Showing papers in "Housing Policy Debate in 1996"

The social benefits of homeownership: Empirical evidence from national surveys

Abstract: Claims that homeownership is beneficial to both owners and society have not been examined empirically. This article explores evidence from the General Social Survey and the National Survey of Families and Households, supplemented by data from the American National Election Studies and several small but highly relevant researches, to determine whether owners and renters differ in a variety of ways. Strong differences in demographics were found. Small differences were found in some respects: Owners tended to be higher in life satisfaction and self‐esteem and more likely to be members of community improvement groups. On a wide variety of social issues—from political partisanship to ethnocentric views—owners and renters were essentially alike. Thus, it appears that the claims for some social and individual benefits from homeownership are supported, but only weakly. Recognizing that the exploratory analyses presented are not definitive, several strategies for more definitive future research are recomm...

Homeownership and neighborhood stability

Abstract: A major objective of many neighborhood revitalization programs is to increase homeownership. Conventional wisdom holds that this is one of the best ways to stabilize areas in decline. This article questions convention by presenting a conceptual model of how homeownership rates might affect various indicators of neighborhood stability and by determining whether there is support for this model in the literature. The article also presents an original analysis of the relationship between homeownership rates and two measures of neighborhood stability. The literature review finds considerable support for an association between homeownership and both improved property maintenance and longer lengths of tenure. The analysis of census data similarly indicates less residential mobility and greater property value appreciation in areas with greater home‐ownership. Although initial values and citywide value changes appear to have much stronger effects on changes in property values than the tract home‐ownership...

High ambitions: The past and future of American low‐income housing policy

Abstract: In the 1930s, idealistic reformers attempted to create a vast public housing program using modern architectural design. Instead they created a distinctive look that would later stigmatize its occupants. After the passage of the Housing Act of 1949, visionaries attempted to rebuild American cities by placing the poor in high‐rise buildings, an experiment that was soon deemed a disaster. Today some believe that placing the poor in environments inhabited by wealthier groups will help to address the problems of poverty. By focusing on three periods of the low‐income housing movement, this article examines how visionary idealism has led to disillusionment with housing programs. In the future, supporters of good low‐income housing should present housing programs not as panaceas for deep‐rooted social problems, but rather as important elements in social welfare policy. Advocates of housing should fight for programs that will produce as many units of housing as possible.

Networks and nonprofits: Opportunities and challenges in an era of federal devolution

Abstract: Community development corporations and other nonprofit organizations are increasingly responsible for producing and managing low‐income housing in urban America. This article examines the network of governmental, philanthropic, educational, and other institutions that channel financial, technical, and political support to nonprofit housing sponsors. We analyze the relationships among these institutions and propose an explanation for their success. We then consider challenges the network must confront if the reinvention of federal housing policy is to succeed. Block grants and rental vouchers, the dominant emphases of federal policy, present opportunities and constraints for nonprofit housing groups and their institutional networks. While states and municipalities are likely to continue to use block grants for nonprofit housing, the viability of this housing will be severely tested as project‐based operating subsidies are replaced by tenant‐based vouchers. We recommend ways that the federal, state...

Where the homeless come from: A study of the prior address distribution of families admitted to public shelters in New York City and Philadelphia

Abstract: This study investigates hypotheses regarding the association of census tract variables with the risk for homelessness. We used prior address information reported by families entering emergency shelters in two large U.S. cities to characterize the nature ofthat distribution. Three dense clusters of homeless origins were found in Philadelphia and three in New York City, accounting for 67 percent and 61 percent of shelter admissions and revealing that homeless families’ prior addresses are more highly concentrated than the poverty distribution in both cities. The rate of shelter admission is strongly and positively related to the concentration of poor, African‐American, and female‐headed households with young children in a neighborhood. It is also correlated with fewer youth, elderly, and immigrants. Such areas have higher rates of unemployment and labor force nonpartici‐pation, more housing crowding, more abandonment, higher rates of vacancy, and higher rent‐to‐income ratios than other areas.

