Urban Pioneers and the New Orleans Housing Squeeze

Owen Kendrick lives so close to downtown "I could probably stand on my porch and hit a golf ball to One Shell Square."

Kendrick lives in a once-neglected section of Central City that, not too long ago, was considered the epitome of crime and blight. He is the executive director of the Felicity Street Redevelopment Project, a nonprofit dedicated to revitalizing the lower St. Charles Corridor of Central City. The organization has renovated 25 properties and has 25 more in the works. They have saved historic homes from the wrecking ball and are opening the door for young professionals to move in and turn Central City around.

But neighborhood revitalization has become a controversial issue; on one side of the debate are those, like Kendrick, who say transforming blight into safe, beautiful neighborhoods is just what New Orleans needs. His critics say revitalization simply displaces low-income residents, pushing them farther away from job opportunities.

The core of the debate is affordable housing. Specifically, the lack of affordable housing for New Orleans’ middle class and low-income residents. "The cost of housing is a real concern," says James Perry, the executive director of the Greater New Orleans Fair Housing Action Center, a nonprofit that investigates housing discrimination. "At the moment it’s difficult for even middle class people to afford housing in Orleans Parish. If it’s hard for the middle class, it’s 10 times harder for low-income residents."

To illustrate the point, the Real Estate Market Data Center reports homes cost approximately $775,000 in the Warehouse District and $423,000 Uptown in 2004. Houses in the Bywater and in the 9th Ward near the industrial canal, both low-income areas experiencing an influx of new middle-class residents, only cost between $79,000 and $101,000.

The mean salary in New Orleans is $36,348, an income that only qualifies for a $128,000 traditional, 30-year mortgage at 7 percent interest. For the middle class, fringe neighborhoods offer a prime opportunity to live the American Dream, own a home and build equity without leaving the city.

"This isn’t unique to New Orleans, it’s happening in cities all over the United States," says Emily Drew, Ph.D., an assistant professor of sociology at Loyola University. "Many areas are even waging ‘take back the city’ campaigns designed to draw the middle class back to fringe areas."

It seems to be working. "For many people, moving back to or staying in the city is a practical thing," Drew says. "They’re tired of the commute and they want to be able to enjoy the city’s cultural offerings."

The problem, she says, is the affordable middle-class housing created by revitalization of fringe neighborhoods "is obtained on the backs of the poor, who are then pushed out."

It’s particularly hard on low-income renters. "Most stay because the rent is low in undesirable neighborhoods," Perry says. " When the area comes up, they want a piece of the pie. But when home prices double or triple, they are shut out."

Low-income homeowners, on the other hand, benefit. "They can sell their house at a great profit and realize the wealth of homeownership," Perry says. "It gives them a financial opportunity."

For the neighborhood’s new middle class residents, there is nothing but financial opportunity. "Urban pioneers aren’t really taking a risk," Drew says. "Once an area has been targeted for revitalization, it will only be blighted for a few years. If they buy in when it is still on the fringe, the value of their home will most likely double in five years and quadruple in 10 years. They may be taking a risk the first year, but things inevitably shape up."

The Preservation Resource Center is trying to balance neighborhood revitalization with the needs of low-income residents. "Our goal is to have 50 percent of the houses we renovate available to low income families," says Stephanie Bruno, the director of Operation Comeback, a PRC program promoting the purchase and rehabilitation of vacant properties.

Operation Comeback, which is currently renovating vacant properties in Holy Cross and at General Taylor and Tchoupitoulas streets Uptown, offers first-time homebuyer training courses to low-income residents in the areas they are revitalizing. "We are targeting people who are currently renting but are ready to take the next step," Bruno says. "They can build wealth and benefit from the improvement of the neighborhood."

Increasing homeownership rates benefits everyone because "a person who owns a piece of the neighborhood will work to ensure it improves," she says.

Urban pioneers are an integral part of this improvement. "They are the seeds that get these areas started," Bruno says. Although, the Preservation Resource Center "ultimately wants to preserve the identity and diversity of these neighborhoods while improving the quality of life for everyone in the long haul."

Creating a balance — a neighborhood for both old and new, low-income and middle-class residents of all races — is tricky. "We have been accused of gentrifying Central City, and to a certain extent that’s true," says Kendrick. "But studies show a certain amount of gentrification is necessary to save a city. You need a mix of incomes and ethnicities to have a growing and vital neighborhood."

Which ultimately translates into a vital New Orleans.

