Housing Opportunity for Kids

The Center for Budget and Policy Priorities issued a report, Creating Opportunity for Children: How Housing Location Can Make a Difference. There is some research on the positive effects that homeownership has on outcomes for children. But it is hard to determine whether it is homeownership per se which causes the positive effects as opposed to a stable housing situation more generally. Thus, further research on the role of stable housing options, like that found in this report, is quite welcome.  This report finds that the Housing Choice Voucher program

has performed much better than HUD’s project-based rental assistance programs in enabling more low-income families with children—and particularly more African American and Latino families—to live in lower-poverty neighborhoods. . . . Having a housing voucher also substantially reduces the likelihood of living in an extreme-poverty neighborhood, compared with similar families with children that either receive project-based rental assistance or don’t receive housing assistance at all. (6)
The report concludes that

Based on the evidence on how housing location affects low-income families, particularly children, and the performance of federal rental assistance programs on location-related measures, we recommend two closely related near-term goals for federal rental assistance policy: 1) federal rental assistance programs should provide greater opportunities for families to choose affordable housing outside of extreme-poverty neighborhoods; and 2) the programs should provide better access for families to low-poverty, safe communities with better-performing schools. (7)
The report also recommends four policy changes to achieve these goals:
  1. Create strong incentives for local and state housing agencies to achieve better location outcomes.
  2. Modify policies that discourage families from living in lower-poverty communities.
  3. Minimize jurisdictional barriers to families’ ability to choose to live in high-opportunity communities.
  4. Assist families in using vouchers to live in high-opportunity areas. (7-8)

This is a pretty hefty report and it is worth digging into more deeply.

NYC, Note 12 Trends in Affordable Housing Design

This story on The 12 Latest Trends in Affordable Housing is a bit different from those I usually post on the blog, but I like the pictures! The story opens,

It is no secret that the world’s urban population is picking up, and, in many cases, urban rent prices are rising with it. Architects are continually inventing new solutions to confront the challenges of maximum unit count paired with minimum budget, all the while incorporating architecture’s latest technologies and trends into the designs. Design, of course, can’t solve it all. Katharine Bristol argued in her 1991 essay “The Pruitt-Igoe Myth” that architects must evaluate the social and political structures that define public housing instead of simply agreeing to think inside the box. The following projects exemplify twelve trends architects are using to combat conventional public housing limitations.

It is worth clicking through for the pictures which of projects from all around the world.  The trends include

  1. Sustainable Design
  2. Green Roofs
  3. Atomized Grid
  4. Projecting Facade
  5. Splash of Color
  6. Accessibility for All
  7. Adaptive Reuse
  8. All Wood, All the Time
  9. New Takes on Traditional Materials
  10. Gardens in the Sky
  11. Window Treatments
  12. Low-Rise, High-Density

The difference between a wonderful affordable housing project and a soul-crushing one is often the little details that give character to a building, so that it can feel like a home.  As NYC embarks on an affordable housing building spree over the next ten years, this is something that should be kept at the forefront of the minds of those implementing the City’s housing plan.

HT NYU Furman Center

Is NYC Rent Too Damn High?!?

Husock and Armlovich of the Manhattan Institute for Policy Research have posted an Issue Brief, New York’s Rent Burdened Households: Recalculating the Total, Finding a Better Solution. The brief makes some important points, but they are almost lost because of its histrionic tone.

First, the good points. The authors write this brief in reaction to the de Blasio administration’s plan to build or preserve 200,000 units of affordable housing. They believe, however, that the administration has exaggerated the need. They write: “the housing needs of low-income New Yorkers must be acknowledged and addressed. Still, they should not be exaggerated by numbers that fail to reflect the income and in-kind assistance that benefit poor households.” (6)

They argue that the administration’s claim that more than 600,000 households are “severely rent-burdened” is flawed, resulting in an overestimate of the need for affordable housing. While I am not in a position to evaluate the underlying work, they make a reasonable case that the administration did not properly account for the impact of Section 8 housing subsidies and a variety of other programs that offer financial assistance to low-income households in arriving at their number.

They also argue that the administration’s proposed solution, permanent affordability, is flawed because some households that may be income-eligible at the commencement of their tenure in an affordable unit may end up with a significantly higher income down the line. Indeed, this has been a long-time issue with the Mitchell-Lama program.

These are some serious issues for the de Blasio administration to chew over. Clearly, we should be working from the best data we can about the extent to which households are severely burdened by housing costs. (Indeed, another recent study also indicates that the administration is working from too high of an number.) And just as clearly, the solution chosen by the administration should work as effectively as possible to reduce the rent burden for low- and moderate-income households.

