State policies and programs to preserve federally assisted low‐income housing

Abstract

Preservation of the existing assisted housing stock is likely to be a major housing issue throughout the 1990s and into the twenty‐first century. Federal legislation—the Emergency Low‐Income Housing Preservation Act and the Low‐Income Housing Preservation and Resident Homeownership Act—addresses the first wave of preservation needs and provides critically needed programs to maintain eligible units as assisted housing for the next 50 years.

This paper presents a brief review of federal preservation requirements and argues for state participation in the implementation of preservation programs. Seven areas are identified for state action, and leading state preservation programs are reviewed. Each state needs to ensure that a foundation is established to preserve these units over their useful life as decent, affordable housing. What the states learn from participating in the implementation of the federal preservation program will help them address future preservation needs and develop the capacity to manage the interdependent provision of assisted housing by the public, for‐profit, and nonprofit sectors.     

Searching for a “Sound Negro Policy”: A Racial Agenda for the Housing Acts of 1949 and 1954

Abstract

The Housing Acts of 1949 and 1954 provided the foundation for slum clearance and urban renewal. Despite efforts to finesse the issue, race remained central to the formation and implementation of public policy. The Racial Relations Service (RRS), an institutional remnant of the New Deal, tried unsuccessfully to prevent local authorities from using the new federal resources to reinforce existing “ghettos.” Searching for a “sound Negro policy,” the RRS warned housing officials against pursuing such a course and offered bureaucratic resistance to individual projects deemed inimical to minority interests.

The coincidence of demographic and political change in the 1950s, the subsequent dismantling of the RRS, the reaction to the Supreme Court's decision in Brown v. Board of Education, and the passage of the Housing Act of 1954 all contributed to the use of urban renewal to create and sustain racially separate neighborhoods even as the civil rights movement gained momentum.     

The American metropolis at century's end: Past and future influences

Abstract

The American metropolis at century's end is vastly different than what many expected just 50 years ago. At mid‐century, seers envisioned a clean, rationally planned city of the future, free of long‐standing problems such as traffic and poverty. The reality is more complex. We built a new metropolis that addressed some major problems while simultaneously creating a host of new ones. The next 50 years will undoubtedly contain similar surprises.

In conjunction with the 1999 Annual Housing Conference, which looked at the legacy of the 1949 Housing Act, the Fannie Mae Foundation commissioned a survey that asked urban scholars to rank the key influences shaping the past and future American metropolis. The “top 10” lists that resulted are the focus of this article.     

The Evolution of Low‐Income Housing Policy, 1949 to 1999

Abstract

The evolution of low‐income housing policy during the past 50 years can be divided roughly into two segments: the first running from 1949 to the 1973 Nixon moratorium on subsidized production programs and the second from 1973 to the present, marked by a diminished federal leadership role and an increased state and local role. After tracing the rise of the federal leadership role represented in the Housing Acts of 1949 and 1968, this article focuses on the development of three important policy instruments that mark the devolution of housing policy: housing vouchers, housing block grants, and the Low‐Income Housing Tax Credit.

The three‐pronged strategy of vouchers, block grants, and tax credits has achieved reasonably good results and attracted an unusual degree of political consensus. A steady expansion of all three offers the most promising path to the “realization as soon as feasible” of the national housing goal.     

The advisory commission on regulatory barriers to affordable housing: Its behavior and accomplishments

Abstract

In March 1990, Secretary Jack Kemp of the U.S. Department of Housing and Urban Development (HUD) appointed a 22‐member commission to investigate the nature and extent of regulatory barriers to affordable housing, as well as what to do about them. Chaired by Thomas Keane, ex‐Republican governor of New Jersey, the Advisory Commission on Regulatory Barriers to Affordable Housing grappled with this issue for over a year, releasing its final report in early July 1991.¹ As a commission member, I had an unusual opportunity to observe just how the commission worked and what it accomplished. This paper tries to put those two subjects in perspective. It has been written from the viewpoint of a longtime specialist on housing, who also served on the very first urban commission—the Douglas commission—23 years ago.²     

“The Color of Money” revisited: Racial lending patterns in Atlanta's neighborhoods

Abstract

In 1988, the Atlanta Journal‐Constitution published “The Color of Money,” an influential series examining mortgage redlining in Atlanta. The articles documented wide lending disparities between white and black neighborhoods of similar income levels. Given sweeping changes in housing finance since 1988, we seek to determine whether Atlanta's racial geographic disparities in mortgage lending have changed.