Emerging strategies for revitalizing public housing communities

Abstract: This article provides a practitioner's view of proposals and efforts to revitalize the most distressed housing communities under the Urban Revitalization Demonstration (URD) program. While data suggest that most public housing is in good physical condition, recent trends toward increasingly impoverished resident populations suggest that tinkering with the public housing program by changing occupancy policies or creating new, small‐scale initiatives will not lead to long‐term sustainability of communities. The article reviews recent public housing history and the efforts of the National Commission on Severely Distressed Public Housing to assess the root causes of distress and identify solutions. URD plans in Seattle and Indianapolis are used to illustrate the range of flexible intervention strategies for revitalizing public housing communities. Since little research exists to indicate which combination of approaches ensures the long‐term sustainability of revitalized communities or mixed‐income de...

Joblessness and Poverty in America's Central Cities: Causes and Policy Prescriptions

Abstract: Two paradigms pervade the policy debate on the causes of urban joblessness and poverty: (1) a structural, nonvoluntaristic perspective emphasizing the roles of urban economic change, residential segregation, and spatial and skills mismatches, and (2) a rational-choice, voluntaristic perspective contending that the generosity and ready availability of welfare programs have removed the incentive for poor persons to accept low-paying jobs. This article brings together propositions of each paradigm into a comprehensive theoretical model. The study measured and tested key causal operators of the model for a sample of 67 large U.S. cities, with special attention to race and gender. Results show that structural and welfare disincentive perspectives are not in conflict but rather operate side by side to reinforce joblessness and poverty. Race and gender, especially the role of urban space for women’s work, are important. The article raises pertinent policy issues derived from the two perspectives and from the analysis.

Racial differences in the search for housing: Do whites and blacks use the same techniques to find housing?

Abstract: Studies report that real estate brokers often provide less information to black clients than to whites and steer them to different neighborhoods. However, few studies have investigated racial differences in housing search procedures. If blacks believe they will receive less useful information from brokers, they may avoid them. Analyzing 1992 data from Detroit, this study finds that blacks were significantly less likely than whites to consult brokers. Blacks tended to rely more on methods such as talking with friends, checking newspaper ads, or driving through neighborhoods. Blacks were also more likely to believe that they missed housing opportunities because brokers discriminate. Differences in the socioeconomic characteristics of subjects account for some of the differences in the use of brokers. Eradicating discrimination by brokers will broaden housing opportunities only for blacks who use brokers. Policy actions that address the perception of discrimination by brokers may be a more powerful ...

Many routes to homeownership: A four‐site ethnographic study of minority and immigrant experiences

Abstract: The 1990 census and numerous studies have shown that minorities and immigrants, as a whole, are less likely to be homeowners than native‐born whites, even after controlling for income This article synthesizes the findings from a four‐site ethnographic study that explored this disparity by investigating homeownership and home‐financing processes in specific minority and immigrant communities The ethnographic studies highlight the interaction of cultural, social, and economic influences by contrasting the experiences of different ethnic groups in different housing markets Four major shortfalls were identified, which if corrected might enable more minorities and immigrants to become homeowners: (1) the lack of appropriate, affordable housing; (2) the limitations of existing financial tools; (3) the lack of home‐purchasing knowledge, credit knowledge, and credit judgment; and (4) cultural gaps, misunderstandings, and biases that distance minority and ethnic group members from mainstream real estat

Homeownership counseling performance: How can it be measured?

Abstract: Homeownership counseling encompasses several educational activities. Early approaches focused on reducing the risk of default and foreclosure among participants in government‐assisted mortgage programs, but more recent approaches have focused on increasing homeownership opportunities among low‐income and minority households. Unfortunately, little is known about the effectiveness of these approaches in terms of the number of new homeowners and the mitigation of default risk. To address that gap, this article presents a theoretical and methodological framework to evaluate counseling efforts. A successful counseling program is defined as one that assists a household with a low long‐term probability of ownership in buying a home and reducing its default risk. We concede that the methodological requirements for evaluating counseling are somewhat restrictive. However, if we establish an evaluation procedure using these goals as a framework, we can more accurately determine the effects of counseling on ...

Quality-of-Life Differences and Urban and Regional Outcomes: A Review

Abstract: Quality of life depends on the assortment of amenities that individuals and businesses value. Differences in the amount and mix of those amenities should affect the geographic “sorting out” of households and businesses, as well as welfare. Policy makers recognize the trend toward widening intrametropolitan disparities among and within communities and have either discussed or proposed several measures that can help address the problem. However, the differences in quality of life that are developing among communities reflect macro changes in the economy that policy may not, and perhaps should not, attempt to affect. As long as information is widely available and workers are reasonably mobile, the economy will adjust to differences in quality of life that develop. Policy can at least help facilitate that equilibration, and perhaps it can compensate those in the economy who suffer major dislocations in the process.

