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 QTs has been replaced by a yoga studio and Butch and Babes.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.

Burlington’s Land and Housing is Controlled By a Wealthy Few

Burlington is a town of extremes. 1% of residents control housing for 50-60% of the population, totaling nearly $3 billion in property. This staggering level of wealth concentrated in the hands of 500 individuals contradicts the idea that 1) there isn’t enough wealth in Burlington to clothe, feed, house, and educate every Burlington resident and 2) that Burlington and its local housing institutions are inclusive or democratic.

The extreme wealth, and the power that comes with that wealth and control of housing stock, are in the hands of a few individuals – local colleges, local non-profit landlords, and local for-profit landlords. The few dozen board members of these colleges and non-profits, most of whom are wealthy and far removed from the ‘working class’, make important decisions that affect all of us behind closed-doors.

UVM, the UVM Medical Center, and Champlain College own a combined $1.1 billion dollars in assets, along with 7200 bedrooms serving 11,000+ student renters. While Champlain College pays taxes on most of their assessed properties (granted, some of their assessments online are so grossly low it should be laughable), UVM and the UVM Medical Center don’t pay a dime in property taxes on their combined $1 billion in assets. And since there is no local Burlington income tax, most of the income generated at these institutions, along with their tax bases, flee to the suburbs every night.

These institutions are all run by carefully selected boards of the county’s business, development, financial, and political elites, along with 6 and 7 figure CEOs. Of the 25 UVM trustees, less than half (12) are either students or legislators. Of Champlain College’s 26 trustees, several are millionaire developers themselves. Of the 17 UVM Medical Center trustees, 4 (including the $2 million-a-year-salary CEO are medical professionals). Of the 68 people in charge, at most maybe 10-15% are not in the wealthiest 20% of residents.

Local non-profit housing landlords also have their fair share of wealth and power. Combined, these organizations own a (very under-assessed) $165 million in property, while controlling 3,175 bedrooms. These organizations pay little in property taxes, under the assumption that by offering rent below-market, they are performing a social and community good.

These non-profit boards, while often made up more of professional-class Vermonters than the 6 and 7-figure Vermonters of our medical/collegiate institutions, are limited in number and scope. None of these groups have majority boards made up of the working-class or low-income clients they serve. CHT has 15 board members, 5 of whom (33%) are actual clients served by the organization. BHA has 5 wealthier board members, selected by the (also wealthy) city council. Cathedral Square has 12 board members, most of whom are much wealthier than the other two non-profit boards (including, for some reason, Erik Hoekstra of Redstone in an uncomfortable, and incestuous, conflict of interest). Of these 32 folks, only 15% likely come from the bottom 80%.

The list of our city’s 400 millionaires – for-profit residential landlords, homeowners, and commercial landlords, is long. Their combined wealth is $1.5 billion dollars and they control a total of 12,100 bedrooms.

These 500 individuals, the millionaires + board members, control assets easily valued near $3 billion. In a city where 30,000 people have $0 in property assets, this is staggering wealth inequality. Not only that, but these folks control, 22,475 beds, or nearly 30,000 renters (when we factor in the average number of residents per bedroom at 1.33), giving them direct influence over the lives of over 50% of all residents of the city.

It’s worth wondering who impacts your life more on a daily basis – Congress in Washington DC, or the 500 wealthiest and most powerful Vermonters in your own backyard? And it’s worth wondering what, exactly, can we do to give power back to renters and workers?

Can’t Afford A Home in Burlington? Blame Landlords, Realtors, and Homeowners

(You can access a full-screen map here.)

Burlington is an expensive place to live. With a limited supply of single and two family homes, whether they be condos, mobile homes, or standalone single-family housing, it’s tough for Burlington’s low-income renters to afford stable housing. In fact, 25% of all homes in the city are rented out as investment properties. Blame this on landlords, realtors, and homeowners.

With over 2100 units of housing (13% of all housing in the city) and 6700 beds (17% of all beds in the city) being rented out by investors, rented on Airbnb, or owned as a second home, there are few if any affordable homes left for people to buy. Without housing protections and limits, without zoning changes in wealthy low-residential areas, without a real public investment in long-term low-income housing, too many of these homes are easily converted into investment properties, selling for prices that are out of reach for most families and middle-income workers. This benefits some folks, mainly realtors, homeowners, and landlords, while the majority of us suffer with few options.

It’s interesting to see where and how much of different types of housing have been turned into rentals. Single family homes are rented throughout the city, but are most clustered around UVM, legally allowed through grandfather clauses, rented out to college students often in unofficial frats and sororities. Most two family homes, historically a way for poorer families to afford housing, are rented out in the Old North End. Condos tend to be spread out around city edges, not as much dispersed in communities but built in stark, repetitive and ugly, giant condo developments that are removed from actual neighborhoods. Expect ‘Cambrian Rise’ to offer much of the same.