Analysis of 1992 to 1996 Home Mortgage Disclosure Act data reveals slight improvement. Atlanta's depository lenders made 4.2 times as many conventional home purchase loans per owner‐occupied unit to middle‐income white neighborhoods as they did to middle‐income black neighborhoods; a decade earlier, this ratio was 5.2. Nondepositories post lower ratios, particularly for Federal Housing Administration‐insured loans, but this market segment raises concerns because of potential abuses. By the indicator of most enduring theoretical and policy interest—conventional home purchase lending by depositories—the patterns that aroused concern a decade ago are still evident today.     

Fighting Housing Discrimination in Europe

ABSTRACT

There is no exact European equivalent to the U.S. Fair Housing Act. The member states of the European Union (EU) have transposed into law the EU Racial Equality Directive of 2000 that prohibits discrimination in, among other things, access to the supply of goods and services, including housing, on the basis of race. Most housing discrimination case law so far comes from nonbinding decisions of the European Court of Human Rights and European Committee of Social Rights under the revised European Social Charter of the Council of Europe. This article explains how the European context of discrimination and segregation differs from the American, reviews the major legal conventions establishing equal rights in housing, protected classes, and key precedents. It discusses how mixing policies in social housing are the primary mechanism to reduce residential segregation in Europe. The special case of extreme discrimination against the Roma is presented, before concluding with some comparative observations.     

The Fair Housing Act Today: Current Context and Challenges at 50

ABSTRACT

As is true for most legislation, the Fair Housing Act (FHA) was a product of its time; the legislation’s content, and even passage, was formed by dominant issues in housing markets and the country at that time. The context shaped the goals of the FHA and the strategies and tools employed under its auspices. Fifty years after the passage of the FHA, much of that context has changed. This commentary argues that changes in the context not only raise new fair housing challenges and create new gaps in our knowledge, but also may necessitate a fresh look at fair housing strategies and tools if they are to be effective at achieving the goals of the act. This commentary begins with a brief background on the FHA itself, the social context at the time of its writing, and its main goals. Next it lays out a few key changes in housing markets relevant for fair housing, highlighting challenges they may create and where research could be of greatest value. It then considers challenges arising from threats to two specific U.S. Department of Housing and Urban Development (HUD) fair housing rules seen by many as critical fair housing tools. The commentary ends with two examples of a “refresh,” where current context has shaped, or reshaped, a strategy to address today’s fair housing challenges.     

Comment on Jill Khadduri's “should the housing voucher program become a state‐administered block grant?”

Abstract

The stated goal of the Housing Act of 1949 is “a decent home and suitable living environment for every American family.” It is time that we delivered on that commitment. Contrary to popular opinion, this does not require spending more money on housing assistance. It can be achieved without additional funds by shifting all funds from less cost‐effective methods for delivering housing assistance to choice‐based vouchers as soon as current contractual commitments permit and by gradually reducing the large subsidies to current voucher recipients. The proposal to replace the Housing Choice Voucher Program with a block grant to states can contribute to this goal by precluding the use of the block grant funds for project‐based assistance, increasing the targeting of assistance to the poorest families, and including the fraction of recipients with extremely low incomes in the formula for determining the performance rating of state programs.     

Empty Neighborhoods: Using Constructs to Predict the Probability of Housing Abandonment

Abstract

Enforcement of the law prohibiting housing discrimination depends largely on actions initiated by persons who believe they have been victimized and, presumptively, on their knowledge of their legal rights. It is therefore important to establish what people know about fair housing law. A recent national survey examines this topic and explores whether public knowledge makes any difference.

