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Executive Summary

During the summer of 2002, I was privileged to intern the National Trust for Historic Preservation Community Partners. My duty was to use GIS to identify culturally diverse neighborhoods in which preservation has served to improve the economy, bolster cultural diversity and improve the quality of life in historic neighborhoods. I used GIS to give the radius of distinguished developers with proven track records in historic preservation with which the National Trust’s $25 million Banc of America Historic Tax Credit Fund and the New Markets Tax Credit Program could partner.  As an intern I did market research activities to aid in the acquisition of historic tax credit investments. The National Trust for Historic Preservation is an organization that formed by Congress in 1968 under the Sect. 106 Historic Preservation Act. Today the organization practices as a non-profit organization that is committed to historic preservation efforts. Community Partners is a business entity that falls under the NTHP Community Revitalization program. This program provides financial support to community historic preservation projects (loans, grants, lines of credits, etc.,).

The two programs that I worked with were the New Markets Tax Credit Program and the Banc of America Loan Fund. The New Markets Tax Credit (NMTC) Program permits taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). NMTCs will be allocated annually by the Fund to CDEs under a competitive application process. These CDEs will taxable investors in exchange for stock or a capital interest in then sell the credits to the CDEs. To qualify as a CDE, an entity must be a domestic corporation or partnership that: 1) has a mission of serving, or providing investment capital for, low-income communities or low-income persons; 2) maintains accountability to residents of low-income communities through their representation on a governing board of or advisory board to the entity; and 3) has been certified as a CDE by the CDFI Fund. The Fund is currently accepting applications from entities seeking CDE certification.  Banc of America in October 2000 launched a special $25 million investment fund with the NTHP Community Partners Program.  The Banc of America Historic Tax Credit Fund ("the Fund") that is managed by the nonprofit National Trust for Historic Preservation (Washington, DC). The Trust acts as fund manager, and has primary responsibility for identification of new opportunities, recommendations for approval; deal underwriting, and, finally, asset.

Background

Geographic Information Systems is a computer system for capturing, storing, querying, analyzing, and displaying geographically referenced data. GIS was used to map properties that Community Partners has invested a loan or grant into their community. Community Partners has invested in hundreds of properties but I chose to focus on 3 communities (Charleston, South Carolina, Macon, Georgia and Atlanta, Georgia).  Ironically these communities fell into the census tracts that were certified by the U.S. Congress as “low-income” that makes them equally eligible for the New Markets Tax Program. GIS helped map the median income (U.S. Census Data 1990 and 2000) of the neighborhoods. I was able to make compare how the neighborhoods have changed (increasing property values which will make these areas a more desirable place to live).

This paper also focuses on prominent preservationists that are committed to implementing historic preservation programs in low to moderate neighborhoods. I will interview the National Trust Community Revitalization Vice President, Stanley Lowe, and other preservationists involved in the department.

Purpose

Stereotypically historic preservation is viewed as “crippling factor” to maintaining low-income African American communities but when in actuality (when used properly) it restores pride into a neighborhood. Historic neighborhoods reflect what was important to the people that lived there, what they liked, how they played and what they thought. However historic Black districts show much more than that, they show pride and progress. The year is 2002 and the rules have changed when it comes to the American dream. It is now labeled as “cliché” to desire a wife, kids and dog. However the dream of having the house with the picket fence is still a goal for most Americans. Home ownership is still one of the most controversial topics in government. The issue is not solely about home ownership but it raises the question of, “Who are the home owners and how are they able to afford it?” When I decided to research this topic I waved the banner of, “Low-Income Housing” as the debate.

After meeting with Mr. Stanley Lowe, Vice President, Vice President of the Community Revitalization department with the National Trust for Historic Preservation, whom I will further discuss in this paper, I began scratching my
head about the topic. The reason my views were changed is because I realized that when you talk about affordable housing your talking about accessibility to money.  I also realized that when you talk about affordable housing, you’re talking about affect many people that are in the same boat, economically, live in the same neighborhood.
This research will help you understand the housing market and how it works. I devoted myself to set aside my socialist views when it comes to housing affordability topic. Truthfully, I am dedicated to helping socially distressed communities become economically and socially viable. In order to make a community work, you must offer them resources. Even though we hate to say it but “Money makes the world go round’”.  Poor communities need resources that they can benefit from each day. They need safe jobs, most importantly, religious institutions, safety, good school systems, public transportation and pride. All in all, these resources require money.

Methodology

I used Arc View GIS, MarPlot, Land View, NTHP loan profiles and the U.S. Census data to help with my research. I compared income data between the years of 1990 and 2000 to get a better understanding of the impact of the investments. I chose to research the income to see well they correlated with the property value increase and the changing course of the neighborhood.

