Affordable housing in New Urbanist Communities: A survey of developers

Abstract

Despite the unequivocal goal of income diversity as expressed in the Charter of the Congress for the New Urbanism, one of the more significant challenges facing the movement has been the creation of socially diverse neighborhoods, especially ones that include a mix of incomes. Although recent reports show that most New Urbanist developments are being built for upper‐middle‐class residents, some projects have managed to support income diversity. This article takes a closer look at those projects, reporting on the results of a nationwide survey of New Urbanist developers.

We found that many developers have used complex, creative schemes to make affordable housing possible within the New Urbanist context. Developers created affordable opportunities by combining available government programs, partnerships with nonprofits, and innovative design solutions. These efforts have provided important sources of affordable housing within the context of walkable communities—serving as examples that should be emulated by future developers.     

Brownfield redevelopment and affordable housing: A case study of New Jersey

Abstract

A total of 779 New Jersey residents were surveyed to determine the number of people who during the next five years would be willing to move to housing built on brownfield sites that have been remediated to the extent that they pose no plausible brownfield‐related health risk to residents.

Fourteen percent of the respondents said they would be willing to move to and live in housing built on cleaned‐up brownfields. These respondents were disproportionately relatively poor and young and resided in apartments and cities, especially cities where the city government was actively promoting brownfields. These respondents also did not like their current neighborhoods, did not feel threatened by the idea of living on a cleaned‐up brownfield site, and trusted experts to advise them on the health risks involved.     

The preservation needs of public housing

Abstract

The paper examines the preservation needs of public housing from the perspective of its physical condition and its ongoing repair and replacement needs. It begins by examining the range of needs that exist today, including the level of expenditures that would be required to put the stock in working order to meet existing codes, and to ensure the long‐term viability of the development. It then explores the level of expenditures that would be required on an ongoing basis to keep the stock in good repair and to meet future capital and preventive maintenance needs. The final section addresses several important policy issues, including overall funding requirements, the cost‐effectiveness of preservation efforts compared with vouchers and new construction, the special problems of troubled public housing authorities, and the need to establish stronger incentives for capital planning.     

Inclusionary housing in California and New Jersey: A comparative analysis

Abstract

Many people have argued that inclusionary housing (IH) is a desirable land use strategy to address lower‐income housing needs and to further the geographic dispersal of the lower‐income population. In an attempt to evaluate the effectiveness of IH, this article examines the experiences of New Jersey and California, two states where IH has been applied frequently over an extended period.

While the concept of regional “fair share” is central to both states’ experiences, the origins of the programs, their applications, and their evolutions are quite dissimilar. IH originated in New Jersey from the famous Mount Laurel cases and in California from housing affordability crises and a legislatively mandated housing element. The experiences of both states indicate that IH can and should be part of an overall affordable housing strategy but that it is unlikely to become the core of such a strategy.     

The functioning and regulation of escrow accounts

Abstract

About 40 million Americans have mortgages serviced by escrow accounts. Yet escrow accounts are rarely covered by an explicit agreement between borrower and lender and are often poorly understood. As a result, escrow accounts have become the subject of growing controversy. Federal regulation of escrow accounts has become increasingly detailed and intrusive during the past two decades, and the subject is under almost continuous regulatory review. In the 1990s, the attorneys general of at least 10 states have sued large escrow account servicers over administration of accounts.

The purposes of this article are to explain briefly how escrow accounts work, benefit relevant parties, and are regulated by federal agencies, and to evaluate alternative regulatory programs. Most of the legitimate social goals of federal regulation could be achieved by requiring an explicit escrow agreement at the time of closing on a mortgage. A second‐best requirement would be that interest be paid on escrow balances.     

A new measure of housing affordability: Estimates and analytical results

Abstract

Affordable housing has often been described in terms of rent burden or owner cost burden. This article introduces the concept of housing‐induced poverty to describe the situation that arises when a household, after paying for housing, cannot afford the poverty basket of nonhousing goods. This is similar to Stone's shelter poverty concept, except that it is linked to a better‐known measure—the official poverty thresholds.

On the basis of the 1999 American Housing Survey, it is estimated that 3.8 million households that were above the official thresholds could not afford the poverty basket of nonhousing goods. In 1999, the housing‐induced poverty rate in the United States was 2.7 percentage points higher than the official rate. Results from an analytical model reveal that regional and locational variables are significant determinants of the probability of housing‐induced poverty. Housing assistance significantly decreases the probability that near‐poor renters will fall into housing‐induced poverty.     

