innovations in federal housing policy: hope vi

8/19/2019 Innovations in Federal Housing Policy: HOPE VI

1/24

Innovations in Federal Housing Policy: HOPE VI

Eva Thomas

Junior Seminar: U.S. States in Comparative Perspective

Prof. Rodney Hero

12!2"1#


2/24

Innovations in Federal Housing Policy: HOPE VI

I. Introduction

H$PE %& represented a fundamenta' shift in housin( po'icy) an attempt to

overhau' the system of pu*'ic housin( in the U.S. *y demo'ishin( e+istin(

housin( pro,ects and creatin( ne- *ui'din(s -ith *etter 'ivin( conditions as

-e'' as inha*itants of a mi+ of dierent income 'eve's. /'asheen and Pea'er

refer to it as a 0comp'ete reversa' of momentum in housin( po'icy 2""#3.

4ost nove' -ere the pro(ram5s stated (oa's to incorporate in housin( po'icy

so'utions to socia' issues: racia' and economic se(re(ation) hi(h rates of

vio'ent and dru(6re'ated crime) and unemp'oyment amon( residents in pu*'ic

housin( Pop7in et a'. 2""83. The path-ays throu(h -hich H$PE %&

attempted to carry out these reforms -ere a'so nove' for federa' housin(

po'icy: the pro(ram a''ocated (rants not *y a formu'a) *ut throu(h

competitive app'ications) -hich represents a departure from previous (rant

a''ocation) such as in the ear'ier formu'a6*ased Comprehensive /rant

Pro(ram 9oc7e) Pop7in) and os*ur( 1;;y'y 2"""3.

$ne stri7in( aspect of H$PE %& is the e+pansion of the ro'e of the federa'

(overnment in housin( po'icy. ?ot on'y -as the pro(ram a hu(e monetary


3/24

investment 6 Con(ress appropriated @1.< *i''ion for H$PE %& *et-een 1;;A

and 1;;#) in the Brst round of (rant dis*ursement 6 *ut it a'so inserted the

federa' (overnment into the a(enda6settin( and (oa'6formu'atin( process of

city (overnments and 'oca' housin( authorities 9oc7e) Pop7in) and os*ur(

1;;


4/24

po'icy. Hence) the near'y simu'taneous institution of H$PE %& and T=?

su((ests inconsistency in po'icy priorities of federa' (overnment. &t may *e

that there e+ists some fundamenta' dierence *et-een the provision of

housin( for the needy and the provision of other *eneBts) or there may have

*een a chan(e in (overnment priorities *et-een the imp'ementation of

these t-o pro(rams) perhaps associated -ith e'ections in 1;;8 and 1;;


5/24

a. Roles of federal housing policy in historical perspective

&n order to e+amine the p'ace of H$PE %& in trends to-ards devo'ution)

it is necessary to p'ace the pro(ram in the conte+t of the evo'ution of federa'

housin( po'icy over time. To this end & have revie-ed severa' reports on

H$PE %& -hich inc'ude a section on the history of housin( po'icy and the

p'ace of the pro(ram in that history) and constructed a time'ine to i''ustrate

ua'itative'y chan(e in the sie of the federa' ro'e in housin( po'icy in ma,or

ur*an centers.

*. Allocation of funds to sites

& e+amined economic and po'itica' characteristics of the 8" 'ar(est ur*an

centers in the United States circa 2""". The 8" 'ar(est cities -ere e'i(i*'e to

app'y for H$PE %& fundin() as -e'' as any cities -hich -ere reported to have

0severe'y distressed pu*'ic housin( units 9oc7e) Pop7in) and os*ur( 1;;


6/24

determined -hether severe distress corre'ated -ith hi(her a-ard amounts

9oc7e) Pop7in) and os*ur( 1;;


7/24

directin( fundin( to-ards ur*an areas as a -ho'e) & have not *ro7en do-n

these (rants into fundin( per pro,ect.

4y Bna' varia*'e) po'itica' a'iation of state and 'oca' e+ecutives) is an

ordina' varia*'e ran(in( from " to 8. = city received 2 points for havin( had a

Femocratic mayor throu(hout the entire period 1;;A61;;


8/24


9/24

19#1: edera' (overnment provides 'imited funds for operatin( costs.

19#9 and $%": =mendments to the Housin( =ct of 1;A! 'imit rent payments

to 2#M of income) fue'in( the trend to-ards 'o-6income residence in pu*'ic

housin(.

19#"s: edera' Performance undin( System provides more money via

formu'a to 'oca' housin( authorities to cover the 'ost revenues in rent. This

system did not provide fundin( for moderniation) -hich *ecame a pro*'em

as physica' structures *e(an deterioratin(.

19#&: edera' (overnment *e(an providin( 'imited funds for moderniation)

often restricted to items that -ere priorities for the federa' (overnment.

19%"s: Costs for moderniation -ere covered *y reopenin( the ori(ina' 8"6

year contract and addin( funds over the remainin( years. This

disadvanta(ed o'der deve'opments) -hich had fe-er years 'eft on their

contract.

