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2002, ISSUE 2

HOUSTON’S FOURTH WARD
Old Neighborhood, New Life

Future Site
Federal Reserve Bank

T

he Federal Reserve Bank of Dallas recently dedi-

that offered opportunity to its residents to an area of boarded-

cated the land for a new Houston Branch building, scheduled

up houses, few local businesses and deteriorating infrastruc-

to be completed in 2005. The Bank is proud that the Branch

ture. Over the past four decades, numerous revitalization

will be in the city’s historic Fourth Ward, which has played an

efforts have failed, engendering disappointment and frustration

important role in the civic and cultural lives of black Houstoni-

among those remaining in the neighborhood. Only recently,

ans since newly freed slaves settled there in 1865.

through a strong partnership of area churches, bankers, local

This special issue of Perspectives looks at the Fourth

organizations and the city, have things begun to change. Today,

Ward’s rich history and efforts to develop affordable housing

as you will see, new homes are being built and old, historic

and revitalize the neighborhood. The Fourth Ward, like many

homes renovated.

historic black neighborhoods, went from a thriving community

Amid this revitalization, the Houston Branch of the Dallas
Fed plans to be a good neighbor. Since the Branch opened in
1919, its work has increased as Houston has grown to
become the nation’s fourth-largest city. Today, the Branch
processes currency, checks and other payments for financial
institutions, and bank examiners monitor the financial soundness and management of state member banks and bank holding companies. The Branch also does economic research that
is used in formulating U.S. monetary policy.
In addition to contributing to these traditional Federal
Reserve functions, an important part of the Branch’s mission
is to educate the community on the economy and how it functions and emphasize the importance of financial literacy,
affordable housing and consumer education. We look forward
to being an active member of the Fourth Ward community and
providing information on these important topics to our neighbors.

Local organizations, churches,
banks and the city are proving
that community development
can work under even the
most difficult circumstances.
2

PERSPECTIVES

| Federal Reserve Bank of Dallas

Robert D. McTeer, Jr.
President, Federal Reserve Bank of Dallas

tions, salient achievements given that
blacks were seldom allowed to govern
their own institutions at the time.
By 1900, the Fourth Ward was center
stage in Houston’s black professional life. It
was home to 80 percent of the city’s black
professional institutions and almost a
third of its black-owned businesses. A
decade later, a group of black doctors—
barred from white hospitals — founded
Union Hospital, and by 1915, all but one of
Houston’s black doctors and dentists had
offices in the community.
The Fourth Ward was also the comCarnegie Library opening, 1913

mercial and cultural hub for black Houston. The black-owned Pilgrim Building,

For almost 140 years — through good

black life in Houston in the late 19th and

built in the late 1920s, housed offices,

times and bad—the Fourth Ward has had

early 20th centuries and left a legacy for

restaurants, beauty shops, nightclubs, a

special meaning for Houston blacks. The

future generations.

ballroom, a roller rink, and law, medical

ward’s rich history continues to play an

Then, as now, churches were power-

and dental practices. In the ward’s heyday,

important role today, as the city and com-

ful forces in the community and helped

restaurants and nightclubs on West Dallas

munity organizations work to revitalize the

shape its other major institutions. Even

drew crowds of blacks and whites,

area and develop affordable housing.

before emancipation, a private school for

prompting some to retrospectively dub it

blacks operated out of Trinity Methodist

Houston’s Harlem.

Episcopal Church. Gregory Institute, the

The Fourth Ward began to lose promi-

When news of emancipation reached

city’s first black public school, grew out

nence in the 1920s, when the Third Ward

Texas in 1865, several thousand blacks—

of Freedmen’s Bureaus at the churches.

began to attract more of Houston’s black

many from plantations along the Brazos

Antioch Baptist Church and its pioneer-

institutions. Forty years later, integration

River—made their way up the San Felipe

ing pastor, Jack Yates, started Houston

further eroded the community, as many

road to Houston. Once there, many of

College to provide young blacks with

residents moved to parts of the city previ-

them joined native blacks in leasing or

the opportunity to pursue vocational and

ously off-limits to blacks. Perhaps more

buying farmland on the city’s western

ministerial studies.

significant was the encroachment of pub-

The Fourth Ward’s Legacy

edge and forming Freedmen’s Town.

