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Former HUD Secretary Julián Castro on Future of Federal Housing Webinar with the former Democratic presidential candidate includes UCLA Luskin housing experts in a discussion of urgent policy priorities

By Bret Weinberger

Former U.S. Secretary of Housing and Urban Development Julián Castro characterized the seriousness with which American society ought to address the nationwide housing crisis by saying during a recent UCLA virtual event, “All of us have a responsibility to solve this challenge.”

Castro said there is no time to waste in facing this issue, with an eviction crisis looming because of economic fallout from the coronavirus pandemic. The Nov. 5 webinar focused on the future of federal housing policy as part of the Housing, Equity and Community Series, a joint endeavor of the UCLA Lewis Center for Regional Policy Studies and the UCLA Ziman Center for Real Estate.

Castro and Michael Lens, associate faculty director of the Lewis Center, spoke amid uncertainty regarding the nation’s political landscape just days before major news outlets called the race for President-elect Joe Biden. They delved into the interconnectedness of multiple ongoing crises and came ready with policy solutions.

Regarding protections for those who struggle to remain housed, Castro said that local governments should be empowered to enact rent control measures, even if it isn’t a one-size-fits-all remedy. And the federal government should robustly enforce the Fair Housing Act by working with local governments to put together implementation plans, as was the practice when he served in the Obama administration.

Castro, who unsuccessfully ran for president in 2020, also suggested changing the tax code to favor non-homeowners by offering a renters’ tax credit.

When Lens brought up the infusion of racial politics into housing policy, Castro castigated the Trump administration for assuming that racism exists among suburbanites and ignoring the realities of diversifying suburbs. He said their rhetoric translated into policy changes, such as removing protections against housing discrimination and underfunding key programs, that have exacerbated the housing crisis.

Castro raised cause for hope on the topic of homelessness when he said that both parties could agree on tackling veteran homelessness. He shared an experience of visiting Los Angeles’ Skid Row while HUD secretary.

“You can’t tell, just by looking at someone, why they’re there. You can’t stereotype them,” he said.

Lens also joined a second portion of the event that featured a roundtable discussion about topics covered by Castro, joining Cecilia Estolano MA UP ’91, founder and CEO of the urban planning firm Estolano Advisors, and José Loya, assistant professor of urban planning at UCLA Luskin.

“We need to be strategic, and we need to work fast,” Estolano said. She argued that incomes need to rise for people to afford high housing costs. Policies helping minority-owned businesses could have a major impact, she said.

Like Castro, Loya focused on how the tax code could be rewritten to help renters and low-income homeowners. This centered on granting tax credits to these groups rather than to wealthier homeowners.

One theme resonated with all the speakers: The new government, whatever its composition, must face housing head on. Americans — whether rural, suburban or city-dwelling — can’t afford otherwise.

View a video of the session on YouTube:

Corporate Landlords Sought to Profit During Last Economic Crisis, Study Finds Residential property acquisitions by LLCs soared during the Great Recession in Los Angeles’ working-class communities of color

By Les Dunseith

A recently released research brief from the UCLA Luskin Institute on Inequality and Democracy draws fresh attention to the manner in which corporate entities have sought to benefit from an economic crisis by rapidly acquiring residential property in Los Angeles. 

The report builds on insights from several studies released during the COVID-19 pandemic by UCLA researchers that have found social and economic inequalities being reflected disproportionately in working-class communities of color. A significant percentage of residents in such communities face higher risk of unemployment, unsafe jobs, homelessness, and possible eviction and subsequent housing displacement. 

The report analyzes data on the Great Recession, finding that corporate control of residential property in many working-class communities with large Black and Latino populations expanded significantly in Los Angeles County between 2005 and 2015. The report also develops case studies that focus on different types of corporate landlords that have been active in Los Angeles in recent years and their varied strategies to profit from the acquisition of distressed residential properties.

The study seeks to examine the geography of racialized risk in Los Angeles by focusing on working-class communities of color with high rent burdens, grouping data from 20 at-risk ZIP codes into four regions: South Central Los Angeles, the Koreatown/Westlake area, the Hollywood/East Hollywood area, and a portion of the San Fernando Valley that includes Van Nuys and North Hollywood. 

Researchers focused on property acquisitions during the 10-year period in which the new owners are listed with the Los Angeles County Office of the Assessor as limited liability companies, or LLCs. Residential unit acquisitions by such LLCs increased significantly in the four regions in the wake of the Great Recession, peaking in 2012. 

