DISPLACEMENT Marginalized
areas
with high concentrations of low-income households or small local businesses are particularly susceptible to the economic forces that accompany a sudden influx of investment. Because of this vulnerability, it is important to not only protect people against the direct displacement of any specific project, but also consider the economic displacement associated with gentrification that might follow as subsequent investors identify a potential “up-and-coming” neighborhood.
• Direct displacement occurs with the removal of affordable units or the disruption of businesses for the redevelopment of any particular parcel(s) or right-of-way
• Economic displacement occurs in the area surrounding a particular development through an increase in land values that takes place because of neighborhood improvements and new perceptions of the area
Protecting vulnerable low-income households against the direct displacement of development requires both relocation fees and onefor-one unit replacements at the same affordability and size as the demolished units. Local business owners also require support including replacement of lost revenues due to business interruption and other small-to-medium enterprise (SME) assistance programs. After a development is completed, if it improves the overall environment, it will likely stimulate the secondary forces of economic displacement whether or not it causes the direct displacement of residents or local businesses. Environmental improvements lead to increased property values that primarily benefit landowners; however, most areas identified as DACs are characterized by a high level of absentee land ownership and low-income renter-occupants who are the most vulnerable to higher costs of living and, as a result, often can no longer afford to live in the area. The potential for TOD investments to cause “ecological gentrification” is particularly worrisome. Increased demand for the neighborhood attracts wealthier residents who are less likely to use public transit,33 and forces the relocation of low-income households—public transit’s most frequent riders—to less desirable areas that are usually transit-poor and on the urban fringe, resulting in increased vehicle miles traveled and a greater reliance on private transportation.34 The resilience of local residents and businesses against displacement is directly related to their economic power and the strength of their social networks. Building this resilience requires a diverse array of well-thought out methods that increase income and/or lower the cost of living; develop locally-owned and cooperative businesses; promote economic autonomy, education and public health; and utilize community-determined land use strategies that foster public safety, healthy living choices and social interaction. Community stability and community engagement, featured in the next section, are thus important co-benefits in and of themselves, and are indispensable factors for providing lasting and significant benefits to DACs.