The churches were also on the fore-

This area south of Buffalo Bayou —

front of civic matters, helping organize the

part of the city’s Fourth Ward — was not

Harris County Republican Club, an inte-

Houston’s only black settlement, but it

grated organization in which blacks held

was the largest. By 1870, the ward was

several important offices, and establishing

home to more blacks than any other area

Houston’s first park for blacks.

in Houston, and by 1915, they constituted
a majority.

lic buildings. The construction of City Hall

Juneteenth celebration

Barred from the city’s white libraries,
Fourth Ward residents organized and

But numbers alone were not what

negotiated the construction of the

made the Fourth Ward a touchstone for

Carnegie Library for blacks. They secured

blacks. Its wealth of religious, educational

the city’s permission for an all-black board

and cultural institutions came to define

and autonomy over the library’s collec-

Federal Reserve Bank of Dallas |

PERSPECTIVES

3

in the 1930s displaced many people, and

Data from the 2000 census
put the number of households in
the Fourth Ward at 590, down
from 794 a decade earlier.

a decade later, San Felipe Courts, an allwhite public housing complex, displaced
many more. In 1945, the new Interstate 45
split the ward nearly in half, undermining
the community’s cohesiveness.
By 1980, Fourth Ward’s population—
nearly 17,000 in 1910—had fallen to 4,400,
almost half of whom lived below the
poverty line. And home ownership, which
had reached 12 percent in 1900—less than
40 years after emancipation—had sunk to
5 percent.
The community continued to lose
ground over the next 20 years. Data from the
2000 census put the population at 1,740,
down from 2,371 a decade earlier, and the
number of households at 590, down from
794. More than 40 percent of Fourth Ward
households had incomes under $15,000
in 1997, the most recent data available.
The neighborhood’s racial composition
changed markedly, with the number of
black residents falling from 60 percent in
1990 to 37 percent in 2000 and Hispanics
rising from 34 percent to 54 percent.
Today, the city and community organizations are working to bring new life to
this once-vibrant urban community.

Public Housing Yesterday
Nothing has been easy about revitalizing the Fourth Ward. Political wrangling,
market realities, the economic downturn
of the 1980s and decades of neglect have
presented numerous hurdles. Much of the
controversy, and most of the court battles,
revolved around San Felipe Courts—later
renamed Allen Parkway Village—a sprawling public housing complex.
Built in the 1940s for defense workers
and the families of servicemen at war, the
1,000-unit Allen Parkway consisted of twoand three-story flat-roofed brick apart-

4

PERSPECTIVES

| Federal Reserve Bank of Dallas

Since the late 1990s,
the city has transformed the Fourth
Ward’s once-bleak
public housing, building 322 new units
and renovating
another 278.
ments that were restricted to whites until

1993, City Council voted to demolish all

The first residents began moving into

1968. In the late 1970s, city officials began

but 150 units. Finally, in 1996 — after

what’s now called Historic Oaks of Allen

talking about leveling the aging and deteri-

decades of court battles and compro-

Parkway Village in late 1999. The 642- to

orating complex and selling the prime real

mises—the last residents left the project.

2,061-square-foot apartments have one to

estate to pay for more and better public
housing elsewhere. A 1980 study triggered

five bedrooms. A third of the units are

Public Housing Today

reserved for households with incomes of

community protest when it recommended

Since the late 1990s, the city has trans-

up to 30 percent of the area median, a

that the city sell the land and that the

formed the Fourth Ward’s once-bleak pub-

third for those with up to 60 percent and a

Fourth Ward be developed for middle- and

lic housing, building 322 new units and

third for those up to 80 percent. This broad

upper-income housing. The fate of the 37-

renovating another 278. The apartments

range of incomes enables the site to be

acre site remained up in the air through-

offer the kinds of amenities found in mar-

self-sustaining.

out the ’80s and well into the ’90s, as HUD,

ket-rate properties, such as ceiling fans,

About three blocks away, in the heart

Congress and City Hall considered numer-

microwaves and washer/dryer connec-

of the Fourth Ward, is Victory Apartments.

ous proposals for its future. Meanwhile,

tions. Some of the new units enjoy spec-

The 100-unit, $9 million complex was

the property continued to go downhill.

tacular views of downtown.

completed in 2000 for families who earn

Churches and community organiza-

The Housing Authority of the City

up to 60 percent of median area income.

tions expressed relief in 1988 when Allen

of Houston (HACH) tapped federal pro-

Apartments range from 692 to 1,314 square

Parkway was listed odogn the National

grams to fund the work, including HOPE

feet, with one to three bedrooms. The

Register of Historic Places. Texas preserva-

VI and low-income housing tax credits.

gated community features front porches

tionists subsequently worked with the

The tax credits were syndicated through

and decorative accents that echo the resi-

Advisory Council on Historic Preservation

the National Equity Fund, which has

dential architecture once characteristic of

to monitor federal spending on the site.

many bank investors. Residents, whose

the neighborhood.

