From asset to patrimony: the re-emergence of the housing question

Abstract

The global financial crisis has ushered in a major housing crisis in many European countries. The paper seeks to shed light on why, despite massive housing crises, there are few policy efforts at tackling it. Probing into the policy paradigms that have informed housing policies, the paper demonstrates a shift towards housing as an asset before the crisis. Increasingly, housing policies have become interwoven with financial markets. This has led to a major policy mismatch after the crisis: while the return of the ‘housing question’ would have required renewed efforts at establishing housing as a social right, de facto policy makers sought to stabilise financial markets. The result is a paradoxical outcome, where neoliberal market-driven programmes are embedded in increased dependence on family wealth. The article demonstrates the shift from housing as asset to housing as patrimony in three different varieties of residential regimes, represented by Ireland, Denmark and Hungary.     

Fiscal Austerity and Rental Housing Policy in the United States and United Kingdom, 2010–2016

After the 2008 global financial crisis, both the United States and the United Kingdom introduced austerity policies targeted at particular elements of their national budgets. The purpose of this article is to compare the nature of this retrenchment; the similarities and differences in how it was implemented; and its initial impacts on one of the expenditure areas particularly affected: affordable rental housing programs and housing support for low-income households. Using a wide range of data sources, we find evidence of political and fiscal policy analogies in the timing and forms of the initial policy choices and how these were modified in the face of economic and political pressures. There are considerable similarities both in the instruments used to reduce housing expenditures and in the early impacts on support mechanisms and recipients. However, we find different histories and trajectories of support between the two countries that suggest that the longer term differences in outcomes may be more important.     

The local political economy of the regulatory state: Governing affordable housing in England

Regulatory governance involves the use of heterogeneous mechanisms to extract welfare gains from market-based processes. While often viewed as a depoliticization mechanism, here, we explore a distinctly political manifestation of regulatory governance. Our study focuses on the governance of affordable housing in England, specifically on local authorities' use of ‘Section 106′ (S106) powers to compel private developers to include affordable housing in new developments. We show that, following the financial crisis, the governance of affordable housing shifted from a partisan to a valence issue. As the crisis increased the issue salience of affordable housing, left-wing authorities' hitherto higher tendency to intervene was eroded in the midst of a broad-based increase in S106 deployment. In addition to extending insights into the political economy of regulatory state intervention, our findings shed valuable light on the undersupply of affordable housing in England.     

State of the Field

Although scholars of West European politics have long debated whether the region's highly institutionalised party systems were becoming de‐aligned and electorally unstable, the political fallout from the post‐2008 financial crisis has lent a new sense of urgency to the debate. The threats posed to party systems by economic crises are hardly unique to Europe, however. The Latin American experience with the debt crisis of the 1980s and 1990s suggests that party system upheaval was not simply a function of retrospective economic voting during the period of crisis. It was also attributable to programmatically de‐aligning policy responses to crises – namely the ‘bait‐and‐switch’ imposition of austerity and adjustment measures by labour‐based, left‐leaning parties that were traditional champions of statist and redistributive policies. Such patterns of reform made it difficult for party systems to channel societal resistance to market orthodoxy in the post‐adjustment era, setting the stage for convulsive ‘reactive sequences’ when such resistance arose outside and against mainstream parties through varied forms of social and electoral protest, typically on the left flank. This article explores the political fallout from the European and Latin American economic crises from a comparative perspective, arguing that it is essential to think beyond the short‐term political dynamics of crisis management to consider the longer‐term institutional legacies and fragilities of the different political alignments forged around crisis‐induced policy reforms.     

Philanthropy and the housing crisis: The dilemmas of private charity and public policy

Abstract

American philanthropy has historically sought to address the nation's housing crisis, especially among the poor. This article compares private philanthropy's response to the housing crisis in two important eras of economic transformation: the period between the Civil War and World War I (the Progressive Era), when the United States was undergoing large‐scale urbanization and industrialization, and the period from the 1980s through today, when the United States became integrated in a global economy and confronted the shock of deindustrialization, widening economic disparities, and deepening urban decay.

Following the historical review, the article focuses briefly on the current housing crisis and the dilemmas that private foundations and nonprofit organizations face in trying to develop a coherent strategy to address the problem. It closes with a proposal for a partnership between private foundations and housing organizations that can address the need to change both public opinion and public policy toward housing.     

