The Fight for the Suburbs

Originally published in the January/February 2018 issue of The New Republic.
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Due in no small part to his praise for white supremacists, his calls to deport immigrants, and his push to ban Muslims, Donald Trump has spurred Americans to protect racial minorities and work toward a more just society. That fight is playing out not just in sanctuary cities like New Haven and Los Angeles, or in the streets of Charlottesville. It is also being waged in Washington, at the Department of Housing and Urban Development.

One of HUD’s central responsibilities is to implement the Fair Housing Act, the landmark anti-discrimination law that turns 50 years old in 2018. While efforts to desegregate inner cities continue at a frustratingly slow pace, fair housing advocates did win significant victories during the Obama years. In 2015, HUD issued a rule that provided local governments with new data tools to identify segregated living patterns and meet their legal obligations to promote integration. “These actions won’t make every community perfect,” Barack Obama said at the time. “But they will help make our communities stronger and more vibrant.” A year later, the administration issued another regulation to help families move out of poor, segregated neighborhoods—in part by increasing the purchasing power of their housing vouchers.

But Trump’s administration threatens to undercut these gains. HUD Secretary Ben Carson has criticized the Obama-era rules as “mandated social engineering” and promised his agency would “reinterpret” them. Over the summer, the department announced it would be suspending the rule to help poor families relocate to more affluent neighborhoods, prompting the NAACP Legal Defense Fund and other civil rights groups to file a lawsuit in response.

But the struggle for fair housing is not simply a series of legal fights over regulations and subsidy formulas. It involves much larger battles—ones that take aim at Americans’ basic living patterns and the country’s history of government-sponsored segregation. And as the racial makeup of our cities and suburbs continues to shift, this conflict could profoundly impact U.S. electoral politics. Indeed, civil rights advocates maintain, a successful push for fair housing could transform not only the demographics of our country but even its political future.

The Fair Housing Act was born out of racial violence. Following the urban riots that exploded across the country in 1967, President Lyndon Johnson established the Kerner Commission to investigate the unrest. In February 1968, the commission pointed to insidious racial segregation as the cause, having created “two societies, one white, one black.” That month, Democratic Senator Walter Mondale and Republican Senator Edward Brooke—the only African American in the Senate—introduced the Fair Housing Act. The law would help create “truly integrated and balanced living patterns,” Mondale said.

Critics argued that making it easier for black families to move into white neighborhoods would trample their property rights and constitute “discrimination in reverse.” Still, as racial strife grew more pronounced, and as Martin Luther King Jr. traveled the country calling for an elimination of the nation’s slums, pressure to address segregated housing continued to mount.

King’s assassination on April 4, 1968 finally pushed fair housing through an otherwise recalcitrant Congress. The day after King’s death, Mondale took to the Senate floor and implored his colleagues to uphold King’s legacy by immediately passing the bill. Johnson signed the legislation into law six days later.

The Fair Housing Act has grown stronger over the years. Its protections now cover seven classes: race, color, religion, sex, national origin, disability, and families with children. In 1988, Congress also beefed up the law’s enforcement mechanisms and increased the penalties associated with violating it.

Yet even with these gains, many urban areas still exhibit apartheid levels of segregation. In 2015, Mondale called integration the “unfinished business” of his fair housing law. “When high-income black families cannot qualify for a prime loan and are steered away from white suburbs, the goals of the Fair Housing Act are not fulfilled,” he said. “When the federal and state governments will pay to build new suburban highways, streets, sewers, schools, and parks, but then allow these communities to exclude affordable housing and nonwhite citizens, the goals of the Fair Housing Act are not fulfilled.” In many ways, the country remains divided into two societies—one white, one black.

Exploiting the country’s racial divisions has been a feature of modern American politics since at least Richard Nixon’s adoption of the Southern Strategy. Over the past half-century, Democrats have consolidated support in cities, while Republicans have increasingly targeted rural areas. Since Trump’s victory, these trends have fueled the argument that Democrats must win more white, working-class voters if they are to reclaim political power.

But this tidy framing of cities versus rural America overlooks today’s true electoral battleground: the suburbs. Following World War II, as affluent whites fled the inner cities, suburbs became a central pillar of support for the Republican Party. In 1980, 78 percent of suburban census tracts were predominantly white. That fell to 42 percent by 2009, and diverse suburbs jumped from 16 percent to 37 percent over the same period. Suburban areas, in other words, no longer resemble the Leave It to Beaver landscape of yesteryear. Today, more than 60 percent of suburbanites live in integrated or predominantly nonwhite areas.

These shifts present problems for the Republican Party—which has historically relied on the suburbs as bulwarks against blue cities—and opportunities for Democrats, as evidenced most recently by the gubernatorial election in Virginia. In 2016, though Trump won more suburban votes than Hillary Clinton, he was still the third Republican presidential candidate in a row to fail to win 50 percent of the suburban vote. Trump lost not only inner-ring suburbs around Chicago, New York, and Philadelphia, but also places like Cobb County, Georgia—which The New York Times once referred to as the “suburban Eden where the right rules.”

Fair housing has always been partly political in its aim. “The existence of segregated residential patterns helps politicians draw safe districts for white voters,” says Elizabeth Julian, a former HUD official and founder of the Inclusive Communities Project, a Dallas-based fair housing group. She argues that breaking down the racial, ethnic, and economic barriers that prevent people from living where they’d like to is not only good policy, but could also defuse some of the explosive dynamics that gave rise to Trump, and bolster the Democratic coalition in the process. “The political potential of integration is an overlooked benefit of integration,” Julian says.

Policies that promote desegregation could, of course, invite backlash. White suburban voters could retreat further into the fast-growing, right-leaning exurbs. And those who stay put could grow even more conservative if they feel a greater sense that their neighborhoods are being threatened by newcomers who don’t look like them. Still, those who worry about what Trump represents would do well to explore the possibilities of integrated, inclusive communities as a way to deny racial demagogues easy political footing. The Fair Housing Act was passed to spare America from what seemed to be a looming collapse. Now, at 50, it may yet do so.

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Court Forces Ben Carson To Be a Civil Rights Champion For a Day

Originally published in The Intercept on January 2, 2018.
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Ben Carson will soon deliver a major victory for civil rights activists on behalf of the Trump administration, implementing a new rule that will give more than 200,000 low-income families in 24 cities significantly improved access to housing in high-income neighborhoods.

Carson, however, has not suddenly become a champion of civil rights now that he is secretary of Housing and Urban Development. The rule was crafted by the Obama administration and a court ordered the Trump administration to enforce it.

The policy attempts to resolve a seeming defect in the U.S. Department of Housing and Urban Development’s housing voucher program: that vouchers are worth the same amount across an entire region. That means most voucher holders can’t afford to move into wealthier neighborhoods because their subsidy isn’t large enough to cover rent. Landlords in poor neighborhoods can, in turn, price gouge voucher holders, who have nowhere else to go. The new rule requires public housing authorities to alter the way they calculate rent subsidies, effectively making vouchers worth more in affluent areas and worth less in poorer communities.

At the time of filing, HUD had offered little explanation for suspending the rule. It abruptly made its announcement in an August letter to public housing authorities, and when The Intercept asked for further comment in October, HUD spokesperson Brian Sullivan said there had been “no change in policy.” He pointed to an August 25 blog post drafted by Acting General Deputy Assistant Secretary Todd Richardson, which said the decision was “informed by research” and that it would be beneficial to delay the rule’s implementation to allow for further study.

On December 1, HUD offered more detail. In court filings, the federal agency argued its actions fell under its broad discretionary power and therefore, were not subject to judicial review. HUD also released a previously undisclosed August 10 memo from Carson, outlining the agency’s rationale for the rule’s delay. Carson’s memorandum relied heavily on findings from an interim report, which found that of five areas selected to pilot the Small-Area Fair Market Rents, the total number of available units went down. HUD lawyers argued that these findings “fully and independently justif[y]” the suspension.