But the Texas Historical Commission

incomes vary from 0 to 80 percent of the

HACH is further preserving the

warned that inclusion on the National

area median, pay 30 percent of their gross

Fourth Ward’s architectural legacy by

Register was not protection per se, and in

income for rent.

building 25 new row houses and rehab-

Federal Reserve Bank of Dallas |

PERSPECTIVES

5

Faced with the
Fourth Ward’s
continuing erosion,
community leaders
sought a plan to
ensure a viable
neighborhood.

bing 15 existing ones. These single-family

developers bought others for market-rate

homes will be reserved for those with

housing.

household income of up to 50 percent of

Hou-Tex reserved more than 400,000

the area median. The housing authority

square feet for affordable housing devel-

expects to wrap up work on these houses

opment by four faith-based community

in March 2003.

development corporations (CDCs) that
committed to build at least 150 single-

Enter the Nonprofits
When Freedmen’s Town was named to

the lots for $11 per square foot, but

the National Register in 1985, it was

because of the original $3.4 million grant

described as the country’s last intact com-

from the city, HHFC is able to provide a

munity founded by freed slaves. But the

subsidy of $8 per square foot on each lot.

40-block area continued to deteriorate,

Lot sizes have been trimmed from 5,000

resulting in the loss of many houses.

square feet — standard in the Fourth

Faced with the Fourth Ward’s continuing erosion and the threat of being engulfed

lower housing costs.
The city is providing first-time home-

leaders sought a plan to ensure a viable

buyers down payment assistance. To qual-

neighborhood that respected its past and

ify, families must have household income

provided housing for all income levels.

of no more than 80 percent of the area

realizing that goal has not been easy.

PERSPECTIVES

Ward — to 2,500 square feet to further

by high-end development, community

Like much else in the Fourth Ward,

6

family homes. The CDCs are purchasing

median and be able to obtain mortgage
financing.

In the late 1990s, the nonprofit Hous-

Today, four CDCs are building afford-

ton Renaissance Inc. received a $3.4 mil-

able housing in the neighborhood. About

lion grant from the city and a $6.6 million

70 single-family homes have been com-

loan from the city’s Houston Housing

pleted, and close to another 100 are

Finance Corp. (HHFC) to assemble land

currently planned. The two-story, 1,000-

and build affordable housing in the Fourth

to 1,400-square-foot houses sell for

Ward. Houston Renaissance acquired more

$87,000–$92,000.

than 1 million square feet of land but ran

Miracle of Hope. In fall 2000, this

out of money before any houses were built.

affiliate of Second Pleasant Green Mission-

By mid-1999 the city had terminated

ary Baptist Church became the first of the

its contract with Houston Renaissance.

CDCs to break ground under the new rede-

The land and related liabilities were trans-

velopment plan. Partnering with Larus

ferred to Hou-Tex Redevelopment Author-

Builders, the CDC has completed 16 of the

ity, a new nonprofit created by HHFC.

36 houses it plans. The CDC used a $10,000

Since taking over, Hou-Tex has sold the

grant from JP Morgan Chase to acquire an

land for both affordable and market-rate

option on the lots. Miracle of Hope, like the

housing. The housing authority acquired

other three CDCs, received a $50,000 grant

two parcels at below-market cost, one of

from the city for operating costs.

which is the site of Victory Apartments.

Antioch Project Reach. In 1997,

Hou-Tex sold a parcel to the Houston

this offshoot of Antioch Baptist Church

Independent School District, and private

used a $75,000 loan from Compass Bank

| Federal Reserve Bank of Dallas

Today, CDCs and the
housing authority
are building and
restoring homes in
the neighborhood.

to purchase three shotgun-style houses of

The CDC has also converted a decay-

housing stock. Funds from the federal

the type once common in the Fourth

ing, 97-year-old structure that had been

HOPE VI program are being used to sup-

Ward. The CDC used a grant from Hous-

everything from a boarding house and a

port an array of services, many of which

ton Endowment to renovate the struc-

brothel to a crack house into housing for

operate out of Historic Oaks but are avail-

tures, which were subsequently sold to

the elderly. Residents of the eight units at

able to all Fourth Ward residents who

their previous tenants for $25,000 each. In

Rose of Sharon Manor II have private

qualify.