Referring to those acquisitions as “housing grabs,” the report finds that corporate control of residential property “is established and maintained through various strategies, including dominance in the single-family rental market, mass acquisition of foreclosed properties, destruction of rent-controlled housing, and running ‘eviction machines’ to displace tenants.”

“Who Profits From Crisis? Housing Grabs in Times of Recovery” is the title of the report issued Oct. 16 and written by Ananya Roy, director of the institute and a professor of urban planning, social welfare and geography; tenants rights activist Terra Graziani MURP ’19; Pamela Stephens, a doctoral student in urban planning; and Joel Montano, MURP ’20.

“Housing grabs are enabled by policies of deliberate deregulation, which also extend to financial lenders and the banking industry,” the authors write in the report. “Rewarded through bailouts and government-sponsored securitizations after the Great Recession, these real-estate and financial actors continue to be enabled in their profit-making on crisis.”

The report argues that action by public officials is needed to protect rent-burdened tenants in communities vulnerable to housing grabs, especially amid the pandemic. “Otherwise, there will be mass displacement of an unprecedented scale.” 

A single property transaction can refer to the acquisition of a single-family home or an apartment building with several hundred units. The focus of the study was primarily on the number of units acquired through LLC transactions because the authors believe that figure best illustrates the scope of impact on a given community. During the period of study, data show a countywide increase in LLC transactions of 433% and a 121% increase in the number of units acquired. In 2015, for example, a total of 30,651 units were acquired through LLC transactions.

The four regions in the study have different housing stocks, the study notes, and thus a property sale in the San Fernando Valley, which has a higher share of single-family units, would likely have different meaning than would a sale in Koreatown/Westlake, which has significantly more high-unit apartment buildings. 

The largest number of unit acquisitions through LLC transactions in any ZIP code in any year of the period of study was 735, which took place in the 90005 ZIP code of Koreatown in 2012. The Koreatown/Westlake region also had a significant spike in 2015 when 665 units were acquired by LLCs in the 90006 ZIP code, which is Pico Union.

South Central Los Angeles had the greatest overall increase in unit acquisition, at 388%, during the study period. Unlike the other regions, South Central had a fairly steady increase in units acquired through LLC transactions between 2007 and 2010, with a sharp increase and peak in 2011. Acquisitions were on the downswing after 2011 until another increase in 2015. This region’s change in unit acquisitions was greatest by far in ZIP code 90016 (West Adams), rising 2,757%.

The average number of units acquired through LLC transactions increased 201% overall during the study period in the region of the San Fernando Valley that was studied. The highest number of units, 550, in that region changed hands in the 91601 ZIP code (North Hollywood) in 2009. 

The rise in units acquired in LLC transactions in the Hollywood/East Hollywood region was the least of the four at-risk regions studied, although still at 40% between 2005 and 2015. 

The study was released at a time when the Los Angeles City Council and Mayor Eric Garcetti were considering how to respond to a legal challenge from the Apartment Association of Greater Los Angeles to the city’s moratorium on renter evictions amid the pandemic. 

As director of the UCLA Luskin Institute on Inequality and Democracy, Roy joined with Paul Ong, director of the Center for Neighborhood Knowledge based at UCLA Luskin, in filing an amicus brief that argues against the landlord association’s effort to persuade a judge to issue a preliminary injunction that would suspend the moratorium on eviction for those renters who have experienced financial hardship during the pandemic.

“The proposed preliminary injunction threatens mass displacement in Los Angeles,” according to the amicus brief filed Oct. 9 in Los Angeles federal court. “Studies of COVID-19 impacts in Los Angeles show that most of this suffering will be concentrated in the city’s working-class communities of color, which are already bearing the burden of high infection and death rates.”

City leaders chose to fight back against the landlord association, and a U.S. District Court denied the motion for a preliminary injunction on Nov. 13, allowing Los Angeles’ eviction moratorium to remain in place.

