Elizabeth Warren Introduces Plan to Expand Affordable Housing and Dismantle Racist Zoning Practices

Originally published in The Intercept on September 28, 2018.

This week, Sen. Elizabeth Warren, D-Mass., introduced the American Housing and Economic Mobility Act, one of the most far-reaching federal housing bills in decades. The legislation calls for a half-trillion dollar investment in affordable housing over the next 10 years, creating up to 3.2 million new units for low- and middle-income families.

The bill also expands the protections of decades-old legislation to reduce discriminatory banking, ban housing discrimination, and desegregate neighborhoods. For example, Warren’s bill would make it illegal for landlords to discriminate against renters with federal housing vouchers, and would also impose new regulations on credit unions and nonbank mortgage lenders like Quicken Loans. The bill also incentivizes states and localities to loosen their racist and discriminatory zoning restrictions; eases the path for low-income families to move into more affluent communities; and provides federal assistance to first-time homebuyers from formerly segregated areas and those who saw their wealth decimated in the 2008 financial crisis.

Warren’s bill comes on the heels of two other federal housing bills introduced this summer by Democratic Sens. Cory Booker and Kamala Harris, of New Jersey and California, respectively. Harris’s bill, which came first, aims to provide financial relief to renters by creating a new refundable tax credit. Booker’s bill would also establish a refundable tax credit for renters and incentivize communities to curb their exclusionary zoning rules to increase housing supply. Booker, Harris, and Warren are all names frequently thrown around as 2020 presidential hopefuls, though none has actually announced their intent to run.

“Much of the housing discussion has been about affordability, production, and tenant protections, which are all really important issues,” said Philip Tegeler, the executive director of the Poverty and Race Research Action Council. “What’s so powerful about Warren’s bill is that it aims to tackle all those things, and it also looks at how are we going to structure our society going forward. Fair housing is really embedded in the legislation, and that’s why I find it so creative.”

To incentivize states and communities to ease their zoning restrictions and boost affordable housing supply, a Warren aide told The Intercept, the senator’s staff looked at the Race to the Top program, the Obama administration’s signature education initiative. In Race to the Top, the federal government doled out $4 billion in competitive grants to states that adopted the administration’s preferred education reform policies, like lifting caps on charter schools and overhauling teacher evaluations. The program was massively effective: Forty-six states and Washington, D.C., revamped their policies to compete for the federal funds.

Warren’s bill takes that same competitive grant model, and allows states, metropolitan regions, and cities to compete for $10 billion in federal funds. (Race to the Top had two rounds of competitive funding; Warren’s bill proposes five.) To compete, jurisdictions must first reform their zoning restrictions and reduce other barriers to affordable housing production. Grant winners can then use the federal dollars to fund all sorts of projects, such as building parks and schools and improving local transit.

Often when new, dense housing developments are proposed, residents raise concerns about the overcrowding of schools or increased traffic congestion. Warren’s bill would arm political leaders with added resources to help make those housing tradeoffs a bit easier. Yes, increasing housing supply could lead to an increase in the public school student population, but reforming land use policies could also help cities access additional federal dollars to absorb those new residents more smoothly.

To fund the bill, Warren proposes a return to Bush-era estate tax levels, and increasing those taxes on the country’s 10,000 wealthiest families. The Massachusetts senator cited an independent study conducted by the chief economist at Moody’s Analytics, an economics research firm, which determined that Warren’s bill was “fiscally responsible” and would “go a long way toward addressing” the affordable housing crisis. Moody’s projects the bill would lower rents by 10 percent and make it easier for low- and middle-income workers to live closer to their jobs, thereby reducing “long and costly commutes.”

POLITICIANS, INCLUDING PROMINENT progressives like Warren, have historically steered away from efforts to curtail exclusionary zoning, said Rick Kahlenberg, a senior fellow at the Century Foundation, a liberal think tank. The difference now, he told The Intercept, is that “rents have become too damn high,” so elected officials, including presidential hopefuls, are more open to ideas that previously seemed too controversial to embrace.

