Burlington Cares More About Tourists and Landlords (AIRBNB) than Renters

It was interesting to see Mayor Weinberger and the city of Burlington argue on the one hand that the only way to solve the housing crises is to increase housing vacancy rates through the housing market, while agreeing on the other hand to legalize and ‘regulate’ (I use the term loosely) Airbnb. If they cared about housing vacancy rates, or they cared about renters, they would have banned Airbnb outright.

Airbnb helps tourists find cheap housing and helps landlords make huge profits, while hurting the actual workers and renters that live in a community. And yet according to the city of Burlington,

410 unique short-term rental listings across many platforms (HC). This represents approximately 2% of all housing units in the city. There was a 25% increase in short-term rentals between 2018-2019 (HC), and the total number doubled from 2016-2019 (AirDNA).

AirDNA reports 66% of rentals are for the whole housing unit, and that 76% of listings were efficiency, one bedroom, or two-bedroom units.

https://www.burlingtonvt.gov/mayor/housingpolicy/str

What does this mean? In a city with 10,000 units and a 1.7% vacancy rate, 271 units, or 2.7%, have been taken off the housing market. If the city cared about housing vacancy, why wouldn’t they be excited for the opportunity to double the housing vacancy in one fell swoop?

The reason is that the folks in power, developers and landlords, would lose out if Airbnb was banned and heavily enforced. By keeping supply low, landlords are able to milk even more money from tenants. Developers can continue to make large profits on new buildings.

The city argues that they are getting money back – a whole $7,900 per unit, or $659 a month, and that therefore it is a good deal for tenants. That doesn’t even cover the cost of a moderately priced one-bedroom apartment. Hell, good luck finding anything in this city that isn’t run by CHT for that price.

And while the city claims that they will enforce the rule that ‘hosts’ (owner or tenant…so a landlord can rent out an apartment to an employee who then runs said Airbnb units) need to be living on site, this will lead to one of two different endings. 1) All the ‘accessory dwelling units the Mayor has proposed will turn in to Airbnbs (if you look at Airbnb in the South End, they already have), or 2) there’s no real enforcement mechanism (which has been outsourced to a ‘third party’ aka privatized), no defined fines for when landlords ignore such laws.

The loopholes write themselves. One has to wonder whether this was all intentional, just done through plain ignorance, or likely a mixture of the two? Renters continue to lose under this neoliberal, trickle-down housing ideology, while corporate giants like Airbnb continue to ruin communities.

A Politician’s Guide on How to Kill Burlington, Vermont

Gentrification and neoliberalism are killing Burlington, turning the city into another Seattle or San Fransisco. Low-income residents and residents of color are being pushed out of the city, high-end services and restaurants are replacing low-income-community-conscious businesses. Wealthy Old North End developers and landlords like Erik Hoekstra (Redstone, Butch and Babes), Jacob Hindsdale, and Bill Bissonnette seem very happy to be making a profit off of trauma and displacement. Wealthy residents and transplants are excited to try out every new restaurant and brewery. For the rest of us stuck struggling to pay rent, Burlington is dying.

In Burlington’s Old North End, 300 low-income households have been priced out of the neighborhood and the city. QTs has been replaced by a yoga studio and Butch and Babes. The Workers Center and Off Center for the Dramatic Arts have been evicted by Jacob Hindsdale, heir to the Hindsdale slum fortune (and partner to former State Rep Kesha Ram), replaced with an indoor ax-throwing and cocktail business, owned by the same folks who own several local Escape Rooms. Great for tourists and new wealthy residents with disposable income, terrible for most workers and renters.

Green Mountain Transit is hemorrhaging riders, which isn’t surprising when one considers that 80% of their riders are low-income or disabled and cannot afford a vehicle. Gentrification is killing our semi-public mass transit, as it has done in Los Angeles and throughout the entire country. Add our elected officials’ gross acquiescence to capitalist predators like Uber, practically begging their lobbyists to write our laws for us, and it’s clear mass transit in Vermont is suffering badly. As an example, in San Fransisco, ‘rideshares’ hurt public transit ridership by 13% since 2000, and they are slowly killing off public transit in most cities at a cumulative rate of 1% per year.