However, U.S. District Court Judge Beryl Howell disagreed. In her 47-page decision, she granted the plaintiffs a preliminary injunction and outlined why HUD’s legal authority is more circumscribed than the agency purported. She also noted that the interim report upon which HUD was relying was based on five areas selected for criteria totally unrelated to the 24 metropolitan areas picked to be subjected to the rule. “This is really apples and oranges, isn’t it?” she asked Johnny Walker, a U.S attorney representing HUD in court.

Sasha Samberg-Champion, the attorney who argued on behalf of the plaintiffs at the December 19 hearing, told The Intercept that he and his colleagues were heartened and impressed by how well Howell understood the issues. “She was just phenomenally well-prepared, not only having read the parties’ briefing papers, but she also really dove into the documents presented,” he said. “I think HUD was just not prepared to answer questions at the level of specificity that she was asking.”

For example, when Howell asked HUD’s counsel if any of the 24 metropolitan areas had “formally, or even informally” requested that the federal government suspend its implementation of the Small Area Fair Market Rents rule, both Walker and HUD’s trial attorney David Sahli said they weren’t sure. Sahli eventually admitted that to his knowledge, no such request had been made. This was notable, because the final rule indicated that a suspension could occur at the request of a public housing authority.

One of the plaintiffs’ main arguments was that HUD violated the Administrative Procedure Act, an important federal statute that imposes specific limitations on the process of agency rule-making, including a requirement that agencies collect and respond to public comments. “HUD’s main argument was that there’s a regulatory provision that gives the secretary carte blanche to suspend the rule at any time for any reason, and the judge clearly was skeptical of that,” said Samberg-Champion.

Perhaps foreseeing Howell’s skepticism, HUD announced in early December that it would open up a 30-day period to solicit public comment about suspending the Small-Area Fair Market Rents rule. That 30 days began December 11.

HUD claimed that by opening up a month for public comment, it had rendered the plaintiffs’ procedural claims moot. “This argument is meritless,” wrote the plaintiffs in a reply brief filed in December. “If anything, HUD’s belated notice simply confirms the illegality of its suspension.”

“Procedurally, this is totally irrelevant because the Administrative Procedure Act doesn’t allow you to solicit comments belatedly,” explained Samberg-Champion. “But for whatever reason, atmospherically, HUD felt they needed to do this.”

It’s not clear whether HUD will appeal Howell’s decision. Sullivan, the HUD spokesperson, did not return The Intercept’s request for comment.

“I’m not going to make any predictions about what HUD will or won’t do, but I hope they will now carry out the laws they’re supposed to,” said Samberg-Champion. “They have the right to appeal should they choose, but I hope they don’t do that. All they’d be doing is frankly stalling, and they would lose that as well.”

Ajmel Quereshi, a senior counsel with the NAACP Legal Defense and Educational Fund, another civil rights group participating in the lawsuit, told The Intercept that at a minimum, HUD has an obligation to “immediately begin working” with local housing agencies to implement the rule, so the new payment standards can take effect as soon as possible.

“We expect they’ll comply with the court order,” he said, “and we look forward to working with HUD to see positive results for thousands of families.”

Civil Rights Group Sue Ben Carson For Delaying Anti-Segregation Housing Reform

Originally published in The Intercept on October 23, 2017.
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A coalition of civil rights organizations filed a lawsuit on Monday against the U.S. Department of Housing and Urban Development and its secretary, Ben Carson. The suit is aimed at stopping a move by Carson the civil rights groups say will only further racial and economic segregation.

A policy known as the Small Area Fair Market Rent rule was set to go into effect on January 1, 2018, after years of advocacy, research, and public debate. In August, however, HUD abruptly announced it would be delaying the rule’s implementation for two years, claiming that further study was needed.

Brian Sullivan, a HUD spokesperson, told The Intercept that while his office cannot comment on any pending litigation, the delay of the Small Area rule does not represent any change in agency policy. “I gather there are some who believe this is a change of policy, or that it might signal a change in policy, but there is no change in policy,” he said. Sullivan also referred to a blogpost HUD posted on August 25 reiterating this point, specifically that the delay was a decision “informed by research” and that waiting until next summer when the pilot’s final report is released will allow for more successful implementation.

More than 5 million people in 2.2 million households use federal housing choice vouchers — colloquially referred to as Section 8, referencing the statute that created the subsidies — to help afford rent on the private market. The subsidies, however, are based on metropolitan-wide rent formulas, meaning that many low-income families are often relegated into communities with few job opportunities, poor schools, and high crime. The rule change would have required — or will require — public housing authorities to calculate so-called fair market rents based on ZIP-codes instead.

While tweaking a rent subsidy formula sounds minor and technical, the policy could impact millions of low-income people, especially African-Americans, who represent a disproportionate number of voucher-holders.

“The delay of this rule will have a segregative effect, denying these primarily African-American families who would want to move out of their neighborhoods the chance to do so,” said Ajmel Quereshi, a senior counsel with the NAACP Legal Defense and Educational Fund, one of the groups that filed the lawsuit. “This case is about more than just housing. Of course they hope to live in a higher-quality residences, but it’s really about people who want to move to better and safer neighborhoods but they can’t because of the value of their voucher. It’s about schools and transportation and doctor visits and grocery stores that people want to be able to access to support their families.”

One such voucher recipient is Crystal Carter, an African-American woman living in Hartford, Connecticut, and a plaintiff in the suit. Carter had been looking forward to January, so that she could finally move herself and her five children out of their low-income neighborhood into a safer, nearby suburb.

The Small Area Fair Market Rent rule would, in effect, make housing vouchers worth more in more affluent areas, and worth less in poorer communities. As it stands now, most voucher recipients like Carter can’t afford to move into nicer  neighborhoods because their subsidy isn’t large enough to cover rent.  Landlords in segregated neighborhoods can, in turn, price gouge their voucher-holding tenants, who have little choice but to pay up.

The lawsuit — brought by attorneys with the NAACP Legal Defense and Educational Fund, the Poverty and Race Research Action Council, the Lawyers’ Committee for Civil Rights Under Law, Public Citizen, and Relman, Dane and Colfax — argues that HUD’s failure to implement the Small Area rule violates the Administrative Procedures Act, the statute which governs how federal agencies propose and implement regulations. The attorneys have called on the U.S. District Court of the District of Columbia to temporarily and permanently enjoin the suspension of the rule.

This lawsuit is the latest in a series filed over the past nine months against the Trump administration for violating the act. When Trump’s Environmental Protection Agency rescinded a rule requiring dental offices to reduce the amount of mercury they discharged into the environment, anadvocacy group sued, arguing that the EPA violated the Administrative Procedures Act by failing to provide sufficient notice or opportunity for public comment. (The EPA has since reinstated the rule.) When 19 Democratic state attorneys general sued the Department of Education in July forindefinitely delaying rules that would provide increased protection for student loan borrowers, they argued that the department violated the Administrative Procedures Act, again failing to give sufficient notice and time for comment.

“So much about this administration’s violation of norms is about pushing the envelope, seeing how much they can get away with before the courts step in,” said Megan Haberle, a Poverty Race and Research Action Council attorney involved with the new HUD lawsuit.

The new lawsuit was borne out of an earlier HUD case, filed in 2007 by the Inclusive Communities Project, a Texas-based fair housing organization. The group challenged HUD’s policy of setting a single fair market rent for the 12-county Dallas metropolitan region, alleging that its formula violated the Fair Housing Act by effectively steering black renters away from predominantly white areas, and confining them into poorer, segregated ones. The lawsuit was settled in 2010, with HUD agreeing to institute fair market rents at the ZIP-code level in Dallas. In 2014, researchers published an independent study of Dallas’s experiment with ZIP-code level rent subsidies, finding that the new policy enabled many low-income voucher holders to move into more affluent communities and at no net-cost to the government.