2000, the CDC used part of a $500,000

baths and kitchenettes but share a full-

Houston READ Commission, a non-

grant from Houston Endowment to buy

sized kitchen and common sitting area on

profit literacy coalition, has opened a

land for the 60 homes it plans to build with

each floor. The city funneled about

learning center at Historic Oaks, with

Amenity Plus Homes; seven have been

$500,000 in federal HOME funds to

classes in such areas as adult basic educa-

built so far with interim financing from

finance the work, which received an award

tion, GED preparation, preemployment

Bank One and HHFC.

from the Greater Houston Preservation

and workplace skills, and financial and

Alliance.

computer literacy. The center also offers

Fourth Ward Community Coalition. FWCC grew out of a series of meetings held in the late 1980s by clergy,

an after-school enrichment program and a

Another Player

book club for teens.

community representatives and other

A CDC spin-off of Freedmen’s Town

Those seeking job training and help

interested parties. The CDC has com-

Association has developed affordable

with job searches receive referrals to such

pleted almost half of the 40 affordable

housing in the community in the past and

agencies as Houston Area Urban League,

homes it plans. FWCC is working with

plans to do so again. In 1989–90, the CDC

Texas WorkSource and Gulf Coast Com-

Larus Builders, Vanguard Properties and

restored 18 houses, using HUD funds from

munity Services Association.

North Houston Bank, which is providing

the Neighborhood Development Demon-

Seniors have access to meals, health

interim construction financing.

stration Project. A new affordable home

screenings, arts and crafts, and exercise

Uplift Fourth Ward. This CDC, cre-

went up in 1996, and three others followed

programs. The city expects to begin con-

ated by Rose of Sharon Missionary Baptist

in 2000. Current plans call for 16 more new

struction on a neighborhood resource

Church, has sold 24 of the 30 homes it has

homes.

center and a daycare center at Historic

built in partnership with Majestic Home
Builders. Southwest Bank of Texas works
with potential homebuyers to prequalify
them for mortgages

Oaks in January.

Beyond Bricks and Mortar

From its beginnings as a home for

Of course, revitalizing a neighbor-

freed slaves to its years at the center of

hood requires more than improving its

black civic, cultural and commercial life

Federal Reserve Bank of Dallas |

PERSPECTIVES

7

and its subsequent decline, the Fourth

opment can work under even the most

Ward presents a microcosm of big-city

difficult circumstances. ■

neighborhoods across the United States.

—Jackie Hoyer

Despite years of conflict over the Fourth

Brook Griffin

Ward’s fate, the city and local organizations are proving that community devel-

perspectives

www.dallasfed.org

2002, Issue 2

Federal Reserve Bank of Dallas Gloria Vasquez Brown
Community Affairs Office
Vice President, Public Affairs
P.O. Box 655906
gloria.v.brown@dal.frb.org
Dallas, TX 75265-5906
Nancy C. Vickrey
Assistant Vice President and
Community Affairs Officer
nancy.vickrey@dal.frb.org

Diana Mendoza
Community Affairs Specialist
diana.mendoza@dal.frb.org

Jason Sweat
Community Affairs Specialist
jason.sweat@dal.frb.org

Karen Riley
Community Affairs Specialist
karen.riley@dal.frb.org

Jackie Hoyer
Houston Branch, Senior
Community Affairs Advisor
jackie.hoyer@dal.frb.org

Credits: Page 3 photos
courtesy Houston Metropolitan Research Center, Houston Public Library
Editor: Monica Reeves
Designer and Photographer:
Gene Autry

The views expressed are those of
the authors and should not be
attributed to the Federal Reserve
Bank of Dallas or the Federal
Reserve System. Articles may be
reprinted if the source is credited
and a copy is provided to the
Community Affairs Office.

December 2002

.......................................................
Federal Reserve Bank of Dallas
P.O. Box 655906
Dallas, TX 75265-5906
ADDRESS SERVICE REQUESTED

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