Achieving Economic Self-Sufficiency Through Housing Assistance: An Assessment of a Self-Sufficiency Program of the Housing Authority of Champaign County,Illinois

ABSTRACT

This study examines the early impact of a Local Self-Sufficiency (LSS) program of the Housing Authority of Champaign County (HACC), Illinois, on recipients’ total annual household income and earnings, and employment. In 2013, HACC, through LSS, mandated work requirements for households with working-age, able-bodied adult members and imposed sanctions on those who did not meet the program requirements. We find that, between 2012 and 2014, the LSS program led to an average increase of $2,283 in earnings for an individual household. In aggregate, this allowed HACC to serve an additional 98 (9%) LSS-eligible households for a year. Also, LSS-eligible households experienced an increase in the employment–adult ratio by 11.6 percentage points. The LSS program also had a larger impact for more economically disadvantaged households with no prior work history.     

The long‐term effects of housing assistance on work and welfare

This paper examines the long‐term effect of project‐based housing assistance—public housing and private assisted housing—on work, earnings, and welfare receipt. We use the Panel Study of Income Dynamics–Assisted Housing Database to identify women ever living in project‐based assisted housing and to create comparison groups using propensity scores. Analyses show no evidence that moving into this type of assisted housing is associated with sustained reductions in employment rates, work hours, or earnings. Although welfare rates decline, they remain higher for assisted housing recipients compared with nonrecipients. Overall, these findings align with those of recent experimental and nonexperimental studies that include other forms of housing assistance and cover different time periods. © 2009 by the Association for Public Policy Analysis and Management.     

Housing Voucher Take‐Up and Labor Market Impacts

Low participation rates in government assistance programs are a major policy concern in the United States. This paper studies take‐up of Section 8 housing vouchers, a program in which take‐up rates are quite low among interested and eligible households. We link 18,109 households in Chicago that were offered vouchers through a lottery to administrative data and study how baseline employment, earnings, public assistance, arrests, residential location, and children's academic performance predict take‐up. Our analysis finds mixed evidence of whether the most disadvantaged or distressed households face the largest barriers to program participation. We also study the causal impact of peer behavior on take‐up by exploiting idiosyncratic variation in the timing of voucher offers. We find that the probability of lease‐up increases with the number of neighbors who recently received voucher offers. Finally, we explore the policy implications of increasing housing voucher take‐up by applying reweighting methods to existing causal impact estimates of voucher receipt. This analysis suggests that greater utilization of vouchers may lead to larger reductions in labor market activity. Differences in take‐up rates across settings may be important to consider when assessing the external validity of studies identifying the effects of public assistance programs.     

Race and Assisted Housing

This article explores racial disparities between assisted housing outcomes of black and white and white households with children. We compare the assisted housing occupied by black and white households with children, and examine whether young adult education, employment, and earnings outcomes in 2011 differ between blacks and whites who spent part of their childhood in assisted housing in the 2000s. We use a special version of the Panel Study of Income Dynamics (PSID) that has been address-matched to federally assisted housing, and the PSID’s Transition to Adulthood supplement, along with geocode-matched data from the U.S. Census Bureau, American Community Survey (ACS), CoreLogic real estate data, and U.S. Department of Housing and Urban Development (HUD). Statistical methods include difference in means, logit and general linear models. We find no evidence of racial disparities in the type of assisted housing program, the physical quality of project-based developments, or the management of public housing developments in the 2000 decade. But black households with children are more likely to live in assisted housing that is located in poorer quality neighborhoods. Multivariate tests reveal that the worse outcomes of black young adults compared with whites disappear once socioeconomic differences are taken into account. The discrepancy in assisted housing neighborhood quality experienced by black and white children makes no additional contribution to predicting young adult outcomes. Nonetheless, black children living in relatively better assisted housing neighborhoods tend to have better outcomes in young adulthood than those who live in poorer quality assisted housing neighborhoods. We discuss sources of racial disparity in neighborhood quality, and the policies enacted and proposed to address it.     

Child support enforcement policy and unmarried fathers' employment in the underground and regular economies

Some scholars have suggested that a negative consequence of strengthening child support enforcement is to encourage fathers to shift from regular sector to underground employment. We employ data from the Fragile Families and Child Wellbeing Study to investigate the relationship between the strength of child support enforcement (CSE) and levels of underground and regular sector employment among unmarried fathers. We find that, in general, living in a city with stricter CSE is associated with fewer hours of underground employment. We find little evidence that stronger enforcement is associated with employment or hours in the regular sector. © 2007 by the Association for Public Policy Analysis and Management.     