New York city and subsidized housing: Impacts and lessons of the city's $5 billion capital budget housing plan

Abstract

New York City has devoted far more resources to the development and rehabilitation of affordable housing than any other U.S. city, investing more than $4 billion from 1986 to 1997. This article surveys the impact, status, and implications of New York's housing programs. It looks at correlations between publicly funded housing starts and changes in the housing stock, welfare rolls, and crime and at the economic impact of the city's housing investments within low‐income neighborhoods.

New York's housing programs have transformed neighborhoods, replacing large swaths of abandoned shells and vacant land with new housing and preserving thousands of buildings at risk of abandonment. While these housing investments correlate most strongly with reductions in vacant units and vacant lots, they also show significant correlations with reductions in welfare rolls and violent crime, but uneven economic impacts as well. New York's housing programs are important nationally less for the specifics of particular programs than for the institutional collaborations on which they are founded.     

Beyond the problem projects paradigm: Defining and revitalizing “severely distressed” public housing

Abstract

This article challenges the utility of the concept of “severely distressed” public housing, arguing instead that the program has systemic problems and that the 6 percent of developments recently identified as severely distressed by the National Commission on Severely Distressed Public Housing are merely those furthest along a continuum. Applying the commission's own criteria to nationwide program data that reveal dramatically increased resident impoverishment during the past decade, the article reveals the need for a more inclusive definition of severe distress.

While acknowledging the moral and political imperative to ameliorate conditions in the worst‐off places first, the article cautions against overreliance on a problem projects paradigm that could obstruct calls for systemwide reforms. The article advocates an action‐oriented research agenda, emphasizing data collection on a variety of ill‐understood socioeconomic aspects of public housing conditions and enabling policy analysts to set clearer goals about what sustainable revitalization of public housing should entail.     

Concepts,Crises and Campaigns

SUMMARY

This article enhances understanding of congressional campaigns by exploring how political professionals define campaign crises. Existing academic literature uses binary measures of candidate scandals as a proxy for campaign crises. However, in-depth interviews with senior political consultants and other experienced campaigners demonstrate that political professionals view crises as complex, interactive events. While scandals are one kind of campaign crisis, a variety of other factors account for most crises. After categorizing the different kinds of crises political professionals describe, a typology is developed to analyze the internal, external, expected and/or unexpected dimensions of campaign crises. This article focuses on crises in U.S. House and Senate campaigns, although general lessons apply to campaigns at other levels.     

Local housing plans: Learning from Great Britain

Abstract

As the U.S. Department of Housing and Urban Development refines the new Consolidated Plans, which replace the Comprehensive Housing Affordability Strategies, it should examine Britain's experience with local housing plans. Case studies of four best‐practice cities—Glasgow, Dundee, Birmingham, and York—highlight the value of these plans in assessing the success of cities in their new “enabler” role.

Five key lessons for American cities emerge from this article. First, these plans can serve multiple roles beyond bids to central government. Second, local housing plans should address market‐rate as well as below‐market‐rate housing issues. Third, American housing plans should use a wider range of data sources than census information alone and should incorporate housing market analyses dealing with specific areas and population groups. Fourth, the stress on implementation and strategy in British plans should be emulated. Finally, aspects of Britain's competitive bidding system should be considered for implementation.     

Section 8 Renters in the Phoenix,Arizona, Foreclosure Crisis: Implications for Poverty Deconcentration

How the recent U.S. foreclosure crisis affected federal housing mobility programs has not been well studied. This article explores the crisis’s impact on low-income renters receiving Section 8 vouchers in Phoenix, Arizona. We find that (a) 8% of voucher holders lived in homes that underwent foreclosure, (b) they were in comparably affluent neighborhoods, and (c) most eventually moved after foreclosure. Yet, those who moved after foreclosure were not overtly disadvantaged in the housing market. This unexpected finding may be explained by the opening up of new housing opportunities for voucher holders as foreclosures in more affluent areas were converted to rentals. Overall, this research suggests that the foreclosure crisis did not adversely affect the Section 8 program’s goal of deconcentrating poverty in Phoenix and may have even advanced it—a dynamic potentially occurring in other formerly booming and economically distressed Sunbelt regions.     

