WPB Equity Profile

CLOSING THE GAP

equityprofile

This program provides the opportunity for the city to embark in a comprehensive, systems-change effort towards closing the racial gap in homeownership.

The City of West Palm Beach is committed to racial equity and is partnering with the Florida Housing Coalition to invest in Black homeownership as a participant of Closing the Gap, a Florida Housing Coalition Center for Racial Equity program. Closing the Gap is a solutions-based approach designed to implement a community-centered, sustainable, and systemic effort to close the racial gap in homeownership.

This program provides the opportunity for the city to embark in a comprehensive, systems-change effort towards closing the racial gap in homeownership. Part of the process involves developing an Equity Profile which identifies historical patterns of discrimination and presents strategies for furthering racial equity efforts. The application of these strategies must be shaped at the local level based on history, quantitative and qualitative data, and the capacity and will of current actors in a local housing ecosystem.

Serving this purpose, this Equity Profile provides a deeper look into the history of injustice and legacy of inequality in West Palm Beach and presents strategies recommended to address racial disparities in homeownership.

HISTORY of Injustice

To set the groundwork for our research into the city of West Palm Beach racial homeownership gap, the Florida Housing Coalition investigated the community’s written and oral histories identifying key touchpoints that could provide insight into the legacy of inequality that exists today.

The Styx

The displacement of the African American population of the Styx community, an enclave of Black workers on the island of Palm Beach during the years of 1889 – 1905, sent an early shockwave to the stability of Black homeownership in the Palm Beach area. The Styx population consisted of families who supplied the workforce for the of cities of Palm Beach and West Palm Beach, helping make the municipalities what they are today. At the height of its population the community reached more than 2,000 black residents housed in often heavily dilapidated structures. The area which suffered from a lack of resources toward the end of its existence became characterized as a blight on the town, for which a solution was needed. Though there are conflicting accounts, what is known is that a mass eviction occurred which displaced the entire Black population from the area. Many former Styx residents settled down in northern neighborhoods of West Palm Beach relocating their homes, families, and entire lives.

The Styx population consisted of families who supplied the workforce for the of cities of Palm Beach and West Palm Beach, helping make the municipalities what they are today.

Photo courtesy of Historical Society of Palm Beach County.

1928 Hurricane

On September 16,1928 what is known as the Great Okeechobee Hurricane was a devastating Category 4 hurricane which left 2,500 dead thousands of dead in its wake, making it the second-deadliest hurricane in U.S history. When the Lake Okeechobee levee broke, flooding the low-lying farming communities in the area. While white storm victims were buried in coffins in local cemeteries, proper burials were denied for Black victims. Instead, 674 Black victims were pushed into an unmarked mass grave which over the course of the next decades would serve as a garbage dump, slaughterhouse, and then a sewage treatment plant.

Photo courtesy of Historical Society of Palm Beach County.

Expansion of the North End

Town of West Palm Beach, established in 1894, was racially segregated from its creation. But it was November 1929 when the City Commission of West Palm Beach adopted an ordinance defining the boundaries of the segregated Black neighborhoods known as the Northwest Neighborhood and Pleasant City, legally enforcing the segregation policy. No Black person was allowed to conduct a place of business outside of the area as well, and all whites were likewise barred from living or conducting business within the designated Black district. Segregated from the white community, the Black population established its own institutions, businesses, civic services, and served as an economic and political hub. Black professionals and tradespeople established practices within the neighborhood during this time serving both the white and black community. However, as the growth in population continued through the 1940s the Black district which was bounded by railroad tracks on either side became surrounded by white neighborhoods and commercial or industrial areas. Black neighborhoods were unable to expand spatially, and families were forced to crowd into increasingly neglected and dilapidated units. Overcrowding pushed the blacks north into Riviera Beach along the same corridor.

Photo courtesy of Historical Society of Palm Beach County.

Challenges Continue

In 1960, the 1929 ordinance defining the boundaries of the black community was repealed by the city closely followed by the passing of Fair Housing Laws marking the beginning of a shift. Into the 1970s and 80s challenges of ridicule, hypocrisy, and humiliation continued to face African American residents in search of housing. A study in 1971 by The Palm Beach Post-Times had two recent college grads, one white and one black, attempt to look for housing throughout Palm Beach County. The survey included apartments, duplexes, and rooms in all price brackets in predominantly white neighborhoods. Out of 64 rentals with vacancies, at only 17 of them was the African American tester able to rent on the same terms. In another study performed by researchers from the University of Michigan Populations Studies Center studying the change in segregation from 1980 to 1990, West Palm Beach was found to be the 8th most segregated community between whites and black. In 1990, although there was a decline in segregation West Palm Beach still placed as the 20th most segregated community in the nation by the study.

LEGACY of Inequality The Gap

Across the country, there is a homeownership gap between African American and white households. Between 1960 and 2017, this homeownership gap increased from 27% in 1960 to 30% in 2017.

