{"id":1670,"date":"2022-12-16T23:36:29","date_gmt":"2022-12-17T04:36:29","guid":{"rendered":"https:\/\/courses.lsa.umich.edu\/english-iui\/?p=1670"},"modified":"2022-12-17T14:27:14","modified_gmt":"2022-12-17T19:27:14","slug":"history-repeats-itself-homelessness-in-detroit","status":"publish","type":"post","link":"https:\/\/courses.lsa.umich.edu\/english-iui\/2022\/12\/16\/history-repeats-itself-homelessness-in-detroit\/","title":{"rendered":"History Repeats Itself: Homelessness in Detroit"},"content":{"rendered":"
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Front page of The Detroit Free Press on Sunday, January 2, 19261<\/sup><\/figcaption><\/figure>\n<\/div>\n\n\n

In 1910, Detroit was one of America\u2019s top ten cities, with a population of 465,766, mainly living in the confines of Grand Boulevard. Housing in Detroit consisted of some single-family homes built close together, duplexes, boarding and rooming houses, multi-story apartments, and residential hotels, all located close to work. Streets were used for walking, biking, streetcars, and horse-drawn carriages. The rise of the automobile industry brought many workers and the ability to drive to work to the city of Detroit. From 1910 to 1930, Detroit was the fastest-growing American city2<\/sup> with a rise in population from 993,078 to 1,568,662 residents3<\/sup>. While other cities opted for row houses, apartment buildings, or other characteristic urban housing, Detroit opted for the single family home. Detroiters\u2019 dream to own, not rent, a home separated from others did not become America\u2019s dream until after World War II. Detroit’s population and automobile industry boom coincided with the real estate development boom in the 1920s. Detroit\u2019s development was based on the availability of cars as a mode of transportation. Topography issues were not a problem as Detroit built out instead of up with cars driving toward a less dense Detroit. As the money built up in Detroit from the automobile industry, many banks and financial institutions popped up. By the 1920s, these banks no longer provided homeowners with the choice of \u201c50 percent down to issue a mortgage with a repayment term of just 10 years\u201d and instead loaned developers 100 percent of what they needed to build and sell houses. During the 1920s, Detroit spent over $1 billion (in today’s dollars) annually in real estate development, much of which included the building of single family homes4<\/sup>. In 1925, the peak year of Detroit real estate development, 11,951 out of 41,891 building permits were for single-family homes5<\/sup>. <\/p>\n\n\n

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A map showing the expansion of Detroit from Grand Boulevard to today’s boundaries6<\/sup><\/figcaption><\/figure>\n<\/div>\n\n\n

During this time, Old Detroit, within the confines of Grand Boulevard expanded to the city limits we have today. People were taking out mortgages to move out of Old Detroit to the \u201csuburbs\u201d of New Detroit. Real estate developers advertised Old Detroit as undesirable and the buying of a Detroit home as an investment that would never lose value. Unprecedentedly, real estate developers created subdivisions to maximize profits and capitalize on Detroit\u2019s growth. To ensure land and home buyers felt comfortable with their purchase, real estate developers used restrictive deed covenants in which only single-family homes could be built on the property in the future7<\/sup>. <\/p>\n\n\n\n

Along with this growth came many consequences. In 1923 for a brief period, Detroit was considered broke, as the city had officially \u201creached the legal limit of municipal bonds that it could sell\u201d but as more real estate was being built more municipal bonds were issued8<\/sup>. The city of Detroit was responsible for providing all the new neighborhoods with sewers, paved streets, fire protection, etc, which burdened the city\u2019s budget. For example, the annexation of 34 square miles in 1925 would require $1.5 billion in today’s dollars to install a sewer system leading to a decrease9<\/sup> of about $537,581,00510<\/sup> in today\u2019s dollar from the proposed 1926-27 budget to “allow as much money as possible for the sewer program.10<\/sup>” Detroit’s over-leveraged banks went bankrupt at the beginning of the Great Depression, leading to thousands of foreclosures11<\/sup>. <\/p>\n\n\n\n

Within Old Detroit, this growth was not seen. Landlords took advantage of those residing in Old Detroit with nowhere else to go by charging high rent prices. To combat this, families shared homes or took in boarders. Landlords also refused to fix up homes located inside of Old Detroit. Banks did not lend money to those who wanted to fix up Old Detroit homes. In addition, valuable land in Old Detroit was not being developed. As a result, those that could continued to move out of Old Detroit12<\/sup>. <\/p>\n\n\n\n

