E151U: Housing

1
E151UHousing Urban Development

• Mixed-Income Housing
• Fall 2004

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Hills vs. Gautreaux

• Class action suit filed in 1966
• Charge of racial discrimination in Chicago public
  housing
• Against the Chicago public housing authority and
  HUD
• Court rules in favor of Gautreaux

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Supreme Court Ruling (1976)

• Approves a plan to remediate the segregation in
  Chicago public housing

4
Remediation Plan

• Administrator the nonprofit organization
  Leadership Council for Metropolitan Open
  Communities
• Section 8 certificates to be used in
  predominately white neighborhoods
• Housing counseling

5
Research (Rosenbaum et al.)

• Educational attainment was higher for children
  who moved to suburbs compared to within city
  movers
• Movers to the suburbs were more likely to be
  employed than those that moved within the city
• Social integration appears to have occurred

6
Moving to Opportunity (MTO)

• HUD sponsored demonstration program
• Focuses on income not race
• Implemented in five cities Baltimore, Boston,
  Chicago, Los Angeles and New York

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MTO Participants

• Very low-income families with children living in
  public housing or Section 8 project-based housing
  in central city neighborhoods with high
  concentrations of poverty

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MTO Program Elements

• Section 8 certificates or vouchers to be used in
  low poverty areas
• Housing Counseling

9
MTO

• Research Designed as Experiment

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Research Design

• Three Groups
• 1
• Experimental receives Section 8 rental
  certificates or vouchers usable only in
  low-poverty areas and housing counseling

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Research Design (contd)

• 2
• Section 8 comparison group Receives Section 8
  rental certificates or vouchers for use anywhere
  in PHA area and the usual types of assistance
  from the PHA

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Research Design (contd)

• 3
• Control group No change--receives their current
  project-based assistance.

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Research Design (contd)

• Volunteers for program, randomly assigned to one
  of the three groups
• Being followed over a ten-year period
• Assessment of change in various measures
  including employment, educational attainment, and
  others

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Research Design (Contd)

• Random Assignment
• Time 1 Treatment Time 2
• Measurements Measurements
• Group 1 O1 X1e O1
•  
• Group 2 O2 X2c O2
•  
• Group 3 O3 O3

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Research Design (Contd)

• Shortcomings of Research
• --Participants were volunteers therefore,
  findings cannot be generalized
• i.e., volunteers may differ systematically
  from non-volunteers

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HOPE VI

• Public housing authorities compete on a national
  basis for program funds
• Program goal is to redevelop public housing
• Typically involves some demolition of existing
  units and overall reduction in density

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Concerns About HOPE VI

• Loss of standing public housing stock
• Displacement of public housing residents
• Section 8 vouchers depend on private housing
  market

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Attraction of Higher Income Households

• Location of development
• Development density
• Design
• Amenities
• Demographics overall mix of incomes
• On-site location of lower income households

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Examples of Non-Federal Mixed- Income Policies

• Massachusetts Housing Finance Agency
• Californias Density Bonus
• New York State
• Montgomery County, MD

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Montgomery County, MD

• Moderately-Priced Dwelling Unit Program

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Conditions Leading to Program

• Job Growth
• Development growth controls
• Public Infrastructure did not keep pace with
  population growth
• demand exceeds supply
• high cost housing

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MPDU Program (contd)

• Mandates that 12.5-15 of the units in
  residential developments of 50 or more units must
  be for low- and moderate-income households. The
  program also includes a density bonus for
  developments that include more than the minimum
  percentages required by law.

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Does Mixed-Income Housing Succeed?

• We dont know--
• Additional research is needed