Fair housing advocates who wanted to see the Small Area rule expanded beyond Dallas kept up pressure on HUD to revamp its policies across the board. The federal housing agency eventually responded by launching a pilot study in 2012, testing the policy in five states. By 2016, HUD had collected enough data to determine that voucher recipients’ average neighborhood poverty level decreased after switching to Small Area Fair Market Rents and that the moves were relatively cost-effective.

On November 16, 2016, HUD published its final rule requiring 187 public housing authorities across 24 metropolitan regions to adopt Small Area Fair Market Rents. The metro regions — selected for their degree of voucher concentration and their housing vacancy rates — were given until January 1, 2018, to implement the new ZIP-code-level formula.

Advocates were incensed when the Trump administration pulled the plug a little over two months ago, without offering clear explanation why.

“HUD is required by law to go through a process that opens what it’s doing to public comment, to be transparent, and they’ve shirked that obligation very clearly,” said Haberle, the Poverty Race and Research Action Council attorney. “As far as is there a speculative rationale here even if HUD isn’t articulating it? No.”

Haberle emphasized that HUD’s rule drafting process was painstaking, beginning with the Dallas lawsuit, the pilot studies and their evaluations, and many stakeholder consultations thereafter. Moreover, four days after HUD announced it would be delaying the rule, it released its interim pilot report, finding that the Small Area rule was working largely as expected.

The Small Area rule has been opposed by housing industry groups such as the National Association of Home Builders, the National Apartment Association, and the National Multifamily Housing Council. The National Association of Home Builders applauded the Trump administration’s suspension of the rule, which they had urged Carson to rescind in a private June meeting.

Under the Fair Housing Act of 1968, HUD carries an affirmative obligation to reduce racial segregation in federal housing programs. As HUD made clear in 2015, this means it must take proactive steps to “overcome the legacy of segregation, unequal treatment, and historic lack of opportunity in housing.”

“Violations in every Administrative Procedures Act case sound so boring, but this lawsuit is significant not only because it challenges the way the Trump administration tries to break the law, but also because of what’s actually at stake for the people who were counting on access to these vouchers,” said Allison Zieve, an attorney with Public Citizen. “This will have a concrete effect on real people who were counting on this.”

The Hopes and Fears Around Ben Carson’s Favorite Public Housing Program

Originally published in CityLab on April 21, 2017.

When Democratic senator Elizabeth Warren asked Ben Carson what he would do as HUD secretary to address the condition of U.S. public housing, Carson enthusiastically singled out one program for praise—the Rental Assistance Demonstration program (RAD), a five-year-old federal initiative that has gone largely under the radar. He said he’s “very encouraged” by RAD’s early results, and “looks forward to working with Congress to expand this worthy program.”

RAD works by transferring public housing units to the private sector, so that developers and housing authorities can tap into a broader range of subsidies and financing tools to rehab and manage the units. Given Congress’s refusal to adequately fund public housing and the billions of dollars needed for backlogged repairs, supporters say RAD is the best available option to preserve the affordable units, lest they become too uninhabitable for anyone to live in at all.

Roughly 60,000 public housing units have been converted to project-based Section 8 rentals through RAD since its launch in 2012, and Congress has authorized 185,000 units to be converted in total. Technically, all public housing tenants should be able to return to the private units if they want to, though housing advocates fear the RAD statute has loopholes that could prevent this goal from coming true.

It’s little surprise that RAD—a revenue-neutral program that leverages the private sector—might appeal to leaders like Carson. RAD has garnered strong bipartisan support among Republican and Democratic legislators alike, and many expect its congressional cap to be lifted altogether in the coming years, potentially setting the stage for a radical change to much of the nation’s public housing.

But there are housing advocates concerned about how fast RAD is moving, and they warn that oversight and transparency remain mixed at best. For some tenants, the conversions have been a nightmare.

Katrina Jones, a single mother of three, had been living in public housing for a decade when she learned that her subsidized building in Hopewell, Virginia, would be razed through RAD, and new affordable apartments would be built in its place. Jones, who has one daughter confined to a wheelchair, was thrilled by the prospect of long-overdue housing repairs and upgrades for her 1960s-era building.

However, according to HUD complaints filed in December, the Hopewell housing authority and the nonprofit RAD developer refused to make accommodations for Jones and her family, convincing her to take a tenant buy-out. At the time, Jones’ son was facing criminal charges (which were later dropped), and she needed money to pay his attorney fees. Jones says the housing authority knew about her son’s situation, and pressured her to take the money and leave., half of which went towards paying attorney fees to defend her son against criminal charges that were later dropped. Jones says the housing authority knew about her son’s situation, and pressured her to take the money and leave.

Jones now works at WalMart and pays $1,450 per month for an accessible unit in Chester, Virginia; her public housing rent had been $400 a month. “I’m living a whole new life right now where I’m struggling more every single day just to keep my current apartment,” she says. “These people don’t care what happens to you once you’re out.”

Jones is one of a dozen former tenants named in complaints recently filed by Virginia legal aid lawyers who say the Hopewell RAD conversions violated a wide range of federal laws and regulations—including unlawful threats of eviction and discrimination against families with children and the disabled. HUD is investigating the allegations, but tenant advocates say the problems documented in Hopewell reflect larger accountability issues related to the program.

It’s not just in Virginia. John Kelly, a 74-year-old tenant living in public housing in San Francisco, is currently under threat of eviction for not signing the lease of his building’s new RAD landlord, the Tenderloin Neighborhood Development Corporation (TNDC). Kelly, who has been reaching out to housing nonprofits and HUD for the past six months, says the lease he’s being asked to sign is “illegal, dishonest, unconscionable.”

Kelly describes himself as “not a big fan” of government, and he thinks private organizations could do a better job of managing his building than the San Francisco housing authority. But his experience dealing with RAD, he says, has been terrible.

Terry Bagby, a 58-year-old veteran who also lives in Kelly’s building, agrees it’s been extremely stressful. “A lot of our questions go unanswered by all these different agencies that come and have meetings with us,” he says. “I’m surprised I haven’t had another heart attack or stroke dealing with all this nonsense. I’d move out of this city in a heartbeat if I could.”

TNDC did not return multiple requests for comment, but Sarah Sherburn-Zimmer, executive director of the San Francisco-based Housing Rights Committee, says local groups have been working closely with the city to monitor RAD conversions. Some developers have been responsible, she says; with others it’s been more of a struggle.

“Tenants are distrustful, for real reasons,” says Sherburn-Zimmer, referring to the city’s history of displacement and eviction. “You definitely get some agencies who have young workers, new to town, who tell tenants everything is going to be great. Tenants aren’t stupid; they want everything in writing.”

Whether these are isolated incidents or signs that RAD portends greater risks for tenants in the future is not yet clear. The serious shortcomings of earlier housing programs like HOPE VI and Section 236 loom large. Both Bagby and Kelly expressed fears that their city’s commitment to low-income housing will eventually disappear.

Kim Rolla, a lawyer who helped file the Hopewell complaint, says she and her colleagues got a lot of pushback from other affordable housing advocates after contacting the media about HUD’s investigation. “It was the same week that the budget cuts were announced, and they said, ‘Why would you criticize this HUD program right now?’”

Jessica Casella, a staff attorney with the National Housing Law Project, says that Hopewell is the most egregious complaint she’s heard of, but her organization has documented many kinds of tenant RAD issues over the past few years. She also admits there are many places where nobody really knows how these conversions are going. “One of our major concerns is the level and quality of oversight by HUD,” says Casella. “I think HUD has put its emphasis on getting properties to closing, and much less effort in making sure that after deals are finalized, the transitions go smoothly.”

Transparency around RAD has also been a challenge for advocates, academics, and reporters. Rolla says she and her colleagues faced serious difficulty accessing basic information about the Hopewell RAD deal—and their request to have hundreds of dollars in FOIA fees waived was denied on the grounds that such disclosures were “not in the public interest.”