Introduction to session 3: Estimating the costs: Perspectives on preservation of the nation's lower‐income housing stock

Abstract

This article uses survey data from the Moving to Opportunity demonstration program in Chicago to explore changes for households moving from public housing. The focus is on two key areas: housing and neighborhood conditions, and labor force participation and employment of householders. The experimental design of the program allows the differences between comparison households, which moved with a regular Section 8 voucher, and experimental households, which moved to low‐poverty neighborhoods with housing counseling assistance, to be examined.

The findings, based on interviews an average of 18 months after families moved, reveal dramatic improvements in neighborhood and housing conditions for all participating families; experimental families experienced even greater gains in terms of housing and especially neighborhood conditions. Labor force participation and employment increased for householders in both groups, likely fueled by the robust economy throughout much of the country and supporting similar findings for program participants in New York and Boston.     

Black pioneers—do their moves to the suburbs increase economic opportunity for mothers and children?

Abstract

This paper examines whether housing vouchers help poor people improve their education and employment. The Gautreaux program uses housing certificates and counseling to help poor people move to white suburbs and to black urban areas. The people who move to suburbs face different opportunities and challenges than those moving within the city, so it is not certain which group will have better employment and education. We find that compared with city movers, the adult suburban movers have greatly improved employment, even after controls, but they have no different pay or hours worked. Among children, suburban movers are more likely than city movers to be (1) in school, (2) in college‐track programs, (3) in four‐year colleges, (4) in jobs, (5) in better‐paying jobs, and (6) in jobs with benefits. Just by moving people and without providing additional services, this program has uncovered capabilities of these low‐income people that were not evident in the city. Policy implications of this program are considered herein.     

Transportation Access,Rental Vouchers,and Neighborhood Satisfaction: Evidence From the Moving to Opportunity Experiment

The Housing Choice Voucher (HCV) program is designed in part to expand the neighborhood choices of assisted households, thereby enabling assisted households to find a living environment that simultaneously meets their housing and neighborhood preferences. While several studies have examined the impact of rental subsidies on neighborhood satisfaction, few have examined whether access to adequate transportation enables HCV recipients to locate housing in more desirable locations. This article relies on data from the Moving to Opportunity experiment to examine the impact of transportation access, rental housing vouchers, and geographic constraints on neighborhood satisfaction. We find that access to both vehicles and public transit positively influences neighborhood satisfaction, and the influence of vehicle access varies with transit proximity. These findings point to the importance of transportation in helping low-income assisted renter households locate housing in more desirable neighborhoods.     

Why Don't Housing Choice Voucher Recipients Live Near Better Schools? Insights from Big Data

Housing choice vouchers provide low‐income households with additional income to spend on rental housing in the private market. The assistance vouchers provide is substantial, offering the potential to dramatically expand the neighborhoods—and associated public schools—that low‐income households can reach. However, existing research on the program suggests that housing choice voucher holders live in neighborhoods with schools that are no better than those accessible to other households with similar incomes. Households, in other words, do not seem to spend the additional income provided by the voucher to access better schools. In this analysis we rely on a large‐scale administrative data set to explore why voucher households typically do not live near to better schools, as measured by school‐level proficiency rates. We combine confidential administrative data from the Department of Housing and Urban Development on 1.4 million housing choice voucher holders in 15 states, with school‐level data from 5,841 different school districts, to examine why the average housing voucher holder does not live near to higher‐performing schools than otherwise similar households without vouchers. Specifically, we use the large‐scale administrative data set to test whether voucher holders living in areas with good schools nearby and slack housing markets move toward better schools when schools become salient for them—that is, when their oldest child becomes school eligible. We take advantage of the thick sample of households with young children provided through our administrative data to implement both a household fixed effects and a regression discontinuity design. Together these analyses shed light on whether voucher households are more likely to move toward better schools when schools are most relevant, and how market conditions shape that response. We find that families with vouchers are more likely to move toward a better school in the year before their oldest child meets the eligibility cutoff for kindergarten, suggesting salience matters. Further, the magnitude of the effect is larger in metropolitan areas with a relatively high share of affordable rental units located near high‐performing schools and in neighborhoods in close proximity to higher‐performing schools. Results suggest that, if given the appropriate information and opportunities, more voucher families would move to better schools when their children reach school age.     

Subsidized housing and work among welfare recipients

Abstract

Some studies suggest an inverse relationship between housing assistance and employment. That is, when housing assistance increases, employment decreases. A popular view holds that subsidized housing generates an economic disincentive to work. This article examines the relationship between subsidized housing and the number of hours female recipients of public assistance work. A California survey reveals that residents in Section 8 housing work considerably more than do those renting in the private market or residing in public housing. This finding holds after controlling for observable personal characteristics and accounting for income effects. Additional analysis comparing the two housing programs shows a consistent, robust difference, with those in Section 8 working more.

