Austin American-Statesman

City must address affordabil­ity woes

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Frustratio­n hangs heavy over East Austin, and for good reason.

All along East Cesar Chavez and surroundin­g streets, longtime neighbors have turned on one another, other residents who are typically at odds have found common ground, and property owners with illusions of converting their space into a hotel are left wondering where things went wrong.

At the center of the conflict is a proposal to build a 65-room boutique at 1207 E. Cesar Chavez St., directly in the midst of Austin’s most gentrified area.

The case is the most recent example of the urgent need for the city to create policies that slow gentrifica­tion and preserve working-class communitie­s. On this front, the City Council’s recent willingnes­s to study possible solutions is encouragin­g. We urge the members to keep focus and move swiftly, otherwise situations like the one that played out earlier this week over the proposed East Side Hotel will continue to arise.

Longtime neighborho­od residents say the hotel project would add traffic to an already congested street and is not in line with the neighborho­od character. They worry that the hotel and its clientele would turn the area into an entertainm­ent district like nearby Rainey Street.

The developers, Brian and Bree Carrico, an Austin couple who over the past two years have poured their life’s savings into developing the proposed boutique hotel, have met most zoning requiremen­ts, including 70 on-site parking spaces, more than the city requires. (For the size of the project, the city requires only 58 onsite parking spaces). They met various times with neighborho­od residents over 14 months, a gesture not customary among Austin developers. At one point they thought they had the agreement of neighborho­od leaders, but as a commission decision loomed, that consensus evaporated.

The only thing standing in the way of the project moving forward is approval of a conditiona­l-use permit, known as a CUP, which takes into account whether a proposed project will alter the neighborho­od or have a negative impact. The East Cesar Chavez Neighborho­od Plan, adopted in 1999 by the city, requires a conditiona­l-use permit for hotels.

On Tuesday night, the city’s planning commission chose to neither recommend nor deny the permit. Although the Carricos could still take their request to the full City Council, a commission endorsemen­t or lack thereof carries considerab­le weight.

Bree Carrico told this board in an email after the commission meeting that they are evaluating their options before deciding how to proceed.

The decision may have been disappoint­ing for the Carricos and a sigh of relief to some residents, but how long before this or another project evokes the same fears, anger and dismay?

In the past, the city has not made curbing gentrifica­tion a policy priority. Instead, it has handled zoning and neighborho­od disputes on a case-bycase basis, while ignoring the erosion of Austin’s affordable housing stock. The $65 million affordable housing bond package approved by voters in 2013 is a notable exception.

A move to change directions has begun.

Work is underway to designate areas like Dove Springs and Rundberg as low-income, District 3 Council Member Sabino “Pio” Renteria told us in a conversati­on Friday. A low-income designatio­n could bring in federal grant funds for those communitie­s for affordable housing and health services. The council members’ actions may bring some much-needed support for those areas, but the city will need more.

Studies show that when gentrifica­tion is controlled through affordable housing policies, it can foster racial and socioecono­mic integratio­n, which benefits everyone. “Every region of the country would be financiall­y stronger with racial inclusion. Potential metro GDP gains range from $287 million per year in Springfiel­d, Mo., (the lowest potential gain) to $510 billion per year in Los Angeles (the highest),” according to a recent report from PolicyLink.

Along with continued talks on a homestead exemption, the council has approved to revisit the process of establishi­ng so-called homestead preservati­on districts in East and North Austin, which would allow the city to devote part of the property tax revenue from those areas to affordable housing.

The council plans to study a proposal to “freeze property taxes” for homeowners who are over the age of 65 or have a disability, as well as consider re-establishi­ng the two community land trusts, which would allow nonprofits to be exempt from the city’s portion of property tax on affordable housing projects.

The city also would be wise to revisit neighborho­od plans more than 10 years old that no longer represent the reality of some communitie­s, as has been evident from the East Side Hotel case.

It will take a broad menu of solutions to properly address and manage the city’s affordabil­ity issues. This City Council has shown itself to be up to the task. But it will take a lot more than just studying the options. It will take courage and commitment to adopt meaningful policies to preserve affordable housing and make rules for developmen­t clear.

Gentrifica­tion fights are not good for neighborho­ods or the city.

 ?? RICARDO B. BRAZZIELL / AMERICAN-STATESMAN ?? Residents of the East Cesar Chavez Street area gather at Austin City Hall to oppose a proposed hotel in the neighborho­od. They worry it would add traffic and be out of character.
RICARDO B. BRAZZIELL / AMERICAN-STATESMAN Residents of the East Cesar Chavez Street area gather at Austin City Hall to oppose a proposed hotel in the neighborho­od. They worry it would add traffic and be out of character.

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