The Emergency Relief and Construction Act of 1932 invested millions of dollars in loans to develop undeveloped areas, some of which went to Detroit. On the other hand, the Home Owners’ Loan Corporation and the Federal Housing Administration, both founded in the 1930s, excluded Old Detroit from government-backed mortgages specifically because people of color resided in the area13<\/sup>. <\/p>\n\n\n

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This map shows the distribution of Detroit’s Black neighborhoods in 1940 superimposed over a 1939 “residential security map” created by The Home Owners’ Loan Corporation to establish which areas could and could not receive government-backed mortgages. Red areas could not receive government-backed mortgages14<\/sup>.<\/figcaption><\/figure>\n<\/div>\n\n\n

Those excluded from the chance at home ownership were African Americans, immigrants, and poor people. African Americans who did move out of Old Detroit were met with mob violence and often forced back out of New Detroit. Restrictive deed covenants often required that only Caucasian people be allowed to occupy the property, even if someone non-white could technically own the property. To exclude poor people from New Detroit, restrictive deed covenants included minimum construction costs, building sizes, and construction materials15<\/sup>.<\/p>\n\n\n\n

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The Effects of History Seen Today<\/h1>\n\n\n
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 Racist laws and discriminatory practices in the real estate and lending industries throughout history16<\/sup><\/figcaption><\/figure>\n<\/div>\n\n\n

The black population that was not allowed to build generational wealth now makes up the majority of Detroit’s population. 77% of Detroit residents are black17<\/sup>. Along with the restrictive deed covenants, similar practices to bar African Americans from generational wealth continued throughout history, as seen in the graphic to the right18<\/sup>. Following the 1950s, people left the city of Detroit just as they had left Old Detroit, taking with them tax revenue. Just as in the 1920s, Detroit has had recent budgeting problems (and mismanagement of funds), leading the city to file for bankruptcy in 201319<\/sup>. The solution to homelessness can be considered affordable housing. Single-family homes are not usually what constitutes affordable housing, but due to building practices of the 1920s, much of Detroit is single-family homes.<\/p>\n\n\n\n

The State of Detroit Affairs<\/h1>\n\n\n
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Median Household Income vs Affordable Housing Cost (30% of Median Household Income) vs Median Annual Housing Cost20<\/sup><\/figcaption><\/figure>\n<\/div>\n\n\n
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Percent of People Living in Poverty in the U.S., Michigan, and Detroit21<\/sup><\/figcaption><\/figure>\n\n\n\n

As of now affordable housing is not a reality for many Detroit residents. Today, Detroit is a poverty stricken city. The poverty rate of Detroit residents is more than double that of Michigan residents. At the same time, the median household income of Detroiters is $27,838 compared to Michigan\u2019s median household income of $52,688. Affordable housing consists of spending 30% or less of your annual income on housing22<\/sup>. 30% of Detroit homeowners\u2019 mortgages is 35% or more of their income23<\/sup>. <\/p>\n\n\n\n

The graph above shows that Detroit renters are in trouble with half of their income going towards housing costs24<\/sup>. Detroit renters make up 52% of Detroit residents25<\/sup>. Rent has been on the rise with an increase of average rent by 26% from 2005 to 201626<\/sup>. Rent continues to increase with a 10% increase from 2021 to 202227<\/sup>. At the same time, federal funding for affordable housing programs decreased by 45% from 2002 to 201628<\/sup>. Housing created under the Low-Income Housing Tax Credit will reach the end of the initial compliance period of maintaining affordability between 2016 – 202229<\/sup>. Potentially thousands of housing units can now be rented at market-rate30<\/sup>. <\/p>\n\n\n\n

In 2017, even though black people made up the majority of Detroit’s population, white residents received almost half of the mortgages issued in Detroit. 139 of 300 Detroit census tracts had no mortgage, and mortgages that were given were concentrated in 9 of the city’s wealthier tracts30<\/sup>.<\/p>\n\n\n

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AMI and its corresponding income32<\/sup><\/figcaption><\/figure>\n<\/div>\n\n\n

In the past, programs that were put in place did not truly benefit Detroit residents. In 2017, Detroit gave developers a discount on the purchase of city-owned land or the choice to accept at least $500,000 in subsidies from the city. Those that did had to have 20% of their units be priced affordably for households making up to 80% of Area Median Income (AMI). This ordinance included metro Detroit whose AMI is twice the median income of Detroit31<\/sup>.<\/p>\n\n\n\n