Henry Kraemer, a Portland-based activist, co-authored an article in The Nation in May making the political case for Democrats to take up housing issues. In August, he followed up with a co-authored report laying out specific policy recommendations, such as new rent subsidies and expanded public housing. Kraemer and his report co-author, Laura Loe Bernstein, note that successfully enacting all their proposals would be “nearly or entirely impossible” without ending “apartment bans” — another name for exclusionary zoning. “Apartment bans restrict new home-building to the sort of single-family houses most commonly associated with suburbs and affluent neighborhoods,” they write. “Apartment bans are extraordinarily widespread, and render it illegal to build duplexes, triplexes, fourplexes, and other spaces where multiple families can live nestled together (and often more cheaply) on the same plot of land.”

Kraemer told The Intercept it’s “fantastic” to see 2020 hopefuls “putting out bold solutions to the housing crisis” that Democrats can pursue if they reclaim Congress and the White House. In the short term, Kraemer said, the Harris, Booker, and Warren bills “send the right signals” to state and local lawmakers.

“Maybe more than any other politician, Elizabeth Warren helped set the tone and agenda for the party’s economic work around the country,” Kraemer said. “To see her saying now that these historic inequities in housing and soaring rents and mortgages are huge problems — well, that’s a big, big deal.”

The Trump administration has also recently signaled its intent to address zoning rules, at least rhetorically. In August, Housing and Urban Development Secretary Ben Carson came out to say that he, too, wants to use federal funds to loosen zoning restrictions. “I want to encourage the development of mixed-income multifamily dwellings all over the place,” he told the Wall Street Journal.

But progressives have voiced rightful skepticism of Carson’s newfound enthusiasm for zoning reform, as he’s also been leading the push to weaken civil rights protections from his federal perch. For the past year, HUD has been trying to weaken the Affirmatively Furthering Fair Housing rule, which was finalized in 2015 and designed to bolster fair housing enforcement. In August, the agency announced that over the next two months it would be opening the rule back up for public comment, claiming that “the current regulations are ineffective” and provide jurisdictions with “inadequate autonomy in developing fair housing goals.”

Carson went further in a statement, claiming that the Affirmatively Furthering Fair Housing rule is “suffocating investment” in distressed neighborhoods and contributing to the lack of affordable housing.

“When Ben Carson talks about zoning, he’s not really talking about exclusionary zoning. He’s talking about fair housing rules that prevent the piling on of all the low-income housing in poor neighborhoods,” said Tegeler, whose primary concern with Warren’s bill is that it lacks language to prevent the hundreds of millions of dollars in federal housing funds from pouring exclusively into poor areas.

“It’s very important that this continues to be a fair housing bill and not play into the Trump administration’s framing,” Tegeler said. “As this bill is further refined, we’d hope to see some protections against piling on the bulk of this new development in high-poverty, segregated neighborhoods.”

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Obama’s Mixed Record on School Integration

Originally published in The American Prospect on August 31, 2015.
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As Congress debates competing revisions of the No Child Left Behind Act over the next several weeks, lawmakers are unlikely to spend much time looking at the growing problem of segregated schools. Despite strong academic and civic benefits associated with integrated schooling, and a unanimous Supreme Court decision which ruled that “separate educational facilities are inherently unequal”—American public schools have resegregated quickly by race and class over the past two-and-a-half decades.

Many advocates had hoped to see the Obama administration take steps to address rising school segregation, but so far its record has not been great. While the Department of Education has paid lip service to the need to promote integrated schools, and has included modest diversity incentives within a handful of federal grants, it refused to use larger education initiatives like Race to the Top to encourage states and districts to prioritize school diversity. In some cases, the department actually pushed policies that made segregation worse.

The Obama administration came to power at an interesting time for the integration movement. With the help of Reagan-appointed judges and justices, court decisions in the 1990s absolved many local districts from their legal obligations to desegregate schools. Between 1988 and 2006, the number of black students attending majority-white schools dropped by 16 percentage points. Between 2000 and 2008, the number of schools where at least 75 percent of students qualified for free or reduced-meals—a proxy for poverty—jumped from 12 percent to 17 percent.

But many districts were also interested in racial and economic diversity, even if they weren’t legally required to promote it. And so various voluntary integration experiments began cropping up around the country. These new efforts seemed promising but quickly faced legal challenge. In a pivotal 2007 decision, Parents Involved in Community Schools v. Seattle School District No. 1, the Supreme Court rejected voluntarily desegregation plans in Seattle and Louisville, on the basis that their particular student assignment strategies relied too explicitly on race. But the Court did clarify that, under certain conditions, districts can use race-conscious measures to promote diversity. Justice Kennedy even endorsed specific strategies to do so, including magnet schools and interdistrict plans.