The toughest part about staying in Burlington as a low-income renter and community mental health worker is that most new developments are rentals, and even new condos will be expensive, in ugly condo complexes, and many will likely be bought as investment properties, making it harder and harder for low and moderate-income residents to exist, never mind thrive, in Burlington.

Who are Burlington’s Largest Landlords?

After a year of research I’m proud to share my research around housing in Burlington. This map shows which landlords own at least 100 beds and how much they own. If you want to look at a full screen map, click here.

In a town where 60% of residents own $0 housing wealth, the wealth gap continues to grow, leaving a few hundred wealthy landlords with immense wealth, while the vast majority of residents have little or no wealth at all. In total, property owned by these 27 landlords, just in Burlington, is conservatively valued at $1.23 billion dollars. Yes, you read that right. They own over HALF of all housing units in the city and over 40% of all beds, totaling 16,600 beds and 8,600 total units of housing.

Even if we look just at large for-profit and non-profit landlords, (we can talk about the immense influence UVM and Champlain College exert over our rental costs another day) the wealth these private individuals and organizations own, and number of housing units they control, means a handful of folks exert enormous influence over most of our lives.

The true ‘market’ value is likely upwards of $300 million, but the data is harder to parse as non-profits aren’t always assessed like for-profit buildings.

The 23 largest private, for-profit landlords own nearly $400 million in property, with a median personal wealth of $11 million. They own over 3,101 units and 6,056 bedrooms, or 19% of all units and 15% of all bedrooms in the city.

How do we, as tenants, gain control when a handful of individuals have such influence over our lives? By working together, through solidarity, and forming a tenants’ union. While we may not have much wealth we do have numbers – in fact if all renters voted, we would be easily able to vote for rent control, better enforcement, swifter and harsher penalties when landlords fail to act, public lawyers to represent us, and other rent and tenant protections.

UVM and Champlain College’s Admission Process Is Fueling Burlington’s Gentrification

UVM and Champlain College have a lot of power in shaping our community, in both positive and negative ways. We often hear about how 40% of UVM’s students living off campus increases non-students’ housing costs, and I’ve written about how as two of the city’s largest landlords with a captured client base, their exorbitant room and board costs likely distort rents citywide. There’s a third way that UVM and Champlain College contribute to Burlington’s gentrification, and that’s their admissions processes which are highly geared towards very wealthy families.

Thanks to the New York Times we can see a snapshot of UVM and Champlain College students’ economic backgrounds and how they compare to Burlington’s residents in 2016. Both schools have high rates of students from very wealthy backgrounds and low rates of students from very poor backgrounds, particularly when compared to Burlington residents. The median college student family is nearly 3 times as wealthy as the median Burlington family.

According to their data, not only are more than half of UVM and Champlain students from the top 20% wealthiest families, but only 4%-6% of students came from the bottom 20%. College students in Burlington are wealthy at 3 times the rate that Burlington residents are, while Burlington residents have 5-8 times higher rates of poverty than college students in Burlington.

These schools function less like educational institutions striving towards equity and more like businesses trying to maximize profits and growth. That’s the reason students and faculty are fighting against the administrations’ cuts to programs that aren’t ‘making money’.

More students come from families making $2.2 million a year than families making under $22,800 a year. A full 8,000 students come from families wealthier than 82% of all Burlington households.

NYTimes data shows that the trend of students coming from families much wealthier than Burlington residents has been consistent or increasing for decades. While UVM has become slightly less accessible since the early 2000s, Champlain College has catered towards significantly wealthier students and is their student body is now comparable to UVM’s.

How does an admissions process that caters to wealthy students effect low and moderate income Burlington residents? How does this process hurt low-income college students? How is such a model sustainable, and how do we keep Burlington from becoming an elite town for wealthy students and the business community that caters to them? Lastly, who is holding UVM and Champlain responsible for their role in hastening gentrification and making life harder for Burlington’s low income residents including low-income college students?

Seven Days Misses the Mark on Housing in Burlington

A recent article from Seven Days about Champlain College’s new dorms had a lot of quotes from a lot of people. I want to show how, as long as UVM and Champlain can charge whatever they want, our housing market will never resemble a ‘traditional’ supply and demand market. How, as long as properties are valued as investment properties, only the very wealthy will have any chance at affording to live in Burlington. New dorms may ease the housing crunch for a select few, but for the rest of us, we will continue to pay most of our low wages to wealthy landlords as we struggle to thrive.

Quote 1:

“This year, Sharp got no takers from ads on Craigslist. He dropped the rent from $2,800 to $2,700 a month, but still has not found tenants. “We may have to go to $2,600.”

The building, located at 24-28 Orchard Terrace, consists of four 3-bedroom units. As a 20-year home-owner, the mortgage is minimal if existent. Each bedroom rents for an astronomical $933 a month, grossing over $11,000 a month and $134,000 a year, and will be reduced to *only* $866, $10,400, and $125,000 respectively. Even after factoring in maintenance and property taxes (at $20,000 a year), that’s still more than $50,000 a year IN PROFIT just for owning a single building. That’s money that doesn’t go into the local Burlington economy.