Bernie Sanders in the early 1980s, calling out developers, landlords, boutique hotels, etc, while fighting for the needs of ‘the vast majority of our population’, modest-income workers and renters. The more things change the more they are the same.

Low-income workers continue to get the short end of the stick. Wealthy Vermonters are becoming much wealthier, while everyone else finds it harder and harder to survive. Since 2010, the wealthiest Vermonters have seen a 70% increase in income, and a 40% increase just from 2016 to 2017. Older, low-income Vermonters are being priced and forced out of the state, while wealthier and younger, very economically privileged millenials making over $100,000 a year, are moving in. At the same time, when factoring in inflation, Vermont’s minimum wage hasn’t increased since the 1980s. These children of wealthy elites are displacing long-term communities, destroying the social fabric of our city.

Mayor Weinberger trusts that the market, aka a handful of wealthy elites, which has already displaced so many lives, will solve all our problems. A developer and devout ideological capitalist, Weinberger believes that by building ‘market-rate’ housing, housing that is often actually luxury housing for the vast majority of renters, we can ‘solve’ our housing crises. However, studies shows that for every 100 upper-class residents that move into a community, the community needs to build 25-43 more units of housing for low-income workers. That means that without rent regulation, even with inclusionary zoning, every new market-rate building actually makes the housing situation for low-income renters much worse. Those who support the non-profit-industrial-complex’s Building Homes Together Campaign should be aware that their program, which continues to fall far short of their own modest goals, does more harm than good.

Low Income Rental Units Disappeared

According to a new report by the Joint Center for Housing Studies at Harvard University (for any Ivy League neoliberal technocrats listening), since 1990 nearly 11,000 units of ‘naturally affordable housing’ for low-income renters have disappeared from Vermont, while another 15,000 new units of housing for higher-income renters have been created. In Burlington, that number roughly equates to losing 1400 low-income units, affordable for a family of 4 in extreme poverty, (making less than 30% Area Median Income), while 1,000 moderate-income units and 2,000 higher-income units have entered the market.

One set of data from CEDO’s 2013 and 2018 Consolidated Housing Plan show how in just a 5-year span neoliberalism and gentrification have hurt low-income tenants in Burlington. It is likely that many of the folks making 50-80% AMI have fallen to 30% AMI, swelling the number of extremely low-income renters another 2,300 households and greatly increasing the already dire need for low-income housing.

Data from CEDO

On top of this, over 430 more low-income households (who have not yet been gentrified out of the city) are rent burdened; likely folks who fell out of the slightly higher income bracket and have fallen even further down the economic ladder.

Rents Increase, Landlords Profit

Data shows that Burlington’s average rents have increased on top of inflation by an additional 28% since 2000. This money is pure profit for landlords, especially the larger ones who have owned property for several decades. This isn’t surprising – while landlords often argue that rent increases are to cover maintenance costs, the Berkeley Rent Stabilization Board has shown that less than 10% of rent increases went back to the community through reinvestment and taxes; 70% of those increases went into the pockets of landlords as pure profit, on top of their housing wealth.

https://www.housingdata.org/profile/rental-housing-costs/median-gross-rent

When we look at median gross rent in Burlington compared to rental costs in 2009, we see that in even in just the 8 years from 2009-2017, rents have increased 10% higher than inflation.

As you can see, even as more luxury rental units have been built, low-income housing hasn’t kept close to pace, and the percentage of rental housing that is affordable to low-income renters and workers continues to fall drastically, most likely when it comes to 1 and 2 bedroom units.