Public housing redevelopment: Seven kinds of success

Abstract: Three comprehensive redevelopment efforts were undertaken in Boston public housing projects during the 1980s, attempts that may well represent the clearest precedent for the current U.S. Department of Housing and Urban Development initiatives under the Urban Revitalization Demonstration program. Despite receiving similar levels of funding and undergoing similar design and development processes, the results of these three redevelopment efforts vary widely: Two of them have become nationally recognized models for public housing revitalization, while the third proved disappointing to all involved. This article examines and evaluates the three efforts. It argues that redevelopment success should be measured by at least seven criteria: smooth implementation, recognized design quality, improved tenant organization capacity, enhanced maintenance and management performance, improved security, progress on socioeconomic development, and resident satisfaction. It concludes by emphasizing the potential of pa...

Innovation and the cost of mortgage credit: A historical perspective

Abstract: Since the inception of U.S. institutional mortgage lending in the 1830s there have been major changes in mortgage instruments, the delivery system, and funding sources. Some of these changes qualify as innovations that have lowered the cost of credit and increased its availability. This article divides the history of U.S. mortgage finance into three periods and identifies the source and type of major innovations. The “Origins” period, from 1831 to 1931, included the development of many mortgage lending institutions and instruments. The second era, “A Wonderful Life,” featured a government‐supported special circuit that dominated mortgage finance from 1932 to 1981 and witnessed development of mortgage‐backed securities. The current era, “A Brave New World,” features a new system of credit delivery dominated by specialized institutions and technology. In it, application of automated underwriting and artificial intelligence may have far‐reaching effects on the market and the accessibility of low‐inc...

Welfare reform in the United States: A background paper

Abstract: A remarkable convergence of political developments produced a major change in the U.S. welfare system in 1996: the Personal Responsibility and Work Opportunity Reconciliation Act. This article reviews recent welfare policy history in the United States, surveys the major issues in welfare reform, outlines Democratic and Republican proposals, and summarizes the new legislation. It is argued that the new initiative will increase the hardship experienced by the poor over at least the next few years. The act's changes in federal funding for public assistance plus state responses to new fiscal incentives the legislation creates are likely over time to increase, rather than reduce, the federal role in welfare finance, if not administration. The new welfare system presents an administrative and political challenge to governors and indirectly to political leadership in the nation's cities. Despite reduced federal regulation of public assistance, the federal government still has an important role in progra...

Economic shifts and the changing homeownership trajectory

Abstract: From 1980 to 1988, homeownership rates declined substantially for the first time in the postwar era. They stabilized and began to creep upward during the 1988–94 period. After presenting a long‐term perspective, this article describes and examines two of the underlying forces of this upswing—demographic aging and improved levels of affordability—as well as the impact of immigration and minority lags. Fundamental economic factors are then surveyed: national and regional housing price shifts, housing production cycles, measures of housing affordability, and employment. Several key economic parameters of the post‐recession housing market are presented as a guide to the short‐term future. Post‐1988 homeownership rates initially rose because of an aging demography. But gradually, the new affordability became part of the dynamic. The new affordability was driven by the decade‐long slowdown and weakening of housing prices, lower post‐recession interest rates, and accelerated job creation following the p...

Urban crime: Issues and policies

Abstract: Research suggests that some social and criminal justice policies can affect the crime rate. This article considers the major criminal justice and social policy issues related to urban crime, such as drugs, domestic violence, property values, and the underground economy. Family disruption, drugs, limited economic opportunities, and unoccupied and unsupervised youth are all found to be associated with urban crime. The article concludes that major reductions in crime are likely to result only from increased economic and social opportunities for families and youth, particularly for young males. Intensive programs directed at families and at‐risk youth are more likely to lower crime than are programs directed at people already heavily involved in illegal activities. It costs less to keep young people in education and training programs than to imprison them, and such programs are more likely to produce productive and well‐adjusted adults.