Subsidized housing,housing prices,and the living arrangements of unmarried mothers

Abstract

Although many studies estimate the effects of welfare benefits on mothers’ living arrangements, housing subsidies and prices are rarely the focus. This article uses a new longitudinal birth cohort study, the Fragile Families and Child Wellbeing Study, to examine the relationship between subsidized housing, housing prices, and the living arrangements of unmarried mothers three years after a nonmarital birth.

Results suggest that the availability of subsidized housing is negatively associated with marriage relative to living alone. Eligibility criteria and means testing in subsidized housing may make marriage a costly choice. Housing prices are positively associated with marriage, cohabitation, and living with family members relative to living alone. Economies of scale may be particularly important for single‐earner households when housing prices increase. Failure to control for housing costs and subsidies leads to underestimates of the effects of welfare and unemployment rates on the living arrangements of unmarried mothers.     

The convergence of nonequity housing models in Canada: Changes to housing policy since 1990

Abstract

This study examines the impact of housing policy convergence on the nonequity housing system in Ontario, Canada. Ontario has four distinct nonequity housing models— public, nonprofit cooperative, municipal nonprofit, and private nonprofit. This article argues that since 1990, housing policy in Canada, and particularly in Ontario, has become increasingly influenced by the neoconservative agenda of downsizing and decentralization of government functions found in the United States.

The findings reveal that changes to housing policy have caused the convergence of nonequity housing models in the areas of management and administration. Drawing on the present findings and on an experimental project in tenant management, this article argues that the trend toward convergence will continue and will likely result in one nonequity housing model in Canada. This pattern is interpreted in light of the neoconservative agenda of both countries that emphasizes private sector solutions to housing low‐income families.     

Restoring community through traditional neighborhood design: A case study of Diggs town public housing

Abstract

This article examines how traditional neighborhood design (TND) can restore a sense of community to distressed neighborhoods. Traditional neighborhoods, such as those found in many cities and inner suburbs, provide their residents numerous opportunities and venues for social interaction. We apply the principles of TND to the redesign of a public housing project. We call our approach an “architecture of engagement.”

Using a case study of Diggs Town, a public housing project in Norfolk, VA, we explore how the application of TND principles transformed a socially alienated and distressed neighborhood into a socially integrated and functional one. We find that TND techniques improve the quality of life by facilitating the social exchanges that create social capital.     

Local response to federal changes in the housing voucher program: A case study of intraregional cooperation

Abstract

The desire to increase residential choice for Section 8 voucher clients resulted in the adoption of portability by the U.S. Department of Housing and Urban Development. Portability allows voucher holders to move between the jurisdictions of local housing authorities (HAs). InterHA cooperation could ease the administrative and financial burdens imposed by portability and improve service to voucher recipients. However, voluntary regional cooperation is rare.

This article presents a case study of a successful, voluntary, intraregional cooperative agreement among HAs. Theoretical and empirical analyses suggest that a cooperative agreement is more likely to develop voluntarily if two conditions are present: rational self‐interest and shared norms and trust among the managers. Agreements can ease the burdens associated with portability, but it is important for the parties to regularly assess implementation issues to ensure the agreement's continuing effectiveness. The article concludes with policy implications based on the findings from this research.     

Combining historic preservation and income class integration: A case study of the butchers hill neighborhood of Baltimore

Abstract

For the past several decades in the United States, a tension has existed between the goals of historic preservation, the provision of affordable housing, and the creation of mixed‐income neighborhoods. Historic restoration for residential uses has often been associated with gentrification and the displacement of low‐income residents. This article examines the public and private sector support system for combining historic preservation with the creation of affordable and mixed‐income housing and neighborhoods and analyzes the strategies and experiences of the Baltimore neighborhood of Butchers Hill in taking this approach to community re‐vitalization.

Using historic preservation as a catalyst for community revitalization requires a comprehensive approach to prevent displacement of low‐income residents. In Butchers Hill, the mixed‐income community that was created was an outgrowth of conflict between two community‐based organizations. The case eludes simple typologies of gentrification and indicates the need for additional study of the dynamics and benefits of mixed‐income neighborhoods.     

Changing occupant characteristics in rural public housing in the Great Plains: 1977 to 1996

Abstract

Housing quality and affordability are growing concerns in rural areas, particularly in regions affected by economic restructuring and population decline. This article uses data from the U.S. Department of Housing and Urban Development to assess changes in the characteristics of nonmetropolitan public housing residents in the Great Plains between 1977 and 1996.