There are ways to make Burlington a place for everyone to live and thrive. However, if politicians continue with status quo politics, the type of politics that favor wealthy real estate interests and their ‘right’ to make a profit off of a basic necessity over neighborhood stability for low-income renters, expect Burlington to die. Expect Burlington to become, as Bernie said in the 80s, another bland over-priced city with expensive housing, over-priced rentals, luxury and boutique hotels. How can we kill a city like Burlington? Keep doing what we are doing and don’t look back.

Why is Councilor Roof on the Vehicle for Hire Board?

One of the symptoms of atrophying boards and commissions is that it is sometimes very difficult to fill commission spots with new faces. Whenever I talk to less political friends, they have no idea what commissions do or how to apply to be on one, and the Vehicle for Hire Board is a symptom of the same general groups of people applying for commissions and boards, especially when no one else knows about it. A couple things stand out.

  • Councilor Roof, who is an elected city official, is on the board. I don’t know if this has happened many times in the past, but it’s certainly a rare instance that blurs the line between citizen boards and elected officials. Since the other councilors vote on most Board candidates, this certainly feels like it could easily open up a conflict of interest.
  • Two members of the Vehicle for Hire Board are also on the Airport Commission. Wouldn’t city councilors want to ensure power and influence isn’t concentrated, even in the hands of individual citizens? And does this create a conflict, if those commissioner put the needs of the airport over the needs of cab drivers?

 

Vehicle for Hire Board

Member Ward Term Email
Dennis Duffy 7/2018
Charles Herrick 7/2018
William Keogh Sr. 5 7/2019
Jeffrey Munger 1 7/2019
Adam Roof 8 7/2018

 

Airport Commission

Member Ward Term Email
William Keogh Sr. 5 7/2018
Jeffrey Munger 1 7/2020
Alan Newman 7 7/2018
Pat Nowak 7/2018
Jeffrey L. Schulman 5 7/2019

Our citizen boards falter and lose credibility when we don’t put enough resources to help publicize to folks outside of the political establishment. We need a group of councilors committed to funding outreach to help include marginalized folks in government, especially for Councilor Roof’s Ward 8, since there are so few commissioners from his ward.

Are Burlington’s Boards and Commissions Representative? Part 2 of 3

Today I’d like to delve a bit deeper into the data that I first presented in part 1. To ensure that the sample sizes were large enough, and not just the aberration of small commissions, I chose to look only at the commissions with at least 4 members.  You may be surprised by what the data reveals, I know I was.

I want to offer a few caveats – I made assumptions about folks’ genders based on their first names. While it’s certainly not 100% accurate nor good practice, the city does not seem to collect any data on gender or race when it comes to commissioners, so I worked with what I got. I also did my best to ensure that no identifying data would be presented, even though all of this information is public in one place or another.

By Ward

  • Ward 2, 3, and the gerrymandered student Ward 8 have the lowest number of commissioners, while Ward 1, 4, and 5 have the highest.
  • Ward 2 and 3 are represented on less than 50% of all commissions, while Ward 8 has barely any representation. Wards 4 and 5 are represented on 3/4ths of all commissions.
  • There are more commissioners living outside Burlington than from half the city’s individual wards, Wards 2,3,7, and 8.Note: Ward 0 denotes commissioners who live outside Burlington.


By Gender:

  • Burlington’s gender demographics are 51% female to 49% male, yet 34% of commissioners are female and 66% are male.
  • While 65% of commissions have more males than females, only 35% of commissions have more females than males.
  • The commissions involving business, development, financials, and housing skew heavily towards males, with over 80%.
  • Housing Board of Review, Design Review Board, and Retirement Board have combined 19 males on the boards and 0 females.

When we look at the commissions involving finances and development, the disparities are even starker:


By Home Owners and Renters:

  • Although 60% of Burlington residents are renters, only 14% of commissioners are renters.
  • Nearly as many commissioners live outside the city than are renters in the city.
  • Burlington’s median assessed value of a single family home is $234,200. 75% of home-owning commissioners, or 65% of all commissioners, own homes valued about the city median.
  • Every commission had a higher average home value than the median.
  • While 100% of commissions have homeowner representation, only 40% have renter representation, and only 25% have very low income renter representation of any kind.
  • 30% of commissions have representation from outside Burlington.
  • While 100% of commissions have more than 3 home owners, only 5% of commissions have more than 3 renters.