A majority of the public is aware of and approves of many aspects of fair housing law, although the size of that majority varies depending on which aspect of the law is considered. By contrast, only a minority of the public is aware of and accepts protections provided to renter families with children. There is an association between knowledge of the law, recognition of conduct perceived to contradict it, and willingness to respond to such conduct, suggesting a link between knowledge and likelihood of self‐protective responses, as envisioned by the Fair Housing Act.     

Mitigating apprehension about section 8 vouchers: The positive role of housing specialists in search and placement

Abstract

The U.S. Department of Housing and Urban Development has found that Section 8 voucher recipients are often unable to secure apartments outside of high‐poverty areas in tight urban rental markets. However, intensive housing placement services greatly improve the success and mobility of voucher holders. Drawing on ethnographic research in the housing placement department of a private, nonprofit community‐based organization, I first describe how fundamental problems in implementing the public subsidy program in a tight private rental market generate apprehension among landlords and voucher recipients that can prevent the successful use of vouchers. Second, I demonstrate how housing placement specialists can dispel and overcome this apprehension through a variety of tactics that require extensive soft skills and a deep commitment to the mission of housing poor families.

These findings provide support for the increased use of housing placement services to improve success and mobility rates for Section 8 vouchers.     

Fair Housing After “Big Government”: How Tax Credits Are Reshaping the Legal Fight Against Racial Segregation

ABSTRACT

In June 2015, the Supreme Court ruled, in a 5–4 split decision, that facially neutral state policies and practices that unintentionally segregated minorities could violate the Fair Housing Act. This article draws on the Texas fair housing litigation to engage broader debates on fair housing as a legal framework, and its potential for disrupting or transforming patterns of structural inequality. Specifically, it examines how shifts in the ways that society designs and implements housing policies may encourage courts, advocates, and legal actors to think about fair housing issues in new ways. Moving beyond the emphasis on disparate impact, my findings elaborate on two mostly overlooked ways that LIHTC reshapes the legal battleground in the fight for fair housing, by opening contentious debate on (a) the state level of government, and (b) passive government administration of policies. I interpret these effects as unintended consequences of the gradual shift toward market-driven policies that allow officials to govern at a distance.     

The case for a right to housing

Abstract

America has the resources to guarantee everyone a right to decent, affordable housing, making real the now 50‐year‐old congressionally promulgated National Housing Goal. The issue is one of values—constantly expanding notions of social, civil, and economic rights—and can only be won through political struggle, as has been true historically of all rights expansions.

The costs of not attaining this right, to those suffering from substandard housing conditions and unaffordable costs as well as to society as a whole, should be acknowledged and offset against the increased government outlays required to attain this goal. Ways in which some housing rights now exist are identified as a basis for wider expansion to a true right to decent, affordable housing.     

Survival of the Fairest: Examining HUD Reviews of Assessments of Fair Housing

ABSTRACT

In 2015, the U.S. Department of Housing and Urban Development (HUD) issued the Affirmatively Furthering Fair Housing (AFFH) Rule, arguably the most significant federal effort in a generation to address place-based disparities in access to opportunity and to advance fair housing. In 2018, HUD suspended the rule, it said in part because of the resources it was expending to implement it and in part because of the large share of municipal plans that HUD determined had failed to meet the rule’s requirements. In this article, we present the first analysis of the fair housing plans that HUD did not accept, examining how municipalities failed to meet the rule's requirements, what those failures imply about advancing fair housing, and the extent to which HUD’s enforcement strategy was working before the suspension. Our analysis shows that HUD engaged in detailed reviews of municipalities’ Assessments of Fair Housing and provided constructive feedback. The most common issue with which municipalities struggled was setting realistic goals that would actually advance fair housing and creating measurable metrics and milestones to gauge progress. Several municipalities neglected to conduct thorough regional analyses or analyses of all relevant disparities in access to opportunity. Both shortcomings reflect broader challenges municipalities face in advancing fair housing, particularly in identifying strategies that address interconnected causes of disparities in access to opportunity and in building regional support to address those causes.     

Gentrification and Fair Housing: Does Gentrification Further Integration?

