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.”

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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.

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.

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.

 

Details Emerge for Baltimore’s Plan to Privatize Public Housing

Originally published in The American Prospect’s Tapped blog on September 9th, 2015.
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A little over a year ago I reported on the Rental Assistance Demonstration (RAD)—the federal government’s new plan to preserve public housing by turning units over to the control of private developers. Instead of Congress supporting public housing through direct subsidies to local housing authorities—a responsibility which they’ve persistently shirked for decades—RAD would enable private companies to rehab and manage public housing units in exchange for tax credits and subsidies. Developers would have to keep rents low, and their contracts would continually renew to prevent companies from turning affordable units into market-rate rentals.

Baltimore residents learned last summer that their city would be converting 40 percent of its public housing stock through RAD, but up until this weekend little was known about how exactly developers would be subsidized. On Saturday, Sun journalist Luke Broadwater shed some light, reporting that the city will issue tax breaks worth millions of dollars, and will sell its public housing complexes “for far less than their state-assessed value.” The nearly $100 million collected from the sales will be invested back into the city’s remaining public housing stock.

Through public record requests, Broadwater found that ten developers will be excused from paying $1.7 million in local taxes per year for at least the next 20 years. In addition to city tax breaks, each developer who buys a public housing complex will also receive millions of dollars from the federal government, through federal tax credits and “developer fees.”

Baltimore is one of the first cities to finalize its deals under RAD, and community members have mixed feelings about how officials pushed forward with the program. Housing advocates, tenants, and union workers have led protests, raising concerns of public housing loss, resident displacement, and middle-class job cuts. In general, the city has not been forthcoming with concrete details to assuage anxieties.

As Broadwater reports, Baltimore’s Board of Estimates approved the tax breaks—“without details publicly revealed or debated” in April by a 4-1 vote. Baltimore’s mayor, Stephanie Rawlings-Blake, controls three of the five board seats. The city comptroller and the city council president hold the other two.

The city council president, Bernard C. “Jack” Young, voted against the tax breaks, citing his general opposition to privatizing public housing. He also worried about the possibility of losing hundreds of public sector union jobs through RAD conversions, like maintenance workers and building monitors.

Carl Stokes, a local councilman, said he’s supportive of the deal because at least the incentives will support low-income people living in buildings that desperately need maintenance and repair. Baltimore has a history of awarding tax breaks to build flashy waterfront developments and tourist attractions.

Nationally, HUD Secretary Julian Castro has called RAD “the answer” to housing issues in many struggling communities. While Congress has so far approved just 185,000 public housing units to be transferred to the control of public developers—out of a total of 1.2 million units—public housing authorities, real estate companies, and other stakeholders have been lobbying Congress to lift the program’s cap. California Congresswoman Maxine Waters sent a letter to President Obama in December urging him to directly fund public housing rather than depend on private developers to save the units. “Put simply,” she said, “if the price of accessing private capital is to put public ownership at risk, then that price is too high.”

As Baltimore’s situation suggests, it might be cheaper for Congress to just increase direct funding for public housing, rather than rely on a costly mix of tax breaks, subsidies, and developer fees. Yet such a move is doubtful to happen any time soon. But while RAD appears to be the most likely way officials aim to preserve crumbling units in the near future, even the most optimistic experts cannot guarantee that it will protect the nation’s public housing units over the long-term.

Will Handing Public Housing Projects to Private Developers Hurt the Poor?

Originally published in Pacific Standard on February 6th 2015.
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On a Wednesday night in early January, 21-year-old Ronald Hunter Jr.—a homeless and mentally ill man living in Buffalo, New York—froze to death. The overnight temperature hit two degrees, but with the fierce wind that night, it felt more like 20 below zero. The medical examiner’s autopsy confirmed that hypothermia killed Hunter. His story is not atypical; homeless people from across the country died last winter from freezing temperatures.

Tragedies like these, especially in the dead of winter, bring the lack of decent and affordable housing into sharp relief. Walk through the streets of any major city (and, increasingly, many suburbs) and you’ll likely see clusters of homeless people huddled under blankets, under folded cardboard boxes, sleeping on sidewalks, on top of park benches. A report released this past fall by the National Center on Family Homelessness estimated that one in 30 American children are now homeless—a record phenomenon attributed to the rising number of families living in poverty, a dearth of affordable housing, and the consequences of widespread domestic violence.

But beyond homelessness, there are other serious, less visible, and less well-understood housing problems with which millions of Americans regularly struggle. The Joint Center for Housing Studies at Harvard found that, in 2012, more than four-fifths of those earning $15,000 annually—roughly how much a full-time worker makes at the federal minimum wage—spent more than 30 percent of their income on housing; two-thirds paid more than 50 percent. With stagnant wages, the financial burden weighs heavily on the middle class too, and is trending upwards.