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What does Homelessness in Detroit Look Like?<\/h1>\n\n\n
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Homelessness in Detroit Statistics33<\/sup><\/figcaption><\/figure>\n<\/div>\n\n\n

How do people become homeless?<\/h3>\n\n\n\n

Jennifer Erb-Downward, a senior research associate for Poverty Solutions at the University of Michigan, confirms that homelessness is essentially caused by poverty and not the lack of desire for employment. She points out that many Americans are one paycheck away from experiencing homelessness, and we are dealing with an unstable job market. There are various causes of homelessness outside the stereotypical reason that people just do not want to work. People may be unable to work due to a physical or mental disability. Someone may be fleeing domestic violence. Not having the financial ability to recover from financial setbacks such as car repair or a medical emergency can lead to homelessness. Others may be unable to get federal assistance, although they need it. Substance abuse also plays a factor in leading someone to homelessness. Specifically in Detroit, Erb-Downward points out that during the 2008 market crash, Detroit had a lot of foreclosures. She goes on to describe that foreclosures continue to be a problem for Detroiters, including property tax foreclosure due to misevaluated property taxes34<\/sup>. The annual auction of tax-foreclosed homes leads to thousands of evictions35<\/sup>. In addition, water bills should only be 2.5% to 4.5% of household income, but Detroit’s water bills average 10% of income. Unfortunately, water bill arrearages can be included in unpaid property taxes, which can potentially help people lose their homes to tax foreclosure36<\/sup>.<\/p>\n\n\n\n

What is it like for a person experiencing homelessness in Detroit?<\/h3>\n\n\n\n

For people experiencing homelessness in Detroit, shelters are often not adequate. Many people avoid shelters due to dirty beds, only chairs or floor space being available instead of beds, or bedbugs. Many shelters require you to check in by a certain time which some may not be able to comply with if they are out looking for jobs or food37<\/sup>. Having to leave by a certain time in the morning with nowhere to go can be disheartening for some people, according to Allah Young, a Detroiter who has recently overcome homelessness38<\/sup>. Instead, people go to vestibules, hospital waiting rooms, abandoned buildings, etc39<\/sup>. <\/p>\n\n\n\n

Homeless families have it especially difficult. “Historically, people who’ve experienced homelessness have been single males, so a lot of the shelter beds were geared toward that population … So we’ll see vacancies in single beds for men but we’ll see where we’re having to turn away children and families” says Detroit City Councilwoman Mary Sheffield40<\/sup>. <\/p>\n\n\n\n

Not to mention Michigan winters are notoriously cold. Considering hygiene and health, the city only has 43 public restrooms that are open year-round. Most of these are located in public buildings with limited hours of operation. Those located in city parks are “closed from the end of October to the beginning of May.41<\/sup>” Statistically, homeless people “are four times more likely to present in the emergency department and five times more likely to be hospitalized than the general population,\u201d according to Katrina McCree, chief community impact officer at Neighborhood Service Organization. She also says, “persons who are homeless have difficulty getting rest, maintaining their medications, eating a healthy diet and staying clean and warm, all of which negatively impact their overall health42<\/sup>.\u201d<\/p>\n\n\n

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The impacts of housing instability on children44<\/sup><\/figcaption><\/figure>\n<\/div>\n\n\n

Children experiencing housing instability experience “worse health, more hospitalizations and greater developmental risks” than those who do not experience housing instability43<\/sup>. <\/p>\n\n\n\n

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What should the city of Detroit be doing to end homelessness in Detroit?<\/h3>\n\n\n\n

According to Alan Mallach, an urban scholar and senior fellow at the Center for Community Progress in Washington, D.C., Detroit has two big issues in regards to homelessness. First, Detroit students are not getting a quality education and instead are getting a lackluster education that will lead them into poverty. Second, Detroit needs to work towards bringing jobs to the city and provide training for those jobs45<\/sup>. <\/p>\n\n\n\n

Outside of leading people down a path away from homelessness, there needs to be affordable housing.<\/p>\n\n\n\n

The Michigan League for Public Policy suggests that Detroit should “establish water shutoff protections and income-based bills for households with low incomes.” Also, the MLPP suggests that the law should provide for eviction expungement after a certain period of time to allow families to have easier access to rental properties considering all evictions may not be fair46<\/sup>.<\/p>\n\n\n\n