In West Palm Beach, the gap isn’t as extreme but still significant at 17%. Further, across several indicators like incomes and educational outcomes, over time, Black households are left behind by considerable margins and along clear geographical lines demonstrating the impact of the history of injustice.

“Into 2010 trends of racial homeownership and spatial homogeny can still be seen across the city.”

Click here to access Black and White homeownership counts and rates 1980 to 2010 by census tract.

The interactive map above (click on the map to access or scan the qr code) provides a view of Black and White homeownership counts and rates over the years of 1980 to 2010 by census tract. Into 2010 trends of racial homeownership and spatial homogeny can still be seen across the city. The white population is primarily located in the southern portion of the city as well as near the coast, with higher concentrations of the Black population in the Northend—the historically segregated part of the City.

Opportunity Atlas

The Opportunity Atlas, a project of Harvard, Brown, and the U.S. Census, works to use de-identified tax data to track children from the age of 5 to 35 to see which areas assisted children out of poverty and where children, instead, fell behind. Though there is some variation among census tracts, children from northend neighborhoods consistently saw the among the lowest levels of incomes and higher incarceration rates.

“...children from Northend neighborhoods consistently saw among the lowest levels of incomes and higher incarceration rates.”

COST BURDEN BY RACE

One of the primary ways to measure housing unaffordability is “cost burden.” Cost burden is, according to HUD’s definition, when a household pays more than 30% of its income towards housing costs. Cost burden is a product of both low wages and high housing costs. It is extremely difficult to afford necessities when cost-burdened, particularly for low-income households. In turn, cost burden makes it much more likely that a household will be unable to save for a down payment, reduce debt or address the other credit issues needed to access financing to purchase a home (discussed in more detail later in this profile).

Click here to access Cost Burden by Census Tract

Specific Challenges to Closing the Gap and the Current Context

Lack of vacant land for development

There is a constrained supply of vacant land for housing of any type within the city limits with most available land being used to build high end or market rate units. Vacant lots do exist around the city but many of these, particularly ones located across the Northend of the community are often unbuildable due to size and location.

Limited affordable homeownership options

Housing prices, rents, and homes for purchase, have seen a sharp rise since the start of the COVID-19 Pandemic as the demand for housing continues to outpace supply and production. According to Zillow, West Palm Beach’s typical home sales price as more than tripled over the last nine years going from $135k in 2012 to $413k in 2022.

Specific Challenges to Closing the Gap and the Current Context

Need for increase DPA, need for streamlined development incentives

Along with the sharp increases in home prices, the gap to getting homebuyers into new homes is wider than ever. Current subsidy programs which have already been oversubscribed will less far as they once did leave residents in West Palm Beach with fewer options. The need to leverage additional subsidy to bridge down payment gaps is at a new high.

Need for improved homebuyer services

While there are several organizations who either have provided or currently provide homebuyer assistance in the city, the ability to scale and better meet the demand in the community is constrained by available resources. Programs that can both address the groups of future homebuyers who are buying-ready and those that require further assistance and coaching to move forward towards their goal are fundamental resources that need investing in.

Heirs Property

Title issues caused by heirs’ property (or just heirs’ property) occur when property does not go through probate and is instead held collectively by all heirs’ as “tenants in common”. This state of title is extremely common in low value, majority black neighborhoods. Heirs’ title makes it extremely difficult for households to repair, manage, build on, or sell their land. This can also result in dragging down nearby and neighborhood wide property values.

Overall heirs’ property presents a reduction in homeownership opportunities because current owners do not have clear ownership and properties are difficult to buy/sell. Palm Beach Property Appraiser only shows a few dozen heirs’ properties in West Palm Beach, but this is almost certainly a sign of poor tracking rather than that there are few heirs’ properties.

Expiring Affordability Periods

West Palm Beach has over 4,000 units in the city. The largest share of these units is set aside for mixed elderly/family subsidized developments. Unfortunately, in the next 20 years over 500 assisted units will be reaching the end of their mandatory affordability period. Efforts to increase homeownership should also consider the need to both produce more and preserve existing affordable rental units to contribute to a reduction in the rental cost burden.

Need for continued support for opportunity and upliftment of legacy neighborhoods

The aim of this effort is not only to address the racial gap in homeownership but also to address historical discrimination and structural racism as it has affected generational wealth and prosperity. To accomplish this, special attention is paid to Northend and surrounding neighborhoods which are the legacy neighborhoods that have been affected by practices of segregation and economic exclusion but historically been harbors of collective effort and upward mobility for the Black community. These neighborhoods as compared to others in the community of West Palm Beach generally have higher rates of low-income households, dilapidated units, and the need for rehabilitation.