One explanation is that the finding is a statistical artifact caused by programmatic creaming or self‐selection among applicants. The second, more plausible explanation is that Section 8 housing offers residential choice and mobility that improve opportunities for employment.     

Housing Programs Fail to Deliver on Neighborhood Quality,Reexamined

This article revisits the relative performance of housing programs in terms of delivering on neighborhood quality. Newman and Schnare examined this issue in 1997, and this article updates their work more than a decade later. Both efforts examine the neighborhood characteristics surrounding assisted rental housing and assess the direction of assisted-housing policy. The analysis is performed by exploring census data at the tract level for the tenant-based Housing Choice Voucher program plus a set of project-based programs, including public housing, the Low-Income Housing Tax Credit program, and other HUD multifamily programs. We conclude that Newman and Schnare remain correct that rental housing assistance does little to improve the quality of the recipients' neighborhoods relative to those of welfare households and can make things worse. However, things have improved. The Housing Choice Voucher and Low-Income Housing Tax Credit programs have grown in importance over the intervening years and have improved their performance by moving more households into low-poverty, less distressed areas. Importantly, these active programs for assisted housing are beginning to find ways to overcome the barriers preventing entry into the suburbs, although more needs to be done.     

Searching for Affordability and Opportunity: A Framework for the Housing Choice Voucher Program

Abstract

Affordability, a key factor in the housing search process, becomes critical when locating rental housing in opportunity-rich areas. The Housing Choice Voucher (HCV) program accommodates low-income households searching for housing and encourages recipients to reside in low-poverty areas. Affordable neighborhoods that are accessible to public transportation are often found in distressed areas, and not all HCV recipients succeed in locating qualified housing. To address these challenges, a housing search framework is developed to assist HCV households in the housing search process. This framework builds on the methodology of the U.S. Department of Housing and Urban Development (HUD) for the Location Affordability Index and Affirmatively Furthering Fair Housing assessment tool by creating multivariate indices that incorporate housing supply, accessibility to opportunity, and neighborhood conditions. The framework serves as a foundation for an online housing search application for public housing authorities to further fair housing goals, HCV recipients to locate qualified housing units, and local governments to assess affordability and opportunity.     

Last in line: Housing assistance for households with children

Abstract

This article examines the relationship between receipt of different types of rental housing assistance and housing outcomes for households with children. We rely on the 1989 American Housing Survey (AHS) and a special data supplement that attempted to accurately categorize every assisted renter‐occupied address in the AHS sample as either public housing; privately owned, federally assisted housing; or certificates and vouchers. Housing outcomes examined are physical condition of the unit, crowding, affordability, perceived neighborhood quality, and crime. We analyze three research questions: (1) Do the characteristics of households enrolled in housing programs differ by program type? (2) Do housing outcomes differ with the type of assistance received? (3) Do differences in household characteristics account for observed differences in program outcomes?

The analysis suggests that the housing assistance system channels different types of households with children into different housing programs. The least disadvantaged households are most likely to end up in privately owned assisted stock, while the most disadvantaged end up in public housing. The most notable interprogram difference in housing outcomes relates to neighborhood quality. In contrast to other forms of rental assistance, residence in public housing is associated with a decline in neighborhood quality. This result holds even after controlling for household characteristics and geographic location of the unit.     

Labor market experiences of low-income black women in middle-class suburbs: Evidence from a survey of gautreaux program participants

This article reports on a highly unusual experiment in racial and economic integration, the Gautreaux program. This program helps black families who are either current or former residents of public housing move into subsidized housing in Chicago and its suburbs. Surveying a random sample of 332 participants, we find that suburban movers are significantly more likely to have a job post-move than city movers, even among those who had never had a job before moving. Multivariate analysis shows that these differences are significant even after controlling for respondents' previous work history, human capital, and personal characteristics. These results suggest that low-income urban blacks experience significant gains in employment by moving to middle-class suburbs. Thus, housing assistance may be an effective alternative to traditional welfare-to-work programs.     

Subsidized Housing and Residential Trajectories: An Application of Matched Sequence Analysis

Scholars have long debated the relative merits of site-based, subsidized housing owned and operated by a public entity or by the private sector. This is the first study to classify long-term residential trajectories of nationally representative low-income households in the United States by their initial assisted housing status. We employ a matched sequence analysis of neighborhood poverty and racial trajectories of low-income households in the Panel Study of Income Dynamics who formed during 1988–1992. Among households carefully matched by their demographic and economic attributes, we find that those first forming households in public housing spend much longer durations over the subsequent 20 years in poorer, minority dominant neighborhoods than similar households first forming in market-rate housing do. In contrast, forming a household in private site-based subsidized housing is associated with superior neighborhood socioeconomic (but not desegregated racial composition) trajectories compared with starting in market-rate housing. Implications for housing policy are discussed.     