Urban Planning Program Wins APA California Chapter Excellence Award

The California Chapter of the American Planning Association honored the UCLA Luskin Urban Planning program with this year’s Landmark Excellence Award, a high accolade in the field of urban planning. Marking its 50th year, UCLA Urban Planning was recognized at the organization’s 2020 annual conference, held online Sept. 14-16. The awards jury acknowledged “the remarkable contributions to planning theory and practice that have emerged from UCLA’s top-tier students and faculty.” Over the past half-century, it said, the program has been “a hub of thought-provoking and ground-breaking scholarship in the field of community development, environmental planning, housing, land development, regional and international development, transportation and urban design.” Also winning an APA California Award was Katelyn Stangl MURP ’19, who received an award of merit under the academic category. As part of her master’s capstone, Stangl prepared a study on parking oversupply. With the help of Los Angeles City Planning, L.A. Department of Transportation and the UCLA Institute of Transportation Studies, she evaluated entitlements, permits and building plans of over 300 developments in Los Angeles. The findings of her research can contribute to making Los Angeles and other cities more walkable, less polluted and better designed by removing the incentives to produce unneeded parking oversupply. APA California is a network of practicing planners, citizens and elected officials committed to urban, suburban, regional and rural planning in the California.

Pierce Brainstorms Solutions for Communities in Fire Zones

Greg Pierce, associate director of the UCLA Luskin Center for Innovation, was featured in an Agence France-Presse article discussing the fate of communities in fire zones. Thousands of homes have been destroyed this year by deadly wildfires raging across the western United States. As the climate grows hotter, many homeowners who live in these high-risk areas are questioning the future of their communities. According to Pierce, “the idea of evicting citizens is the last solution residents want to resort to and policymakers want to resort to, because it’s so dramatic and so costly.” However, he acknowledged that “for some communities, it’s the only answer for survival.” Pierce, an adjunct assistant professor of urban planning, explained that the housing affordability crisis in California has contributed to the exponential growth of fire-prone communities built on the forested margins of cities since “it remains cheaper to build new development in outlying areas than it is in core urban areas.”


Bruins Play Key Roles in Report Calling for Sweeping Reforms in L.A. Dean Gary Segura and Luskin School students are among the many UCLA contributors to ambitious effort to reimagine life in the region from a racial justice perspective

By Les Dunseith

A new report that lays out a road map for the transformation of the Los Angeles region built on racial equity is rooted in research from the UCLA Luskin School of Public Affairs. The report’s co-authors are Gary Segura, dean of the Luskin School, and Manuel Pastor, director of the University of Southern California’s Equity Research Institute.

The paper, “No Going Back: Together for an Equitable and Inclusive Los Angeles,” was issued Sept. 9 and shared with a UCLA audience Sept. 15 at a virtual salon. At more than 250 pages, the report is a comprehensive examination of the hidden barriers to success that limited many of the city’s residents even before COVID-19, but have been exacerbated since the pandemic began.

A wide swath of the Bruin community contributed to the paper. Numerous faculty and staff members provided new research, offered historical context and analyzed existing data. UCLA alumni serve on the Committee for Greater LA, which developed the report. And a handful of current UCLA students conducted research that fed the recommendations.

 

Those students, Antonio Elizondo, Dan Flynn, Mariesa Samba and Ellen Schwartz, share a passion for building a new Los Angeles grounded in social justice and racial equity.

Flynn, a second-year graduate student, contributed to the report’s sections on health and homelessness. His experience working with nonprofit agencies has made him acutely aware of the need to think differently about the region’s homelessness crisis.

“You’re looking at 70,000 unhoused people in Los Angeles at any given point,” Flynn said. “There’s no way to look at that issue and describe it as anything other than a failure — and a catastrophic one, with immense human cost. There has been a failure to build systems of accountability and to hold people responsible and accountable.”

Setting forth a strategy to create accountability to end homelessness is among 10 guiding principles (PDF) that underlie the report, which also tackles economic justice, mental and physical health, child and family well-being and other topics.

Samba is pursuing a master’s in social welfare and is a graduate student researcher at the Black Policy Project at UCLA. She contributed to sections of the report that related to children, families, mental health and justice.

“A lot of the work that I do is within the community with folks who are directly impacted by the pandemic,” she said. “Especially with this project, my top-line goal was to uplift those voices and experiences into the research.”

The report builds on the personal insights of the researchers and the people they interviewed to identify social problems, pairing those lived experiences with data to point toward solutions. For example, research findings about the impact of the COVID-19 pandemic on education highlighted the region’s racial disparities. Under Los Angeles’ safer-at-home orders, Black and Latino schoolchildren have been far less likely to be able to engage successfully in remote learning because of a lack of computers and access to high-speed internet connections.