The housing policy world has a term it uses to refer to the millions of people living in precarious, overcrowded, and unsafe conditions: “housing insecure.” It’s an apt, yet nebulous way to characterize all those who worry about their long-term access to safe shelter. These people aren’t homeless, but they’re vulnerable—often one emergency or missed paycheck away from eviction. Their day-to-day plight, however, is less apparent to the public.

Most people do not get the help they need. Due to high demand, federal housing assistance serves just a quarter of all eligible households. With few vouchers and interminably long waiting lists, more than 2.2 million people rely on public housing to help them get by. But despite the growing need, the federal government has been moving further away from the idea of a state-run public housing system.

Through a new program known as Rental Assistance Demonstration, existing public housing units are slated to be “converted” into something that looks more like the Section 8 voucher program, under which tenants live in privately owned or managed units that are publicly subsidized. Congressional funding for public housing has declined over the years, as support for the program fell and the deteriorating units became more difficult to properly maintain. Consequently, more than 260,000 affordable units have been demolished or removed from the public housing program since the mid-1990s and 10,000 additional units are lost each year because they fail to meet acceptable health and safety standards. Many of these people are forced to double up with family or take to shelters and the streets.

Now with the potential to bring in copious amounts of new funding from private companies, Department of Housing and Urban Development Secretary Julian Castro has dubbed RAD “the answer” to housing issues in many struggling communities.

                                                               

But the long-term consequences of RAD are not yet known. When Congress authorized the demonstration program in 2012, 60,000 public housing units were approved for transfer to private developers—just five percent of the nation’s public housing stock. These developers are incentivized to rehab and manage the units in exchange for tax credits and subsidies, codified within contracts that last for 15-20 years. Yet since its original passage, HUD and a coalition of public housing authorities, developers, and other stakeholders have been lobbying the government to lift the demonstration cap beyond the 60,000 units so that any and all public housing authorities can access these new private funding streams.

Their efforts are succeeding. Included in the $1.1 trillion spending bill that Congress passed in December was a provision to raise the RAD cap from 60,000 units to 185,000 units, or essentially every project sitting on the waiting list.

Not everyone is thrilled about how fast things are moving. Many housing advocates and civil rights lawyers worry that the program will fail to ensure long-term affordability and safeguard tenant protections. Their concerns are warranted: In the past, when the government has relied on private capital to fund low-income housing, many affordable units were turned into market-rate rentals once the developers paid off their 30-year mortgages. And in earlier efforts to rehab buildings through public-private partnerships, thousands of public housing units were destroyed without ever being replaced.

California Democratic Representative Maxine Waters, the ranking member of the House Financial Services Committee, sent a letter to President Obama asking him to reconsider RAD. She urged him to allocate more direct federal subsidies to public housing authorities, rather than relying on private developers to salvage the program. “Put simply,” she wrote, “if the price of accessing private capital is to put public ownership at risk, then that price is too high.”

James Hanlon, the director of the Institute for Urban Research at Southern Illinois University-Edwardsville and a longtime public housing researcher, has been poring through HUD data to try and figure out if there’s any pattern in the line-up of specific housing projects selected for conversion, or if there are any shared characteristics among the housing authorities that have opted to participate. Hanlon notes that although the private sector has been used to fund affordable housing since the 1970s, RAD is unique in its aim to actually preserve the original units. Previous experiments have promoted demolishing aging housing rather than repairing the old units.

Private financing strategies for public housing are also spreading to cities not formally associated with RAD. New York City’s public housing authority, which lacks billions of dollars in needed capital funds, recently finalized a deal to grant private developers a 50 percent stake in nearly 900 public housing apartments across the city. It also plans to create a non-profit to solicit hundreds of millions of dollars in tax-deductible donations from the private sector.

                                                                

While experts and activists have mixed feelings about RAD, the new federal spending bill also included a significant policy win that everyone who works on affordable housing seems to be excited about. The government finally voted to authorize dedicated funding for the National Housing Trust Fund—an entity established in 2008 to provide annual dollars for building and preserving affordable housing.

However, in its current form, this is unlikely to help revive the flailing public housing program; HUD’s working rule stipulates that Housing Trust Fund revenue can only be used to fund affordable housing that is not considered traditional public housing, unless it’s through the RAD program.

But for those who hope to see Congress allocate more funds to traditional public housing, the most likely way is through the passage of Representative Keith Ellison’s Common Sense Housing Investment Act. This bill would raise a lot of new money by reforming the mortgage interest deduction—a tax break that primarily benefits wealthy homeowners. By changing the deduction into a tax credit, more low- and middle-income homeowners would be eligible for tax relief, and high-income homeowners would pay more. The plan is estimated to raise about $200 billion over 10 years. Importantly, some of this new revenue would be directed into the public housing capital fund; the legislation would also revise HUD’s rule to make traditional public housing eligible to receive Housing Trust Fund dollars.