"Revitalization creates and grows a middle and upper class. It brings money into the tax base and draws people with money to spend into the city," Perry says. "What determines whether revitalization is positive or negative is whether or not the people who already live in the neighborhood are included in the change. The people who live there and have weathered the storm need to be included and given homeownership opportunities instead of being pushed out."

Kendrick is confident urban pioneers don’t automatically translate into trouble for the people who already live in the areas slated for rehabilitation. If anything, he is proving they can be good neighbors. For instance, Felicity Street Redevelopment Project hosts an art and music program at Berean Presbyterian Church Day Camp and is beautifying the neighborhood for all residents by planting live oak trees on Baronne Street. "We are trying to revitalize a once vibrant area," Kendrick says, because "it’s time for people to move in and make the city better. It’s time to lead the way with our own actions."

An affordable piece of history

For Jason Hawkins and Jerry Palaschak, finding an affordable home in New Orleans seemed impossible. So when they ran across a fully-restored, $100,000 double in the 2100 block of Jackson Avenue, they purchased it and moved right in.

That’s when the questions started. "People we knew started asking ‘How is that neighborhood? Are you going to be okay?’" Hawkins says. "They thought we were crazy to move here."

Hawkins and Palaschak weren’t dissuaded. "We never once considered moving to the suburbs or into a new house," Palaschak says. "We enjoy the flavor and convenience of the city."

Their decision to buy into this part of Central City was simple economics. "I looked everywhere and all of the houses were more expensive than this one and in far worse condition," Hawkins says. "Most cost at least $50,000 more and needed major repairs. I couldn’t even get a loan for them because I needed to be able to move right in. This house was well restored and the price was amazing."

And, the home’s history was too good to pass up. Renovated by the Preservation Resource Center, it was once home to legendary Jazz trombonist Kid Ory.

As for crime, "We haven’t personally had any serious crime problems," Hawkins says. "I feel relatively well versed in New Orleans, and I realize that the danger is pretty much the same everywhere."

Plus, the duo are too busy enjoying the sights to worry about anything. The Zulu parade rolls right in front of the house and they get a front row seat to Super Sunday and to the many jazz funerals that originate at the funeral home across the street. "We have a good time driving around looking at the cemeteries, old churches and the neighborhood businesses that still have their original signs," Hawkins says. "If I didn’t live here, I probably never would have seen these things."

Reclaiming a family asset

In 1960, Jim Kitto would go to 3111 St. Claude Avenue to pick Marilyn Fabre up for dates. The two-story home belonged to her grandfather, architect Andrew S. Montz, who designed and built it in 1913. "In times of crisis, this house was a safe haven for the family," Marilyn says. So when Montz died, she and Jim — who were newlyweds at the time— naturally wanted to buy it. Unfortunately, they couldn’t afford it and the house fell out of the family.

But Marilyn never gave up her dream of owning the family home. "When we lived in Chalmette, I would drive by it almost every day on my way into the city," she says. "I really missed this house."

When it was put on the market in 1990 — after serving 28 years as a local barbers and beauticians credit union —the Kittos didn’t hesitate. They bought the house for $56,000, restored it and moved in. They also converted the upstairs into the Nola Guest House, a four room bed and breakfast. "Our children thought we were having a mid-life crisis," Marilyn says. "They were a little worried about us living in this area."

"Our friends said ‘We’re going to have to wear bullet proof vests to visit you!’ ," Jim says. "They don’t understand. Crime is probably higher, but we have never had a problem.

Despite worried friends and family, the Kittos —who both grew up in the Bywater — had a strong impetus to move in and revitalize it. "We returned to the city hoping to improve conditions, but also to reap its rewards," Marilyn says.

"People tend to forget how beautiful this area is," Jim says. "The homes are so architecturally diverse and we can walk to bars and restaurants."

Marilyn hasn’t stopped counting her blessings. "I feel very lucky I was able to come back," she says.

Bringing back Baronne Street

When Greg Lusignan pointed to the house on the corner of Erato and Baronne streets and said "We’ll take it," his wife, Colleen, said "Are you crazy?"

The home, which they purchased from the Felicity Street Redevelopment Project, a nonprofit dedicated to revitalizing the lower St. Charles corridor in Central City, had no plumbing, walls or electricity. "It looked like a shack," Colleen says. And, it was in a neighborhood she used to be scared to ride the bus through.

But after a serious wake-up call from the local real estate market, they decided to go for it. "We wanted to renovate a house Uptown, but we couldn’t afford anything," Colleen says. "Even the fixer uppers were going for $400,000 and they still needed a lot of work."