Tom Davis, the director of HUD’s Office of Recapitalization, which oversees RAD, says his agency is trying to make RAD “the gold standard in terms of protections of residents,” noting that it has far more rules and regulations for tenant treatment than almost any other federal housing program. Davis says there’s also been a lot of work over the last 18 months to upgrade the procedures related to how HUD monitors properties post-conversion, including proactively reaching out to public housing authorities to ensure there are no issues.

“I think if there are any agencies out there meant to protect us, they’re not funded that well,” said Terry Bagby, wearily. “They probably don’t have a lot of people working on their staff, and are underpaid.”

Going forward, as HUD continues investigating Hopewell, advocates hope to make sure that the federal housing agency’s commitment to RAD oversight doesn’t waver.

Unlearning the lessons of the housing crisis

Originally published in Curbed on January 19, 2017.
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Nearly six million American families lost their homes to foreclosure between September 2008 and September 2015.

This unprecedented housing crisis, promulgated by well-documented Wall Street fraud and predation, led—eventually—to government action, culminating in July 2010, when President Obama signed the Dodd–Frank Wall Street Reform and Consumer Protection Act into law.

Dodd-Frank outlawed some prominent forms of predatory lending and established a new agency—the Consumer Financial Protection Bureau—whose primary mandate is to aggressively penalize firms for fraudulent and shady business practices. Three years after its launch, the CFPB had addressed more than 400,000 consumer complaints concerning issues like unauthorized credit card fees and ballooning mortgage payments, and distributed more than $10 billion in settlements back to consumers.

Another three-odd years later,  Donald J. Trump’s surprising presidential victory has sent a deep chill down the spines of housing and civil rights advocates across the country. In his capacity as a developer, Trump was a defendant in one of the largest cases ever brought by the federal government for housing discrimination against African-Americans. In his short political career, he has pledged to deregulate the housing and financial sectors, and his early cabinet appointments have close ties to Wall Street.

“We’re about a decade out from the housing crisis, and it’s important that we don’t succumb to this collective amnesia about what happened,” says Sarah Edelman, the director of housing policy at the Center for American Progress. “We’re at real risk of returning to predatory lending and losing the protections Congress put in place to make sure nothing like that ever happens again.”

The Fair Housing Act of 1968 bars landlords, lenders, and sellers from discriminating based on race, sex, religion, or national origin, and requires recipients of federal funds to proactively promote housing integration. In 2015, under Obama, the Department of Housing and Urban Development released a new federal rule—known as the “Affirmatively Furthering Fair Housing Rule”—to provide communities with new tools to ensure they meet their fair housing obligations.

At the time, Republicans decried the AFFH rule as government overreach. Trump’s now-nominee for HUD secretary, Ben Carson, called it a dangerous “social engineering” scheme in an opinion piece published during his 2015 primary run. And while campaigning for president, Trump said he’d rescind the rule.

Already active litigation regarding violations of housing and civil rights law would also likely be stymied by a motivated Trump administration. For context, the civil rights division of the Department of Justice filed more than 100 lawsuits between 2012 and 2015, with a majority of those casesconcerning housing and lending discrimination. Former DOJ officials predictthat Trump’s administration will not be as committed to enforcing fair housing laws, especially if the Senate confirms Alabama Senator Jeff Sessions as the incoming attorney general.

Sessions allegedly railed against the NAACP and the ACLU for trying to “force civil rights down the throats of people,” according to testimony at his 1986 confirmation hearing for a federal judgeship (he was ultimately denied the position because of such remarks). If Sessions brings this point of view to his new role, Justice Department lawyers working on fair housing cases could be reassigned, and Trump’s team could simply avoid pursuing similar suits in the future.

Stuart Rossman, a staff attorney at the National Consumer Law Center, raises several additional concerns for fair housing advocates. For the past few years, two homeowners’ insurance trade associations have been challenging a 2013 HUD rule that formalized how housing discrimination cases could be tried under the so-called “disparate impact” standard, which lets individuals allege housing discrimination without having to prove that someone intentionally sought to discriminate.

The Obama administration has vigorously defended the rule in court. “Will the [Trump] government now throw up their hands and send their lawyers home?” asks Rossman. If the rule is thrown out, individuals may find it more difficult to bring fair housing cases forward.

And then there’s the matter of proving these cases once they’re on the docket. At present, the federal government collects detailed demographic data from banks under the Home Mortgage Disclosure Act, including price data for loans and information about who has been denied service. “Banks very much want to keep this information private, because they know when it’s collected it will be scrutinized,” Rossman explains. By evaluating HMDA data, lawyers can assess if banks are treating some groups of people differently than others.

“I’m not saying there’s not overt discrimination cases out there, but the systemic, institutional type of cases which affect a broad range of individuals are far more likely to [fall under] disparate impact,” Rossman says. “The banks, auto lenders, and insurance companies are far too sophisticated to engage in overt sexism, racism, and ageism. If you can’t get that aggregate analysis to make a disparate impact claim, you’re in a really bad spot to sue.”

Since the HMDA’s passage in 1975, each administration has had a fair amount of discretion to interpret the law. If, say, Trump’s team decides they don’t need to require banks to report as much information as they do now, changing HUD’s disclosure requirements, lawyers could find themselves locked out from the sort of aggregate data needed to prove housing discrimination in court.

Rossman also points to a tactic taken by George W. Bush’s administration, which used the Office of the Comptroller of the Currency to protect banks from civil rights suits initiated by state attorneys general and private lawyers. That means there are multiple strategies the Trump administration could pursue to avoid fair housing litigation at both the federal and local levels.

On the finance side of the equation, Trump’s nominee to lead the Treasury Department is Steven Mnuchin—a Goldman Sachs veteran of 17 years. Mnuchin founded and ran a mortgage lender, OneWest Bank, that was recently accused of housing discrimination in a federal complaint filed by two nonprofit groups. According to the complaint, OneWest (now a subsidiary of CIT Bank), was far more likely to foreclose on black and Latino homes than to lend to those owners, and neglected to maintain foreclosed homes in black and Latino neighborhoods, hastening their decline, while it actively maintained foreclosed homes in majority white areas.

“Mnuchin has a lot of rhetoric about his interest in protecting working families, but that’s not what his record has shown,” says Paulina Gonzalez, the executive director of the California Reinvestment Coalition, one of the groups to lodge the complaint. “The evidence speaks for itself.” That evidence now includes a newly disclosed 2013 memo from the California attorney general’s office alleging that OneWest repeatedly flouted a variety of foreclosure laws.

Mnuchin isn’t the only Goldman alum lined up to set financial policy in the Trump era. The president-elect has also named Gary Cohn, the president and COO of Goldman Sachs, to direct the National Economic Council, the president’s main forum for economic policy advice. Likewise, Jay Clayton, a Wall Street attorney whose firm has long represented Goldman Sachs, was recently nominated to lead the Securities and Exchange Commission. During the last administration, SEC regulations were key to holding banks accountable for bad behavior that led to the mortgage crisis, but the New York Times calls Clayton’s appointment “a strong signal that financial regulation in the Trump administration will emphasize helping companies raise capital in the public markets over tightening regulation.”

Trump will also have the ability to appoint leaders to all three of the major financial regulatory agencies: the Federal Reserve, the Federal Deposit Insurance Corporation, and the OCC. “Though the good news is we now have legal standards that prohibit irresponsible lending, it only underscores how important those regulatory agencies are, and their leadership,” says John Taylor, the president and CEO of the National Community Reinvestment Coalition.

“These appointments are critical,” Taylor continues. “Is [Trump] finding people whose first obligation is to ensure that average working class Americans are treated fairly, or is he looking out primarily for the businesses and agencies that might be affected by regulation?”