19%&: Gias a(ainst o'der pro,ects corrected *y esta*'ishin( separate pro,ects

for moderniation.

19%9: Pu*'ic Housin( Ur*an &nitiatives Pro(ram addresses *oth physica'

pro*'ems and socia' pro*'ems such as crime) and provides assistance to

improve mana(ement.

19&": Su*stantia' moderniation fundin( provided for the Brst time in the

Comprehensive &mprovements =ssistance Pro(ram. Pu*'ic Housin(

=uthorities competed for funds intended to address a'' needs at a (iven

pro,ect.


10/24

199': Comprehensive /rant Pro(ram) a''ocated *y formu'a) rep'aced C&=P

for 'ar(er housin( authorities. This does not provide fu'' fundin( for

reha*i'itatin( severe'y distressed pro,ects) *ut is rather a -ay to provide

housin( authorities -ith a re'ia*'e fundin( source for capita' improvements.

&t a'so imp'emented more discretion for 'oca' housin( authorities.

Trac7in( the ro'e of federa' (overnment in housin( po'icy over time

revea's the trend that as the ro'e of pu*'ic housin( *ecame more focused

to-ards providin( cheap housin( for the needy in the #"s and


11/24

Thou(h H$PE %& carried on the 'e(acy of addressin( socia' pro*'ems

and competitive (rant a''ocation of ear'ier pro(rams) it a'so made one of its

o*,ectives a reversa' of the trend to-ards the concentration of very 'o-6

income persons in pu*'ic housin(. Thou(h this reuired a massive federa'

intervention at the time of imp'ementin( the H$PE %& pro(ram) there -as

a'so the u'timate vision of creatin( housin( deve'opments that -ou'd

*ecome se'f6sustaina*'e over time) -ith rents from hi(her6income residents

a*'e to cover operatin( costs. Hence) despite the input of @1.< *i''ion of

federa' money into municipa'6'eve' a(encies) the desired eventua' outcome

of H$PE %& -as comp'ete'y consistent -ith other po'icies of the 1;;"s -hich

pushed to-ards a sma''er ro'e of the federa' (overnment in -e'fare

pro(ramsD the increased 'in7s *et-een private contractors and housin(

authorities that H$PE %& sou(ht to foster a'so Bt into the privatiation

movement Hamme' and >y'y3.

ina''y) thou(h H$PE %& increased the Bnancia' ro'e of the federa'

(overnment in 'oca' housin( po'icy) it a'so oered 'oca' housin( authorities

e+i*i'ity in determinin( the e+act p'an and imp'ementation of funds in order

to reha*i'itate the (iven pro,ect 9oc7e) Pop7ins) and os*ur( 1;;


12/24

si(niBcant than the source of the fundin(. Hamme' and >y'y refer to the

pro(ram as uti'iin( the 0discourse of devo'ution a'on( -ith federa' contro')

as H$PE %& increased 'in7s *et-een 'oca' housin( authorities and the federa'

(overnment 2"""3.

*. Allocation of funds to sites

& -i'' discuss three varia*'es to determine -hether fundin( in the Brst

round of (rant a''ocation in H$PE %& varies -ith economic or po'itica'

characteristics of cities. & a'so compare the characteristics of cities

participatin( in the pro(ram durin( its Brst imp'ementation in 1;;A61;;<

-ith cities -hich -ere e'i(i*'e to participate *ut did not. Since on'y L"M of

e'i(i*'e cities app'ied for fundin() some cities -hich did not receive fundin(

may not have app'ied for the pro(ram in the Brst p'ace the 'ist of cities

-hich app'ied for the Brst round is unavai'a*'e) and research on the topic is

further comp'icated *y the fact that some of these cities may have app'ied

for and received fundin( in su*seuent rounds3. Hence & -i'' consider these

non6H$PE %& 'oca'es *oth as vo'untary nonparticipants and ur*an centers

-hich -ere not prioritied *y the pro(ram.

$ne of the most heavi'y6-ei(hted cate(ories of the H$PE %& app'ication

-as the estimated need of the recipient. &n order to test -hether the

recipient5s needs corre'ate -ith (rant amount) & have compared those cities

-hich -ere and -ere not considered in 1;;< *y the Fepartment of Housin(

and Ur*an Feve'opment to *e 0severe'y distressed 9oc7e) Pop7in) and


13/24

os*ur( 1;;


14/24

i.e.) cities -ith housin( pro,ects that -ere not severe'y distressed -ere 'ess

'i7e'y to see the need to app'y for fundin(.

&n a redistri*utive fundin( pro(ram aimed at standardiin( conditions in

housin( *et-een poorer cities and -ea'thier ones) one -ou'd e+pect that

cities -ith 'o-er /FP per capita -ou'd receive more fundin(. medium6

income. The poorest city in my samp'e Tucson) =K3 did not receive fundin()

-hi'e the -ea'thiest San rancisco) C=3 did. >ithin H$PE %& cities) /FP per

capita had a stron( ne(ative corre'ation -ith a-ard amount: R2N.1


15/24

more funds to cities that are poorer *ut don5t necessari'y have severe'y

distressed housin( systems. =ccordin( to the H$PE %& Gase'ine =ssessment)

some deve'opments have e+perienced distress *ecause of poor

mana(ement *y the housin( authority) -hi'e others are distressed simp'y

*ecause they are very o'd and hence the physica' structure has deteriorated

9oc7e) Pop7in) and os*ur( 1;;


16/24

(oa's and imp'ementation of H$PE %& after 1;;< Hamme' and >y'y 2"""3.