With Congressional deadlock however, this reality is a long way off. For now, one can expect developers and housing authorities to continue striking private-public deals, with variable levels of transparency and oversight.

It wouldn’t be the first time the government, in a rush to do something, expanded a housing program rather hastily. “Hope VI, a public housing redevelopment program in the 1990s and 2000s, began as a demonstration project that had terrible oversight, assessments, and evaluations early on,” Hanlon says. “I think that there needs to be much more judicious forward movement for RAD because many of its implications are not well understood and won’t be felt for a long time.”

Perhaps RAD will turn out to be the housing panacea millions of people have been waiting for. Or maybe it will lead, once again, to the loss of affordable housing units and tenant displacement.

In this moment of doubt, hope, and desperation, “housing insecurity” just about sums it up.

‘Housing First’ Policy for Addressing Homelessness Hamstrung By Funding Issues

Originally published in The American Prospect on January 27, 2015.
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In an era of shrinking financial resources, policymakers, providers, and activists who work on homelessness prevention and care in the United States have been forced to develop new strategies. There was a time when officials at the Department of Housing and Urban Development (HUD) saw it as their responsibility to provide both housing and supportive services for homeless individuals, but now HUD now is refocusing its budget predominately on rent and housing—with the hope that other local, state, and federal agencies will play a greater role in providing supportive care. However, whether other organizations will actually be able to pick up those costs and responsibilities remains unclear.

The first major federal legislative response to homelessness was the McKinney-Vento Act of 1987, which passed both the House and Senate with large bipartisan majorities. The McKinney Act—which Bill Clinton later renamed the McKinney-Vento Homeless Assistance Act—provided funds not only for emergency shelter, transitional housing, and permanent housing, but also for job training, primary health care, mental health care, drug and alcohol treatment, education programs, and other supportive services. The consensus was that homelessness is a complex problem whose solution requires more than simply a roof and a bed.

The statutory goal of the McKinney Act was to gradually move homeless people toward stable housing and independence—a model that came to be known as “Housing Readiness.” Though this sprung from well-meaning intentions, it eventually became clear that this “gradual” approach frequently led to unwise and unfair ways of distributing welfare.

“We had this system that said homeless people essentially have to earn their way to permanent housing,” explained Ed Stellon, the senior director of the Midwest Harm Reduction Institute, and someone who has worked within the substance use and mental health treatment systems for more than 20 years. “Homeless people had to earn their way into transitional housing, make progress on certain goals, and finally when they were deemed well enough, they would earn their spot in permanent housing.”

A different model, known as “Housing First”, has been gaining steam over the past decade. What at first sounded revolutionary now feels fairly obvious: The Housing First approach posits that the only requirement for housing should be homelessness—that shelter is a right, not a privilege. “Plus, if you have conditions like out-of-control diabetes, congestive heart failure, or schizophrenia, housing is actually part of the solution,” adds Stellon. “It’s hard to make any meaningful progress on these chronic conditions without stable housing.”

Though exact estimates are hard to come by, HUD recently reported that as of January 2014, the chronically homeless numbered some 84,291, with 63 percent of those individuals living on the streets. HUD says this number has declined by 21 percent, or 22,937 persons, since 2010—in large part because of the embrace of Housing First. (Some, however, have accused the federal government of using data gimmicks to paint a more cheery picture of progress than has actually been made.)

Nevertheless, the reality is that at the same time policymakers are embracing the idea of Housing First, fewer affordable housing units exist than ever before. According to the National Low Income Housing Coalition, federal support for low-income housing has fallen 49 percent between 1980 and 2003, and the Joint Center for Housing Studies found about 200,000 rental units are destroyed annually. Research also suggests that a supply of 8.2 million more units would be needed to house extremely low-income households, up from a gap of 5.2 million a decade earlier. Though Congress recently authorized funding for the National Housing Trust Fund—an entity that was created in 2008 to fund affordable housing proects—its budget is nowhere near large enough to meet the demand.

“We’re not doing enough to expand housing availability, and HUD can’t expand its services unless Congress allocates it more funding,” says Barbara DiPietro, the director of policy for the National Health Care for the Homeless Council.

