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Part I discussed nine factors and tools that helped minimize displacement of low and moderate income African American residents in the neighborhood served by Shaw Main Streets in Washington, D.C.
New Arrivals Have Made Shaw More Diverse
There has not been the type of widespread displacement of low and moderate income people of color during Shaw’s revitalization that has been seen in other neighborhoods and cities. Significant efforts on the part of elected officials, nonprofits, and others, and nine factors and tools—empty lots for new projects, affordability requirements on public land, planned unit developments, tenant protection laws, property tax caps, housing vouchers, historic district designation, and the commitment of nonprofit and faith-based property owners to stay in the neighborhood—made this possible.
There has, however, been a decrease in the percentage of the neighborhood’s overall African American population. In 1990, parts of the neighborhood had over 65% African American residents. These same areas dropped to just over 51% in the 2010 census, paralleling the city’s overall change in demographics. This has primarily been due to an increase in total population resulting from an influx of residents moving into new apartment buildings and condominiums, and new owners of single family homes sold by longtime African American owners who took advantage of once-in-a-lifetime wealth creation opportunities; homes originally purchased for less than $25,000 were sold unrenovated for $500,000. At the same time, residents of rooming houses were displaced when the houses they lived in were sold for conversion into single family homes or multi-family condos.
Preventing Commercial Gentrification
Gentrification doesn’t only affect housing. Business owners in commercial districts in the midst of transformation often struggle to stay in place as rents increase dramatically. Property owners all too often decide to charge more for rent than the current tenants have been paying, or can afford.
If at all possible, business owners should buy a building—either one they already occupy or one they can move into—before revitalization begins. Building ownership allows business owners to control one of their biggest costs—rent. Further, should a business not prove sustainable in the long run, its owners have a major asset that they can lease to another business, or sell. In Shaw, several longtime business owners ultimately sold their real estate to a major developer for a large profit; one family received $15 million for their properties.
Wanda Henderson’s Story
There can be opportunities to mitigate the impact of substantial rent increases on existing businesses when buildings are constructed on public land, or as part of planned unit developments, with below market rents. Below market rents are just that—rent that is offered at a price below the going market rate in the area.
Wanda Henderson, owner of Wanda’s on 7th, was able to return after construction to an upgraded retail space instead of being displaced by new development; Wanda’s on 7th under construction. Photos by Alexander M. Padro, Courtesy Shaw Main Streets
In 2003, Wanda’s Hair Studio, owned by Wanda Henderson, was displaced from retail space just outside Shaw Main Streets’ service area. At that time, Henderson chose to move the salon into a storefront in Shaw at 1851 7th Street, NW, because of its proximity to Howard University campus’ 10,000 students and faculty, as well as to the Metro subway station entrance also located on the block. In 2010, Henderson’s landlord advised her that he was planning to sell his building to a developer to incorporate into a large mixed use project. Henderson, who is African American, explored the opportunity of purchasing the building using a Small Business Administration (SBA) 504 loan, which provides financing at below market rates, but ultimately decided not to move forward. However, since part of the proposed development was to be built on land owned by the District of Columbia, a provision for the inclusion of below market rate retail space for neighborhood businesses was included in the deal awarding the developer the rights to the property.
With legal and technical assistance, Henderson was able to become the only business on the block prior to construction of the new project to return once it was completed. The developer agreed to provide financial assistance for Henderson to temporarily relocate her business to a space nearby during construction, including building out and furnishing the temporary space. They also provided tenant improvement credit that assisted with the cost of building out her space in the new development. Henderson’s business also qualified for a small business capital improvement grant from the District of Columbia, providing an additional $85,000 for her build-out costs, and a $5,000 marketing grant from Shaw Main Streets to help leverage the city funding. What’s more, Henderson received below market rate rent for the first five years of her new lease for the salon.
Renamed Wanda’s on 7th, Henderson’s salon and barber shop opened in 2014 in a larger, more efficient space. The salon now offers a wider array of services for the expanded customer base that has resulted from new offices and new residences in the neighborhood where Henderson has lived and worked all her 59 years. And Henderson and her business were featured in a citywide transit advertising campaign highlighting Shaw businesses.