The years immediately following the Parents Involved decision sparked confusion, largely thanks to the Bush administration. While the majority of Supreme Court justices said districts could consider race in school assignments, the Bush administration posted a federal guidance that suggested only race-neutral means of pursuing integration would be legal.

In 2009, shortly after President Obama took office, a group of educators, policy advocates, and civil rights leaders came together under the banner of the National Coalition on School Diversity (NCSD) to try and push the new administration to take action.

“Our very first goal was to get the Department of Education to take down the guidance from the Bush administration, which told schools they could not promote racial and economic diversity,” said Phil Tegeler, executive director of the Poverty & Race Research Action Council and NCSD coalition member. Their efforts were ultimately successful. By December 2011, the department posted a new guidance, which affirmed the Supreme Court’s decision and listed various ways school districts could pursue voluntary integration.

Other NCSD efforts met less success. One of their primary objectives has been to get the Obama administration to prioritize school integration within their competitive federal grant programs. While Secretary of Education Arne Duncan has repeatedly said that he supports school diversity and wants to reduce racial isolation, his department has not, for the most part, translated such support into its competitive programs.

Despite NCSD’s urging, the department declined to use its largest grant, the $4 billion Race to the Top initiative, to promote racial diversity. Duncan argued that including incentives for voluntary integration would have been too difficult to get through Congress. He also said that when it comes to successful integration efforts, we can’t “force these kinds of things.”

In 2013, Richard Rothstein, a research associate at the Economic Policy Institute,responded strongly to Duncan’s arguments, pointing out that “no education secretary has been as deft as Arne Duncan in creating incentives—both carrots and sticks—to get states to follow his favored policies that are technically voluntary.” Duncan used incentives to get states to adopt Common Core standards, to promote after-school programs and early childhood education, and even within Race to the Top, incentives were used to encourage states to adopt teacher evaluation systems tied to student test scores. But in the case of school integration, Rothstein noted, suddenly Duncan sings a different tune.

“Only in this area, apparently, does Secretary Duncan believe that progress must be entirely voluntary, unforced by carrots and sticks,” Rothstein wrote. There have been plenty of opportunities to incentivize racial integration, such as rewarding states that prohibit all-white suburbs from excluding poor people through zoning ordinances, or withholding No Child Left Behind waivers from states that allow landlords to discriminate against families using federal housing vouchers. “Adoption of such ‘voluntary’ policies could make a contribution to narrowing the academic achievement gap that is so much a focus of Secretary Duncan’s rhetoric,” Rothstein said.

Despite a frustrating first term, desegregation advocates have seen some progress in the last couple years. The Department of Education recently began to include diversity as a funding priority in several of its smaller grant programs like the preschool development grants and its charter school grants; it also announced that magnet-type integration approaches are eligible for the school improvement grants (SIG) program.

While modest, these changes have led to some important new integration experiments. At the end of 2014, New York’s education commissioner, John King, helped launch a socioeconomic integration pilot program to increase student achievement using newly available federal SIG funds. King has since moved to the Department of Education, where he now serves as Arne Duncan’s senior advisor.

Other advocates have capitalized on the Department of Education’s 2011 guidance. David Tipson, executive director of New York Appleseed, says it was an absolute game-changer for his work in New York City. “Getting that correct interpretation, with some real practical guidance for school districts, I can’t even emphasize how important that was,” Tipson said. “There was a very deliberate effort to misconstrue the 2007 [Supreme Court] decision and put fear into many school officials across the country. Everything we’ve been able to do to promote school integration has come in the wake of getting that new federal guidance in place.” New York Appleseed, along with community stakeholders, sought to design a zoning plan that would help keep a school located within a gentrifying Brooklyn neighborhood integrated. Officials resisted at first, but they eventually relented after advocates presented them with the federal guidance. Thus at the beginning of the 2013-2014 school year, Brooklyn’s P.S. 133 became the first school in Bloomberg’s administration to foster a specific mix of students based on socioeconomic status and English proficiency. At the school’s ribbon-cutting ceremony, the city’s school chancellor said he believed their innovative admissions model could be replicated elsewhere.

While advocates of desegregation are happy to see the administration beginning to prioritize diversity within its grant programs, some feel these gestures are too little, too late.