Given the fiscal climate, HUD is looking for new ways to spend its increasingly limited budget. Consequently, the agency is moving away from the supportive services that, through the McKinney-Vento Act, once accounted for most of its spending. In 1998, for instance, 55 percent of HUD’s budget was spent on supportive services, and 45 percent was awarded for housing. By 2013, just 26 percent of HUD’s competitive homeless assistance funds went to supportive services, and 66 percent was spent on housing. According to Ann Oliva, director of HUD’s Office of Special Needs Assistance Programs, the department’s goal now is to help local communities become more strategic with existing resources and available opportunities.

To do this, HUD has been working closely with other federal agencies, especially the Department of Health and Human Services (HHS), the Department of Veterans Affairs (VA), and the U.S. Interagency Council on Homelessness. In 2008, a joint program known as HUD-Veterans Affairs Supportive Housing (HUD-VASH) launched, combining housing vouchers for homeless veterans provided by HUD, with case management and clinical services provided by the V.A. Experts agree that HUD-VASH has been quite successful in helping both vets and their families, and it’s typically held up as the poster child for future interagency collaborative efforts. However, the program came with additional appropriated dollars, and it is typically easier to convince Congress to fund programs for impoverished military veterans compared to other downtrodden groups.

One of the most significant recent changes to homelessness policy has come through the expansion of Medicaid—a key feature of the Affordable Care Act. Now that nearly all individuals with incomes up to 138 percent of the federal poverty level are eligible for health insurance in states that opt for the expansion, agencies are scrambling to enroll thousands of homeless people so that they may benefit from new streams of mandatory government spending.

But Medicaid is, at its heart, a program controlled by the states. And with some states still vigorously opposed to expanding Medicaid—despite the ACA’s mandate for the federal government to pick up nearly all of the tab for the expansion—let alone some of the flexible legislative adaptations that HHS is encouraging, consistent and widespread changes to supportive services seem unlikely in the near future.

Though Medicaid expansion presents great opportunities for providing services to the homeless, some are concerned that the more flexible federal dollars currently set aside to work with homeless people will eventually just be funneled into the larger health insurance pool, with little, if any, allocated to doing what it takes to bring those with no homes into the government support system, which is needed in order to provide preventive care.

“Going out four or five times to visit with a woman living alone under a bridge, just trying to form a relationship and build trust with her so she will feel comfortable coming in to get more help—those types of health encounters are not typically billable through health insurance,” adds Stellon, who says outreach can be one of the hardest things for him to fund. “In our current system, it’s easier to pay for someone’s amputated fingers than to build a human relationship.”

Ultimately, there is only so much the government can do to advance the goal of Housing First with a depleting stock of housing units and a shrinking budget for supportive services.

“It’s a big mistake to come up with a good solution like Housing First and then to hamstring it because we don’t actually have the money for it,” says Todd Stull, the clinical director at a JOURNEYS | The Road Home, an organization that provides services and shelter to families and individuals in Illinois’s North and Northwest suburban Cook County. “One of the worst things you can do is get someone into housing for a short period of time and then they lose it. Then they lose trust in the providers.”

“We have not done well as a nation taking on poverty and implementing policies needed to address homelessness,” says Dr. Sam Tsemberis, the founder and CEO of Pathways to Housing, a national organization that first pioneered the Housing First model in 1992. “So we end up taking care of homelessness out of desperation, but we’ll be taking care of homelessness forever if we don’t take care of poverty.”

“We need more money,” adds DiPietro. “Until then, we’re just rearranging the priority list.”

The RAD-ical Shifts to Public Housing

 Originally published in The American Prospect on August 28th, 2014. 
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Traditional public housing is out of favor and substantially out of funds. It’s bureaucratic, concentrates the very poor, and is literally crumbling due to a huge backlog of deferred maintenance. Yet despite real catastrophes—such as Chicago’s bleak, crime-ridden Robert Taylor Homes, dynamited over a decade ago—public housing provides low-rent apartments to some 2.2 million people, and much of it is reasonably well run by local authorities.

For half a century, presidents, legislators and housing developers have sought alternatives, involving supposedly more efficient private market incentives. However, these alternatives, too, have been far from scandal-free. The Johnson-era Section 236 program (named for part of the housing code) gave private developers tax benefits and direct payments to build low-rent housing, underwritten by subsidized thirty-year mortgages. But then, as the mortgages started being paid off in the 1990s, many developers kicked out poor tenants and converted the buildings to middle-class and even luxury apartments—taking low-rent units that had been built and maintained with taxpayer money and removing them from the pool of affordable housing.

Attempts to de-concentrate big public housing projects, such as the Clinton-era “HOPE VI” program (Home Opportunities for People Everywhere), ended up evicting thousands. The Robert Taylor site, which at its peak housed 27,000 low-income Chicagoans, was replaced, using over $500 million in HOPE VI funds, with a low-rise mixed-income development of just 2,300 units.