Wanda’s on 7th’s new space, on the site of the previous salon. Photo by Alexander M. Padro, Courtesy Shaw Main Streets Washington, D. C. Mayor Vincent C. Gray cut the ribbon for Wanda Henderson’s new salon in June 2014. Photo by Pleasant P. Mann, Courtesy Shaw Main Streets
This Can Be Repeated Elsewhere
Not all of the factors that allowed Shaw Main Streets to spearhead the commercial revitalization and historic preservation efforts resulting in the neighborhood’s remarkable renaissance without the displacement that often accompanies gentrification are present in other urban environments poised for transition. But some of the same tools used in Shaw can be applied elsewhere to reduce the adverse impact of revitalization on economically vulnerable populations. Just like a diversity of businesses helps create a more vibrant business district, economic, ethnic, and cultural diversity are important assets that help to create a healthy and vibrant community. This diversity can be maintained when Main Street organizations make a commitment to preserving their diverse populations as they transform underperforming historic business corridors.
Urban Impact Inc., harnesses strategic investments and collaborative efforts to foster a vibrant and sustainable future, from visionary adaptive reuse ventures to transformative development grants for small businesses and property owners in Birmingham, Alabama's historic 4th Avenue Black Business District.
The Environmental Protection Agency (EPA) announced $20B in federal Greenhouse Gas Reduction Fund (GGRF) awards distributed to eight national non-profit consortiums. Main Street America looks forward to partnership and engagement with awardees and local programs to identify projects and expand impact throughout our network.
Tasha Sams, Manager of Education Programs, shares highlights of phase one of the Equitable Entrepreneurial Ecosystems (E3) in Rural Main Streets Program and the biggest takeaways from the workshop experiences.
In this video, learn more about the Williams’ family story, how the business is helping to revive downtown Helena, and the impact they’re having on a national level.
In this episode of Main Street Business Insights, Matt sits down with Derrick Braziel, owner of Pata Roja Taqueria and co-founder of MORTAR, in Cincinnati, Ohio.
Every year, H2BE holds their Juneteenth Mobility Stroll and Roll in Dearborn, MI, which celebrates Black Americans and improves local connections. Learn more about the event and why Juneteenth is important to this community.
Do you want to support the next generation of Main Street leadership! Start a youth board! Learn how Historic Downtown Clinton set theirs up and how your organization can benefit from one.
The Main Street Movement is a proud ally of the LGBTQ+ community. We spoke to Main Street leaders about how they support the LGBTQ+ community during Pride and beyond.
On May 9, the National Trust for Historic Preservation released its list of America’s 11 Most Endangered Historic Places for 2023 which included a cultural district located within a designated Main Street America community.
The annual Cinco de Mayo Parade and Fiesta in the Mexicantown Main Street district offers a great example of collaborative partnerships that honor the community’s cultural heritage and support local businesses through events.
Meet Kavi, the first Indian American Girl of the Year doll and a (fictional) resident of 2023 Great American Main Street Award winner Metuchen, New Jersey!
Community Development Block Grants are powerful tools for Main Street programs. Learn more about how CDBG's can be applied to our work and how you can advocate for the program
Main Street America was awarded $5.9 million to support 20 communities in the Main Streets Community of Practice through the Department of Transportation's Thriving Communities Program over the next two years.
We spoke to three women who were awarded Inclusive Backing grants to learn more about their passions, their businesses, and their advice for other women.
Anette Landeros, President and CEO of Fort Worth Hispanic Chamber of Commerce, shares the importance of supporting Hispanic business owners and communities.
#EquityRising, Old Algiers Main Street Corporation's new job training program, seeks to combat rising cost of living by helping residents train for careers that will allow them to stay in their neighborhood.
We spoke to three Black business owners who were awarded Backing Small Businesses grants from Main Street America and American Express to better understand their challenges, successes, and the kinds of support that have helped them the most.
Stockbridge Main Street has made significant strides in exploring and sharing the story of Martin Luther King, father of civil rights hero Martin Luther King Jr.
Juneteenth is the anniversary of the final emancipation of enslaved people in the US. Here are five examples of examples of community celebrations from Main Streets across the network.
Oklahoma is home to the headquarters of nearly 40 federally recognized Native American tribes, and many of their offices, cultural sites, and museums are located close to or within Main Street districts.
Kendall Whittier is one of the most diverse neighborhoods in an ever-diversifying Tulsa. Learn how they are making efforts to engage their large Hispanic community.
We spoke with two Black entrepreneurs in UrbanMain commercial districts: L. May Creations in the Austin neighborhood of Chicago and The Four Way in south Memphis, Tennessee.
Main Street America is committed to helping build inclusive communities. Homelessness is an increasingly important issue facing Main Street communities big and small, urban and rural.
To understand the role that immigrant business owners play in Boston’s small business ecosystem, you need only to walk through any Boston Main Streets district.