This house was in their price range and Greg, who works for Broadmoor Construction, could do a lot of the renovation work himself. They also tested the neighborhood for crime — parking their car there during Mardi Gras, driving by at different times of day — and never encountered any problems. "We felt comfortable raising our family here," Colleen says.

So after a 10 month renovation, the couple and their six-month-old daughter, Isabelle, moved into the 4,350-square-foot home in February.

Although their friends and family still haven’t quite warmed up to the neighborhood, the Lusignans have no regrets. "We are the next generation in New Orleans and we can’t live in a bubble," Colleen says. "The city needs young blood. It needs people that aren’t scared and are willing to put their money where their mouth is. We have to contribute to bringing neighborhoods back."

"I never dreamed I would live here, but I love New Orleans I want to help the city by not moving out of it," she says. "With this house, we’re doing our little part to bring back New Orleans."

Investing in a diamond in the rough

Jerome and Shannon Woods were house-hunting in Slidell when the reality of working in New Orleans and living on the North Shore hit them. The commute, the demands of raising two children and the cost of after-school care didn’t amount to the life they wanted. "Sure we could put our children in the St. Tammany schools, but what would we do when they get sick and we have to drive all the way to Slidell to pick them up?" Jerome says. "After one month, I would have known it was a mistake to move there, especially with gas prices so high."

Then, on a lark, the Woods went on a Preservation Resource Center tour of Holy Cross, the 9th ward neighborhood where Shannon grew up. "The tour made me realize what a diamond in the rough Holy Cross is, even though I didn’t notice it when I was growing up," Shannon says. "I decided part of my responsibility was to move back and show other people what a gem it is."

And, as vice president of the Holy Cross Neighborhood Association, she has. Since the Woods purchased their partially-renovated, 101-year-old double on Caffin Avenue, property values have skyrocketed and many new homeowners have moved in. "The neighborhood is definitely changing," Shannon says. "Holy Cross used to have a stigma attached to it. People thought it was ghetto, with no beauty, no grass and plenty of crime. It’s on the upswing now because there is less crime and a lot of people like me are leaving then coming back because we appreciate what we had."

What she had was — and is — a diverse, eclectic, family-friendly neighborhood where children play outside until the streetlights come on and people are always dropping by to say "hello." "When I was young I couldn’t wait to get out of Holy Cross," Shannon says. "Now, I’m happy we came back."