But the brief’s tone, unfortunately, masks these insights. First, the brief opens by questioning the basis for the mayor’s affordable housing plan — that many New Yorker’s are severely rent burdened. But the authors acknowledge that at least 300,000 households are severely burdened, even after they make their adjustments to the administration’s numbers. That hardly undercuts the policy rationale for the Mayor’s affordable housing initiative.

Moreover, some of the adjustments made by the authors are themselves suspect. For instance, the authors exclude households “that report severe rent burdens while paying more than the 90th percentile citywide of per-capita” out-of-pocket rent. (5) They state that “Logic dictates that such households have significant existing savings or assets themselves, or they receive assistance from family or other sources.” (5) That seems like an extraordinary “logical” leap to me. While it may describe some households at the 90th percentile, I would think that it is also logical that it includes some people who barely have enough money to buy food.

As to the solution of permanent affordability, the authors write,

a household member could win the lottery, or sign a multimillion-dollar major league baseball contract, and an affordable unit’s rent would remain unchanged. Affordable units would be “permanently” affordable, creating what economists term a “lock-in effect,” limiting the likelihood that such units will be vacated. This is problematic for a city housing policy that seeks to decrease the overall number of severely rent-burdened households. (6)

This is just silly. Very few people have such windfalls. And very few of those who do have such windfalls live in small apartments afterwards. The more common problem is that young, educated people get affordable units when their earnings are low and then become middle-class or upper-middle class over the years. This is a serious program design issue and it means that the administration should think through what permanent affordability should mean over the lifetime of a typical household.

As I noted, this brief raises some serious issues amongst all of its heated rhetoric. One hopes that the administration can get through the hot air to the parts that are informed by cool reason.

 

NYC’s Abandoned Public Housing

The Community Service Society issued an important report, Strengthening New York City’s Public Housing. Public housing has a terrible reputation in much of the country, but the New York City Housing Authority traditionally had the reputation, notwithstanding its real flaws, as the best large public housing system in the nation. This report makes a strong case that many of its current flaws are the result of systemic disinvestment at the federal, state and local levels in recent years. The report concludes,

the analysis confirms the reality of the appalling living conditions in NYCHA apartments reported by residents and the media for several years. But the Authority’s reputation or its competence should not be at issue; it performed relatively well until its resource base fell apart in the period following 2001. Government defunding was and is the root cause of the accelerating deterioration over the last decade. The state and city were major contributors to that decline, often at levels equivalent to the federal disinvestment. They should be open to a major role in restoring NYCHA.

Moreover, existing institutional arrangements that make NYCHA opaque to public scrutiny need to be changed—those that mask the Authority’s financial condition and its failures to comply with local housing and building codes—because they cloak the real consequences of government defunding and, as a result, deprive residents, advocates, concerned elected officials, and the interested public of the information they could use as ammunition to press for needed resources. The NYCHA Board also needs to be freer to act as a leading advocate for the Authority. Its governance structure should be reconsidered to assure the Board the independent voice it needs to better make the case for itself and its residents. (27)

The de Blasio Administration has made affordable housing a centerpiece of its agenda, so there is reason to think that this report will get its attention. Let us hope so — there is a lot of solid infrastructure which just needs its deferred maintenance issues addressed. But the report also highlights various operational changes that can lead to real improvements in the lives of NYCHA residents.  These reforms could provide many low-income households with decent homes.

Reiss in CSM on Rental Policy

The Christian Science Monitor quoted me in Census Outlines ‘Poverty Areas’: Which States Hit Hardest? It reads in part,

The number of US residents living in “poverty areas” has jumped significantly since 2000, according to a Census Bureau report released Monday.

According the 2000 Census, less than 1 in 5 people lived in poverty areas. But more recently, 1 in 4 residents have lived in these areas, according to census data collected from 2008 to 2012.

The Census Bureau defines a poverty area as any census tract with a poverty rate of 20 percent of more.

Sociologists and other analysts point to the Great Recession, in particular housing and job challenges, as well as slow and uneven growth since the recession.

“With the advent of the financial crisis and the bursting of the housing bubble, many people lost their homes and thus needed to rent or move in with relatives,” says Cheryl Carleton, an economics professor at Villanova University near Philadelphia. “[I]ndividuals need to move where they can afford to live … which is going to be in areas where public housing is available or housing prices and rental rates are low, which is more likely to be in a ‘poverty area.’ ” Professor Carleton made her comments via e-mail.

*     *     *

Law professor David Reiss suggests that changes to homeownership policies could help.
“Federal and state housing programs could do more to support a market for well-maintained rental units for low-income households,” e-mails Professor Reiss, who teaches at Brooklyn Law School. “Many low-income households have difficulty maintaining homeownership because of irregular incomes and low wealth.”