As Segura noted during a Sept. 9 webinar to unveil the report to the general public, public officials are expected to ensure that residents have access to electricity, trash collection and a sewer system — so why not something as vital as the internet?

“The time has come for us to think about the internet as what it has become,” he said. “It is a civil right.”

The opportunity to think about such issues in new ways appealed to the UCLA Luskin students who played a role. Plus, there were practical benefits. For example, Schwartz was happy to work on the transportation section of the report because that’s her area of concentration as an urban planning master’s student. But her biggest takeaway from the experience was the mindset of the project’s leaders.

“What I loved seeing is how the community leaders on the committee really focused on empowerment. That’s something that I want to take with me into my own career,” she said.

“… work remains to be done to prevent those long-term effects from being catastrophic.”

—Antonio Elizondo

Elizondo, a master’s student in urban planning, said during the virtual salon that the most impactful aspect of his involvement in the project came during his review of interviews with people impacted by the health crisis and thinking about the repercussions.

“At the moment, it’s an unfolding crisis, so every policy response is a short-term response,” Elizondo said. “This project helped me realize that there will be long-term effects, and how much work remains to be done to prevent those long-term effects from being catastrophic.”

The Committee for Greater LA comprises a diverse group of civic and community leaders and a joint research team from UCLA Luskin and the USC Equity Research Institute. Initially, the committee intended primarily to address the racial disparities exposed by the pandemic, but in the wake of the recent police-involved killings of Black people and the nationwide protests that followed, its focus expanded to encompass a broader understanding of systemic racism.

The UCLA students helped Segura with the policy-related aspects of the report, which cover issues like housing affordability, immigrant rights, alternatives to incarceration, transportation and equitable access to health care, among others. Because of the pandemic, the work had to be coordinated via phone, email and Zoom sessions.

Flynn, who is pursuing a master’s in public policy, said he appreciated the chance to work directly with the dean on a project of such ambition and scope.

“What makes UCLA such a special place is that you have world-class academics and practitioners who are not just interested in generating work but are interested in mentorship and teaching and in giving opportunities to the next generation of policymakers,” he said.

As gratifying as the work was, the students realize the real work is still to come. Schwartz said she’s hopeful that society is ready to adopt the meaningful change advocated in the report.

“We live in a world where people are really isolated and don’t always know what’s going on in the community,” she said. “I hope that this report will just shed some light on issues that people are facing and that it will inspire elected officials to take action and make real, lasting changes to the system.”

Samba said her participation offered a unique opportunity to process her emotions about the extraordinary impact of the COVID-19 crisis, particularly because of how it coincided with the growing racial justice movement — and she sees cause for hope.

“We’re at a point in time where we are trying new things,” Samba said. “We’re able to experiment with our justice system, with our foster care system, with what social services look like, with what community care looks like. I would like to see some of those social experiments — some of those new ideas and visions — become real, and for us not to revert to the status quo. I would love to see us really, actually reimagine what a more racially equitable future looks like for the people of Los Angeles.”

Among the other UCLA connections to the effort: The Committee for Greater LA is chaired by Miguel Santana, a member of the Luskin School’s advisory board, and the project is funded in part by philanthropists who have also supported UCLA.

The Committee for Greater LA has invited interested parties, including policymakers and candidates for elected office, to join in making the #NoGoingBackLA promise, a commitment to build a more equitable and inclusive Los Angeles. Sign up at nogoingback.la.

Ling on COVID and the Future Housing Market

Urban planning lecturer and policy analyst Joan Ling spoke to StorageCafé about the COVID-19 pandemic’s potential impact on the future of housing in the United States. While Americans have spent more time working, studying and sheltering in their homes this year, Ling did not predict a heightened demand for bigger residences. “We have a very short memory,” she said. “Keep in mind that many countries and cities with much higher density than the U.S. are doing very well in managing COVID. It’s not about apartment size and building density.” Ling added that younger people are “much more conscious about climate change and the impact of the built environment, and their housing choice, on the future of the planet.” Buildings that are environmentally sustainable and resilient to climate change will probably perform well in the marketplace, she said.

Report Rooted in Pandemic’s Unequal Impacts Proposes Sweeping Reforms to Advance Racial Justice in L.A.