		The New Orleans Housing Squeeze Efforts to revitalize New Orleans’ blighted neighborhoods are the center of controversy. by Denise Trowbridge, New Orleans CityLife, July 2005 Owen Kendrick lives so close to downtown "I could probably stand on my porch and hit a golf ball to One Shell Square." Kendrick lives in a once-neglected section of Central City that, not too long ago, was considered the epitome of crime and blight. He is the executive director of the Felicity Street Redevelopment Project, a nonprofit dedicated to revitalizing the lower St. Charles Corridor of Central City. The organization has renovated 25 properties and has 25 more in the works. They have saved historic homes from the wrecking ball and are opening the door for young professionals to move in and turn Central City around. But neighborhood revitalization has become a controversial issue; on one side of the debate are those, like Kendrick, who say transforming blight into safe, beautiful neighborhoods is just what New Orleans needs. His critics say revitalization simply displaces low-income residents, pushing them farther away from job opportunities. The core of the debate is affordable housing. Specifically, the lack of affordable housing for New Orleans’ middle class and low-income residents. "The cost of housing is a real concern," says James Perry, the executive director of the Greater New Orleans Fair Housing Action Center, a nonprofit that investigates housing discrimination. "At the moment it’s difficult for even middle class people to afford housing in Orleans Parish. If it’s hard for the middle class, it’s 10 times harder for low-income residents." To illustrate the point, the Real Estate Market Data Center reports homes cost approximately $775,000 in the Warehouse District and $423,000 Uptown in 2004. Houses in the Bywater and in the 9th Ward near the industrial canal, both low-income areas experiencing an influx of new middle-class residents, only cost between $79,000 and $101,000. The mean salary in New Orleans is $36,348, an income that only qualifies for a $128,000 traditional, 30-year mortgage at 7 percent interest. For the middle class, fringe neighborhoods offer a prime opportunity to live the American Dream, own a home and build equity without leaving the city. "This isn’t unique to New Orleans, it’s happening in cities all over the United States," says Emily Drew, Ph.D., an assistant professor of sociology at Loyola University. "Many areas are even waging ‘take back the city’ campaigns designed to draw the middle class back to fringe areas." It seems to be working. "For many people, moving back to or staying in the city is a practical thing," Drew says. "They’re tired of the commute and they want to be able to enjoy the city’s cultural offerings." The problem, she says, is the affordable middle-class housing created by revitalization of fringe neighborhoods "is obtained on the backs of the poor, who are then pushed out." It’s particularly hard on low-income renters. "Most stay because the rent is low in undesirable neighborhoods," Perry says. " When the area comes up, they want a piece of the pie. But when home prices double or triple, they are shut out." Low-income homeowners, on the other hand, benefit. "They can sell their house at a great profit and realize the wealth of homeownership," Perry says. "It gives them a financial opportunity." For the neighborhood’s new middle class residents, there is nothing but financial opportunity. "Urban pioneers aren’t really taking a risk," Drew says. "Once an area has been targeted for revitalization, it will only be blighted for a few years. If they buy in when it is still on the fringe, the value of their home will most likely double in five years and quadruple in 10 years. They may be taking a risk the first year, but things inevitably shape up." The Preservation Resource Center is trying to balance neighborhood revitalization with the needs of low-income residents. "Our goal is to have 50 percent of the houses we renovate available to low income families," says Stephanie Bruno, the director of Operation Comeback, a PRC program promoting the purchase and rehabilitation of vacant properties. Operation Comeback, which is currently renovating vacant properties in Holy Cross and at General Taylor and Tchoupitoulas streets Uptown, offers first-time homebuyer training courses to low-income residents in the areas they are revitalizing. "We are targeting people who are currently renting but are ready to take the next step," Bruno says. "They can build wealth and benefit from the improvement of the neighborhood." Increasing homeownership rates benefits everyone because "a person who owns a piece of the neighborhood will work to ensure it improves," she says. Urban pioneers are an integral part of this improvement. "They are the seeds that get these areas started," Bruno says. Although, the Preservation Resource Center "ultimately wants to preserve the identity and diversity of these neighborhoods while improving the quality of life for everyone in the long haul." Creating a balance — a neighborhood for both old and new, low-income and middle-class residents of all races — is tricky. "We have been accused of gentrifying Central City, and to a certain extent that’s true," says Kendrick. "But studies show a certain amount of gentrification is necessary to save a city. You need a mix of incomes and ethnicities to have a growing and vital neighborhood." Which ultimately translates into a vital New Orleans. "Revitalization creates and grows a middle and upper class. It brings money into the tax base and draws people with money to spend into the city," Perry says. "What determines whether revitalization is positive or negative is whether or not the people who already live in the neighborhood are included in the change. The people who live there and have weathered the storm need to be included and given homeownership opportunities instead of being pushed out." Kendrick is confident urban pioneers don’t automatically translate into trouble for the people who already live in the areas slated for rehabilitation. If anything, he is proving they can be good neighbors. For instance, Felicity Street Redevelopment Project hosts an art and music program at Berean Presbyterian Church Day Camp and is beautifying the neighborhood for all residents by planting live oak trees on Baronne Street. "We are trying to revitalize a once vibrant area," Kendrick says, because "it’s time for people to move in and make the city better. It’s time to lead the way with our own actions." Profiles of Urban Pioneers An affordable piece of history For Jason Hawkins and Jerry Palaschak, finding an affordable home in New Orleans seemed impossible. So when they ran across a fully-restored, $100,000 double in the 2100 block of Jackson Avenue, they purchased it and moved right in. That’s when the questions started. "People