Subsidized Housing Cuts Poverty Rate More Than Census Measure Shows

October 13, 2015

My post on the dismal status of the Housing Choice voucher program led off with a call for larger investments in anti-poverty measures that have proved effective. But I didn’t wrap back around to how the vouchers fit in. Just too much, I felt, to cram into a single post.

So here’s the missing piece.

The Coalition on Human Needs, the source of my jumping-off point, draws on the Census Bureau’s Supplemental Poverty Measure for proofs of effectiveness. Many other progressive analysts and advocates do so as well.

As I’ve said before, the Bureau shows the impacts of major social insurance and safety net programs by recalculating poverty rates without their cash value.

The impacts of federally-funded housing subsidies — vouchers and public housing rolled together — seem relatively small, though not negligible when analyzed this way.

Without them, the SPM poverty rate would have been 0.9% higher in 2014. So it would seem they lifted roughly 2.8 million people over the poverty threshold — about 7 million fewer than the refundable tax credits, the top-ranked program one might classify as safety net.

The impact of the housing subsidy programs on the poverty rate has remained about the same ever since the Bureau began issuing its SPM reports in 2010. Small variations, but within the statistical margin of error.

The under-funding I’ve been going on about is one reason the impacts aren’t greater. But it’s not the only reason. Eligibility for housing assistance is another.

An individual or family doesn’t have to be hovering near the poverty threshold to qualify. The cut-off instead is 30% of the median income for the area they live in. That’s often, if not always considerably higher than the applicable poverty threshold.

In the District of Columbia, for example, the cut-off for a couple with with two children last year was about $9,000 higher than the maximum the family could have and still be counted as poor, if renters.

True, the DC Housing Authority exercises preferences when awarding new housing vouchers and public housing units, including one for homeless people, who are likely to be poor. But how many people in poverty actually benefited from such assistance last year is an open question.

More to the point, we can’t assume that what DCHA does reflects housing authority policies generally — except probably its current focus on veterans.

The impact figure is relatively small for a third, important reason. The dollar value of a housing subsidy doesn’t capture its full anti-poverty impact.

The value the SPM attributes to it is the different between the market-rate rent for an apartment, including basic utilities and what the household actually paid. But safe, stable housing is a platform of sorts for rising out of poverty. Or looked at another way, not having it makes rising more difficult.

Shifting around from place to place — or even worse, living in a shelter — makes finding and keeping a job unusually challenging. No permanent address. In some cases, no ready, regular access to a shower or a washing machine and dryer. Limited, if any access to a computer. Negative effects on both physical and mental health.

And if nothing else, time and energy that must be diverted to negotiating yet another temporary housing arrangement, packing and unpacking, figuring out new transit routes to work or training, other services, school and daycare for the kids, if any, etc.

For children, housing instability often has long-term consequences that make poverty in adulthood more likely — these better documented by research than consequences for adults.

Children whose families move around a lot, even if not in and out of a shelter, face higher risks of mental health problems — some manifesting themselves as what experts refer to as behavioral problems.

These help account for academic difficulties, as measured by standardized test scores and grades. So do frequent shifts from one school to another.

The end result is a relatively high dropout rate. And we know what employment and earnings prospects are for folks without at least a high school diploma.

Such effects are hard to convert to dollars that adults, both current and future, would have if stably housed, thanks to vouchers or apartments in public housing.

But I’m sure as can be that enabling low-income people to live in decent housing they can afford reduces poverty more than the SPM shows.

No Government Shutdown (Now), But Congress May Shut Out More From Affordable Housing

October 5, 2015

If the official poverty rate ticks down at the same pace it did last year, we won’t see it cut in half until 2040, the Coalition on Human Needs reports. Not even then if we have another recession, which, of course, we will.

What this tells us, CHN says, is that economic growth won’t reduce poverty fast enough. We need bigger investments in programs with a strong anti-poverty track record.

Doesn’t look as if bigger investments are in the cards. The Republican majorities in Congress insist that appropriations for non-defense programs total no more than the budget cap set by the 2011 Budget Control Act.

What we may forget is that the cap — and caps going forward — were set after Congress cut appropriations by about $38 billion, thus lowering the baseline the caps were based on. So even if the non-defense cap were lifted by $37 billion, as the President proposed, funding would still be lower than in 2010.

Hard to know whether we will have a genuine budget for the upcoming fiscal year. We’ll have a short-term continuing resolution instead.

But not an ordinary CR because it doesn’t maintain program-by-program spending at the same level it’s been. It instead makes cuts in non-defense programs — a total of about $7 billion — so as to bring spending below the FY 2016 cap.