Study Area

The first study area that I researched was the King Street district in Charleston, South Carolina. This area is a predominantly African American neighborhood that was under gone a serious “make over” within the past 10 years. Mayor Joseph Riley along with National Trust has renovated this area using gentrification and historic preservation models to rejuvenate this once poverty stricken area.  Riley and the NTHP have turned abandoned historic districts into mixed use (commercial and retail) properties.  This area has seen property values increase, commerce and gentrification. The King Street district has benefited from the College of Charleston’s exuberant college age students. The district is now made up of business professionals, single parent homes and college students. There fore the economic structure (income) of the neighborhood has impacted the neighborhood.
 
 

Lastly, I researched the Howell community in Atlanta, Georgia Futon County.  The Howell community worked closely with Community Partners and Atlanta HDDC Program. Together they worked to improve 9 properties that have done a substantial turn around since the investment. The neighborhood still remains predominantly African American neighborhood but like Charleston, South Carolina, the area has been gentrified. There is more variance in income equality. Unfortunately the map listed below does not reflect that in the map below because most of the properties exist within the census tract. Residents vary from young and old, middle class, business professionals and single parent homes. This area has become a more desirable place to live because of Atlanta HDDC program and it’s urban renewal and gentrification efforts.

Results

The reason why I chose to spotlight Charleston, South Carolina, Macon, Georgia and Atlanta, Georgia. The historic streets was an example of the Black neighborhoods used to be. Black neighborhoods were blossoming with pride, unity, culture, and strength. Historic neighborhoods reflect what was important to the people that lived there, what they liked, how they played and what they thought. However historic Black districts show much more than that, they show pride and progress. Unfortunately, Blacks have not enjoyed the same freedoms that other Americans have enjoyed since the 1700’s. Realistically Blacks have tasted freedom for only 40 to 50 years.

Discussion

To help with my research I interviewed Krista Kendall (Program Assistant) in the National Trust Preservation Life Fund, Jennifer Eggleston (Program Assistant) to the Inner City Ventures Fund and Vice President of the National Trust Community Revitalization department. I decided to interview them to get a better understanding of their perspective of historic preservation and low to moderate-income communities.

Interview with Krista Kendall

NY: “Why do you think that Historic Preservation is important for low income community? What are the benefits?”KK: If you don’t preserve the housing stock in the historic community then the housing
replacing it will have less character. The houses don’t last as long and the friendliness of the community is lost
NY: “What is downfall of preservation? Biggest argument?”
KK: A misconception that it is not feasible to knock down houses than rehabilitate them. Some historic preservation doesn’t offer all types of housing meet the needs of the community. Preservation sometimes doesn’t offer a variety like rental, home ownership, rehabbing vacant lots etc., Mainly, preservation needs to try and address the all the needs of a community in a holistic way.
NY: “What’s an area that preservation needs to reach?”
KK: It needs to reach religious or ethic communities. Preservation is terrible at addressing age diversity and reaching multi generations.
NY: “Why does historic preservation have hard time appealing to developers?”
KK: A developer has a strong misconception of rehabbing houses. They believe it’s only feasible when it’s convenient.
NY: “What are better approaches of ICVF and NPLF could take?
KK: They could carefully define how they benefit low-income people and building partnerships with rural communities
 

Interview with Jennifer Eggleston

When I interviewed Vice President of the National Trust Community Revitalization department and President of the Pittsburgh Community Reinvestment Group, Stanley Lowe, I learned a lot about making low to moderate income communities work. “You see you can’s label an area as “low income” because they can not work because there is no money”, said Stanley. Stanley Lowe is the mastermind behind the 3 billion dollar partnership with Integra Financial institution and Pittsburgh inner city neighborhoods. As president of the Pittsburgh Community Reinvestment Group, Lowe focused on helping inner city Pittsburgh get on its feet. “The PCRG used the Community Reinvestment Act to expand the base of nongovernmental resources for community-based development. The emphasis on research strengthens the position of the coalition in negotiating CRA partnerships with financial intuitions. These lending partnerships generated credit-eligible mortgage loan applicant, resulting in more than $3 billion in loans to Pittsburgh neighborhoods.  I was able to expose the National Trust to a new research method and marketing tool. Before my internship, Community Partners never turned to GIS as research method.

The resources that I used to research this topic were:

www.census.gov

www.nthp.org

“The Living City” by Roberta Brandes Gratz

 www.charlestoncounty.org

www.qpublic.net/bibbs
Neighborhood Revitilization Report by Stanley Lowe