we knew started asking ‘How is that neighborhood? Are you going to be okay?’" Hawkins says. "They thought we were crazy to move here." Hawkins and Palaschak weren’t dissuaded. "We never once considered moving to the suburbs or into a new house," Palaschak says. "We enjoy the flavor and convenience of the city." Their decision to buy into this part of Central City was simple economics. "I looked everywhere and all of the houses were more expensive than this one and in far worse condition," Hawkins says. "Most cost at least $50,000 more and needed major repairs. I couldn’t even get a loan for them because I needed to be able to move right in. This house was well restored and the price was amazing." And, the home’s history was too good to pass up. Renovated by the Preservation Resource Center, it was once home to legendary Jazz trombonist Kid Ory. As for crime, "We haven’t personally had any serious crime problems," Hawkins says. "I feel relatively well versed in New Orleans, and I realize that the danger is pretty much the same everywhere." Plus, the duo are too busy enjoying the sights to worry about anything. The Zulu parade rolls right in front of the house and they get a front row seat to Super Sunday and to the many jazz funerals that originate at the funeral home across the street. "We have a good time driving around looking at the cemeteries, old churches and the neighborhood businesses that still have their original signs," Hawkins says. "If I didn’t live here, I probably never would have seen these things." Reclaiming a family asset In 1960, Jim Kitto would go to 3111 St. Claude Avenue to pick Marilyn Fabre up for dates. The two-story home belonged to her grandfather, architect Andrew S. Montz, who designed and built it in 1913. "In times of crisis, this house was a safe haven for the family," Marilyn says. So when Montz died, she and Jim — who were newlyweds at the time— naturally wanted to buy it. Unfortunately, they couldn’t afford it and the house fell out of the family. But Marilyn never gave up her dream of owning the family home. "When we lived in Chalmette, I would drive by it almost every day on my way into the city," she says. "I really missed this house." When it was put on the market in 1990 — after serving 28 years as a local barbers and beauticians credit union —the Kittos didn’t hesitate. They bought the house for $56,000, restored it and moved in. They also converted the upstairs into the Nola Guest House, a four room bed and breakfast. "Our children thought we were having a mid-life crisis," Marilyn says. "They were a little worried about us living in this area." "Our friends said ‘We’re going to have to wear bullet proof vests to visit you!’ ," Jim says. "They don’t understand. Crime is probably higher, but we have never had a problem. Despite worried friends and family, the Kittos —who both grew up in the Bywater — had a strong impetus to move in and revitalize it. "We returned to the city hoping to improve conditions, but also to reap its rewards," Marilyn says. "People tend to forget how beautiful this area is," Jim says. "The homes are so architecturally diverse and we can walk to bars and restaurants." Marilyn hasn’t stopped counting her blessings. "I feel very lucky I was able to come back," she says. Bringing back Baronne Street When Greg Lusignan pointed to the house on the corner of Erato and Baronne streets and said "We’ll take it," his wife, Colleen, said "Are you crazy?" The home, which they purchased from the Felicity Street Redevelopment Project, a nonprofit dedicated to revitalizing the lower St. Charles corridor in Central City, had no plumbing, walls or electricity. "It looked like a shack," Colleen says. And, it was in a neighborhood she used to be scared to ride the bus through. But after a serious wake-up call from the local real estate market, they decided to go for it. "We wanted to renovate a house Uptown, but we couldn’t afford anything," Colleen says. "Even the fixer uppers were going for $400,000 and they still needed a lot of work." This house was in their price range and Greg, who works for Broadmoor Construction, could do a lot of the renovation work himself. They also tested the neighborhood for crime — parking their car there during Mardi Gras, driving by at different times of day — and never encountered any problems. "We felt comfortable raising our family here," Colleen says. So after a 10 month renovation, the couple and their six-month-old daughter, Isabelle, moved into the 4,350-square-foot home in February. Although their friends and family still haven’t quite warmed up to the neighborhood, the Lusignans have no regrets. "We are the next generation in New Orleans and we can’t live in a bubble," Colleen says. "The city needs young blood. It needs people that aren’t scared and are willing to put their money where their mouth is. We have to contribute to bringing neighborhoods back." "I never dreamed I would live here, but I love New Orleans I want to help the city by not moving out of it," she says. "With this house, we’re doing our little part to bring back New Orleans." Investing in a diamond in the rough Jerome and Shannon Woods were house-hunting in Slidell when the reality of working in New Orleans and living on the North Shore hit them. The commute, the demands of raising two children and the cost of after-school care didn’t amount to the life they wanted. "Sure we could put our children in the St. Tammany schools, but what would we do when they get sick and we have to drive all the way to Slidell to pick them up?" Jerome says. "After one month, I would have known it was a mistake to move there, especially with gas prices so high." Then, on a lark, the Woods went on a Preservation Resource Center tour of Holy Cross, the 9th ward neighborhood where Shannon grew up. "The tour made me realize what a diamond in the rough Holy Cross is, even though I didn’t notice it when I was growing up," Shannon says. "I decided part of my responsibility was to move back and show other people what a gem it is." And, as vice president of the Holy Cross Neighborhood Association, she has. Since the Woods purchased their partially-renovated, 101-year-old double on Caffin Avenue, property values have skyrocketed and many new homeowners have moved in. "The neighborhood is definitely changing," Shannon says. "Holy Cross used to have a stigma attached to it. People thought it was ghetto, with no beauty, no grass and plenty of crime. It’s on the upswing now because there is less crime and a lot of people like me are leaving then coming back because we appreciate what we had." What she had was — and is — a diverse, eclectic, family-friendly neighborhood where children play outside until the streetlights come on and people are always dropping by to say "hello." "When I was young I couldn’t wait to get out of Holy Cross," Shannon says. "Now, I’m happy we came back."