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Housing and Urban Development Policies in the War on Poverty

Housing and Urban Development Policies in the War on Poverty. Jens Ludwig University of Chicago and NBER Ed Olsen University of Virginia. Trends and Initial Conditions. Housing conditions had improved greatly over past two decades In 1960, 8.5 million families lived in substandard housing

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Housing and Urban Development Policies in the War on Poverty

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  1. Housing and Urban Development Policies in the War on Poverty Jens Ludwig University of Chicago and NBER Ed Olsen University of Virginia

  2. Trends and Initial Conditions • Housing conditions had improved greatly over past two decades • In 1960, 8.5 million families lived in substandard housing • Blacks were increasingly concentrated in central cities

  3. Inherited Housing Programs • Public housing • Privately-owned subsidized projects • Section 202 (elderly) • Section 221(d)(3) BMIR

  4. LBJ’s Housing Programs • Public housing reforms • Leased public housing • Turnkey public housing • Rent supplements • Section 236 rental • Section 235 homeowner

  5. Direct Descendants (1974) • Section 8 Existing • Section 8 New Construction

  6. Estimated Ratio of Total Cost to Market Rent

  7. Percentage of Families in Low-Income Housing Programs by Income Bracket

  8. Household Characteristics in Housing Programs (1977)

  9. Household Characteristics in Housing Programs (2009)

  10. Evidence on Program Performance • Reduced the cost of providing housing • Increased the number of assisted families • Programs differed greatly in their focus on poorest households • Housing assistance has had a significant effect on poverty correctly measured • Housing programs haven’t increased earnings • Reduced economic and racial segregation

  11. Policy Implications • Offer housing vouchers to all public housing tenants in high poverty neighborhoods • Shift budget from project-based to tenant-based assistance • Transition to program that offers assistance to all of the poorest households

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