Upzoned Podcast Summary: "Can 'Urban Homesteading' Help Cities Fight the Housing Crisis?"

Released: October 23, 2024

Introduction

In this episode of Upzoned, host Abby Newsham engages in a thought-provoking discussion with John Anderson, a seasoned builder and developer from Atlanta, Georgia. The conversation centers around the concept of urban homesteading and its potential to mitigate urban blight and address the housing crisis.

Understanding Urban Homesteading and Dollar Home Programs

Abby begins by introducing the topic of urban homesteading, referencing a BBC article by Roan Bridge titled "Can selling off homes for $1 solve urban blight?" She outlines the history and resurgence of dollar home programs, which were first piloted in Baltimore in 1976 under the leadership of housing director Jay Brody. These programs aim to rehabilitate blighted properties by selling them for a nominal fee, typically $1, to individuals who agree to live in and renovate the homes.

Key Points:

• Historical Context: Original programs began in Baltimore in the 1970s and have since been adopted by other cities internationally, including Liverpool, Spain, and Italy.
• Current Implementation: Baltimore is relaunching its dollar home program with conditions such as residency within the city, a five-year commitment to live in the property, and the ability to invest $90,000 in renovations.

Notable Quote:

Abby Newsham [02:11]: "I didn't realize that urban dollar home programs had been around for quite a while... now Baltimore is coming full circle."

John Anderson’s Perspective on Urban Homesteading

John Anderson shares his extensive background in construction and development, emphasizing his hands-on experience with large-scale projects like the Mall of America. He discusses the challenges and opportunities presented by dollar home programs, particularly when these initiatives coexist with demolition efforts aimed at eradicating blighted properties.

Key Points:

• Career Overview: Transition from trades to project management in large developments, followed by involvement in small-scale infill projects.
• Challenges in Implementation: Balancing demolition programs with efforts to rehabilitate existing structures through dollar home initiatives.

Notable Quote:

John Anderson [09:17]: "My finger wagging pet peeve is that someone will post a drawing or a site plan and then have multiple text posts suggesting changes instead of providing a visual sketch."

Financing the Renovation of Dollar Homes

A significant portion of the discussion revolves around the financial aspects of urban homesteading. Abby outlines the financial requirements posed by the dollar home programs, specifically the $90,000 renovation stipulation. John critiques the feasibility for individuals who may lack the financial acumen or resources to manage such substantial investments.

Key Points:

• Financial Barriers: High renovation costs and the necessity of securing substantial loans or investments.
• Loan Options: Examination of FHA, Fannie Mae, Freddie Mac, and VA loan programs, including their benefits and bureaucratic challenges.
• Recommendations: Exploration of alternative financing methods, such as redirecting demolition budgets into renovation grants and providing technical support to participants.

Notable Quotes:

John Anderson [11:30]: "Dollar house programs are often overshadowed by blight demolition programs where these houses aren't quite as bad."

Abby Newsham [17:05]: "What if the city were to put the demolition budget into a grant as part of the 90,000 needed to make this a catalyst program?"

Community and Technical Support Systems

John emphasizes the necessity of robust technical support and community networks to ensure the success of urban homesteading programs. He advocates for the establishment of tool libraries, mentorship programs, and collaborative platforms where participants can share resources and knowledge.

Key Points:

• Technical Assistance: Providing participants with access to tools, training, and expert guidance to facilitate effective renovations.
• Community Building: Creating support networks through meet-ups and online forums to foster collaboration and knowledge sharing among participants.

Notable Quote:

John Anderson [16:22]: "If you could allocate some of your CDC's budget for structural engineers, you could provide necessary assessments for the houses."

Proactive Measures to Prevent Urban Blight

Towards the end of the conversation, Abby and John discuss proactive strategies that cities can adopt to prevent properties from deteriorating to the point where dollar home programs become necessary. John suggests the importance of maintaining active land banks and implementing preventive maintenance measures.

Key Points:

• Land Banks: Utilizing land banks to stabilize and maintain properties before they become severely blighted.
• Preventive Maintenance: Regularly assessing and repairing properties to extend their lifespan and reduce the need for extensive renovations or demolitions.
• Skill Development: Establishing apprenticeship and internship programs to build a skilled workforce capable of handling ongoing and future urban redevelopment projects.

Notable Quote:

John Anderson [44:59]: "If you have a land bank, you could preserve buildings fairly inexpensively... they could write up that chart that's going to hang on the bottom of your bed after surgery."

Conclusion

Abby and John wrap up the discussion by reiterating the potential of urban homesteading programs to revitalize neighborhoods when supported by adequate financial, technical, and community resources. They also highlight the importance of proactive city planning to sustain long-term urban health and prevent future blight.

Notable Quote:

John Anderson [47:20]: "You end up feeling really discouraged about the decision you made to buy this house or you're going to try to watch 76 YouTube videos about plumbing."

Notable Quotes with Timestamps

• John Anderson [02:31]: "I didn't end up here on any kind of a straight track... eventually I stumbled into a gig as one of the project managers for a big mall developer doing the Mall of America in Minneapolis."

• John Anderson [07:52]: "There's 10,000 people in it, but there's about three or four hundred that are like actively very active."

• John Anderson [09:17]: "My finger wagging pet peeve is that someone will post a drawing or a site plan and then have multiple text posts suggesting changes instead of providing a visual sketch."

• Abby Newsham [16:22]: "To me this seems like a perfect program for somebody who is young and optimistic."

• John Anderson [17:33]: "If you have a fairly junior person who doesn't know their way around, some houses might get renovated. But I think you miss the opportunity to think about this not as one here, one there, but to think about the revitalization project if you can think about it at the scale of the entire neighborhood instead of the individual building."

• Abby Newsham [22:33]: "That actually makes a ton of sense. If somebody's participating in a program like this for, you know, a city to do a little bit of due diligence on behalf of the people who are about to take on this project to help guide them in a direction that doesn't waste money."

• John Anderson [44:59]: "If you have a land bank, you could preserve buildings fairly inexpensively... they could write up that chart that's going to hang on the bottom of your bed after surgery."

• John Anderson [47:20]: "You end up feeling really discouraged about the decision you made to buy this house or you're going to try to watch 76 YouTube videos about plumbing."

This summary encapsulates the key themes and insights discussed in the Upzoned podcast episode, providing a comprehensive overview for listeners and those seeking to understand the potential impact of urban homesteading on combating urban blight and the housing crisis.