907 Housing Update; Images/Imagenes

We are ears. For where they came. The United States has been confronted with a severe housing crisis. The American dream of owning your own home can only be enjoyed by three percent of the population. Real estate prices have doubled tripled and quadrupled while the existing housing stock is being reduced by abandonment Eisen and the lack of a clear housing policy at the federal state and local levels. Two years ago on Hispanics

when we show you the critical housing situation faced by Latinos and most of the population in this program years ago on housing in Brunswick and the Hoboken area we begin with. New Jersey and the opportunity for an unusual experiment in urban renewal of the construction boom of the last few years. Still growth in jobs and housing of the city's economic development nevertheless skyrocketing prices.

Combined with the prevailing national housing crisis. Practically impossible. Right to bring back to life at the expense of. Mrs Gonzales along with many other Hispanic residents. She recently received a notice stuff of fiction and she struggled

to find the same place to live. But in the coming getting the fun of it coming to the end of the metal number of people displaced Unfortunately due to. The. The land that made it

very difficult for the city or any private developer to put up affordable housing. This city was built as a fishing village with a lot of wooden houses. The electricity of the plumbing is long since obsolete and there's not a city built of brick and stone so that these homes were rapidly deteriorating. There were many fires unfortunately did not leave enough room enough units for people to live here. We asked State Senator Percy how the casino industry's commitment to community development here has been assured. The original Casino Control Act contained a requirement designed initially to ensure that the profits that the industry made would be reinvested in New Jersey and basically the idea we had in mind at the time. Was that the casinos would have an obligation to reinvest in New Jersey from their profits. And if they did not reinvest. Then the tax on gross revenues would

increase from 8 to 10 percent. So that the obligation to reinvest invest became known as the 2 percent reinvestment obligation because in the absence of a reinvestment their taxes would increase in terms of money what does this 2 percent and 8 percent represent for this thing. Well the 8 percent tax has brought in one hundred eighty five million dollars since May of nineteen seventy eight when the first casino opened. The two percent really hasn't brought any money in so far because the regulations are just not in place because of a number of these loopholes that have been uncovered. I don't know that I call that a loophole I think it reflects a different economic reality than the one we anticipated in 1977 when we wrote The problem with that original formula was that it indeed is that the way we originally set it up but not enough of the casinos are eligible only two out of the eight coming under that particular formula.

And the. And the reinvestment obligation has never been tied down as sufficiently and as specifically as it should be in terms of exactly what kinds of investments would be eligible for this program and what would not. So there what we are now doing is reexamining that whole structure and we're going to have legislation shortly that will restructure that whole reinvestment concept to pin it down somewhat more specifically in terms of housing. To broaden it so that all of the casinos will share in the obligation and to change its formula so that it is based on net earnings rather than a cumulative investment. We asked Ms borrow a lump and the Casino Control commissions housing specialist. How could the tax credit laws being implemented actually law the way it's written now does not even require implementation of a tax credit program so even if there were NO NO changes which have been identified as necessary and the legislature is aware of them even if there were no changes in the legislation

it's entirely conceivable that that that program would not be ready to be implemented for another year or so. So at this point I would say that that would be premature for a community organization to think of approaching. The industry or the commission even. With a proposal for a development program intro commission mentioned that it was the responsibility of the city to come up with different you know plans and different projects and they would only have to authorize or approve it. Technically that's true except that I don't know that it's properly the role of the city to do that I don't think that the city any city but certainly the city with any city has the resources of either expertise or finance expertise or dollars to be able to develop a housing program I think that's got to be done at a higher level you know the county of the state certainly in view of the fact that the federal government is cutting back

on its commitment to housing that becomes all the more pressing the unexpected construction of nine hotel casinos over such a short period of time. The president that the influx of people exacerbating Atlantic City's housing shortage which according to Mayor could have been controlled. This Casino Control Commission when it was formed by the governor right after the passage of gambling was supposed to help the city with its housing problem unfortunately had turned its attention to what color the bathroom should be in the new hotels and they were supposed to make some quota as to how much housing because Senos would be responsible for that figure was supposed to be 10 percent of the number of employees they had. Now they have over 30000 employees. But the Casino Control Commission has done nothing to require them to put the housing into the city that should have been built here with regards to the Hispanic community. The city's master plans six city blocks us rescue then shot in the south