Ultimately, housing advocates worry about what will happen if Trump and congressional Republicans deregulate the housing industry and repeal the young Dodd-Frank law. Trump’s transition team has already said it’s looking to “dismantle” Dodd-Frank and Mnuchin has said targeting it would be a top priority for him. Many experts have suggested that rather than go through the trouble of repealing Dodd-Frank entirely, Republicans may look for ways to starve it, rendering it ineffective.

David Dayen, journalist and author of Chain of Title, a 2016 bestseller on the foreclosure crisis, says Trump may even be motivated to “weaponize” Dodd-Frank—using it to selectively advance his personal goals.

For example, Obama’s Justice Department has been pressuring Deutsche Bank to pay billions of dollars for its malfeasance during the housing crisis. Trump owes Deutsche Bank $364 million. Similarly, the FDIC and the Federal Reserve have been investigating Wells Fargo for anti-consumer practices. Donald Trump owes $410 million to Wells Fargo. Dayen sums up Trump’s fiscal conflicts of interest: “Trump may find it very appealing to be able to prosecute some financial institutions and not enforce rules at others.”

The unraveling of post-housing crisis protections could be especially dangerous as Republicans talk animatedly about privatizing Freddie Mac and Fannie Mae, the quasi-public agencies that help stabilize the U.S. housing market by securing the insurance markets and keeping mortgage rates low. Mnuchin has already said the next administration will get the government out of Freddie Mac and Fannie Mae.

On top of housing discrimination fears, advocates worry about what Trump’s administration could do to exacerbate demand for affordable housing across strata: for homeowners and renters, urbanites and rural dwellers. “After millions had their homes foreclosed upon, and millions more millennials delayed homeownership due in part to crushing student loan debt, demand for rental units has reached its highest levels since the 1960s, resulting in skyrocketing rents,” explains Diane Yentel, president of the National Low Income Housing Coalition.

Between 2005 and 2015, roughly nine million households moved from owning homes to renting—the largest change over any 10-year period on record. As a result, Wall Street firms started investing more heavily in single-family rentals, and a recent report out of Atlanta found that these institutional landlords were more likely to evict tenants than mom-and-pop ones. “It’s really important to keep watching these companies as they develop, because many of them are not located in jurisdictions with strong tenant protections,” Sarah Edelman says.

The stakes are high, and the litany of housing risks is long. But, thanks to the progress made over the last eight years, advocates at least will enter the Trump years with language and policy proposals they lacked a decade ago when foreclosures hit en masse. “Back then, progressives didn’t have a shelf of ideas, or the architecture to actually make the system safer,” says Dayen. This anti-discrimination framework will be threatened, and in some cases dismantled, under Trump. But it can also be defended, and restored.

 

 

Ben Carson, the GOP, and Subsidized Housing

Originally published in T’he American Prospect on December 16, 2016.
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Last week, Ben Carson, Donald Trump’s nominee to lead the Department of Housing and Urban Development, gave a talk at Yale University. He told students that the rumors that he planned to end housing programs for the poor are “a bunch of crap” and there is “no way” he’d ever do that. But housing advocates shouldn’t relax just yet. Even if Carson and Trump decide not to axe entire programs, they could still implement policies that create all sorts of new hardships for the millions of low-income people who live in public housing and use federally subsidized housing vouchers.

Trump would not be the first president to go after federal benefits for the poor. In 1996, President Bill Clinton signed the Personal Responsibility and Work Opportunity Reconciliation Act, which dramatically upended welfare in the United States. The law mandated two significant changes: the imposition of time limits for cash assistance, and the requirement that welfare recipients seek employment.

The welfare reforms of the 1990s have decimated low-income families. Over the past two decades, the number of families living in extreme poverty increased by 159 percent, while the number of families receiving cash assistance plummeted. Though more single mothers entered the workforce, the low-wage jobs they managed to find did little to alleviate their poverty. Moreover, when the economy tanked during the Great Recession, roughly one-fifth of all poor single mothers could neither find work nor access welfare. In 2015, researchers Kathryn Edin and H. Luke Shaefer wrote that more than a million U.S. households with roughly three million children survive on less than $2 per day.

Carson, the retired neurosurgeon and failed GOP presidential contender who recently said that he felt unqualified to lead any federal agency, is likely to rely on congressional Republicans who have long sought to adapt Clinton’s welfare reforms to federal housing policy.   

In mid-November, Representative Jeb Hensarling, the Texas Republican who chairs the Financial Services Committee that oversees HUD, spoke at the Exchequer Club in Washington, D.C., and said the federal housing agency “symbolizes the left’s top-down, command and control, centralized planning approach” that measures compassion for the poor “based on how many programs Washington creates” and how much money it spends. He vowed to switch gears, and “bring new ideas to the table” to fight poverty.

Indeed, shortly afterward, in Dallas, he told the J. Ronald Terwilliger Foundation for Housing America’s Families forum that Republicans would “turn the page” on housing come January. “The new Congress will help lift the poor onto the ladder of opportunity by attacking poverty at its roots, starting with work,” Hensarling said. “We will reform our housing programs for the poor to reflect the value of work.”

He added that HUD rental assistance programs, such as Section 8 vouchers and public housing, while they may be helpful, “do not promote economic freedom” and actually stand in the way of upward mobility. He promised to align housing benefits with cash assistance for “work-capable” recipients in order to “encourage” individuals to move towards jobs, careers, and economic independence.

House Speaker Paul Ryan also endorsed these ideas in his “Better Way” policy agenda, released in June. He said the federal government should “expect work-capable adults to work or prepare for work” in exchange for welfare benefits. He also called for Temporary Assistance for Needy Families (TANF) benefits to align with housing assistance.

These conservative proposals would have a devastating impact on people who are unable to meet work-for-benefits requirements. According to the Center on Budget and Policy Priorities, more than half of all recipients who lived in federally subsidized housing in 2015 were elderly or disabled, and more than a quarter of all households had a working adult. Six percent had a preschool-aged child, or a disabled child or adult.

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While CBPP says there’s little evidence available on the effectiveness of work requirements in federal housing programs, there’s ample data to show that cash assistance work requirements have done little to increase employment over the long-term, and have even sunk families into deeper, more severe poverty. This is critical to note given the significant barriers low-income individuals face to accessing stable jobs. As CityLab’s Brentin Mock found, workplace racial discrimination, employment penalties associated with incarceration, entry-level jobs that go to college graduates, and increased automation have all made it even harder for the poor to lock down steady employment.

As Jared Bernstein, a CBPP senior fellow, told The Atlantic: “I cannot overemphasize the importance of this fundamental flaw in poverty policy, i.e, the assumption that there is an ample supply of perfectly good jobs out there that poor people could tap if they just wanted to do so.”

Diane Yentel, president of the National Low Income Housing Coaltion, took to Twitter last week to push back on Paul Ryan’s proposal to impose work requirements on public housing residents and federal voucher recipients. She urged the House speaker to invest his energy in devising strategies to make housing more affordable for low-income people. Only one out of four eligible low-income renter households even receive federal housing assistance, Yentel noted, and it’s those unassisted families in particular who are “one illness, job loss, or paycheck away” from homelessness.

Congressional Republicans’ interest in imposing work requirements and time limits on federal housing subsidies fit in well with the conservative rhetoric that Ben Carson has spewed over the past several years. During his presidential run, Carson insisted that welfare programs create cultures of dependency, harm poor families, and even “reward” people for having babies out of wedlock. Some have suggested that Carson’s lack of policy experience could mean he’d bring fresh blood and a “blank slate” to the housing agency. That’s doubtful. His dangerous ideas about welfare and work are already deeply ingrained, and, unfortunately, poised for prime time.

Should a New Tax Credit From Washington Subsidize Housing for the Middle Class?

Originally published in Next City on November 8, 2016.
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As voters head to the polls to vote on their next president, they will likely encounter a campaign ad or two promising that the candidate in question will deliver a better future for America’s middle-class.