Results indicate that public housing occupants were younger and more racially diverse in 1996 than in 1977. Also, a larger proportion received welfare benefits in addition to housing supplements. (In 1977, few households received both types of assistance.) Regression models reveal a significant positive relationship between changes in county population, unemployment rates, and economic designation and minority representation in public housing. Implications include the need for flexible measures that meet the changing needs of subsidized households. The characteristics of these households in the Great Plains region indicate the need for both region‐specific and coordinated housing and welfare policies.     

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.     

The housing and neighborhood conditions of America's children: patterns and trends over four decades

This paper uses national and metropolitan area data from American Housing Surveys over four decades to examine the patterns and trends in the housing and neighborhood circumstances of children. Children across the income distribution have experienced dramatic improvements in the physical adequacy of their dwellings and in crowding but significant deterioration in housing affordability. Poor children are often in greatest jeopardy, with the rate of complaints about crime 25 percent higher in 2005 than in 1975, and the rate of school complaints twice as high in 2005 than 1975. Poor children also experience little payoff from residential mobility in terms of physical dwelling adequacy, crowding, affordability, or adequacy of schools, though moves are associated with fewer complaints about crime. However, it is the near poor – those between 101–200 percent of poverty – and not the poor who appear to be most affected by the tightness or looseness of the housing market.     

Subsidized housing and neighborhood racial transition: An empirical investigation

Abstract

Popular wisdom has it that the development of project‐based assisted housing will cause whites to flee or avoid the surrounding neighborhood, leading to rapid racial transition. This article examines the question of whether the development of several types of project‐based, federally assisted housing had an impact on neighborhood racial transition during the 1980s. In general, the development of assisted housing in a neighborhood did not lead to racial transition, nor did it approach levels suggesting “white flight” in the few instances where racial transition did occur.

The results of our analysis suggest that one of the major criticisms of project‐based assisted housing—that it contributes to racial segregation by causing white flight—is not supported by empirical evidence.     

Contesting belonging and social citizenship: the case of refugee housing in Armenia

Using the example of the right to housing, this article addresses the ways in which the practice of social citizenship, including popular claims and expectations and actual state provisions, has changed in post-Soviet Armenia. It examines the claims of Armenian refugees from Azerbaijan to state-provided permanent housing, which they consider the key condition for becoming ‘citizens’ and ‘locals’ in Armenia, and the Armenian state's solutions to the housing issue following the collapse of the Soviet Union. It demonstrates how the Soviet-era housing policy has left its mark on current notions and practices of social citizenship in Armenia. Even though social rights in general have decreased, notions of social citizenship are still present not only in the expectations and claims of needy refugees and citizens without housing but also in the state's acknowledgement of responsibility for its citizens' welfare (though currently providing only for those in extreme need), and in the equalising effect, the state housing programme has had for the majority of refugees who participated in it.     

Interpreting the dynamics of public housing: Cultural and rational choice explanations

Abstract

This article uses culture of poverty and rational choice theories of poverty to explain how quickly nonelderly household heads leave public housing. Data from the Panel Study of Income Dynamics serve as the basis for the analysis.

Although a significant proportion of all household heads have public housing spells lasting five or more years, the majority have spells lasting less than five years. The availability of other housing options has a strong impact on how quickly individuals move out of public housing. Family structure and human capital play a more modest role. To the extent that one's childhood experiences affect the likelihood of exiting public housing, they appear to do so mostly through their effect on the acquisition of human capital. Finally, the evidence presented is inconsistent with the notion that public housing is a trap from which it is more difficult to escape the longer one lives in it.     

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.     

Child characteristics and successful use of housing vouchers: Estimates from the moving to opportunity demonstration

Abstract

Voucher‐based programs have become the most common form of housing assistance for low‐income families in the United States, yet only a slim majority of households that are offered vouchers actually move with them. This article uses data from 2,938 households in the Moving to Opportunity demonstration program to examine whether child characteristics influence the probability that a household will successfully use a housing voucher to lease‐up.

Our results suggest that while many child characteristics have little bearing on the use of housing vouchers, child health, behavioral, and educational problems, particularly the presence of multiple problems in a household, do have an influence. Households with two or more child problems are 7 percentage points less likely to move than those who have none of these problems or only one. Results suggest that such families may need additional support to benefit from housing vouchers or alternative types of affordable housing units.     

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.