theme let where the Hispanic population is largely concentrated. Community members expected to develop a low income housing complex they're known as the city provided some forty thousand dollars in funds to the spine of community for their planner which they selected. However the planner was not able to provide any possible source of funding scenes the site is located on prime land for casino construction near the boardwalk. It was stated that if no development occurred by 1983 the area could be rezoned commercial free with me that it wouldn't be feasible to to provide low income housing to particular prime area. I too agree with you there. So how come the city funded $40000 plan to try to establish the center row so worried probably was not feasible because that's where the Hispanic community. Had their dream and we were

hoping to dream whether or not the Hispanic dream comes through. One thing is certain our conflict of interest exists among the parties in the future of Atlantic City housing development the housing problem in jersey city of Hoboken is to a great extent of the result of their excellent location in relation to New York City. Due to the high rents in New York and the high cost of fuel and transportation problems. Many families and individuals are discovering the conveniences of living in North Jersey just across the Hudson River. There's a city in Hoboken have easy access to my car. Using. My public transportation using the bus. Right. Valuable.

Example of gentrification that was a neighborhood the gentry had left long ago and because of the need for housing the new gentry found prices and then the prices went down and the original occupants were displaced. So it's an old process in the country. The flipside of gentrification is displacement. And said I wouldn't when I did. To.

These people. And that helps displaced people. The economic. People from Jersey City. In the city has begun to. Come to people from the city.

Where the. Displaced families and have either completed and roughly about eleven hundred apartment units rehabilitated housing over the past week probably in 72 or 73 so from 70 to 73 Leno at 11:30 in the project another 200 units. Presently you must know what real estate craze in Hoboken you have people that can afford three four five dollars a month and finding Hoboken attractive. So there are. Taking places where people friendly played two or three hundred dollars a month

that process I think will continue. But that. Contrary to popular impression has affected mostly the non minority tenants to this point. It's just very recently in fact with the last 6 to 8 months that tenement buildings filled with low income people or minority people very low income people are not people that they have started to be affected because the Big Televen population in Hoboken in areas up to the last six or eight months that were not yet attractive to these people who could afford to pay five and six hundred dollars a month rent. Now some areas close to tubes and so on have become attractive. So these people are going to have a big rent paying ability and therefore there's some displacement of. Of lower income families beginning but this has been a phenomenon really of maybe let's say the last year up told the last three years it was mostly the earned or non minority Hoboken Knight who was being pushed out of the

brownstone area when no one the owner of the brownstone served the apartment the brownstone buyer paid a hundred thousand fifty thousand right away want to raise the rent to six hundred dollars a month. The person pushed out of that apartment was generally a middle aged or older. Non-minority her back tonight. They were feeling the brunt of it now everybody is feeling the brunt of it. So I think that trend will continue but it will peak because there's going to be the McSorley. Of the community reacts which is happening now. Just. With. The prices that so that. People 45 cents of that is more the downtimes city are going to say I think that's a bit of an optical fix. Then you have a problem. Only addresses the issue of being

able to make. The same time we're very much concerned with. Obviously the new tenant. Would have to agree to the rent that they're being charged in order to move and so there really wouldn't be normally any major complaints. What's happening in church is we have no way to pass on that. For any chorus that the landlords and care. For women to do it is by putting in Vatican City control. This way the landlord to be able to pass on a caress that incurs to the new tenant the new tenant would then be obligated to pay a larger proportion of the increased cost than the existing tenants. What happens in vacancy decontrol and it's happened in communities where vacancy decontrol has been enacted. Is that landlords unscrupulous landlords and unfortunately there are too many unscrupulous landlords. Have an economic incentive to force tenants out. Because

when a tenant is forced out and a new tenant comes in the landlord can charge that new tenant. Any rent that he can get. From that new tenant. There is an incentive therefore for the landlord not to provide services not to provide maintenance in fact in Weehawken where they can see decontrol was enacted within the last year. That's exactly what's being reported. People tenants are being told if you don't like it. Two years ago your browser was beginning the implementation of the New Brunswick Tomorrow Project promoted by private and public sectors. Program under the agency New Brunswick tomorrow is bringing some life to a