But while presidential elections have long been about playing to the middle-class — or those who consider themselves to be in that hallowed American demographic, the question of how to build housing for them is now coming to Congress.

An Oregon senator has introduced a bill to create a new federal program that would incentivize developers to build and preserve housing accessible to those families earning up to 100 percent of the area median income. In Portland, where the senator lives when he is not in Washington, the 2016 AMI for a family of four is $73,300.

The “Middle-Income Housing Tax Credit” proposed by Sen. Ron Wyden (D-OR) is modeled after the 30-year-old Low-Income Housing Tax Credit, the largest federal program to support placed-based affordable rental housing, which requires that units must target those earning 60 percent or less of the AMI. Wyden’s idea is to create a program for middle-class families who struggle to afford housing, but who earn too much to qualify for federal subsidies restricted to the poor. Sounds pretty good, right? Well, as the housing industry — including powerful lobbying groups such as the National Association of Home Builders— lines up behind the bill, a growing number of advocates for low-income populations and affordable housing organizations are saying no — and urging the Senator to focus on those with the most several housing needs instead.

National Low-Income Housing Coalition president Diane Yentel says Wyden’s bill is a misguided and wasteful use of federal resources. In an email to Next City, Yentel said that data clearly shows that for households in the 80 percent to 100 percent income band, there’s little to no need for a federal solution. Just 101,623 of those renters are severely cost burdened, compared to the 7.8 million extremely-low income households that have severe cost-burdens.

“There are literally more children living in homeless shelters than there are severely cost-burdened middle-income renters,” Yentel wrote.

For households earning 61-80 percent of AMI that are severely cost-burdened, Yentel says you’ll find them clustered in just a few cities and a better solution to address those problems would be through a different bill co-sponsored by Wyden. That bill would allow some LIHTC developments to target households up to 80 percent of AMI, and to construct more low-income housing through the National Housing Trust Fund. This, she says, would create a “reverse filtering effect” that would help move extremely-low income individuals into affordable housing, and out of housing that would otherwise be affordable to households higher up the income scale.

Defenders of the middle-income tax credit proposal point to data released by the Harvard Joint Center for Housing Studies that found that in the 10 highest-cost metro areas, 75 percent of renter households earning $30,000-44,9999, and half of those earning $45,000-74,999 were cost burdened in 2014. In the Oregon cities represented by Wyden, more and more renters are feeling the pressure of a hot housing market.

“One of the arguments the LIHTC people brought up is that if the MIHTC passes, it will take funding away from the LIHTC,” says Carol Ott, an affordable housing advocate in Baltimore. “I’m concerned about this, but I firmly believe if we work hard enough, we can have both.”

Low-income housing advocates are skeptical. In the next Congress there will be major pushes to increase the LIHTC, to create a renters’ tax credit for the lowest-income families, to increase spending for family homelessness, to expand the Section 8 voucher program, and to increase funding for the National Housing Trust Fund. The National Low-Income Housing Coalition estimates that Wyden’s MIHTC proposal would cost $4.5 billion annually when fully implemented, and that to pass such a large housing subsidy for the middle class would very likely crowd out the political will for even larger investments for the poor.

A spokesperson for Wyden’s office told Next City that they’re not worried this would crowd out funding for low-income households, and that if state housing authorities want to use their Middle-Income Housing Tax Credit dollars to bolster their Low-Income Housing Tax Credit pool, they can do that.

Wyden is the Ranking Member of the Senate Finance Committee, and if Democrats regain control of the Senate after Election Day, his office says that pushing forward the Middle-Income Housing Tax Credit would “absolutely” a top legislative priority.

What The Texas Ruling Means for Fair Housing

Originally published in Next City on September 9, 2016.
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Fair housing advocates scored a major victory in 2015 when the Supreme Court upheld the so-called “disparate impact” standard, a legal theory that says individuals can allege housing discrimination under the federal Fair Housing Act without having to prove that someone intentionally sought to discriminate. The Inclusive Communities Project (ICP), a Dallas-based nonprofit, had argued in court that the Texas Department of Housing awarded its low-income housing tax credits in a way that perpetuated segregation, concentrating affordable housing in black neighborhoods with high poverty.

Lost amid the excitement of the nation’s highest court reiterating the aims of the Fair Housing Act, a law passed in 1968 that bars housing discrimination and requires recipients of federal funds to promote housing integration, was that ICP’s original case got sent back to a lower court for review. Two weeks ago, a district judge in Texas issued a new ruling for this case, finding that ICP failed to prove housing discrimination under the disparate impact theory. Their case has been dismissed, and they have not yet decided if they’ll appeal.

Fair housing disparate impact cases are fairly rare, and also hard to win. Stacy Seicshnaydre, a professor at Tulane University Law School, has analyzed the history of disparate impact claims brought under the Fair Housing Act. She found that plaintiffs were successful in only 20 percent of their cases on appeal, a notably low rate.

Seicshnaydre says that disparate impact cases under the Fair Housing Act are just generally more expensive and difficult, compared to other kinds of suits. They tend to require more outside expertise, for example, since one has to include a statistical analysis demonstrating there have been disparities.

“A Supreme Court decision eliminating the disparate impact theory would have been a huge setback,” says Seicshnaydre. “The fact that the district court decided the ICP didn’t prove its case is disappointing, but it doesn’t have the same impact that a Supreme Court decision would have had. Disparate impact theory is still recognized as a good theory, so I think that’s still an incredibly favorable result for the fair housing movement.”

Indeed, the past year and a half has brought about a host of additional gains for integration advocates. Just before the Supreme Court released its decision in 2015, Harvard economists Raj Chetty, Nathaniel Hendren and Lawrence Katz released a study illustrating the connections between one’s geography and economic mobility. The researchers analyzed which counties were the worst for facilitating upward mobility, demonstrating how opportunity is significantly impacted by where a person grows up. Research released this spring by Eric Chyn, an economist at the University of Michigan, found additional evidence to support the idea that moving poor children into higher-opportunity neighborhoods carries long-term benefits for them as adults.

The federal government has also stepped up its efforts to promote fair housing. Following the Supreme Court decision, HUD released a new federal rule to provide communities with the supports they need to meet their fair housing obligations. They have since pushed for historic fair housing settlements in places like Maryland and Minnesota, emphasizing the need to affirmatively integrate housing under the Fair Housing Act.

“These efforts and events are having an impact. They’re encouraging, and sometimes forcing, communities to grapple with difficult, entrenched issues that were decades in the making,” says Diane Yentel, president and CEO of the National Low Income Housing Coalition. “Much more scrutiny is being given to where and how affordable housing is developed.”

There have also been notable improvements in Texas since ICP first brought its original suit. The state agency revised its process for allocating housing tax credits, now offering greater rewards to developers seeking to build in higher-income areas. Some recalcitrant towns have presented challenges, but in Dallas, a housing committee on the city council has been working on a plan to expand affordable housing units throughout the city, as part of a major effort to write the city’s first-ever housing policy. The Dallas Morning News editorial board recently praised these efforts to create more mixed-income neighborhoods, saying this carries “the potential to make Dallas a more equitable city for all of its residents.” The committee’s proposals should head to the full city council as soon as next month.

Ultimately, to achieve fair housing, Yentel says we’ll need greater investment in programs like the National Housing Trust Fund and Section 8 vouchers, in order to expand access to affordable housing, while also revitalizing distressed areas. “Realizing fair housing means providing low-income people with genuine choices about where to live,” she says. “And that requires that we work towards making every community one of opportunity.”

When the Poor Move, Do They Move Up?

Originally published in The American Prospect on April 6, 2016.
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When Martin Luther King Jr. was assassinated in April of 1968, the bill that would become the federal Fair Housing Act was at risk of stalling in Congress. King’s assassination, and the nationwide civil disturbances that ensued, helped the Act sail through the legislative process. Lyndon Johnson signed the bill into law just two weeks later; today, in recognition of these transformative events, April has been designated National Fair Housing Month.