 


By Profession:

  • Overwhelmingly, over 44% (Business/Real) of commissioners work in the fields of law, housing, development, business, and finance. These are jobs that tend to pay much more than a livable wage.
  • Nearly 10% (Community/Social) of commissioners work in education, social work, community mental health, politics, or community organizing.
  • 1 student (UVM) was on any commissions, and they were a graduate student. No undergraduate students, who number over 12,000, have any representation on any boards or commissions.
  • 11.4% (Government) of commissioners work for either the city or state.

Note: One person worked in UVM real estate, and others worked as real estate and/or business lawyers. They were counted in all applicable groups.

The New Burlington Town Center Is Already Hurting Working Class Residents

I have been a very vocal critic of the Burlington Town Center for several years, mainly because the development relies on trickle down housing and trickle down economics to help low income residents. A recent article in VTDigger about UVM Medical Center’s expansion to the BTC, and the pressure and ‘passion’ Mayor Weinberger used to persuade them to move there, shows how the Mayor’s policies consistently hurt more residents, especially vulnerable ones, than help them.

Sources said the mayor lost his cool at the meeting and reminded hospital officials about the sweet deal they had for city services, though Weinberger said that argument was “not a major part of the conversation,” largely because the city’s hands are tied for another decade plus.

(As an aside, the Mayor’s ‘passion’, which has been described to me as temper tantrums, a good source tells me is a big reason why beloved former Library Director Rubi Simon decided to leaver her job and move out of state over a year ago.)

Now that the hospital will be paying an extra $1,00,000 a year, who will be paying for it? As the article makes clear, “patients”. It’s as if the mayor is so insulated from the yearly 8%-10% yearly increase in healthcare costs and premiums, that adding another $1,000,000 onto the backs of overworked Burlingtonians remains somehow overlooked. Not to mention that UVM Medical Center will likely use this as an excuse to continue paying MUCH less than the fair share of a $1 billion business should be paying for their fees in lieu of property taxes.

Who will benefit from the Burlington Town Center? Businesses on and around Church Street, landlords, hotels, and restaurants. Bringing people to the downtown core, even just for a few hours, means they will spend some amount of money there. The city will likely see a small increase in sales tax and alcohol tax revenue. Property taxes, however, will remain stagnant for 20 years, due to voters’ majority to support the TIF vote (supported almost unanimously by city councilors except Max Tracy). Instead of getting upto $1,000,000 a year in badly needed revenue, we will have to wait until the next generation is voting and having children.

Who will lose from the Burlington Town Center? Workers, especially low-wage workers, service workers, and now anyone who uses the UVM Medical Center (which is, essentially, everyone because they have a monopoly). Wages for service workers continue to remain stagnant, and likely the wealthy Church Street business owners, most of whom don’t live in Burlington, will end up pocketing any extra revenue.

“This decision is highly defensible” after all the factors are weighed, Weinberger said.

As long as those factors don’t include the vast majority of Burlington workers and service workers? Mayor Weinberger, the working class hero.

Exec Director of Spectrum’s Letter to the Mayor and Police Chief 


I received this letter today in my email, referencing a homeless man in Burlington who was recently in the news over punching someone in the chest. What I appreciate most is how compassionate Mark Redmond is, and how well he recognizes that many of the homeless folks downtown, the ones who will soon be treated as criminals, are often not 100% in control of the decisions they are making. Mental health issues, years of self-medicating with drugs and alcohol, and the numerous traumas they have experienced all play a huge role in what these neighbors of ours are going to do. I agree with the police chief that there needs to be consequences – but only for the folks who are violent and harassing others, not the ones drinking and panhandling peacefully – and we need to remember the situation all of them are in and remain compassionate while getting them the help they need.