You gotta move: advancing the debate on the record of dispersal

This paper summarizes the social science research on the record of housing dispersal programs since 1995. The research shows a consistently disappointing record of benefits to low-income households. Households moved out of high-poverty neighborhoods, voluntarily and involuntarily, show few or no beneficial effects in terms of economic self-sufficiency, health benefits, or social integration. The benefits of dispersal are confined to feelings of greater safety and satisfaction with neighborhood environmental conditions. We offer a framework for understanding the disappointing record of dispersal, highlighting its translation from social science diagnosis to policy, problems in the policy's implementation, its underlying theory of poverty, and the political context within which dispersal has been applied.     

Holes in the safety net,leaks in the roof: Changes in Canadian welfare policy and their implications for social housing programs 1

Abstract

This article surveys recent reforms to Canadian social policy at the national level and welfare programs at the provincial level to determine how social housing policy and programming are being affected. The survey considers Canada's Social Security Review consultation process, which played out over 1994 and 1995. The article outlines various concerns raised over the Canada Health and Social Transfer, a fundamental reform to intergovernmental fiscal and policy relations announced in the 1995 federal budget and elaborated on in the 1996 budget.

The transfer of administrative responsibility for federally funded social housing to provincial and territorial governments is discussed and recent developments in welfare programs across Canada are described, noting housing elements within these programs.     

The formation of housing policy in New York City, 1960–1970

During the 1960s, policy makers at three levels of government attempted to place New York's public housing in middle-income neighborhoods. The high cost of providing public housing, a desire for economically segregated neighborhoods and racial prejudice caused voters to reject this reform of housing policy.Since voter rejection caused a reduction in public housing construction, deterioration and abandonment of existing housing acquired added significance. By 1970, the consensus view among public leaders was that rent control caused housing abandonment and that liberalization of rent control was needed. Thus, public policy targets in the low-income housing market shifted from emphasis on construction programs to emphasis on preservation of existing housing. In the future, further information on the cost and difficulty of housing preservation is likely to require additional adjustments in housing policy targets.I am grateful to Frank Kristof for comments on an earlier draft and to Don Sexton and John Keith for their helpful suggestions on the topic. Comments by an anonymous referee were most appreciated.     

Creating an enabling environment for housing: Recent reforms in Mexico

Abstract

A recent World Bank policy statement on housing advocates the reform of government policies, institutions, and regulations to enable housing markets to work more efficiently. The policy statement identifies several instruments that governments can use to address housing market constraints, and to improve the performance of the housing sector as a whole, while paying particular attention to the needs of the poor.

In recent years, the government of Mexico has employed many of the enabling instruments described in the World Bank's housing policy statement. This article reviews the role of housing in the Mexican economy and the major reforms that the Mexican government has implemented to improve the operation of the housing market so that private lenders and home builders can play an expanded role in addressing the country's housing needs. The World Bank has supported the government's reform program, and since 1985 it has lent more than $1.2 billion to Mexico for low‐income housing projects.     

A different lens: administrative perspectives on portability in Illinois' Housing Choice Voucher Program

Over the last decade, the Housing Choice Voucher Program has grown to become the USA's primary strategy for providing safe, decent, and affordable housing. Annually serving more than 2 million low-income households, the program is designed to help low-income households afford private market rental housing. The program also allows for the “portability” of vouchers nationally between housing authority jurisdictions. Both features aim to mitigate the effects of concentrated poverty. Research on the Moving to Opportunity Program and the Gautreaux consent decree have produced data confirming that residential mobility can at times lead to positive opportunities for assisted households. This past research has been conducted on specific programs occurring outside of the general Housing Choice Voucher Program framework and has focused on household-level outcomes, paying little attention to the ways in which program administration may affect outcomes for voucher households. This article aims to understand voucher portability from the perspective of housing authority executive directors and program administrators, in order to better understand how program administration impacts the types of household outcomes observed in prior research. The results reveal that housing authority administrative practices and inter-housing authority relationships play a significant role in shaping the types of outcomes realized by porting voucher households. These findings suggest several changes to program administrative design and policy that may improve support for voucher households as they make portability moves.     

How Do People-Based Housing Policies Affect People (and Place)?