But the battle over the underlying aims of fair housing remains unfinished. Walter Mondale, one the Fair Housing Act’s primary sponsors, declared its objective to be the creation of “truly integrated and balanced living patterns,” and federal courts have interpreted that phrase to indicate that the elimination of racial segregation is a key aim of the 1968 law. Yet, 48 years later, the federal government still does very little to incentivize racially and economically integrated neighborhoods—chiefly because of the political peril involved, but also because scholars and housing experts have failed to resolve whether promoting integrated neighborhoods would even be desirable or beneficial. A wave of new research, however, is helping to settle the experts’ debate, and may pave the way to fulfilling the Fair Housing Act’s original promise.

Eric Chyn, an economist at the University of Michigan, recently published a housing mobility study that takes a long-term look at children who were forced out of Chicago’s public housing projects in the 1990s. Three years after their homes were demolished, the displaced families lived in neighborhoods with 25 percent lower poverty and 23 percent less violent crime than those who stayed put. Chyn finds that children who were forced to move were 9 percent more likely to be employed as adults than those who remained in public housing, and had 16 percent higher annual earnings. He suggests this could be partly due to the fact that displaced children had fewer criminal arrests in the long run and were exposed to less violence growing up than their non-displaced peers.

His study provides stronger evidence for the idea that moving to higher-opportunity neighborhoods is beneficial for the poor. In particular, Chyn’s study addresses an issue that housing policy researchers have been grappling with since the Moving to Opportunity (MTO) initiative—a large-scale experiment that involved moving randomly assigned families out of high poverty neighborhoods into census-tracts with less than 10 percent poverty. The experiment, which ran from 1994-1998, was devised to see if moving families improved their life outcomes. While relocation substantially lowered parents’ rates of depression and stress levels, MTO did not significantly improve their financial situation. However, researchers found that children who moved under the age of 13 were more likely to attend college and earned significantly more than similar adults who never moved.

Social scientists were left to question why the positive effects of relocation only seemed to appear for younger children. They also wondered whether the families that moved through MTO—all of whom voluntarily applied for vouchers in a lottery—shared characteristics that families who never applied lacked. Just a quarter of all families eligible to move through MTO applied for vouchers, and perhaps the experiment had some selection bias, effectively skewing the results.

By looking at Chicago’s public housing demolitions, Chyn was able to study the impact of moving on all families forced to relocate, not just those who volunteered to do so. Within this less select grouping, he finds that all children, including those who moved past the age of 13, experienced labor market gains as adults. This finding helps to reconcile some tensions in the neighborhood effects literature and suggests that MTO’s findings may be less reliable than previously understood.

Chyn concludes that his paper “demonstrates that relocation of low-income families from distressed public housing has substantial benefits for both children (of any age) and government expenditures.” Based on his results, Chyn suggests that moving a child out of public housing by using a standard housing voucher would increase the lifetime earnings of that child by about $45,000. He also argues that this policy would “yield a net gain for government budgets” since housing vouchers and moving costs are similar to project-based housing assistance.

But Chyn’s study—which focuses on Chicago’s projects in the 1990s—does not tell the whole story. In particular, it tells us little about what would happen if we involuntarily moved families out of public housing to racially segregated, slightly less impoverished neighborhoods today.

A series of economic trends and public policies significantly aided the poor during the 1990s—trends and policies that are nowhere in evidence today. As Paul Jargowsky, the director of the Center for Urban Research and Urban Education at Rutgers, has shown, in the ‘90s, the Earned Income Tax Credit was just being implemented, the minimum wage was increased, and unemployment dropped to 4 percent for a sustained number of years, which lead to real wage increases. The number of people living in high poverty neighborhoods between 1990 and 2000 dropped by 25 percent—from 9.6 million to 7.2 million.

“This [Chyn article] is a nicely designed study, but if you want to understand it, you have to understand everything else that was going on during that time period,” says Patrick Sharkey, an NYU sociologist who studies neighborhoods and mobility. Sharkey buys the finding that in this particular context, a forcible move may have actually helped kids growing up in Chicago in the 1990s, but he says to extrapolate those findings even to the current situation in Chicago, let alone other cities, would be a mistake. Chicago’s public housing during that period was widely recognized as the most violent, and troubled, in the entire country.

In an interview, Chyn says he agrees that Chicago “has some particular features that may limit how we can generalize” his findings, and acknowledges that the city’s public housing in the 1990s “was a particularly disadvantaged system.” He says that his results would best inform policy in other cities that have “high-rise, very dense, particularly disadvantaged public housing.”

Whatever its limitations, Chyn’s study adds to a substantial body of research on the effects that neighborhoods have on the children who grow up in them and their families. Given that most families with vouchers moved to neighborhoods that were only slightly less poor and segregated than the ones they’d left, there is reason to suspect that the labor market gains observed in both Chyn’s study and MTO represent just the lower bound of potential mobility benefits.

For example, 56 percent of displaced families in Chyn’s study still wound up in neighborhoods with extreme poverty, meaning census tracts with poverty levels that exceed 40 percent. The rest, nearly 44 percent of those displaced, moved to neighborhoods that were, on average, 28 percent impoverished—a poverty rate lower than the others, but still roughly twice the national average.

The fact that those who moved did better is not grounds to conclude that they are doing well. The average adult-age annual earnings for Chyn’s sample of displaced children was only about $4,315, compared to $3,713 for non-displaced children. (These numbers factor in the incomes of those who are unemployed.) Displaced children with at least some labor income as adults earned $9,437 on average, compared to $8,850 for non-displaced children.

In other words, while the labor prospects and earnings have improved for those who moved as children, they still remain quite poor.

Writing in The New York Times, Justin Wolfers, an economist, and one of Chyn’s thesis advisers, said these findings“could fundamentally reshape housing policy.” At minimum, they reinforce the growing body of evidence that suggests people who move into lower-poverty, racially integrated neighborhoods do better on a variety of social indicators than those who live in high-poverty, racially segregated ones. If our housing policy moves in a more integrative direction, that would be a fundamental shift.

Both Chyn and Raj Chetty, the lead researcher on long-term labor outcomes for children in MTO, have touted the cost-savings potential of moving families with standard housing vouchers. More important than these savings, though, is the question of whether these findings could spur a new commitment to integrative housing.

We know, based on research from sociologists like Sharkey, Stefanie DeLuca, and others, that poor, minority families are unlikely to relocate to whiter, more affluent neighborhoods without serious housing counseling and support. This kind of mobility assistance requires time and money—which the federal government currently does little to promote.

Over the past decade and a half, there has been a steep increase in the number of high-poverty neighborhoods—whose populations nearly doubled from 7.2 million in 2000 to 13.8 million by 2015. As Jargowsky has shown, this increase began well before the start of the Great Recession, and the fastest growth in the black concentration of poverty has been in metropolitan areas with 500,000 to 1 million people, not in the country’s largest cities.

Researchers are still exploring if it’s possible to improve the life outcomes of families that live in racially segregated, high-poverty neighborhoods through investments in those neighborhoods. For now, the evidence suggests that such investments are much less effective than mobility and integration (though, as DeLuca has noted, many such experiments have been underfunded or poorly designed). Chyn’s auspicious findings, released just in time for National Fair Housing Month, bolster the idea that moving families to neighborhoods with greater opportunity could significantly help the poor.

 

New York City Tackles School Segregation

Originally published in The American Prospect on December 9, 2015.
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Six decades after the Supreme Court ruled that segregated schools are “inherently unequal,” integration may finally be coming to New York City.

With 1.1 million students, New York City is home to one of the nation’s largest public school systems; it’s also one of its most economically and racially segregated.

For decades, nobody in the city besides a few die-hard activists seemed to care much. Over the past year and a half, however, a perfect storm of provocative research studiesnews reportsrezoning fights, and public advocacy have forced public officials to take notice.