=mon( a'' 8" top ur*an centers) party of (overnors and mayors corre'ates

positive'y -ith H$PE %& participation R2N.1"A


17/24

G'ac7 or Hispanic -as corre'ated -ith hi(her a-ard amounts) *ut did not

discuss this Bndin( as it -as outside the scope of this paper.

H$PE %& at its initia' conception -as a pro(ram that sou(ht to a'ter the

ro'e of the federa' (overnment in 'oca' housin( po'icy) to move a-ay from

pro,ects -hich concentrated the e+treme'y 'o- income and iso'ated them

from the *roader community) and to-ards mi+ed6income housin(

deve'opments -hich -ou'd -or7 -ith 'oca' partners in the pu*'ic and private

sector to achieve sustaina*i'ity over time. Ho-ever) the pro(ram -as a point

of po'itica' contention in the atmosphere of the ;"s) in -hich the trend -as

to-ards dere(u'ation and devo'ution of contro' to the state and 'oca' 'eve')

particu'ar'y in -e'fare po'icy. inancia''y) H$PE %& vast'y increased the ro'e of

the federa' (overnment in housin( po'icy) thou(h it (ave si(niBcant'y 'ee-ay

to 'oca' authorities in imp'ementin( and directin( its fundin(. Thus it

occupied a (ray space *et-een decentra'iation and federa' oversi(ht of

sometimes poor'y6mana(ed housin( pro,ects. &t tar(eted housin( pro,ects

-hich -ere in need of reform) *ut a'so those -hich promised a (ood return

on investmentD H$PE %& in its Brst iteration had characteristics *oth of an aid

pro(ram to stru(('in( cities and a Bnancia' investment.


18/24

,or-s (ited

0Census 2""" Fata. U.S. Gureau of the Census. 2""1. =ccessed Fecem*er

here The Poor 9ive: Ho- edera' Housin( Po'icy

Shapes Residentia' Communities. Urban Anthropology and Studies of

Cultural Systems and World Economic Development A1) no. 1 2""23:


19/24

Urban Development . %o'. 1 1;;


20/24

Aendi/ A: (ity Data

(ityPoulation0'"""

Inco2e er (a0'""1

A2ountA3arded

Chica(o) &9 2)!LA)!2< ##)"11 #")""")"""

Phi'ade'phia) P= 1)#L#)#!! #A)"28 #")""")"""

9os =n(e'es) C= A)8L#)A;L #1)8#L #")""")"""

C'eve'and) $H #"#)

>ashin(ton) FC


21/24

San Jose) C= !L2)28L !2)1LA "

San Fie(o) C= 1)11")#8; #1)18# "

Phoeni+) =K ;LA)8"A 8#)821 "

?ashvi''e) T? 8LL)A!8 8L)!8L "$7'ahoma City)

$Q 888)!1; 82)1A1 " Tucson) =K 8"#)A;" AA)A8" "%ir(inia Geach)%= A;A)"orth) TI 88!)= " " 2 2Qansas City)4$ 1 2 2 8

St. 9ouis) 4$ " 2 2 8

4i'-au7ee) >& " " 2 2?e- $r'eans)9= 1 2 2 8

Fetroit) 4& 1 2 2 8

=t'anta) /=1 2 2 8

Char'otte) ?C " 2 " 2

Co'um*us) $H " " " "

Houston) TI " 1 2 A

E' Paso) TI " 1 2

Pitts*ur(h) P= " 1 2 A

&ndianapo'is) &? 1 2 " 2

Fa''as) TI " 1 1 2


22/24

Fenver) C$ " 2 2 8

$a7'and) C= " " 2 2

>ashin(ton) FC 1 2 8

San Jose) C= " " 2 2

San Fie(o) C= " " " "

Phoeni+) =K " " "

?ashvi''e) T? " 2 2 8$7'ahoma City)$Q " 1 " 1

Tucson) =K " " 2 2%ir(inia Geach)%= " 1 2

Port'and) $R " 2 2 8

=ustin) TI " 1 2

ort >orth) TI " 1 " 1

9on( Geach) C= " " "='*uuerue)?4 " 1 2 A

Jac7sonvi''e) 9 1 2 1 A

Aendi/ ;: 7rahs o* (orrelations

AA)A8" 8A)A8" #A)A8"


23/24

AA)A8" 8A)A8" #A)A8"


24/24

" ".# 1 1.# 2 2.# A A.# 8 8.#"

1")""")"""

2")""")"""

A")""")"""

8")""")"""

#")""")"""

innovations in federal housing policy: hope vi

Documents