Nurture ideal of the diverse neighborhood

Tax abatements and the rising chic of urban living this decade have fueled an influx of high-income homebuyers in Center City and nearby neighborhoods.

On some long-scuffling blocks, the trend has brought vitality, rising property values - and deep anxiety.    Longtime residents worry that the newcomers will bring rising prices, tax hikes - and displacement. People in working-class areas farther from Center City also fear what they think is coming: a double whammy of tax hikes and an invasion by displaced strangers.

Those fears aren't always accurate, but they are genuine. In a city where property values haven't risen like this in a long time, many people have no experience with the benefits of such a trend. So they focus on possible downsides.

Two dark clouds deepen the anxiety: The national subprime lending meltdown heightens fears about a wave of mortgage foreclosures; and talk of a citywide tax reassessment has many people panicking about whopping tax hikes.

These trends present challenges for elected leaders. They'll feel populist pressure to scrap the successful tax abatements and to put off the reassessment. They must make the case that influx and immigration are mostly beneficial, while addressing the problems that do arise. They'll need to invest in affordable housing, particularly decent rentals for families.

It'll take unaccustomed leadership. But the payoff could be grand: a city of diverse, mixed-income neighborhoods that work for both natives and newcomers.

WHY IT MATTERS: Rising housing prices in some areas put pressure on working-class residents to move, but the areas to which they might move lack good, affordable housing, particularly rentals. This syndrome harms both neighborhoods. Nurturing mixed-income neighborhoods is a worthy goal because such areas are more stable, equitable, democratic and interesting.

WHAT TO DO: Feed the Housing Trust Fund by earmarking a stable stream of city revenues. Use it to subsidize the inclusion of affordable units in market-rate housing and the creation of affordable family rental housing. Stay the course I

Keep the useful tax abatement for new construction and renovation. But promote and enable much greater use of it citywide, particularly in neighborhoods in flux. Reduce the abatement to 90 percent, and earmark the gained revenue for the Housing Trust Fund.

Welcome sign

Set up a City Hall office to serve immigrants and encourage immigration, while helping deal with the transition issues that arise in neighborhoods from influxes of newcomers from other lands. A strong immigration rate has been the key to neighborhood turnarounds and population growth in many American cities.

Credit where due

Work with banks and nonprofits to blitz city residents with solid information on avoiding predatory loans and foreclosure. In a similar vein, educate more city residents on how to benefit safely from rising home equity. Work with financial institutions to maintain pools of

capital.

The U. and you

Support and promote universities' efforts to offer mortgage assistance to workers who buy homes near campus. Colleges have workforces diverse in income and background, so this promotes stable, mixed-income neighborhoods.

Stay the course II

Proceed with citywide reassessment for property taxes, using full market valuation. The current system is scattershot, confusing and unfair. It forces homeowners in struggling neighborhoods to subsidize the tax bills of the affluent. Install buffers to cushion homeowners in areas of rising values against whopping year-to-year increases.

In the right zone I

Weave "inclusionary zoning" ideas into the new zoning code. These provide incentives to developers to include units priced to be affordable to moderate-income buyers.

In the right zone II

Encourage "transit-oriented development" in the new zoning code. These are mixed-use projects built close to transit stations.

In land we trust

Support formation of such trusts, which build affordable housing and keep it affordable by retaining ownership of the land and putting limits on resale prices.

Council of neighborhoods:

Convene, with foundation help, a citywide coalition of civic group leaders. This would serve as a vehicle for these leaders to exchange tips, expertise, concerns and warnings. A particular focus would be for established groups from well-off neighborhoods to share resources with groups in challenged neighborhoods.

Fair competition

: Set up a fair, transparent system for civic groups to compete for federal, state and city grants and aid for community improvement. Don't let politicians groove grants to favored groups without real competition. Have city staff help neighborhoods with limited resources or expertise write applications.