Burlington Needs a Wealth Tax

With Mayor Weinberger putting on a housing summit next month, now is the time to advocate for bold, meaningful policies that redistribute wealth in a way to ensure that nobody has to live unwalled. A wealth tax on millionaires will raise $7.5 million a year for low-income housing projects throughout the city.

Burlington has over 400 for-profit, private, millionaires who own a combined $1.5 billion in property wealth, more than the combined wealth of UVM and the UVM Medical Center. Not only are these 1%ers’ property often taxed at assessed rates much less than their value, but taxing their wealth would help pay for desperately needed low-income housing, without negatively affecting the vast majority of Burlington workers and residents.

Every Burlington Millionaire by Land Wealth – (Click to Enlarge)

The current Housing Trust Fund, funded to the tune of a measly $520,000 a year, can outright fund the construction of only 2 low-income units every year, yet the city needs to build over 5,000 homes for low and moderate-income residents (making less than 80% of the Area Median Income – AMI) to meet our city’s housing needs, yet only 170 homes for those making over 80% AMI. In fact, 2,900 low-income households are paying more than 50% of their income in housing. (Can be found on the city’s Consolidated Housing Plan draft, Page 10.)

Unfortunately, Mayor Weinberger and the City Council seem to think market rate housing, which is affordable to those making 100% AMI, will somehow solve the 5,000 units of low-income housing that these folks need. According to the same Consolidated Housing Plan, 170 folks making between 80%-100% AMI are paying 30% or more on rent, while 0 are paying 50% of their income or more.

If we taxed these millionaires at an additional one half of one percent, .5% every year, the city could raise an additional $7.6 million dollars a year for low-income housing. According to the city’s recent Inclusionary Zoning report, this money could fully fund and build an additional 30 units of truly low-income housing every year. With loans, financing, and low-income tax credits, that number increases even more. As an example, Redstone’s building at 258 North Winooski Ave, with 23 units and 41 bedrooms, along with first-floor retail space, cost roughly $3.5 million dollars. Even with overhead and maintenance, likely 50+ units of permanently and truly affordable low-income housing could be built every year in Burlington, 25x more than is currently built.

Even if we decided to be cheap, and only tax these 400 millionaires at one tenth of one percent, or .1%, we could still raise $1,500,000 a year for housing, 3x more than our Mayor and Council have dedicated to housing over this last decade.

In conclusion: Tax the wealth of the wealthiest 1% of landowners so that everyone can have safe, affordable housing. It’s easy and would actually put some money where our values supposedly are.

The Ultimate NIMBYs in Burlington are Wealthy Condo/Mansion-Owners

(You can view a larger, full-screen map here.)

Last post I discussed how 25% of single and double-unit homes in Burlington are investment rental properties, making it harder for lower-income people to live and thrive in Burlington. While I mentioned that zoning plays a role in this, albeit a limited one, today I wanted to show how those with money and wealth, including Mayor Weinberger, are the ultimate NIMBYs, working to make sure that there are limited opportunities for new or different residents to move into their neighborhoods, while aggressively pushing denser development in other neighborhoods.

I have mapped all 670+ single-family mansions and luxury condos worth over $500,000*. Of these 670 homes, 120 (18%) are second homes. These homes make up the top 10% wealthiest single-unit homes in the city, making them the wealthiest 4% (by home value) residents in the city. Combined wealth is $465 million.

If we decided to create a luxury housing/mansion tax in the city on these homes, depending on our pricing scheme, which I will write about in a later post, (yearly flat home value tax of .1% (one tenth of one percent), flat tax of .5% (half of one percent), we could be raising anywhere from $500,000 to $2,500,000 A YEAR for low-income housing, which is a helluva lot more than we are doing now as a city.

The map is crude but you get the point.

What you will quickly notice is that the vast majority of wealthy homes, 94%, exist in only 4 spaces throughout the city. They are either in the south end on the hill section with nice lake views (Tracts 39-1 and 39-2), in the south end by the water (Tracts 10-2, and 11-2 ), downtown in luxury condos (Tract 10-1 ) or in the New North End by the water (Tract 2-3 without Rockpoint). These areas have some of the lowest population densities in the city, and if we tracked population by street or neighborhood I’m certain these numbers would be even lower.

Except for the luxury condos downtown, almost every mansion/luxury condo was built in areas that are zoned for low-residential density. In fact, our own Mayor Weinberger, a strong proponent of ‘in-fill’ development and ‘denser development by building up’ lives in one of these mansions on the hill, where he is protected by zoning from every worrying about losing his perfect lake view, from ever worrying about traffic, noise, pollution, trash, or any of the other issues that come with actual city living.

The ultimate NIMBYs aren’t small homeowners or renters concerned about the negative effects of gentrification, but rather the wealthiest 10% of homeowners who live in low-density neighborhoods, and who regularly vote for and advocate for, zoning that keeps their neighborhoods with few people and large homes, while pushing density to poorer neighborhoods that are already quite dense, like the Old North End.

*For data purposes, I included all housing that either had a recent sale price of over $500,000 or a home assessed at over $450,000 (homes are generally assessed at less than 90% of value).

Many Low-Income Families are Being Gentrified Out of Burlington

For years now we have been hearing anecdotes about the harmful effects of gentrification on low income families in Burlington. The data in this post shows that elected officials have done nothing to slow the destruction of the widening income gap, while the low-income families remaining in Burlington are those living in worsening, abject poverty.

