Building ONE America

1. Building ONE America www.buildingoneamerica.org

2. CHANGING THE RULES OF THE GAME White House Forum on First Suburbs, Sustainability, Inclusion and Economic Growth July 18, 2011 A presentation by David Rusk Building One America 4100 Cathedral Avenue, NW #610 Washington, DC 20016 (202) 364-2455 davidrusk@verizon.net

3. State law & Federal dollarshave created the “Geography of Opportunity”

4. State law determines • How and where local governmentsare organized • What revenue sources and powers they have

5. Billions of Federal dollars shape what gets built wherefor whose benefit …and at whose cost

6. For decadesFederal “urban policy”may have targetedcentral cities…

7. But for decadesFederal dollarshave promoted sprawling new development in exclusive outer suburbs.

8. The First Suburbs – the streetcar-era, post-WWII suburbs and the older metropolitan towns – have been neglected and today they are struggling.

9. The current political reality:No increase in Federal money to help the First Suburbs

10. We don’t need to increase the deficit to

11. Change the “rules of the game.”

12. Alter how Federal funds are allocated: • To promote & reward diversity • To promote & reward Smart Growth • To promote & reward cooperation and regional planning • To leverage state and local investment

13. Federal leverage (2009) • $145 billion in HUD-DOT-EPA grants-in-aid • $214 billion in tax subsidies for housing • $700 billion in FHA-guaranteed mortgages • $5.1 trillion in Fannie Mae & Freddie Mac mortgage portfolio

14. Not all suburbs are the same • First Suburbs are economically and racially diverse, but with rising numbers of low income families • First Suburbs have small, shrinking or stagnant tax base

15. Result: The First Suburbs have low tax bases and high school costs - Lower opportunity communities

16. Newer outer suburbs: • Economically & racially exclusive • Growing regional job centers • Large commercial tax bases • High performance schools, good local services, and lower tax rates  Higher opportunity communities

17. Changing “rules of the game”starts with mapping the “Geography of Opportunity” for any region(example: Municipal Opportunity Index for Philadelphia region)

18. Factors for aMunicipal Opportunity Index • Jobs 35% • Schools 35% • Tax Base 10% • Neighborhoods 20%

19. Southeastern PA is divided into: • 23 maximum opportunity towns • 37 high opportunity towns • 43 medium opportunity towns • 59 low opportunity towns • 75 minimum opportunity towns • 1 central city (Philadelphia) 238 cities, boroughs, and townships

26. Let’s eliminate rural townships that are not part of Philadelphia or Pottstown Urbanized Areas to focus on true First Suburbs and to emphasize need for farmland preservation/anti-sprawl policies to protect rural communities.

28. 3 BIG CHALLENGES facing First Suburbs: • Job sprawl • Too much affordable housing • Low performing schools

29. Two guiding principlesfor changing Federal rules of game to stabilize & strengthen First Suburbs:

30. FIRST: Use regional opportunity map to allocate more federal dollars to medium, low, and minimum opportunity First Suburbs that are the most environmentally sustainable and racially & economically inclusionary.

32. SECOND: Use regional opportunity map to shape Federal policies and incentives to slow/stop suburban sprawl and diversify high and maximum opportunity suburbs that are still racially & economically exclusionary.

34. But that’s notwhat has been happening…

35. JOB SPRAWL Fueled by Federal highway funds, in 95 out of 98 largest metro areas, percentage of regional jobs located more than 10 miles from downtown increased. By 2006, more than 45% of all jobs located more than 10 miles out (67% in metro Philadelphia)

36. AFFORDABLE HOUSING  Outer suburbs’ exclusionary practices & HUD housing voucher policies make First Suburbs’ homes and rentals only choice for low/moderate income families that are “moving up & out.”

37. Building ONE America Affordable Minimum Opportunity Towns by current HUD housing voucher rent limits

38. Current HUD housing voucher Fair Market Rent (FMR) limits shut low-income families out of 19 of 25 largest job centers in Delaware and Montgomery counties. That’s the issue of access to good and growing job supply.

39. What about the issue of access to high performing schools?

40. High Performing Schools High performing schools invariably have low percentages of low income students (as measured by those qualifying for Free And Reduced-price Meals, or “FARM”).

41. FARM percentages by MOI category • Maximum opportunity towns 5% • High opportunity towns 7% • Medium opportunity towns 12% • Low opportunity towns 21% • Minimum opportunity towns 41% • Philadelphia Public Schools 77%

44. HOUSING POLICY IS SCHOOL POLICY

45. SCHOOL POLICY IS HOUSING POLICY

46. Number of “Red Zone” schools are steadily increasing in First Suburbs because of housing policies and infrastructure-driven regional growth patterns

47. Change “Rules of the Game” to: • Revitalize central cities • Diversify outer suburbs/stop sprawl • Invest heavily in First Suburbs that are already developed and diverse

49. Main Policy Opportunities: • Reform housing policies • Target infrastructure investment • Reform school funding to reward diversity

50. Model Housing Policies Montgomery County, MD’s mandatory inclusionary zoning policy has produced 12,500 affordable units for very low-income families integrated with 90,000 market-rate units in 250 mixed income neighborhoods.