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02/01/13 - NACLA (blog) - Gentrification in Cuba? The Contradictions of Old Havana

Emily Achtenberg [1]
Rebel Currents

Strolling down the narrow boutique-lined streets on a recent Saturday
afternoon, admiring the stunningly refurbished colonial facades and
elbowing streams of tourists, we could have been in Soho or any other
upscale urban shopping district--but for the colorful laundry hanging from
upper-story balconies and the kids of all skin tones racing through the
central plaza.

[2]1524Old Havana shops, housing. Credit: Ben Achtenberg.This is Old
Havana, where a 20-year old experiment in urban planning and historic
preservation has essentially revitalized a decaying historic center
without displacing its poor and working class population. Now, the
question is whether Cuba's recent market-based housing and economic
reforms could significantly alter the character of dynamic neighborhoods
like this one, creating new gentrification pressures that reinforce
persistent class- and race-based inequalities in Cuban society.

The restoration of [3]Old Havana-a .826 square mile district containing
some 3,370 buildings and 66,750 residents, which was declared a UNESCO
World Heritage site in 1982-has been carried out under a unique model of
self-financing and sustainability that has achieved worldwide recognition.
Since 1993, the Office of the Historian of the City of Havana (OCH) has
had [4]broad authority over all planning, land use, development, and
investment activities within the historic district, including the ability
to develop and operate stores and hotels, tax businesses, carry out
construction projects, and use its earnings to finance housing
renovations, community facilities, and social services for local
residents.

This novel approach is linked to a new focus on tourism that began in the
1990s, when the collapse of the Soviet Union wreaked havoc on Cuba's
economy. It also marked a recognition that the Revolution's rural
priorities, which had diverted resources away from Havana for decades,
were exacerbating the destruction of the city's architectural heritage.
(The process of neglect and deterioration had begun much earlier, leading
to a proposed U.S.-style urban renewal plan by the Batista dictatorship
that would have demolished much of Old Havana, and was promptly squelched
by the new Revolutionary government.)

The OHC, despite its autonomy, has a high status within the Cuban
government. It is linked directly to the Council of State (Cuba's top
governing body), and is not subordinate to any ministry.[5]1525Housing,
shops, residents, tourists. Credit: Ben Achtenberg

The OHC's track record to date is impressive.  Starting with the
reconstruction of Old Havana's four public plazas, it has now restored 40%
of the district's deteriorated buildings, typically with commercial space
on the ground floor and housing above. The OHC operates more than [6]300
facilities, including 18 hotels, a tourism agency, restaurants, galleries,
museums, and a radio station. It also runs a construction company that
restores historic structures.

Over the past 15 years, OHC has generated more than [7]$400 million in net
revenues from its operations, as well as taxes and rents paid by private
businesses under its jurisdiction. Its current annual profits exceed $40
million. Of this total, around 45% is reinvested in tourist-oriented
businesses, 20% is returned to the central government, and 35% is used for
housing renovations, community facilities, and social programs.

OHC's social programs include a center for children with special needs, a
home for women with high-risk pregnancies, assisted living facilities for
the elderly, and educational programs for schoolchildren provided by the
museums that it operates. OHC also runs a [8]school, funded in part by the
Spanish government, to train skilled craftspeople in rehab trades. It has
created more than [9]13,500 jobs, 42% of which are held by women and 20%
by youth under age 25.

For the most part, the revitalization of Old Havana has occurred without
involuntary displacement, although not all original residents are able to
return, and the process has not been free of difficulties. Because many of
the units undergoing renovation are severely overcrowded--especially
tenements which have been illegally divided into single room units with
shared facilities--not everyone can be accommodated.

[10]1526Benetton & Papa Jeans; housing above. Credit: Ben AchtenbergSome
households have accepted [11]relocation to outlying districts, where they
have become owners of new apartments that are spacious and well-equipped,
but not easily accessible to Havana. Some elderly residents have moved to
rent-free assisted living facilities in the neighborhood. Others have
waited years to return, living in nearby temporary housing.

On the issue of who gets to return, there are alternative narratives.
According to one architect/ planner we spoke with, OHC multidisciplinary
teams work closely with residents to assess their needs and options, but
leave the final decisions about who stays and who goes to the residents
themselves. Others referred to an official priority system that favors
legal occupants (excluding squatters, or illegal migrants to Havana),
long-term residents, and those who "contribute to the tourist economy."