Now comes the latest attempt to save public housing by injecting private capital. The idea is to bring in private developers—drawn by tax breaks and subsidies—and have them refurbish and manage the buildings. The end result is to be some kind of hybrid, where rents will stay low (at least for a time), tenants may have more mobility but fewer rights, and the total stock of affordable housing could shrink yet again. The approach is not cheap, and it may be more cost-effective to just appropriate more direct funds to the program and thereby keep it in the public sector—but Congress is not about to do so.

The new plan, promoted by HUD, developers and some city governments with few alternatives, is known as the Rental Assistance Demonstration, or RAD. It is set to transfer 60,000 public housing units across the country to the control of private developers. While billed as a limited test program, many participating cities are taking far-reaching gambles on their city’s affordable housing stock. In Baltimore, 43 percent of all public housing units will be converted through RAD, and in San Francisco, roughly 75 percent.

RAD is a second cousin to everything from privatized highways to the Affordable Care Act, which keeps the public provision and modest expansion of health insurance mostly private.

RAD is an emblematic case of this era’s intensified push to use privatization in the pursuit of social goals—not because that approach is necessarily better policy, but because it is politically possible. In that respect, RAD is a second cousin to everything from privatized highways to the Affordable Care Act, which keeps the public provision and modest expansion of health insurance mostly private.

Public housing—a program financed through direct government subsidies since its inception in the late 1930s—has been severely underfunded by Congress for decades. The dearth of funds has translated into a housing stock decline: Since the mid-1990s, more than 260,000 dilapidated units have been demolished or removed from the program. And despite long waiting lists around the country, agencies have only built new units to replace about one-sixth of those that were removed. HUD estimates that nearly $30 billion is needed to repair and restore the nation’s 1.2 million remaining public housing units.

“Primarily because of Congress’s failure to fund public housing, and so many long-term repairs and rehabilitation needs going unmet, RAD was an idea to get a new flow of capital and funds into the program,” says Megan Haberle, policy counsel at the Poverty Race and Research Action Council (PRRAC).

In effect, RAD turns public housing into something like the Section 8 program: low-rent housing that is privately managed or owned, and publicly subsidized.

RAD alters public housing’s funding and ownership structure to one that experts hope will be more politically sustainable over time. For example, a local housing authority could either sell or lease a public housing building to a private developer; the developer in turn would agree to make certain renovations, and to respect tenants’ rights. The traditional funding mechanism—direct subsidies to local housing authorities—would be replaced by tax credits and housing vouchers under the program known as Section 8. The total subsidy would be lucrative enough to entice the developer yet still maintain low rents for tenants. In effect, RAD turns public housing into something like the Section 8 program: low-rent housing that is privately managed or owned, and publicly subsidized.

Some cities, like Chicago, Philadelphia, Tampa and Charlotte, applied to convert thousands of their public housing units through RAD, but given the program’s demonstration cap, they’re stuck, for now, on a waitlist. (Chicago had the largest RAD application in the country, with nearly 11,000 units.) Other cities that were approved for conversion have taken a more cautious approach: Omaha will convert only 306 units, and Houston just eighty-nine.

Tenants and housing rights activists share deep concerns about RAD. These include the risk of increased rent costs, the fate of tenant legal rights, and the need to ensure affordable housing for generations to come. In addition, building trade unions see the potential for eliminating unionized middle-class jobs under these new private deals. Yet no formal national coalition has formed to address all these fears, in part because of the highly localized nature of the program. Since the RAD legislation was designed for regional flexibility, the risks and stakes for tenants and workers can vary considerably from city to city. The strength of local housing activist networks, civil rights lawyers and unions will ultimately shape RAD’s impact.

“Everyone is working on their own programs. Some of them are doing things this way or that way, some are a little bit more transparent, others are not,” says David Prater, an attorney at the Maryland Disability Law Center. Prater has been involved with the RAD program in Baltimore, fighting to ensure that protections for disabled tenants are preserved under the new regime.

 

RAD has garnered great controversy in Baltimore—the largest East Coast city to participate—due to its cagey rollout. While Baltimore Housing Commissioner Paul T. Granziano has pitched RAD as the only feasible way to salvage the old units, advocates are left with many questions and few details. In midJune, some sixty Baltimore tenants and union workers organized a protest against RAD outside the Housing Authority of Baltimore County (HABC). Demonstrators raised concerns of resident displacement, middle-class job cuts and public housing loss.

“We’ve been at a number of residential information meetings that [the Housing Authority] organized, and they’ve yelled at residents who have tried to ask questions about long-term affordability and said it was inappropriate for them to even ask those questions,” said Jessica Lewis, an organizer at the Right to Housing Alliance, an advocacy group led by low-income Baltimore residents. At another public meeting, residents invited Karen Wabeke, a lawyer working for the Homeless Persons Representation Project, to ask legal questions on their behalf, but the housing commissioner refused to even take her questions.