What is the city of Detroit doing to end homelessness in Detroit?<\/h3>\n\n\n\n

There are many nonprofit organizations in Detroit, including Cass Community Social Services. Cass works to provide temporary shelter, permanent housing, warming centers, food, health services, and access to job opportunities47<\/sup>. Homeless Action Network of Detroit (HAND) believes that only permanent housing can end homelessness and therefore uses federal funds toward long-term housing solutions, including permanent, supportive housing and rapid rehousing. Beginning in 2015, the city began the goal of applying federal money toward at least one permanent, supportive housing project per year. This included converting the Coalition on Temporary Shelter (COT) into 56 units of housing for families experiencing homelessness48<\/sup>. COT is a nonprofit organization that also provides food, career counseling, hygiene products, and other resources that can guide individuals toward self-sufficiency49<\/sup>. <\/p>\n\n\n\n

Exclusive to 2022, Detroit has a $203,000,000 affordable housing plan funded partially by American Rescue Plan Act funds. The full plan has 7 parts50<\/sup>. <\/p>\n\n\n\n

1. Detroit housing services ($20 million in American Rescue Plan Act funds)<\/strong><\/p>\n\n\n\n

A central Detroit Housing Services division will provide assistance to current and future Detroit homeowners with numerous of problems through housing counseling, foreclosure prevention services, etc. Also, a hotline will be there for those needing to avoid housing displacement and “emergency response for those facing immediate homelessness.” <\/p>\n\n\n\n

2. Detroit Housing Commission apartment building rehabs ($20 million in Detroit Housing Commission funds)<\/strong><\/p>\n\n\n\n

The Detroit Housing Commission will turn 10 to 12 vacant apartment buildings into leasing units priced at 30% of the area median income.<\/p>\n\n\n\n

3. Detroit Land Bank affordable home program ($3 million in ARPA funds)<\/strong><\/p>\n\n\n\n

20 to 50 Detroit Land Bank Authority-owned homes will be sold to local community development organizations, who will then use city subsidies to renovate the properties. The renovated properties can be leased for 10 years at 50% to 60% of the area median income with the option to buy.<\/p>\n\n\n\n

4. More affordable housing and expedited approval process ($132 million in ARPA and state and federal funds)<\/strong><\/p>\n\n\n\n

The City Council will work to shorten the process for City Council to approve affordable housing developments to be rented at 60% of the area median income or below. Additionally, 1,600 new affordable housing units will be built, with 250 of the units designated as permanent, supportive housing.<\/p>\n\n\n\n

5. Down-payment and homeowner assistance programs ($13 million in ARPA funds)<\/strong><\/p>\n\n\n\n

These programs aim to have 600 Detroiters who are currently renting become homeowners through a down-payment assistance program. 200 of these individuals will receive capital improvements and homeownership counseling.<\/p>\n\n\n\n

6. Programs to bring more than 1,000 rental units into compliance ($5 million in ARPA funds) <\/strong><\/p>\n\n\n\n

These programs aim to bring rental units into compliance with rental codes, turn empty second-story apartment units in commercial corridors into affordable housing, and allow small-scale landlords who complete training to receive grants to renovate their properties.<\/p>\n\n\n\n

7. Self-sufficiency support for those facing rising rents ($10 million in ARPA funds)<\/strong><\/p>\n\n\n\n

Detroit at Work program will help residents with “immediate placement in good-paying jobs or in \u201cearn to learn\u201d programs, including literacy and GED programs.” <\/p>\n\n\n\n

Works Cited<\/p>\n\n\n\n

https:\/\/docs.google.com\/document\/d\/13f3PibeGSC6-UxvAFmWYdKjcEdsZ8mSe3xOLeca8sbo\/edit<\/a><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

In 1910, Detroit was one of America\u2019s top ten cities, with a population of 465,766, mainly living in the confines of Grand Boulevard. Housing in Detroit consisted of some single-family homes built close together, duplexes, boarding and rooming houses, multi-story apartments, and residential hotels, all located close to work. Streets were used for walking, biking, Read More …<\/a><\/p>\n","protected":false},"author":4227,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1670","post","type-post","status-publish","format-standard","hentry","category-fa22-illuminations"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/posts\/1670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/users\/4227"}],"replies":[{"embeddable":true,"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/comments?post=1670"}],"version-history":[{"count":8,"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/posts\/1670\/revisions"}],"predecessor-version":[{"id":1694,"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/posts\/1670\/revisions\/1694"}],"wp:attachment":[{"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/media?parent=1670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/categories?post=1670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/courses.lsa.umich.edu\/english-iui\/wp-json\/wp\/v2\/tags?post=1670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}