A dramatic agenda for regional change is outlined in a new report that attacks systemic racism and lays out a roadmap for transformation centered in racial equity. “No Going Back: Together for an Equitable and Inclusive Los Angeles” offers 10 guiding principles on issues such as housing, economic justice, mental and physical health, youth and immigration. It includes dozens of policy recommendations that include:

  • establishing high-speed internet as a civil right;
  • equal access to services regardless of immigration status;
  • a housing-for-all strategy to end homelessness in Los Angeles.

“Many of us have spent our careers enabling broken, racist systems, and this moment calls us to create something better,” said Miguel Santana, chair of the Committee for Greater LA, a diverse group of civic and community leaders who joined with a joint USC/UCLA research team, backed by local philanthropy, to address the racial disparities exposed by the COVID-19 pandemic and the killings of Ahmaud Arbery, Breonna Taylor and George Floyd. The report, written by Dean Gary Segura of the UCLA Luskin School of Public Affairs and Manuel Pastor of USC’s Equity Research Institute, seeks solutions that will advance racial equity, increase accountability and spark a broad civic conversation about L.A.’s future. “This is uncharted territory,” Segura said. “We can’t use the structures of the past as a basis for the future. We need new systems, better accountability and a clear vision of the Los Angeles that we want to become.”

Park on Unintended Consequences of Development Restrictions

Assistant Professor of Public Policy Jisung Park spoke to the New York Times about potential unintended consequences of climate change development restrictions on poorer communities. A new study found that many Americans support aggressive government regulation to fight the effects of climate change, including mandatory building codes in risky areas and bans on building in flood- or fire-prone areas. While development restrictions could reduce disasters in the future, Park noted that they could also hurt low-income and minority families who can’t afford to live elsewhere. If local governments follow public opinion and impose new restrictions on development, it’s important that they consider the effects of those changes on poorer communities, including communities of color, Park said. He suggested that governments could make it more expensive to live in vulnerable neighborhoods, but subsidize low-income residents who want to move. “Doing both is certainly possible,” he said.


Loukaitou-Sideris on Making Urban Neighborhoods More Livable

Urban Planning Professor Anastasia Loukaitou-Sideris was featured on KPPC’s Take Two discussing the lasting impact of racist policies such as redlining in urban neighborhoods. A recent New York Times report found that formerly redlined neighborhoods experience some of the highest temperatures in the summer. Loukaitou-Sideris explained how the now-illegal practice of redlining, which classified some communities as “least desirable for investment,” facilitated segregation as banks refused home loans and insurance to low-income and minority people who lived there. According to Loukaitou-Sideris, “greenery and trees are the best way to protect from the urban heat island effect,” but disinvestment in high-density areas generally means less money to spend on planting, watering and maintenance of trees. “We need to do something to make these neighborhoods more livable,” Loukaitou-Sideris said in the segment beginning at minute 17. She proposed using empty and underutilized lots for green spaces and increasing city funding for tree planting and maintenance.


CNK Documents Racial Inequalities Among Homeowners Due to Pandemic

A new report by the UCLA Center for Neighborhood Knowledge (CNK) at UCLA Luskin highlights how the COVID-19 pandemic has affected homeowners’ inability to pay mortgages, signaling an unprecedented housing crisis and revealing huge racial disparities among homeowners. Researchers from the center, led by Paul Ong, research professor and CNK director, partnered with the UCLA Ziman Center for Real Estate and Ong & Associates to produce research as part of a series of COVID-19 policy briefs documenting the systemic racial inequalities of the pandemic. The new report, “Systemic Racial Inequality and the COVID-19 Homeowner Crisis,” analyzes data from the U.S. Census Bureau’s weekly Household Pulse Survey, collected between April and July 2020, to examine the magnitude, pattern and causes of the housing crisis. The authors report that about 5 million, or 8%, of American homeowners were unable to pay their mortgage on time. In comparison, during the Great Recession, there were approximately 3.8 million foreclosures; early-stage delinquent mortgages (for 30 to 59 days) peaked at 3%. “Compared with non-Hispanic whites, Black people and Hispanics (or Latinx) had two to three times higher odds of experiencing housing hardships,” the researchers noted. “This systematic inequality is produced by pre-existing income and educational inequalities, and reinforced by the disparate impacts of COVID-19 on the labor market,” according to the report. The rising number of homeowners currently struggling to pay their mortgages is an ominous indication that this may lead to more foreclosures, housing instability and homelessness, the researchers wrote.

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