The meanings of resident empowerment: Why just about everybody thinks it's a good idea and what it has to do with resident management

Abstract: It is generally believed that public housing resident management results in improved social, economic, and physical conditions at development sites and in an empowered community of tenants. While there is some documentation of improvements, there is little documentation regarding empowerment. Further, it is not always clear what proponents of resident management mean by empowerment or how it grows out of the resident management process. This article explores the relationship between community empowerment and resident management of public housing. Following a review of the history of resident management in the United States, three different meanings of empowerment relevant to resident management (conservative, liberal, and progressive) are presented, and their relationship to resident management is introduced and discussed. It is argued that none of the versions of resident management associated with these meanings produces an empowered community. The article concludes with a discussion of the use...

Community‐based human service delivery

Abstract: The nation's welfare and human services systems were restructured after 1980 through welfare reform, program dismantling and transformation, and privatization. In this period, demand for community‐based human services increased dramatically because of deinstitutionalization, heightened job competition, and rising rates of poverty. Despite nonprofit sector efforts to meet rising demand, the uneven distribution of urban voluntary agencies left many residents without access to key services. Maldistribution of services challenges key federal human service efforts and place‐based service delivery strategies and underlies virulent opposition to service facility siting. This article provides an empirical baseline concerning trends in community‐based service delivery and assesses urban planning tools to create efficient and equitable human service systems. In particular, service‐hub and fair‐share approaches to service distribution are evaluated. Limited applications of these approaches suggest the need ...

Successes, Failures, and Prospects for Public Housing Policy in the United Kingdom

Abstract: This article discusses some of the main changes introduced for public housing in the United Kingdom since 1980. They include the sale of more than a quarter of the homes to their occupiers, large‐scale transfers of public housing into the ownership of new nonprofit organizations, a greater emphasis on resident involvement in the management of their homes, a switch in government support from producer subsidies to personal subsidies to the tenants, increased support for housing associations as alternative social housing providers, and new steps toward a more holistic approach to urban regeneration. As a result of these policies, coupled with economic and social change during the same period, public sector housing—and the social housing provided by housing associations—have increasingly become occupied by people having the lowest incomes and suffering the greatest difficulties. There is anxiety that this increasing concentration of deprivation within public housing estates will replicate problems of...

Assisted living in public housing: A case study of mixing frail elderly and younger persons with chronic mental illness and substance abuse histories

Abstract: Since the Fair Housing Act of 1988, younger chronically mentally ill and substance abuse residents have been admitted to subsidized senior housing. This policy’s main purpose was to furnish housing for younger homeless individuals and to improve rental income streams for senior facilities. The policy was also meant to promote age integration, improve social engagement, and enhance informal support in these developments. Younger persons with chronic mental illness and substance abuse histories have proven to be incompatible neighbors, diminishing the quality of life for seniors and creating management problems for facility staff. A Decatur, Illinois, case study covered three years of mixing younger individuals into a public housing facility for frail seniors. After the younger persons were admitted, quality of life diminished and management became difficult. Results indicate that careful tenant screening and sensitive and extended management are vital for any chance of successful age integration in subsidized housing.

Local housing plans: Learning from Great Britain

Abstract: As the US Department of Housing and Urban Development refines the new Consolidated Plans, which replace the Comprehensive Housing Affordability Strategies, it should examine Britain’s experience with local housing plans Case studies of four best-practice cities—Glasgow, Dundee, Birmingham, and York—highlight the value of these plans in assessing the success of cities in their new “enabler” role Five key lessons for American cities emerge from this article First, these plans can serve multiple roles beyond bids to central government Second, local housing plans should address market-rate as well as below-market-rate housing issues Third, American housing plans should use a wider range of data sources than census information alone and should incorporate housing market analyses dealing with specific areas and population groups Fourth, the stress on implementation and strategy in British plans should be emulated Finally, aspects of Britain’s competitive bidding system should be considered for implementation

Can the national homeownership rate be significantly improved by reaching underserved markets

Abstract: Motivated by a renewed interest in homeownership, the U.S. Department of Housing and Urban Development developed techniques to study patterns of ownership. A baseline model is used to forecast homeownership in 2000 and then extended to illustrate how policy initiatives designed to overcome race‐and income‐based barriers to ownership could affect the national homeownership rate and the rates of ownership by specific subgroups. Another technique uses American Housing Survey data to estimate how these initiatives could affect household location and the choice of housing type. This article clearly demonstrates that even limited success in reducing race‐and income‐based disparities will result in a significant increase in the national homeownership rate and dramatic increases for subgroups, such as minorities, young households, and low‐income households, that have low rates of homeownership. Thus, these techniques affirm the importance of focusing on access and affordability.

