Gentrification and Displacement
What are gentrification and displacement?
How do gentrification and displacement relate to Metro?
Metro has a strong interest in ensuring that the people who ride public transportation can afford to live near it. Residents who live within a half mile of a transit station and earn less than $25,000 each year are three times more likely to take transit than those who earn more than $75,000 each year and live close by. Research shows that 73 percent of Metro riders make less than $25,000 annually. In order for Metro to serve the majority of its riders, it must support low-income communities to directly benefit from transit investments and corresponding community revitalization.
What is Metro doing to support, protect and stabilize communities?
- Increase transportation ridership and choice
- Stabilize and enhance communities surrounding transit
- Engage organizations, jurisdictions and the public
- Distribute transit benefits to all
- Capture value created by transit
- Define and measure
- Listen and learn
- Focus and deliver
- Train and grow
- The Joint Development Policy sets a goal that 35 percent of housing built on Metro-owned property will be affordable to households making 60 percent of the Area Median Income or less. Currently, 36 percent of all units built on Metro-owned land are required to be rated as affordable units. For projects in the pipeline, 46 percent of units are proposed to meet these requirements.
- The MATCH (Metro Affordable Transit Connected Housing) program leverages $9 million in Metro funds with about $50 – $60 million in additional funds from foundations and lenders for the protection and production of affordable housing in low-income communities near high-quality transit nodes. Of the loan, 75 percent will support protection of naturally occurring affordable housing and 25 percent will support new affordable housing.
- Metro’s Business Interruption Fund grants up to $50,000 to small businesses impacted by the Purple Line Extension construction, Regional Connector construction in Little Tokyo and along the Crenshaw/LAX Transit Project. To date, Metro has awarded more than 840 grants with a total grant value of $20 million.
- Metro’s TOC Small Business Loan Fund has invested $1 million in a loan fund targeting small and local businesses. The focus is to help establish these businesses in vacant commercial spaces near transit.