Why Low-Income Households Become Unstably Housed: Evidence From the Panel Study of Income Dynamics

ABSTRACT

Because of a severe shortage of affordable housing in the United States, an increasing number of low-income households suffer from housing instability. However, little evidence exists as to why they experienced housing instability, although they were stably housed at other times. By applying hybrid models to the Panel Study of Income Dynamics data, this study estimates the effects of potential household-level predictors on the likelihood of experiencing housing instability. The results show that changes in family employment structure, job insecurity, automobile ownership, and the number of adult family members within a household correlate with housing instability after controlling for changes in household income and housing costs. Moreover, I find that households with children are particularly vulnerable to housing instability. These results contribute to identifying valid household-level predictors of housing instability and developing preventive policy interventions that help unsubsidized low-income households achieve housing stability.     

Reinventing the central city as a place to live and work

Abstract

Public policies for urban development have traditionally emphasized investment in physical infrastructure, the development of large‐scale commercial facilities, the construction of new housing, and the renewal of existing neighborhoods. Most efforts to revitalize central cities by building new facilities for visitors have focused on suburban commuters and tourists. At the same time, many housing initiatives in central cities have concentrated on low‐income communities because outlying suburban areas have attracted traditional middle‐income households.

This article argues that emerging demographic and cultural trends—combined with changes in the structure of business organizations and technological advances—provide new opportunities for cities to retain and attract middle‐class households. Using gay and lesbian populations as an example, it focuses on the role that nontraditional households can play in urban redevelopment. In light of the rise of nontraditional households and the growth of self‐employment and small businesses, cities should adopt policies that make them attractive places in which to live and work.     

Innovation in Welfare Policy: Evaluating State Efforts to Encourage Work among Low‐Income Families1

This article examines what states are doing to help Temporary Assistance to Needy Families (TANF) recipients move into the workforce and become self‐supporting. We first present documentation regarding many different state TANF policies aimed at encouraging work, including benefit structures, time limits, work requirements, sanctions, and work supports. We then discuss how effective these policies are at helping welfare recipients get jobs and increase their income, by reviewing research on each of these elements. We conclude that the TANF program has been effective in increasing employment and decreasing welfare caseloads and expenses, but that this has not resulted in overall income gains for welfare recipients in the long run. We also conclude that the most promising state programs have a strong employment focus combined with focused training and educational opportunities. In addition, we also find that sanctions appear to be harming those most in need of assistance, and therefore that such policies should be reevaluated and refocused.     

Housing discrimination is still worth worrying about

Abstract

Several scholars claim that racial and ethnic discrimination in housing is now relatively infrequent and has little impact on the lives of black and Hispanic households. They conclude that money spent on fair housing enforcement will do little or nothing to help people in these groups. This article examines these claims.

The article concludes that these claims are not consistent with the evidence, which shows that discrimination in housing is still a common experience for blacks and Hispanics and that the cost of discrimination is still high. Moreover, discrimination constrains the opportunities of people in these groups to go to good schools, to find jobs, and to accumulate home equity. Thus, improved enforcement of fair housing legislation not only promotes principles that are at the heart of our democracy but also attacks one pillar of the system that perpetuates large intergroup disparities in earnings and wealth.     

“It Was Like I Lost Everything”: The Harmful Impacts of Homeless-Targeted Policies

In response to housing crises across the country, many localities are implementing homeless-targeted policies that attempt to regulate public space by prohibiting sitting, lying, sleeping, and storing property in public places such as parks and sidewalks. We term these sociospatial control policies. Our research investigates the direct impacts of such policies in the city of Honolulu, which had become notorious for legal measures targeting homeless residents. We interviewed members of 70 households living in temporary shelters in public spaces, all of whom had experienced enforcement of city ordinances, such as receiving citations or being forcibly moved by city agents. Our data revealed three interconnected ways that enforcements of sit–lie and nuisance policies harmed homeless households. (a) Our respondents described feeling dehumanized and treated unfairly by city agents. We therefore argue that enforcement catalyzed both civic and social exclusion. (b) Second, the city’s confiscation of property spurred material hardship and posed obstacles to work, education, and access to services. And, finally, (c) respondents’ narratives revealed that enforcements provoked lasting worry, fear, anxiety, and despair.