ABSTRACT

On the 50th anniversary of the Fair Housing Act, long-time residents of cities across the country feel increasingly anxious that they will be priced out of their homes and communities, as growing numbers of higher-income, college-educated households opt for downtown neighborhoods. These fears are particularly acute among black and Latino residents. Yet when looking through the lens of fair housing, gentrification also offers a potential opportunity, as the moves that higher-income, white households make into predominantly minority, lower-income neighborhoods are moves that help to integrate those neighborhoods, at least in the near term. We explore the long-term trajectory of predominantly minority, low-income neighborhoods that gentrified over the 1980s and 1990s. On average, these neighborhoods experienced little racial change while they gentrified, but a significant minority became racially integrated during the decade of gentrification, and over the longer term, many of these neighborhoods remained racially stable. That said, some gentrifying neighborhoods that were predominantly minority in 1980 appeared to be on the path to becoming predominantly white. Policies, such as investments in place-based, subsidized housing, are needed in many gentrifying neighborhoods to ensure racial and economic diversity over the longer term.     

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.     

Quality of Life,Transportation Costs,and Federal Housing Assistance: Leveling the Playing Field

Abstract

Federal housing subsidies are allocated without regard to spatial differences in the cost of living or quality of life. In this article, we calculate housing subsidy payments for participants in the Housing Choice Voucher (HCV) program and demonstrate that these subsidies are significantly related to metropolitan quality-of-life differentials. We then estimate amenity-adjusted subsidies and compare these estimates with data from the U.S. Department of Housing and Urban Development’s Location Affordability Portal. Our analysis yields three insights regarding the relationship between federal housing assistance payments (HAP), metropolitan quality-of-life differentials, and transportation cost burdens. First, HCV HAP show a strong inverse correlation with household transportation expenditures, and this is particularly pronounced for low-income households. Thus, HAP do not address location affordability because those living in high-transportation cost metropolitan areas receive the lowest housing subsidies. Second, we present evidence that HAP are positively related to metropolitan quality-of-life differentials. This suggests that high-amenity metropolitan areas also tend to be the most affordable from a transportation cost perspective. Third, our proposed amenity-adjusted HAP strongly reduce the inverse relationship between HAP and transportation cost burdens.     

The redevelopment of distressed public housing: Early results from HOPE VI projects in Atlanta,Chicago, and San Antonio

Abstract

The redevelopment of distressed public housing under the Urban Revitalization Demonstration Program, or HOPE VI, has laudable social, physical, community, and economic goals. Three public housing projects in Atlanta, Chicago, and San Antonio demonstrate the complexity and trade‐offs of trying to lessen the concentration of low‐income households, leverage private resources, limit project costs, help residents achieve economic self‐sufficiency, design projects that blend into the community, and ensure meaningful resident participation in project planning.

Although worthwhile and ambitious, HOPE VI cannot achieve all these goals. More of them can be achieved by developing strategies related to the strength of the local real estate market. To that end, the U.S. Department of Housing and Urban Development and public housing authorities must use the market‐based tools in the Quality Housing and Work Responsibility Act of 1998. Standards for improved physical design and resident participation and further research on critical supportive services for residents are also needed.     

Housing Subsidies and Early Childhood Development: A Comprehensive Review of Policies and Demonstration Projects

ABSTRACT

In this article, we ask how housing subsidies might influence young children. We examine two national housing policies – public housing assistance and the Section 8 vouchers program – and two demonstration projects that aimed to improve the administration of providing housing subsidies – HOPE (Homeownership Opportunities for People Everywhere) VI and Moving to Opportunity. This article is a critical examination of these policies and demonstration projects in relation to the following housing dimensions that promote the healthy development of young children: income supplements residential stability, physical environment, access to services and amenities, housing choice, neighborhood safety, and social capital. We compared advantages and limitations of each of these national housing policies and demonstration projects and examined ways in which they might influence children in these housing dimensions. The article concludes with implications and future research directions for U.S. housing policy by discussing its most recent U.S. Department of Housing and Urban Development (HUD) initiative, Rental Assistance Demonstration, in addressing limitations of housing policies and demonstration projects we examined.