Tag crime

The weird D.C. housing grift that’s sending a former FBI agent to jail

WASHINGTON – David Paitsel, 42, a former FBI agent, and Brian Bailey, 53, a D.C. real estate developer were sentenced today on bribery and conspiracy charges for their role in schemes involving confidential information held by the D.C. Department of Housing and Community Development United States Attorney’s office There are plenty of housing laws you can break. But these grifters were busted only for bribing a city official for information. Otherwise, they used the housing law – the most innocent-sounding of all housing laws – correctly. Washington DC has a strong Tenant Opportunity to Purchase Act (TOPA). When a landlord sells, tenants have the right to match any offer, conceivably buying their own building. That never happens. But TOPA also allows tenants to sell their rights to literally anyone else. The law treats the new owner of the TOPA rights with the same exaggerated deference as a tenant. The TOPA grift goes like this: A TOPA shark, like Paitsel and Bailey, approaches tenants whose building is on the market. The “approach”, as I’ve witnessed it, can be a hand-scrawled note placed in the tenants doors or mailboxes. The tenants rarely know the mechanics of buying a house, let alone utilizing an obscure city-specific TOPA scheme that would have to involve collective action among many tenants. So the sharks offer the tenants a few hundred dollars for their rights. If the offer is accepted, the shark informs the landlord. Now suppose a prospective buyer comes along and offers $1,200,000 for a D.C. sixplex. The landlord must inform the shark, who now has the right to match any bona fide offer on the property. But the shark has no interest in buying – he just demands ten or twenty thousand dollars to surrender the rights. If the landlord resists extortion, the shark […]

The absence of gentrification causes displacement

Some progressives believe that gentrification causes displacement of poor people, that new market-rate housing causes such gentrification, and thus that new housing must be kept out of low-income neighborhoods. The first of these claims is based on the assumption that absent gentrification, low-income neighborhoods would be stable places.   But this is not the case.  Often, a city’s poorest neighborhoods are those losing population most rapidly. In St. Louis, for example, the city’s low-income, crime-ridden northside wards are rapidly losing people: the city’s 3rd Ward lost 28 percent of its population between 2000 and 2010 alone, and other northside neighborhoods also lost over 10 (and in a few cases, over 20) percent of their population in the 2000s.   The city’s racially integrated, somewhat poor Near South Side also lost over 10 percent of its population in the 2000s.   By contrast, the city’s gentrifying downtown and midtown actually gained population, while the white working/middle class Far South Side were somewhere in between. Similarly, in Atlanta, the affluent northside and racially integrated downtown and midtown gained population in the 2000s, while much of the city’s all-black south side and far northwest side are losing population.  These declining neighborhoods tend to be poor: for example, zip code 30315 (Lakewood Heights on the southside) has a 38 percent poverty rate and lost 16 percent of its population in the 2000s.   Zip code 30314 (Vine City and other northwest neighborhoods) has a poverty rate of 34 percent, and lost about 18 percent of its population. And in Chicago, the toughest neighborhoods also export people. The city’s downtown gained over 40,000 people since 2010, while the city’s traditionally impoverished Far South Side lost nearly 50,000.  In fact, nearly every major part of the city outside the Far South Side either gained population or lost no more than […]

“Cockamamie” Neighborhood Zones

Thanks to loyal reader, DBM for the tip on the photo link. David Weigel – Highway to the Neighborhood Zones refers to DCist – Police to Seal Off D.C. Neighborhoods The Examiner has the scoop on a controversial new program announced today that would create so-called “Neighborhood Safety Zones” which would serve to partially seal off certain parts of the city. D.C. Police would set-up checkpoints in targeted areas, demand to see ID and refuse admittance to people who don’t live there, work there or have a “legitimate reason” to be there. Shelley Broderick, president of the D.C.-area American Civil Liberties Union and the dean of the University of the District of Columbia’s law school, said the plan was “cockamamie.” “I think they tried this in Russia and it failed,” she said. Good luck opening a business and bringing jobs to those areas if customers have to pass through a checkpoint every time they enter the zone. I can’t see things getting any better in these neighborhood zones. Almost sounds like an exclusive luxury community. If they want their neighborhood sealed off, they could buy the streets from the district, build a wall, and hire their own private security. But, I assume it’s not a luxury community and they can’t afford their security.