Title: Smart Growth and Community Development: The Necessary Connection
1Smart Growth and Community Development The
Necessary Connection
Center on Urban and Metropolitan PolicyBruce
Katz, Director
Presentation to the Federal Reserve Bank November
28, 2001
2Major Questions
- What are the general trends affecting
metropolitan areas? - What is the emerging smart growth agenda?
- What does this mean for smart growth and
community development?
3I. What are the general trends affecting
metropolitan areas?
41. Metropolitan areas are decentralizing
5Population Is Decentralizing
Suburbs grew faster than cities during the 1990s
Source U.S. Census Bureau
6Population Is Decentralizing
This trend was obvious in both expanding and
contracting metropolitan areas 1
1 1990-2000
Source U.S. Census Bureau
7Population Is Decentralizing
Counties outside of Baltimore grew rapidly during
the 1990s the city lost a substantial number of
residents 1
1 1990-2000
Source U.S. Census Bureau
8Population Is Decentralizing
The Baltimore and Washington regions are
De-Densifying
Source Fulton et al., Who Sprawls Most? How
Growth Patterns Differ Across the U.S.
Brookings Institution, July 2001.
9Employment Is Decentralizing
Most cities gained jobs, but suburbs invariably
gained more
1 Based on changes between 1992 and 1997
Source U.S Department of Housing and Urban
Development, State of the Cities 2000. ..
10Employment Is Decentralizing
Jobs are also de-densifying a large share of
employment is located further than 10 miles from
the central business district
Source Edward Glaeser. Job Sprawl Employment
Location in U.S. Metropolitan Areas. Brookings,
May 2001.
112. Decentralization Is Costly
12Decentralization Is Costly
Decentralization leaves behind concentrated
poverty in inner cities. The city of Baltimores
share of the state welfare caseload increased
significantly between 1994 and 1999
Source Katherine Allen and Maria Kirby.
Unfinished Business Why Cities Matter to
Welfare Reform. Brookings, July 2000.
13Decentralization Is Costly
Washington, D.C. is experiencing a growing income
divide
1990
2000
1990 Dollars High Income gt125,000 Low
lt15,000
Middle Income
High Income
Low Income
Source Washington Post
14Decentralization Is Costly
Affordable housing is concentrated in declining
areas
Metropolitan Atlanta (Low income housing is
concentrated in the south)
Source Moving Beyond Sprawl, Brookings
Institution, 2000
15Older suburbs are beginning to take on many of
the challenges of central cities.
Decentralization Is Costly
- Increasing school poverty
- Growing racial and ethnic diversity
- Declining fiscal capacity.
- Declining commercial corridors and retail malls
16Decentralization Is Costly
Older suburbs are home to the working poor.
Recipients of the EITC are concentrated in
Washington and its eastern suburbs
Source IRS, E-File Demographics.
17Decentralization Is Costly
Decentralization has exacerbated racial division
in metropolitan areas like Washington, D.C.
Metropolitan Washington (Non-white students are
concentrated in the east)
Source A Region Divided, Brookings Institution,
1999
18Decentralization Is Costly
Decentralization has had many negative
consequences for newer suburban areas
- Loss of open space
- Overcrowded schools
- Traffic congestion
- Air pollution
19II. What is the emerging smart growth agenda?
20Smart growth involves efforts to change the
governmental rules of the development game that
facilitate sprawl and concentrate poverty.
Smart growth efforts are designed to slow
decentralization, promote urban reinvestment, and
enhance access to opportunity.
21The New Metropolitan Agenda
2. LAND USE REFORM
3. INFRASTRUCTURE
1. REGIONAL GOVERNANCE
4. TAXATION
5. ACCESS TO OPPORTUNITY
22Smart Growth Reforms State Examples
23Regional Governance
Georgia Regional Transportation Authority (1999)
- Combats air pollution, traffic congestion and
sprawl development - Mandates approval for major highway and
development projects that affect the metro
Atlanta region - Requires local governments to cooperate with GRTA
or face loss of state and federal funds for
road-building
24Land Use Reform Preservation
Issue 1 - Clean Ohio Fund (2000)
- Voters authorized 200 million in general
obligation bonds for the conservation and
preservation of natural areas, open space, and
farmlands - 200 million in revenue bonds to remediate urban
brownfields and promote economic development
25Land Use Reform Growth Management
Pennsylvania Growing Smarter Law (2000)
- Clarifies authority of counties and
municipalities to create Locally Designated
Growth Areas - Encourages transfer of development rights from
open space to planned growth areas - Facilitates regional planning
- Gives local governments greater ability to
withstand legal challenges while planning growth
26Infrastructure
Maryland Smart Growth and Neighborhood
Conservation Act of 1997
- Targets major state funding (e.g. transportation,
housing, state facilities) to Priority Funding
Areas - Priority Funding Areas include municipalities,
inner beltway areas, enterprise zones, industrial
areas and new planned growth areas
27Taxation
Minnesota Fiscal Disparities Law
- Allocates 40 of the growth in property tax
revenues from commercial industrial development
to a metropolitan tax base pool - Funds in the pool are redistributed to
communities based on their commercial tax
capacity - While the law has narrowed fiscal disparities,
growing suburbs continue to have 25 to 30 percent
more tax base per household than central cities
and inner suburbs
28Access to Opportunity
California Tax Credit Allocation Committee
- Approximately 450 million per year is awarded in
federal and state tax credits to assist in the
construction and rehabilitation of affordable
rental housing - Priority is given to properties located within
close proximity of transit corridors, parks,
recreational facilities, retailers, grocery
stores, schools and senior centers
29The New Metropolitan Agenda
2. LAND USE REFORM
3. INFRASTRUCTURE
1. REGIONAL GOVERNANCE
4. TAXATION
5. ACCESS TO OPPORTUNITY
30III. What does this mean for smart growth and
community development
31Smart Growth Community Development
Smart growth complements community development
by
- Promoting reinvestment in central cities
- Strengthening central city fiscal capacity
- Providing more affordable housing in suburbs
- Converting spatial mismatch to spatial match for
low-income workers
32Smart Growth Community Development
Community development entities can support smart
growth by
- Advancing state and regional policy reforms
- Organizing state and regional coalitions to
advance smart growth agenda - Encouraging urban constituencies - particularly
political leaders - to join state and regional
coalitions
33Smart Growth Community Development
Community development entities can help create
communities of choice and opportunity by
advancing smart growth in their own work
CDCs should be placing emphasis on
- Building mixed income communities
- Creating wealth (as opposed to housing)
- Leveraging school, land, and other local reform
efforts
Community development entities can also advance
the smart growth agenda by extending geographic
coverage to suburbs
34www.brookings.edu/urban