No service worker, nonprofit worker, mental health worker, or early educator in Burlington could afford these rents, even at the reduced price.

Quote 2:

“Leases run for 11.5 months and aren’t cheap. They vary in cost from about $965 to $1,355 a month, including utilities and internet.”

The biggest housing issue isn’t supply and demand, but that UVM and Champlain college, two of the largest landlords in the city, have a huge captive market. They can charge whatever they damned please within ‘reason’, which grossly inflates the private market.

Quote 3:

“”If Champlain were ever to hold a yard sale, this could be its most valuable asset,” said John Caulo, an associate vice president at Champlain, as he gave Seven Days a tour.”

Good thing that this property doesn’t have to abide, for some reason, by inclusionary zoning laws like all the other for-profit developers in the city, or else it would lose some of its $36 million value, but atleast the city cleared $1.1 million for the prime downtown public property, (excluding half the cost of soil removal and treatment). The city has worked out an agreement for payments in lieu of property taxes for the next 20 years. After that, it’s the next generation’s problem and tax burden.

Quote 4:

“Champlain has terminated its lease of roughly 280 beds at Spinner Place apartments, effective this summer. That change has left the owners of that building on Winooski Falls Way hustling to find new tenants for the coming school year.”

So the vast majority of students were already housed in student-specific housing. Building 312 beds leaves a net total of 32 new beds. That sounds like great news for Winooski’s housing market, as 280 new beds open up. I’m not seeing how that really helps Burlington’s student housing crunch…

Quote 5:

“On a recent morning, the street was packed with parked cars bearing out-of-state license plates, and litter blew around the curbs and sidewalks. The discounts people are seeing on Craigslist haven’t filtered down to Bausch. Rentals remain “pricey,” she said.”

I bet, most of those discounts are towards the new ‘market-rate’ housing built by Redstone, Farrell, SD Ireland etc, where they charge upwards of $2000 per month for 1 bedroom and $2400 a month for 2 bedrooms. What did our mayor say? “That sounds to me like the early stages of a market reconciling, kind of recalibrating to deal with the fact that there’s substantial amounts of new supply.” A market for the elite few, sure.

Quote 6:

“One big question is whether the changing marketplace will lead owner-occupants to reclaim some of the houses that were converted to student rentals decades ago.”

Very few current residents in Burlington could afford to buy a dilapidated $400,000 single family home and then spend another $200,000 to bring it back to life. This idea exists outside reality. If you look on local real estate sites, most houses near UVM are sold as investment properties, inflating the sale price immensely.

UVM and Champlain On-Campus Housing Prices are Hurting the Rental Market

When I ran for city council last year and was looking into our local housing market, I was blown away by how Burlington’s housing market doesn’t function like a typical supply/demand market. There are many reasons why this is the case, (I’ll save it for a different post) but the biggest reason that housing in Burlington is so dysfunctional is that UVM and Champlain College run a closed-housing market conglomerate, free of property taxes that most landlords have to face, and they get to rent to a captive audience, who must pay whatever UVM asks them to pay (within ‘reason’).

UVM owns or leases 5700 beds (it is unclear how many bedrooms that is, if it includes privately-owned Redstone housing, but even if we assume the university averages 2 students per bedroom, that’s still 2,850 bedrooms), while Champlain College owns around 1800-1900 beds. To compare, Champlain Housing Trust, the next largest landlord, owns only about half that number, at nearly 1300 bedrooms, while Bissonnette, the largest private landlord by number of beds (until Farrell’s Burlington College mega-project is built), owns nearly 550 beds.

If you attend UVM or Champlain, you are required (with exceptions) to live on campus and are required to pay on-campus housing costs. When one considers the cost of living on campus, and how students are really only in the dorms for 7 months out of the year, it’s clear that on-campus housing is highway robbery, and anything off campus is a comparative steal.

Obscenely inflated housing costs affect more than just on-campus students – it affects the rest of the housing market for other renters as well. As students move off campus, or atleast out of student dorms, they no longer have to pay anywhere from $750 a month to share a quad with 3 other adults, $1,000 to share a double, and up to $1400 a month for a single room with a private bath and shared common area facilities. Even campus-sponsored private-housing is expensive – Redstone Lofts are $950 per month per bedroom, Redstone Apartments are a bit cheaper starting at $700 per month per bedroom, while Eagles Landing will run from $925 per month per bedroom up to $1300 per month for a studio.

It’s even crazier when you consider that universities and student housing, including Eagles Landing (194 Saint Paul Street) don’t abide by inclusionary zoning requirements. One would hope that the inclusionary zoning working group would work on this issue – with one meeting left, they have not yet.

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.