenities and as a result a higher-class of tenant moves in and you end up killing a few birds with one stone.

Here is an example of my absolute favorite housing project: A first: S.F. public housing at wharf gets a Trader Joe's / Anchor tenant for $102 million development - SFGate

I totally wanted to move in. They have a Trader Joe's in the building!

[Ohiogirl81]

Originally Posted by JordanJP

Oh, well... not much you can do about that. Why would you want people who cause trouble living in the neighborhood, regardless of how long they've been there?

You're assuming that people who live in low-income housing "cause trouble"?