Cheron Porter, director of communications for HABC, says that they are proud of the efforts they have made to engage residents and housing advocates throughout the RAD process. Porter adds that Baltimore’s version of RAD “goes far beyond the requirements under the federal law and is much closer to public housing than programs in other parts of the country.”

In other cities such as San Francisco, RAD has met less opposition. The San Francisco Housing Authority, with a $270 million backlog in deferred maintenance costs, has been in a state of organizational tumult for years. Its last director was fired in 2013 after alleged involvement in a host of corruption and discrimination scandals. While some activists and union workers have raised questions, ultimately the Bay Area pushback has been mild in comparison to Baltimore. Many residents eagerly welcome the promise of improved physical conditions.

Deborah Thrope, a lawyer with the National Housing Law Project, a policy organization concerned with preserving affordable housing and tenant rights, says the response was tamer in part because everyone agreed the status quo was untenable. While Thrope hopes to safeguard tenant rights in San Francisco then disseminate those principles nationally, she acknowledges that San Francisco is different than the rest of the country because of its well-mobilized advocacy organizations that collaborate with the city in ways unique to the northern California progressive scene.

Despite significant concerns, many housing policy experts remain cautiously optimistic. One promising feature of the program is a “mobility” option not currently permitted for tenants in traditional public housing. For example, some families that want to move and switch school districts could do so using a voucher obtained through RAD. “We see [RAD] as an opportunity not only to inject capital,” says Phil Tegeler, executive director of PRRAC, “but as a break with that whole history of residential segregation and concentrated poverty.”

Given the funding crisis, the large public housing authorities are among RAD’s most enthusiastic boosters. “This was not something that was a brainchild of a developer,” stressed Sunia Zaterman, executive director of the Council of Large Public Housing Authorities (CLPHA). “This is very intentional in its approach as a preservation and reinvestment strategy.” 

Nonetheless, critics’ concerns about tenant displacement appear justified, given the government’s track record with privatizing public housing. HOPE VI projects deliberately decreased the number of public housing units. Many tenants lost their homes through rescreening and thousands were permanently displaced during the rehab process.

“The housing authorities just didn’t try hard enough to keep in touch with many residents during that year or two that units were getting fixed up, and people were just lost and never had an opportunity to return,” says Ed Gramlich of the National Low Income Housing Coalition.

In an effort to avoid the pitfalls of Hope VI, policymakers have tried to design RAD in a way that would prevent some of the worst possible outcomes. For example, unlike in HOPE VI conversions, no tenant will have to be re-screened to establish eligibility to live in RAD properties.

And under RAD, an implicit commitment exists to have a “one-to-one replacement policy,” meaning that any demolished units must be replaced with the same number of units as was originally there. But advocates such as Gramlich worry that developers and local authorities could exploit loopholes in the statute. Exceptions to the one-to-one rule include allowing public housing authorities to reduce the number of assisted units by up to 5 percent without HUD approval, consolidate units (such as converting efficiencies to one-bedroom apartments), and remove units that have been vacant for at least twenty-four months. This last exception is particularly troubling, as housing authorities sometimes intentionally leave units empty in an effort to lessen their administrative fees or anticipate eventual demolition.

Erosion of tenant legal protections also worries advocates. For example, under current public housing law, if a landlord or housing authority mistreats a tenant, the tenant may pursue redress without resorting to expensive and lengthy lawsuits. But under RAD, the contracts will be between private developers and housing authorities, which could make it much more difficult for tenants to hold landlords accountable. Some, like David Prater of the Maryland Disability Law Center, want housing authorities to formally add tenants to the housing contracts as “third party beneficiaries.” This change would strengthen tenants’ ability to pursue grievances.

Prater sees potential for an unholy alliance between housing authorities that want to save money by limiting tenant appeals and private developers who seek to avoid liability. Cheron Porter, speaking for the Baltimore housing authority, says, “While we certainly understand the residents’ point of view,” giving tenants third party status “could potentially lead to unduly lengthened processes and less certainty among the parties’ roles.”

As long as these developers receive HUD subsidies, the units will be subjected to federal audits and monitoring. Still, the regulations leave room for legal sidestepping. “I think legal advocates rightly see that the RAD notice HUD drafted did not completely replicate the protections that people already have under the public housing regulations and handbooks,” says Gramlich.

A further concern is possible changes to RAD under future administrations. For now, the Obama administration has sought to balance developer incentives with tenant protections. But future administrations, facing different political considerations, might opt to shift this balance.

