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LOCATION, LOCATION, LOCATION

LOCATION, LOCATION, LOCATION

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LOCATION, LOCATION, LOCATION

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  1. LOCATION, LOCATION, LOCATION

  2. Policies designed to promote housing integration • Anti-snob zoning laws: The Affordable Housing Planning and Appeal ActPublic Act 93-0595 • Fair Housing Laws (outlaw real estate agent “steering,” landlord discrimination) • Urban Growth Boundaries, SmartGrowth and New Urbanism • Housing Vouchers • Hope VI

  3. Readings on Urban Growth Boundaries, SmartGrowth and New Urbanism • video (enter logon and password) • Jonathan Cohn "Losing Hope" The New Republic • New Urbanism • Protecting Your Property From Stupid "Smart Growth" Socialistsby Edwin Feulner (May 8, 2005) • Organized Theft: Sustainable Development, Smart Growth and Kelo by Tom DeWeese (July 3, 2005) • Easy Money In California by Thomas Sowell (April 18, 2005) • San Mateo County and The Environmental Protection Racket by Thomas Sowell (May 30, 2005)

  4. Location of Public Housing • Public Housing projects: • At the discretion of local housing authorities. • Most suburbs had no housing authorities • Those that did preferred housing for elderly and disabled. • (in Chicago) at the discretion of local aldermen • White aldermen refused • 1950s: CHA policies explicitly promoted segregated projects. • Gautreaux decision overturns policy • 1.2 million units (declining) • Federal government cost: $5.2 Billion

  5. Public Housing problems • In 1940s and 50s – for low income workers, often two parent families • 1960s: targeted poorer, single parent families • More high-rises • Tenant rights protected: fewer restrictions on tenants • Poor management and maintenance • High crime, concentrated poverty

  6. Privately owned public housing • Nixon administration. • Section 8 (tenants pay 30% of income). • Owners have incentives to maintain property. • Private owners have greater location choices. • 1.3 million units • Federal cost: $5.3 Billion

  7. Low Income Housing Tax Credit • Tax Credits that developers of low income housing can sell on the private market. • Involves much less bureaucracy. Private ownership, no federal rent subsidy. • Less segregation: developments only partially low income(20% less than50% of median income;40% less than 60%) • Federal Government cost $6 Billion • Funded 1.2 million units since 1986.

  8. Housing Vouchers • Reagan administration (Kemp, HUD) • Gautreaux, (Chicago); • Moving to Opportunity experiment • 2.1 million authorized vouchers • Federal cost: $14.8 Billion

  9. Adavantages of Vouchers • Private ownership, better management • Less costly than public projects • Permits desegregation • Some evidence suggests improvements in…

  10. Results of Moving to Opportunity Experiment (Vouchers) • Improvements in • personal safety • housing quality • mental health and obesity among adults • mental health, staying in school, delinquency, and risky behavior among teenage girls. • Moving to Opportunity for Fair Housing Demonstration : Interim Impacts Evaluation (September 2003, 341 p.)

  11. Disadvantages • Conservative: • Still a welfare subsidy • Disrupts suburban communities • No time limits • Liberal (sort of) • Disrupts original community • William Simpson, A blueprint for `black flight'? • Problems (other liberals): • Landlord discrimination (prohibited in some states and cities, including Chicago). • Not enough vouchers, amount set too low • Doesn’t create new housing

  12. Hope VI • Tear down decaying projects. • Offer some vouchers. • Replace projects with mixed income housing. • Clinton created the program, Bush opposes it. • Jonathan Cohn "Losing Hope" The New Republic • Susan Popkin, et. al., A Decade of HOPE VI

  13. Readings • William C. Apgar, Jr., Which Housing Policy is Best? Housing Policy Debate 9(2) • John C. Weicher, Comment • Raymond J. Struyk, Comment • Moving to Opportunity experiment • Strengths and Weaknesses of the Housing Voucher Program • Lan Deng, “Comparing the Effects of Housing Vouchers and LIHTC..”