In a letter sent to Secretary Duncan last July, NCSD noted that while the Department of Education has included preferences for diversity within some grant programs, in practice, the department has “consistently underemphasized” these incentives. Many grants still make no mention of diversity at all, and in cases where they do, officials tend to weigh other competitive priorities far more heavily, rendering the modest diversity incentives ineffective. For example, in one grant, applicants could earn an additional five points if their school was diverse, but applicants could earn twice as many bonus points if their school would serve a high-poverty student population

The only federal education initiative to significantly emphasize integration is the Magnet School Assistance Program (MSAP), a program first launched in 1976. However MSAP has limited impact today due to the small amount of federal funding it receives. Even though charters are far more likely than magnets to exacerbate segregation, the department gave MSAP $91.6 million in 2014, compared to the $248.2 million it gave the Charter Schools Program.

Advocates have not given up. Next month in D.C., the NCSD will be hosting a national two-day conference, bringing together scholars, educators, parents, students, and policymakers to continue, “building the movement for diversity, equity, and inclusion.” John King will be speaking on a panel there about the progress they’ve made, and further challenges they face on the federal level. NCSD hopes that King’s new role at the Department of Education will motivate the government to take integration efforts more seriously. The department’s press secretary, Dorie Nolt, told The American Prospect that “we’ve taken meaningful steps, and we want to do more.”

Yet this administration has fewer than 18 months left. And the next secretary of education could quite easily end even the modest progress that NCSD has fought for. “Promoting voluntary school integration is an area where the department has a lot of leeway to act on its own, in terms of trying to encourage state and local governments to prioritize diversity,” said Tegeler. “But that also means the next department has a lot of leeway to not act.”

Unionized Charter Teachers in Chicago Reject Merit Pay

Originally published on The American Prospect’s Tapped blog on August 17, 2015.
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Last week, unionized teachers at three schools operated by Civitas—a subsidiary of the Chicago International Charter School network—negotiated a new contract that no longer has merit pay in it. This means 31 out of 32 unionized Chicago charter schools have now rejected merit pay. And the one unionized charter that still has it—Rudy Lozano Leadership Academy—is currently negotiating a new contract and teachers hope to remove it there as well.

Merit pay, a policy that ties teacher salaries and bonuses to student standardized test scores and evaluations, is one of the most controversial tenets of the education reform movement. The idea has been tossed around for decades, but has never really gained steam. Most teacher salaries are tied to their level of education and the number of years they’ve been teaching.

Michelle Rhee, former chancellor for Washington, D.C., schools, says merit pay is needed to create the kind of culture “where excellence is rewarded.” Proponents believe that this kind of policy would incentivize high-quality teachers to enter the profession. The Obama administration’s $4.3 billion Race to the Top program encouraged states to implement merit pay systems within their schools.

While teacher salaries are notoriously low, many teachers have generally opposed merit pay because they do not think the system in which they’d be evaluated could ever really be objective or fair. They also worry that it could have unintended consequences, like incentivizing cheating or teaching to the test.

Brian Harris, the president of the Chicago Alliance of Charter Teachers and Staff, said that when his school unionized in 2009, they first tried to improve their “really awful” merit pay scheme by negotiating more objective metrics into their evaluation system. Teachers aimed to reform merit pay, not remove it.

Over time, according to Harris, teachers began to feel increasingly frustrated with even their new-and-improved merit pay system. When I spoke to Harris in April as I was reporting my When Charters Go Union piece, he had told me, “the opposition to merit pay at my school has grown insane.” Four months later, it’s now gone.

I asked Harris if anyone in his union wanted to keep merit pay and he said he has no idea. “Nobody has been brave enough to tell me to my face that they like merit pay.” He did note that some who like the idea of paying teachers who work really hard more money, acknowledge that it is really difficult to do so fairly. “Even a lot of people who were evaluating us acknowledged that this stuff was unfair,” Harris said.

About eight months ago, their union released a document with guiding principles for contract negotiations. Beyond killing merit pay, other contract goals include advocating for smaller class sizes, increasing teacher voice, and securing protected time during the workday to grade, plan, and collaborate.

It will be interesting to see if the momentum that unionized charter school teachers have created in Chicago motivates other non-unionized charter teachers who are dissatisfied with merit pay to consider unions of their own. It will also be interesting to see if this creates any pushback from the public—a majority of public school parents say they support the idea of merit pay.