Although this housing experiment was to be tried first on only 5 percent of the nation’s public housing stock, HUD is now pushing to eliminate the program’s cap entirely. (In other words, gut the “demonstration” part of “Rental Assistance Demonstration.”) Zaterman of CLPHA argues that RAD’s long waitlist “demonstrates its demand and feasibility.” Other affordable housing advocates, however, urge for a more gradual approach in case there are unforeseen ruinous consequences.

With cash-strapped cities lacking the dollars needed to renovate, repair and maintain their public housing, many more are likely to apply for RAD conversions in the future.

If implemented carefully with robust federal oversight, RAD may actually advance the goal of more affordable housing. Decrepit and dangerous buildings could be upgraded and more families may have the opportunity to move into the areas they want. However, if the public looks away or if crafty private developers evade government supervision, the state of affordable housing could look even worse than it does today.

“All of these deals between housing authorities and developers are made behind closed doors,” says Gramlich. “That’s how deals are done in the private marketplace, and that runs against the whole notion of public assets. It’s hard to assess what might happen, and by the time the negotiations are settled, residents might be stuck with a done deal. And the done deal might be great, or it might not be. The people who have the biggest stake in it are left out.”

Julian Castro Should Visit Baltimore on the Way to His New HUD Secretary Desk

Originally published in Next City on July 11, 2014. 
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“It’s not just about housing,” said Michelle Green. “They try to help low-income people branch out and do their best.” Green, who had moved to Columbia, Maryland from one of Baltimore’s most crime-ridden public housing projects in order to enroll her four sons in better public schools, was talking about Baltimore’s Housing Mobility Program.

After following 110 Baltimore Mobility participants since 2003, sociologist Stefanie DeLuca concluded that when housing choice vouchers are combined with sustained counseling, training and support, families will be more likely to move away from poor residential areas and not return. (DeLuca’s report on the program was published in theJournal of Public Policy Analysis and Management.)

Previous studies suggested that even with substantial subsidies, poor families would not leave their impoverished communities. Yet with the Baltimore approach, more than two-thirds of the families that moved from the city to the suburbs remained there one to eight years later, and many mothers who previously expressed no interest in leaving the city later declared they’d changed their minds. The increased support helped individuals change their expectations of what different environments could provide for their children and themselves.

Unlike other housing experiments, Baltimore’s program is more than just a rent subsidy; it has provided more than 2,400 families with extensive support before, during and after their moves. (The program was created as part of a remedy for a lawsuit filed in 1995 by the ACLU in which the court ruled that HUD failed to provide housing residents equal access to integrated, low-poverty neighborhoods across Baltimore.) Accepted applicants who pass background checks and meet other eligibility criteria are given intensive counseling, financial literacy and credit repair training, and housing search assistance.

“I take my hat off to MBQ. [Metropolitan Baltimore Quadel is the company that oversees the program.] They let you know everything you need to know before they even let you sign on the dotted line of the lease. They’re helping a lot of lives,” said one participant.

Another key difference between Baltimore Mobility and traditional housing choice vouchers is that the Baltimore vouchers are regionally administered and therefore connect city residents to suburban housing options. If a Baltimore resident wants to move to the adjacent Anne Arundel County, she doesn’t need to apply to the suburban housing authority. This coordination between housing authorities offers significant bureaucratic relief.

Erika Poethig, a housing policy expert at the Urban Institute, says that regionally administered vouchers like those in Baltimore are rare but may become more prevalent in the future as policymakers search for ways to conserve a declining pool of financial resources. A 2013 Brookings report on the housing choice/housing voucher program argues that the current “balkanized system” of disparate housing authorities “creates duplication, overlap and inefficiency” while also “raising administrative costs.”

Of course, politics can get in the way. The creation of regionally administered programs would inevitably take some power away from local authorities. The shift would require that local agencies — with their separate boards and separate staffs — cooperate with neighboring towns and counties and have less control within their own communities. Phil Tegeler, executive director of the Poverty & Race Research Action Council, believes such a change would require some serious incentives at the federal level. But moving in this direction “would also impact the idea of local housing authorities acting as a community gatekeeper,” said Tegeler. “If you had a much more fluid system regionally, I think it could overcome a lot of the segregation problems that we see now.”

Indeed, Baltimore’s encouraging results have the potential to change the way policymakers think about traditional housing choice vouchers. Tegeler says his organization regularly cites the success in Baltimore in its advocacy efforts with HUD.

Other cities are modeling elements of Baltimore’s success, too. In Philadelphia, HUDrecently pledged $500,000 to develop a new mobility program, with goals to increase housing search assistance and to provide low-income families the chance to rent in higher-opportunity areas. In Seattle, the King County Housing Authority has launched a new mobility program aimed at providing families with more information about neighborhood and school quality as they move. Quadel played a direct role in helping programs get off the ground in other cities too.