Over the past decade, elected Burlington officials have sat idly by as the city has morphed from one of the most livable places in America into a town that only the wealthy can afford. Businesses that served low-income communities closed, were priced out and evicted like Resource, while megalandlords like the Bissonnetes legally evicted over 300 low-income tenants and families.

Over a year ago I asked Mayor Weinberger about what he would do to stop poor residents from being legally evicted by ever-increasing gentrification, and he told me that this was “the best system we had” and offered no solutions to help these families. I clarified. “Are you saying that the best we can do in Burlington is let 300 poor families be priced out of the city?” Weinbeger said yes.

A year ago I researched childhood poverty in Chittenden County from 2003-2016 using free/reduced public school lunch data*, and discovered that while Burlington had lowered childhood poverty by 8%, nearly every surrounding communities’ childhood poverty increased. I believed at the time that this was likely a result of gentrification, poor families being priced out.

Data from https://education.vermont.gov/student-support/nutrition/school-programs/free-and-reduced-meals

The data shows that my theory is correct – within just 7 years, upwards of 30% of Burlington’s poor families have been priced out of Burlington.

While the overall number of BTV households have increased by 6% since 2009, and median income (adjusted for inflation) increased 8% ($3,445), low-income folks have not shared in this wealth. In fact, the income gap during this time increased 18% between households making under $35k a year and those making over $75k a year.

When you look a bit more into the data, low-income families have clearly been hit the worst by, so much so that in Burlington their share as a percentage of all families has decreased by 19% and 17% respectively. Yet 40% of Burlington’s children live in poverty because the families that are able to remain, thanks to public housing, limited housing vouchers, and limited nonprofit housing, are in ever greater poverty.

We are in a housing crises and our elected officials keep promoting trickle-down market-rate housing as a solution, which does nothing to slow the ravages of gentrification. After 7 years of failed policies under conservatives and centrists like Mayor Weinberger, council Democrats, and council Progressives, isn’t it time we tried some better policies that have a proven track record of helping low-income families, like investing money in low-income housing, rent protections, and higher minimum wage?

*A family of 3, average Burlington size, cannot make more than $37,167, or 1.85 times the federal poverty rate, in 2016 dollars, to qualify for free or reduced lunch.

The Boves are Slumlords and the City Shouldn’t Work with Them

We, as a community, are at a crossroads. Recent policy decisions by our current administration continue to put the welfare of businesses and wealthy landlords over the needs of our residents. But we can change that! A case study can be the Boves family, especially local landlord Rick Boves, shows us how if we let developers and landlords build for the good of the city, even when they have caused serious damage to residents, we send out a message that large landlords can play by a different set of rules.

Folks who have never rented from the Boves may not know that, as landlords, they leave much to be desired. In fact, after researching articles for this post, I have zero qualms calling them slumlords. As a former renter, the apartment wasn’t kept nice, where mice and house centipedes were regular guests, where you could still see bits of carpet where the floor met the wall. It wasn’t fixed up from the previous tenants before I moved in, and it cost a decent deal more than it was worth. So it is fair to say I’m a bit biased about the Boves as landlords.

Fortunately for us (but not for their tenants), there is quite an extensive history of the Boves’ treatment of their tenants. In 2013, the city held the restaurants’ liquor license due to over 40 housing codes they refused to resolve at their crumbling George Street apartments. I used to live on Monroe street and had the misfortune of walking by these miserable apartments every day. I cannot imagine how miserable it felt to live inside them.

You’d think, after an article like that came out shaming the Boves, they would spend a few dollars to at least make their apartments look decent on the outside. I think any reasonable, thoughtful landlord would admit their mistakes and try to change. But the Boves made no such efforts. In May of this year, with another 38 code violations still pending, the Bove family decided to knock down the apartments to build newer, pricier apartments (and a hotel), which their current tenant certainly couldn’t afford.

In 4 years, they have received over 78 code violations. 

It gets worse. The renters in those apartments were all very low income residents, some of whom I’ve been told even worked for Boves. If this feels like a Charles Dickens novel, you wouldn’t be wrong. These folks lived in abysmal housing, where “violations including broken windows, leaky plumbing, a cracked toilet seat, failed caulking, defective cooking equipment, and cracked walls and holes in the ceiling” were left unfixed. These aren’t the sort of violations that cost hundreds of thousands of dollars to fix – they are the type of reasonable fixes ANY landlord should make.

Instead of fixing up the apartments, the Bove family has moved their tenants to other buildings and are knocking it down to build luxury housing. What are the odds that the old tenants will be given affordable units?

Once, when Boves was cited for  ‘(L)live electrical wires dangling from a ceiling” at a North Williams apartment, the place was deemed uninhabiatble by Code Enforcement. What did the Boves have to say?

“You can write whatever you like. It doesn’t much matter to me.”

Now, the city, supported by Mayor Weinberger and by CEDO Director Noelle McKay, are considering selling a parking lot to Boves so he can build a boutique hotel. Land is a hot commodity in Burlington, and land this close to downtown, with support, could easily be converted into MUCH needed homeless or very low income housing – hell, it could and should be used to give Bove’s former tenants a decent place to live.

If this development happens, and if the city supports this development by selling off land, we will be sending a really terrible message, one where if you ignore our local laws, if you treat fellow human beings like shit, you will be rewarded.

We need to send our elected officials a message that this type of behavior should NOT be rewarded. Please email Director McKay, please email your city councilors and come to the city council meeting in a few weeks where councilors will vote on whether to sell land to Boves. They clearly do not deserve to be landlords, never mind to build new hotels or apartments in our beautiful city.