Urban housing policy in the 1990s

Abstract: Recent decades have witnessed some resolution of certain long‐standing concerns of urban housing policy. Other issues, including the limited availability of affordable rental units, mortgage finance—related constraints on homeownership, reduced housing and income assistance to very low income populations, and problems of equal opportunity to housing and housing finance, remain at the forefront of the national policy debate. A variety of initiatives provide opportunities for efficiency gains in the pursuit of housing policy goals. These include the reformation of the Federal Housing Administration, consolidation of U.S. Department of Housing and Urban Development programs, transformation of the public housing system, enhanced underwriting flexibility by government‐sponsored enterprises, and their introduction of new mortgage instruments. However, sizable cuts in federal rental housing and income supports, together with the loss from the stock and the diminished production of low‐income rental hous...

Employment Policy and Urban Economic Development

Abstract: Despite continued national prosperity, the employment and earnings prospects of urban unskilled workers have deteriorated substantially in the past decade. Federal interventions on the supply side of the labor market include training programs and cash assistance. Demand-side interventions attempt to increase the hiring and training of disadvantaged workers by private employers. The new geographically targeted Empowerment Zone Program combines supplyand demand-side interventions with attempts to reduce the isolation of impoverished communities. Federal training efforts have been modestly effective for adult women, but not for other target groups such as youth. There is some evidence that training subsidies have a positive impact, but wage subsidies are stigmatizing. Past experiences with state enterprise zone programs have not been positive, but the federal program addresses some of the weaknesses of the state programs. Spatially targeted programs show promise as an effective way to assist disadvantaged workers without the stigmatizing effect of individual eligibility determinations.

Current issues in public urban education

Abstract: The 100 largest school districts in the United States educate 22.9 percent of our nation's K‐12 students, yet they represent a mere 0.6 percent of the school districts serving these children. Often faced with older buildings and more children who are “at risk” for various reasons, urban districts face tremendous challenges in educating these youngsters. A number of educational reforms taking hold across the country offer promise for improvement. Implementation of site‐based management, which allows officials and teachers at the school level to focus on the specific needs of the children for whom they are responsible, offers promise for improving schools across the nation, particularly in urban areas. Other reforms are not as well tested but also show promise. Today there are a number of successful schools in urban areas, giving hope that, in the future, more children in our largest cities will attend schools that offer them greater opportunities.

Comment on Langley C. Keyes et al.’s “Networks and nonprofits: Opportunities and challenges in an era of federal devolution”

Abstract: The Keyes et al article is an important contribution to the discussion of the future role of nonprofit organizations (NPOs) in the delivery of low‐income housing This article does a good job of examining networks and linking the NPO discussion to the concept of social capital Also, the case studies provide informative empirical evidence However, Keyes et al has several weaknesses in the argument for NPOs The lack of a careful explanation of the case for market failure is the primary weakness The argument can also be strengthened by expounding on the problems of investing in low‐quality housing Other potential weaknesses include the difficulty of identifying stakeholders and the likely leakage of subsidies to NPO employees My comments echo the authors’ call for additional research about NPOs More data and investigation are needed to determine the proper role of NPOs, whether they should serve a political purpose, how the services of NPO networks should be priced, and how efficient NPOs a

Comment on Langley C. Keyes et al.’s “Networks and nonprofits: Opportunities and challenges in an era of federal devolution”

Abstract: Housing markets are determined by a complex interplay of consumers and suppliers. The Keyes et al. article discusses the changing landscape for nonprofit housing providers and what recent developments in federal housing assistance policy will mean to them. But this perspective is too narrow to predict the effects of changes in federal housing policy because all housing providers are somewhat interrelated. All housing providers need to be considered, and using the terms “for‐profit” and “nonprofit” to distinguish between the two types of providers is unfortunate and misleading. For‐profits and nonprofits are fundamentally different: They place a different emphasis on community, and nonprofits can often deliver subsidies that for‐profits cannot. In addition, the strengths and the skills needed to produce housing under somewhat different objectives have led to some specialization. Ultimately, however, determining the optimal provider or mix of providers is best left to local and state governments as...