Assisted housing programs in the United States aim to provide decent, safe, and affordable housing for low-income households. Increasingly, policymakers have also considered how assisted housing can provide access to lower poverty, income-diverse, and higher opportunity neighborhoods. The U.S. Department of Housing and Urban Development currently balances two strategies. First, place-based programs—immoveable subsidies linked to particular units—can both revitalize distressed neighborhoods and provide access to higher opportunity neighborhoods. Second, people-based assistance—housing vouchers for use on the private rental market—can facilitate moves out of high-poverty, low-opportunity neighborhoods. During this policy moment with fair housing priorities receiving national attention, understanding the efficacy of each approach is critically important. This article synthesizes past research on housing vouchers to identify the impact of people-based assistance on four outcomes: residents’ neighborhood attainment, education, economic outcomes, and health. I also review the scant literature examining how vouchers affect place rather than people. I conclude by identifying aspects of special voucher programs that promote positive outcomes that could potentially be scaled up.     

Comment on Kirk McClure's “Are low-income housing tax credit developments locating where there is a shortage of affordable units?”

Kirk McClure's article makes important contributions to our understanding of the way in which state allocating agencies are using the Low-Income Housing Tax Credit (LIHTC). However, one of the premises of his analysis – that allocating agencies should encourage the location housing developments in census tracts with a “surplus” of low-income renters – is mistaken. Census tracts are too small to be considered closed-system housing markets. Additionally, the LIHTC program does not exist in isolation, but instead as part of a combined national rental housing policy that includes both supply-side programs (LIHTC) and demand-side programs (housing vouchers). A final flaw in the notion that LIHTC units should be built in census tracts with a surplus of renter households in the 30% to 60% of AMI range compared with the units affordable to them is that increasing the amount of affordable housing in those tracts could have the effect of further concentrating households by income and race.     

Some possible directions for research on multifamily housing

Abstract

The combination of a growing demand for information and a literature that has not emphasized multifamily housing has produced an information gap in multifamily housing research. This article seeks to shed light on the areas in which the information gap is widest and to put forth a research agenda for the study of multifamily housing. The article starts from a definition of multifamily housing that includes all rental housing in structures with five or more units, and it goes on to develop a more precise definition. Next the various components of the market for multifamily housing are discussed. These include the demand and supply of multifamily housing and its sources of financing. The discussion examines each of these components with an eye toward identifying questions and issues in need of further study. Data needed for further research are the subject of the sixth section. The final section highlights questions of particular interest to public policy makers.

Because of the lack of information about multifamily properties, the list of possible research questions is long. A better understanding is needed of how multifamily housing markets operate—for example, what factors influence the supply of multifamily housing and how it is financed. There is also a need to examine specific public policy issues, including the impact of tax policy on residential rents, ways of detecting financial distress in federally insured multifamily properties, and the performance of nonprofit organizations in delivering and maintaining affordable multifamily housing. Recently released data from the 1991 Survey of Residential Finance, the U.S. Department of Housing and Urban Development's planned 1995 Landlord Survey, and the newly founded Multifamily Housing Institute could play key roles in studying these questions.     

Contesting the Governance of Capital Flows at the IMF

Financial crises can trigger different actors to reassess their ideas, interests, and policies, and sometimes change them. The Global Financial Crisis triggered a reassessment at the International Monetary Fund (IMF) regarding the utility of capital account liberalization and the management of capital flows. In 2010, the IMF embarked upon an official reassessment of these issues and in 2012 published an official “institutional view” on capital account liberalization and managing capital flows that gives more caution toward capital account liberalization and endorses the use of capital controls in certain circumstances. This article traces the political process that yielded the IMF's new view and draws out lessons for thinking about policy change in global economic governance institutions.     

The FIRRE Act and Housing for Low-Income Families

During the 1980s, federal government real, direct expendituresfor low-income housing increased modestly, budget authorityfor future housing spending fell dramatically, and subsidiesshifted from primarily construction to tenant aid. These changesreflect the delicate balance struck between Reagan's "decentralizedfederalism" as it applied to low-income housing and the muchmore pro-active, centralized positions often advocated by theCongress. Although Congress did not win the budget battle, itdid add new resources to low-income housing in less direct ways.One of those less direct initiatives is the low-income housingprograms contained in FIRREA, which add both money and institutionsto the delivery of housing services for the poor. This articleevaluates these new FIRREA programs in expanding the supplyof housing for the poor. The article concludes that their successwill largely depend on the ability of the low-income housingdelivery system to integrate these new institutions and joinwith them in an active partnership to make efficient use ofthese new housing resources.