Last month the New York City Department of Education announced that at the start of the 2016-2017 school year, seven public elementary schools will participate in a new pilot program designed to diversify student bodies. Each of the seven schools will be permitted to set aside a certain percentage of seats to give priority enrollment to various student populations, including English language learners and those living in poverty.

Though some advocates have expressed concern that the pilot program is too little, too late, there are signs that that even bigger desegregation efforts are yet to come.

This pilot represents the first concrete step taken by New York City Mayor Bill de Blasio’s administration towards desegregating the city’s public education system. Despite de Blasio’s reputation as a progressive, his administration has so far failed to tackle the segregation issue head-on.

As an example of his administration’s half-measures, earlier this fall, New York City Schools Chancellor Carmen Fariña suggested that instead of desegregating schools in poor neighborhoods, public schools could diversify by pairing students in wealthy schools with kids in low-income schools to share resources, meet in person, and become pen pals. Fariña also said school diversity could be promoted by teaching students about world religions in their classrooms.

These proposals drew fire from school equity advocates, but de Blasio defended them, and suggested that promoting school choice and high-quality schools are more pressing priorities than desegregation. Critics faulted de Blasio for perpetuating the policies of his predecessor, Michael Bloomberg, who also did little to tackle segregation.

“The whole idea of us voting Bill de Blasio into office, with his mixed family, was for him to usher in a new agenda—a progressive agenda,” says Jose Vilson, a New York City math teacher and prominent social justice activist. “But what we’ve seen is that he still has to deal with the old politics defined by Giuliani and Bloomberg.”

De Blasio also took heat for failing to follow up on the few steps toward integration that Bloomberg’s administration did take. At the start of the 2013-2014 school year, P.S. 133, an elementary school located in a gentrifying part of Brooklyn, unveiled the city’s first-of-its kind admissions program to reserve spots for English language learners and low-income students. Bloomberg’s then-school chancellor, Dennis Walcott, hailed the innovative program as a potential model for other schools.

But de Blasio failed to follow through once in office, and officials within his administration told principals who wanted to establish diverse admissions policies that the city lacked the legal authority to approve their requests. School equity advocates cried foul—pointing to federal Education Department guidance posted in 2011, which affirmed school districts’ legal right to promote diversity through admissions.

Now that de Blasio has come around, advocates make sure to point out that they had been right all along. David Tipson, the executive director of New York Appleseed, an organization that promotes equity in schools, says that the de Blasio administration’s recent pilot announcement “represents a complete and utter rejection of those bogus legal arguments” that they had used for so long.

MOST SCHOOL INTEGRATION ADVOCATES have hailed the seven-school pilot program, but warn that de Blasio’s one-school-at-a-time approach has pitfalls. There are more than 1,700 public schools in the city, and if desegregation efforts are not carefully coordinated, then desegregating one school can have the adverse effect of exacerbating segregation at another.

To really foster school integration, advocates say, the city needs to adopt what’s known as “district-wide controlled choice”—a desegregation model used in other cities, such as Cambridge, Massachusetts, and Champaign, Illinois—that aims to balance parental choice with diversity. Parents rank their top school choices within a particular district, and then the district assigns students in a way that accounts for those preferences while also ensuring that each school has an integrated student body. (In New York City, this would mean assigning students within the system’s 32 separate school districts.)

“There’s always a fear with incremental change that the most recent increment is your last—that maybe this is as much as we’ll ever get, but I think this [pilot announcement] is really just breaking the seal,” says Tipson, who notes that this is the first time the de Blasio administration has acknowledged that gentrification must be managed at the school level, and not just through housing policy.

The school integration debate will only intensify in New York City, where gentrification and school overcrowding are both growing issues. This past May, the New York City Council passed a new law known as the School Diversity Accountability Act that requires the city to annually publish detailed student demographic data and make clear what steps it has taken to advance school integration. The first report generated by the new law will be published at the end of December.

“I think the pilot program is a good first step, and I hope more schools will do it, but I also agree that in a city with 1,700 schools we have a lot more steps to take,” says City Council member Brad Landers, a co-sponsor of The School Diversity Accountability Act. “We have to keep pushing forward, and the most important and most immediate next steps need to be moving towards district-wide diversity.”

Julie Zuckerman, a principal at Castle Bridge, a Washington Heights-based elementary school participating in the diversity pilot, says when she first founded Castle Bridge six years ago, nobody was interested in discussing integration. She tried to get the city’s permission to prioritize diversity in their admissions lottery, but officials were not supportive. Now under the pilot program, Castle Bridge will be able to ensure that at least 60 percent of its student body qualifies for free or reduced-price lunch, and that the school educates at least 10 percent of kids with incarcerated parents.

Zuckerman says she also plans to build off the momentum from this pilot program to push for district-wide solutions. She currently serves alongside a half dozen other principals on a city superintendents’ advisory panel, where she intends to make the issue a priority.

“This [pilot] is not even a drop in the bucket, and yet it’s the first acknowledgement by the city that it doesn’t have to be the tail wagging the dog on gentrification,” she says. “Let’s harness gentrification instead of being determined by it.”

The seven schools in the pilot program all happen to be progressive schools—that is, institutions that test innovative, often experiential curricula in ways that appeal to middle-class parents. Though many of the progressive schools started out with diverse student populations, teachers and administrators say they have recognized that their school demographics have started to shift in recent years, as more affluent families apply, and poorer families find they can no longer afford to live in the city.

Jia Lee, a teacher at The Earth School, another diversity pilot participant, notes that over the last few years, her school has grown “much more white and middle class” and that it no longer feels “reflective of the community.” She says the school’s new set-aside policy, which will reserve 45 percent of its seats for low-income students, will help ensure that their school can educate a diverse student body in the years to come.

 

ONE OF THE BIGGEST POLITICAL CHALLENGES for advocates of district-wide controlled choice is garnering support from parents who send, or intend to send, their children to public schools that already have mostly white and affluent students. Last month, de Blasio told Chalkbeat NY: “You have to respect families who have made a decision to live in a certain area oftentimes because of a specific school.” In effect, he suggested that given the investments parents have already made to send their kids to certain schools, it would be wrong to try and modify those institutions after the fact.

His comments immediately garnered pushback. “Is it not disrespectful, in fact, to tell low-income families that they can’t go to a certain school because they couldn’t buy a several million-dollar co-op?” wrote Donna Nevel, a local educator and activist in an open letter published in The Huffington Post.

Experts say that the set-aside policies will work to prevent more schools from “slipping”—a term used to denote formerly diverse schools that have become heavily gentrified. If fewer schools “slip,” then there may be less political opposition to larger, systemic policy change.

Dao Tran, a parent of a third grader at Castle Bridge, says that while she doesn’t believe desegregation is something that can be solved school by school, she thinks advocates “have to start by showing certain integrated models that work.” In that sense, Tran believes the success of this pilot program could help to persuade skeptical parents.

“To me, these are all steps along the way, and I agree if we just stopped with this pilot then we have not done anywhere near enough,” says Landers, of the City Council. In a statement, the city’s education department also said the pilot program “remains one piece of a larger effort” to expand diversity across city schools.

The next step, advocates say, will be building a political consensus behind real change.

“It’s almost easier to talk about police brutality than it is to talk about school integration,” says Landers, noting that a swirl of of guilt, resignation, parents’ concerns for their own kids, and racism all work together to make school segregation a tough issue for people to reckon with.

But Ujju Aggarwal, a New York City education researcher and activist, voices optimism. In her 15 years in the district, Aggarwal says she has never seen school integration discussed so broadly until now.

“What’s increasingly clear is that this city has to take a stand respond to the crisis of inequality and segregation that is particularly pronounced in our education system,” she says. “I’m hopeful that with the increased visibility of this issue the city will respond in a more systemic way.”