DeLuca’s study suggests that with certain policy revisions, the housing choice voucher program could do more to overcome economic and racial segregation in U.S. cities and better assist the more than two million households that use the program. Moreover, it’s within HUD’s jurisdiction — Julian Castro take note — to make many of these policy changes independent of Congressional approval.

This wouldn’t come without a financial cost. Currently, a housing authority might have to choose between allocating resources to help fewer families move to low-poverty neighborhoods or helping more families move in general. Joel Johnson, executive director of the Montgomery County Housing Authority in Southeastern Pennsylvania explains that, “we receive a fixed dollar amount from HUD to support voucher participants, so that money can only go so far. If everyone moved to the [finest neighborhoods], we’d serve fewer people.”

The majority of housing authorities across the country already have long waiting lists, and money for low-income housing and voucher programs has been increasingly tight in recent years. Between 2005 and 2011, the average cost per voucher went up less than rents, and the sequestration cuts of 2013 were particularly detrimental.

Poethig notes that “unless the resource outlet changes, it will be really difficult to figure out how to get the significant investment.”

DeLuca doesn’t dispute the heft of the investment, but after her study, she’s a believer in Baltimore’s results. “If you want to have a housing voucher program that works,” she says, “this is what it takes.”

The Oft-Ignored Issue of Homelessness

Originally published in the JHU Politik on April 8th, 2013.

Sometimes wars, thousands of miles away, can seem more pressing than the thousands of cold and hungry people sleeping on the streets of our communities. Too often people feel there is little they can do to actually affect long-term structural housing change. This view, while popular, is wrong.

In many ways, the Obama administration has taken some innovative steps towards ending homelessness. In 2009 the Homelessness Prevention and Rapid Re-Housing Program (HPRP) was created; it allocated funds to state and local governments to keep individuals and families in their homes and to help people who were already homeless find affordable housing. This $1.5 billion program, which was included in the $840 billion American Recovery and Reinvestment Act, worked to rehouse people, keep others off the streets with rental assistance, and provide emergency housing, security deposits, moving expenses, and other means of temporary aid. The United States Interagency Council on Homelessness (USICH), an independent agency within the executive branch, and the federal Department of Housing and Urban Development (HUD) have been leading these efforts.

Over the past four years, the number of chronically homeless people—an at-risk population often in need of mental and physical health services—fell about seven percent in 2011 and more than 19 percent since 2007. Homelessness among veterans declined more than seven percent in 2011 and 17 percent since 2009. These drops are significant, and HPRP marked the first time that such a large amount of federal funds were made available for homelessness prevention at the national level. Real tangible progress can be seen when money is invested into the prevention and eradication of homelessness. In the past five years, HUD and USICH increased the number of available beds in emergency shelters by about 15 percent, and the number of beds in longer term housing by almost 50 percent. Despite decreases among particularly at-risk individuals and military veterans, homelessness has increased among families and young people, including college graduates. The Government’s partial success highlights the need for further investment into preventing this eminently avoidable problem.

Currently, tens of thousands of underemployed and unemployed young adults between the ages of 18-24, are struggling to afford shelter; the recession has left workers in this age bracket with the highest unemployment rate of all adults. Specific information on this population is difficult to obtain-most cities have not made special efforts to identify young people who tend to avoid ordinary shelters. However, the Obama administration has begun an information gathering initiative with nine communities to seek out those young adults who live without a consistent home address. In 2011, Los Angeles attempted a count of young adults living on the street and found 3,600—however, the city had shelter capacity for only 17 percent of them.Additionally there were approximately 64,000 more families in shelters in 2011 than in 2007—an increase of about 13 percent. Also the number of families with children in “worst case” housing situations—meaning that they spend more than half of their income on housing or that they live in dangerous, substandard buildings—rose to 3.3 million from 2.2 million. Many of these families are just one financial obstacle away from losing their homes.

To be sure, some, particularly young adults, are often hesitant to reach out for governmental help. Additionally, there are others, even right here in Baltimore, who resist pressure to relocate from the streets into shelters or low-quality housing.

Mark Johnston, HUD’s Acting Assistant Secretary for Community Planning and Development, told the New York Times that homelessness could be effectively eradicated in the United States at an annual cost of approximately $20 billion. The housing department’s budget for addressing homelessness is currently around $1.9 billion. While the Obama Administration has made the right choice in extending the homelessness prevention program, it is unfortunately running on less funding than the administration’s goals require.

“The evidence is clear that every dollar we spend on those programs that help find a stable home for our homeless neighbors not only saves money but quite literally saves lives,” HUD Secretary Shaun Donovan said in a statement.

Ultimately, to address homelessness we must first realize that we indeed can.