LEGACY NEIGHBORHOODS

Overall, these legacy neighborhoods present the greatest opportunity within the city to increase Black homeownership due to affordability and availability of units. A key challenge is the age of units. Many units require rehab to bring up to code to allow for older community members to age-in-place in a healthy environment. Rehabilitation that results in the modernization or expansion of units would also help

SWOT of the Northend Neighborhood

• Variety of housing types, high percentage of missing middle in Progressive Northwest.

• Homeownership rate very high in Historic Northwest/North Shore, higher than the city as a whole.

• Progressive Northwest/North Shore appears a relatively stable neighborhood with nearly a quarter of residents moving in prior to 1990.

• Affordable locations on their face, median value of owneroccupied units lower than city with exception of Pleasant City which is likely due to owner-occupied units being mostly condominium units east of US 1

• Significant number of homes without a mortgage in Historic Northwest/ North Shore (highest number at 351); also, highest percentage of units with housing problems; also has highest percentage of households with one person over 60

serve the larger households that tend to live in the area. In addition to the housing units themselves, additional investment is also needed to improve the attractiveness of the neighborhoods (i.e. support for small businesses and commercial corridors, improvements to parks and other amenities). This will require a strategic and sustained concentration of resources. Following are additional strengths, weaknesses, opportunities, and threats of the Northend neighborhood.

• High presence of older housing Higher share of homes built prior to 1980 compared to City, including a larger share built prior to 1940 the largest in Historic Northwest.

• Potentially greater neighborhood instability, aside from Northwest/North Shore, with most residents having moved in between 2015 and 2018 (highest in Progressive Northwest)

• Low homeownership, apart from Historic Northwest/North Shore, (less than 10%)

• Relatively high vacancy rate compared to city

• Ownership costs are highest in Pleasant City and Progressive Northwest. For Pleasant City, likely indicating most homeownership in those areas is concentrated in condominiums east of US 1.

• Vulnerability to gentrification in the progressive Northwest area closest to downtown

Strategies for Success Impact Statements

NEIGHBORHOOD REVITALIZATION STRATEGY AREA

Strategy:

Designate a Neighborhood Revitalization Strategy Area (NRSA), through the Community Development Block Grant (CDBG) program, to support a comprehensive approach to addressing economic development and housing needs in areas of opportunity. Activities will focus on promoting innovative programs in economically disadvantaged areas to increase access to affordable housing, expanded services, and economic opportunity.

IMPACT

HOMEBUYER’S CLUB

Strategy:

Create an all-inclusive method and expand upon current efforts to increase homeownership opportunities within the City of West Palm Beach, specifically for black homebuyers. Activities will focus on helping homebuyers navigate the purchase process, prepare for, and achieve homeownership.

PURCHASE ASSISTANCE

Strategy:

Elevate components of a traditional purchase assistance program, building in flexibilities to address barriers to homeownership in the context of the current and future markets. Activities will focus on decreasing costs for pro spective homebuyers to obtain

HOUSING EXPANSION PROGRAM

Strategy:

Build wealth, create multigenerational housing, and decrease rental costs through housing expansion, such as adding detached accessory dwelling units. Activities should focus on expanding existing single-family homes, including Black owner-occupied units, through additions and/or divisions into multiple units to address the renter cost burden and expand the number of units available for sale or rent.

HOUSING REHABILITATION PROGRAM

Strategy:

Maintain the existing affordable housing stock by providing decent housing for the city’s vulnerable populations, including Black homeowners. Activities should focus on bringing homes to code, mitigating hazardous conditions, and energy efficiency to reduce housing costs and keep those who already own in their homes.

Prevents

loss of land/

Increases access to collateral, capital, and disaster relief

HEIRS’ PROPERTY PROGRAM

Strategy:

Preserves the

stock

Increase neighborhood stability and individual wealth while decreasing involuntary land loss by owners of heirs’ properties which tends to be concentrated in low-income, Black neighborhoods. Promote generational wealth-building by providing homeown ership opportunities for the city’s most vulnerable populations, including Black residents. Activities should focus on providing access to property ownership by gaining clear titles to their homes.

permanent affordability

COMMUNITY LAND TRUST

Strategy:

Create a permanent stock of affordable housing and increase opportunities for homeownership for low- to moderate-income renters who might not otherwise be able to afford homeownership and serve as a proactive measure against displacement due to gentrification. Activities should focus on establishing a Community Land Trust and being certified through the Florida Housing Coalition’s CLT training and certification program.

INFILL HOUSING PROGRAM

Strategy:

Increase the availability of affordable homes for the city’s vulnerable populations, including Black residents. Activities should focus on maintaining a stock of affordable housing and redeveloping urban neighborhoods to help equitably distribute homeownership opportunities.

Expands the affordable housing stock Increases the variety of housing types

proximity to jobs, services, and transportation

Promotes neighborhood investment

economic growth

crime and public health hazards