Like other tourist-oriented ventures, the OHC's initiatives have been
criticized for furthering social and economic inequality in Cuban society.
Clearly most Cubans can't afford to shop in Old Havana's upscale
boutiques.  Still, as historian [12]Félix Alfonso has noted, "What makes
this restoration unique is that it's not an example of gentrification,
where the rich buy and restore buildings while the poor are moved out. Our
historical center is remaining a place where (ordinary) people live and
work."

Could recent (2011) changes in Cuba's housing laws that legalize the free
market sale of housing unleash speculative pressures that work to
undermine this vision? The [13]new housing law is part of a broader
package of reforms (including a significant expansion of self-employment)
that are designed to revitalize Cuba's socialist economy and absorb steep
layoffs in the government workforce. It is widely viewed within Cuba as a
way of rationalizing the existing housing exchange system-currently
restricted to "house swaps" of equivalent value-that makes it difficult
for people to move and encourages evasion and corruption.

With the legalization of sales, it's at least theoretically possible that
some owners of unrenovated units in Old Havana (still a significant
majority of the housing stock) will be able to reap the benefit of the
government's investment in the neighborhood by selling at elevated prices.
Potential buyers include other Cubans with access to cash-from relatives
abroad, lucrative self-employment in the tourist industry, or other
sources both legitimate and illegitimate.

Reportedly, increasing numbers of [14]Cubans living abroad are seeking to
purchase homes for themselves (through straw buyers, since legal sales are
restricted to permanent residents of Cuba). Speculators may also be
attracted to this market, although legal ownership is limited to one
primary residence and a vacation home.[15]1529Apartment for sale. Credit:
Ben Achtenberg

Still, the substantial cost of renovations required for most units in Old
Havana is likely to constrain both demand and prices, as is the lack of
traditional mortgage financing. While the government has expanded access
to credit for building repairs, real estate-other than vacation
homes-can't be used as collateral. Given the historical importance in
revolutionary Cuba of protecting tenants against eviction-which could
result from mortgage foreclosure-this prohibition is unlikely to change
any time soon.

As for the OHC-renovated units, it's currently unclear whether they can be
sold by their occupants at unrestricted market prices. While knowledgeable
OHC architects and planners told us that at least some categories of
residents have ownership and resale rights (or will acquire them in the
future), [16]official OHC publications suggest that these residents will
remain as renters in perpetuity. Logically, these renovated units should
provide a bastion against gentrification, although the evolution of
residents' tenure and resale rights bears watching.

A review of current real estate listings on [17]Cubisima, Cuba's new
"Craig's List" (for housing and other items and services), shows only 300
units on the market in Old Havana, out of a total of some 12,000 Havana
listings. Other popular neighborhoods farther from downtown, with better
housing stock and amenities, have a much higher proportion of listings and
may be more immediately vulnerable to gentrification pressures.  

It would be paradoxical indeed if the tourism that appears to be saving
Old Havana were ultimately responsible for destroying it. Still, a more
immediate threat may be posed by the continuing deterioration of the
district's remaining unrenovated housing stock, with partial or total
building collapses still occurring on a regular basis. For the OHC, saving
Old Havana from destruction by either gentrification or deterioration may
be simply a race against time. 

References

Visible links
1. Send by email
        https://nacla.org/printmail/8760
3. http://www.planmaestro.ohc.cu/recursos/papel/libros/pedi.pdf
4. http://www.lexingtoninstitute.org/rescuing-old-havana
6. http://articles.washingtonpost.com/2012-05-20/lifestyle/35455907_1_historic-preservation-plaza-vieja-havana
7. http://www.planmaestro.ohc.cu/recursos/papel/libros/pedi.pdf
8. http://www.cubatreks.com/itineraries/456escuela_taller.php
9. http://www.planmaestro.ohc.cu/recursos/papel/libros/pedi.pdf
11. http://www.lexingtoninstitute.org/rescuing-old-havana
12. http://www.cubagreenscreen.com/forum/showthread.php?tid=20
13. http://urbanhabitat.org/node/6930
14. http://urbanhabitat.org/node/6930
16. http://www.planmaestro.ohc.cu/recursos/papel/libros/pedi.pdf
17. http://www.cubisima.com/casas/anuncios/la-habana/%20


Original Source / Fuente Original:
http://nacla.org/blog/2013/1/31/gentrification-cuba-contradictions-old-havana