downtown area. Like Atlantic City and other areas of the state. The housing situation in New Brunswick has been relatively stable with some urban development changes taking place throughout the city. Visible signs of New Brunswick's tomorrow are sparing all over the city. As messy plans of revitalization people question whether there tomorrow was ever in the plan. I think it's everybody's better economically. That's not a question people's concern is that the comprehensive In other words if one is planning for revitalization you point to the projects the world community. We want to improve the community to make life better and healthier for everybody. But it appears that no real plans were made when these other plans were in the works. For the batteries for the human beings that would have to be displaced. In order for the structures to go up the redevelopment plans of

various pockets particularly low income minority communities are being obliterated. The housing is being eliminated. Permanently being replaced by Johnson and Johnson headquarters international headquarters that. Do away with some apartments but there were a lot of mainly small businesses that were eliminated in that case. And across the road you had you have the Hyatt hotel the whole hotel complex. That definitely displaced a good number of families and that was under federal funds funds. You have the Middlesex Hospital and College of Medicine and Dentistry expansion and new buildings went up there and somehow you have a parking expansion of present parking going on right near the train station and a number of apartments where that extension is going. In that

case now the working playground housing is being eliminated. Its core of the community outreach center part of the rocker's mental health center. They have been working with the city and the families that had to be displaced to assure the people of adequate housing have tenants rights. Most of the work has been done in the historic hiring market site with 13 family units were relocated for the construction of the Hyatt Regency Hotel. The city's plans show that its placement will continue in that area for the completion of the downtown redevelopment program. I can honestly state that whatever development project we go into it if there are people who will be moved. We would have housing available for them. So it's not poor planning. I don't attribute it to poor planning because everything so far has worked out fine for anyone who's been

in a site that has had to have different housing. We actually work with every one of those. It's just about relocation together with the city and we had one heck of a time helping them find apartments and in fact a number of those families finally here were forced to relocate. That displacement problem we provided relocation resources to parents families businesses provided housing that's better than housing families in the visions we're living in any place any of these families that are infinitely higher than what they are paying. Now for the first couple of years payments will help them out. It's been over a year and a half. People have. Something else again. What happens when they run out of that extra money they have.

It's not that their economic circumstances change. Given stock in a company or get a much better paying. There was basically the same and there are economic situations although there has not been major displacement in New Brunswick. There are signs that it will continue periodically as more plans for revitalization get underway. However plans in the area of housing are unquestionable. People who compose 49 percent of the population have expressed great concern on the city's response to their housing needs. This is for federal community development funds. Mayor John Lynch project goal of zero for lower income families. Construction and. Construction projects school family

project. That's correct and in addition family units projective family units. Would come as a result the rehabilitation of existing staff. If you talk about housing representatives in terms of teaching in clinical Hospital in terms of middle and upper income. Yes there is a housing shortage in it with the city. I think they should be made clear there's a three year housing assistance at this point which the meeting needs of low income families and senior citizens. It's a three year period and the government and private sectors of the city are in the process of re-assessing need to prepare and new housing plan for the subsequent three year period. Input from the community will not be included in this conceptual process until the plan is

completed and then presented to the people at public hearings. Reduction in Section 8 assistance in practice will produce the needed Section 8 units for roughly about 200 more units than were approved. And without those two units provide that housing needed housing to those two families and senior citizens. We are creating some good paying jobs. We want to we want to get out of the syndrome of a lot of moderate long moderate Longmont we want to take that lone moderate person. And we want to be able to upgrade their income level. We are creating some good good paying jobs either in categories of security or maintenance positions in areas that they make good money have been successful in

establishing a career preparation center and a job training program. However a concrete plan has not been achieved yet for the use of the tax revenues which are to go for the continuation of development but does not specify in what areas of some of that same town and commitment will turn towards providing some housing. I think we should see some really exciting things happening. There is no foreseeable end to a decade long housing crisis. There is little hope of an early Cure for inflation high interest rates and other conditions a. Junkie an executive director of BALCO corporation of Chicago which owns 15000 units in 20 states was quoted recently by The Jersey Journal saying that the current crisis is far worse than most people realize. The nation is on the verge of a situation in which most families will have to take their married children and their youngsters or all their parents into their homes. The

crisis will be much worse than that of the 1930s depression because people Stanley as they did then it is potentially the most dangerous of all inflationary hardships for people. And the one most likely to explode in violence will keep following this important story. I will see you soon.