And we might not have even this if House Speaker John Boehner hadn’t resigned, freeing himself, it seems, to let the House vote on the CR, even though so many of his Republican colleagues signaled they’d balk that it couldn’t pass without Democrats.

So we won’t have a government shutdown. We’ll instead have the stage set for a showdown in early December — or sooner.

A more complex situation then because Congress will have to somehow deal with not only the expiring CR, but the expiration of nominally temporary tax breaks and the fact that the Treasury Department will have exhausted measures it can take to avert a default on the federal debt.

Some predict another budget deal like the one that pulled us back from the so-called fiscal cliff at the tail end of 2012. Others a year-long CR.

Assume that becomes the solution. Well, we know (or should) that even level funding doesn’t mean as many people served as well as they’ve been served.

Take Housing Choice (formerly Section 8) vouchers, for example. Actually, you probably can’t if you don’t already have a voucher — perhaps not even if you do.

We all know that rents generally rise — and have been rising faster in recent years. Utility costs are rising also. And they’re folded into what housing vouchers help pay for.

Incomes of households in the bottom tier of the affordability scale generally haven’t kept pace. So their share of rent, plus basic utilities — 30% of income — covers less. Each voucher then usually costs the agency that issues it more.

What this means is that funding for Housing Choice would have to increase each year just to maintain a steady state. But it hasn’t. Quite the contrary.

The across-the-board cuts in 2013 left a large majority of local housing agencies without funds to cover their share of rent for all the vouchers they’d issued.

By and large, they coped by holding back vouchers they’d otherwise have reissued when households that had them not longer qualified, e.g., because they’d moved out of the area or gained enough income to boost them over the eligibility cut-off.

Some pulled back vouchers they’d issued to people who hadn’t yet found apartments. At least one changed its standards, requiring voucher holders to either move to smaller units or come up with the money for rooms that were now “extra.”

And some actually shifted funds from vouchers to cope with other shortfalls, exacerbated, but not originating in the cuts — mainly under-funding for the program that covers the costs of maintaining and renovating public housing.

They could do this because they were part of the U.S. Department of Housing and Urban Development’s Moving to Work pilot, which essentially converted their federal housing assistance funding to a block grant.

But for a seemingly over-flexible, under-monitored MTW, about 63,000 more households would have had vouchers last year, the Center on Budget and Policy Priorities estimates.

On the other hand, more probably had apartments in public housing than if the MTW agencies hadn’t shifted funds to keep units from becoming unlivable.

So the story’s a bit more complicated than direct cuts to the Housing Choice program. But choices Congress has made nevertheless account for the shrinking number of households that make rent affordable.

The across-the-board cuts ultimately denied about 100,000 households vouchers they’d otherwise have had. Congress later restored some of the lost funds — enough to renew all vouchers issued and put some back in circulation.

Yet the boosts in the last two budgets will still leave roughly 68,560 fewer households with vouchers than pre-sequestration, according to CBPP estimates (and my calculator). And there weren’t enough vouchers well before the Budget Control Act and aftermath.

Of course, the House and Senate might agree to an actual budget. So it’s worth a look at what could then arrive on the President’s desk. Will confine myself again to Housing Choice.

House funding for HUD would reverse the progress made toward restoring lost vouchers. The White House predicts a loss of 28,000 more.

Over on the Senate side, the Appropriations Committee says its bill would “continue assistance to all individuals and families served by both Section 8 and public housing.” The White House, however, contends that the funding level falls short of what would be needed to renew roughly 50,300 vouchers.

Distressing, to put it mildly, that folks who call the shots in Congress seem disposed to make a bad situation worse.

Rent’s Still Too Damn High for Lower-Income DC Residents

May 28, 2015

About 41,000 District of Columbia households are currently on the DC Housing Authority’s waiting list. Nearly half said they were homeless when they signed up for housing assistance.

Very disheartening, since there’s no way that all those households will get vouchers to cover what they can’t afford for rent or a chance to live in public housing. It’s even more disheartening when we consider how many additional households would be on the list if it weren’t still closed to new applicants.

The District’s budget for the upcoming fiscal year will fund more vouchers, as well as more construction and/or preservation of housing that’s affordable for the lowest-income residents.

Yet these investments will just make a dent in one of the District’s acute and growing problems — the shrinking supply of rental housing that’s affordable for those residents and for some with too much income to get on the DCHA waiting list, even if it were open.

The latest annual report from the National Low Income Housing Coalition gives us diverse perspectives on how “out of reach” rental housing is for low-income District residents, as well as some we wouldn’t ordinarily consider low-income.

Our point of reference here is the monthly cost of an available, modestly-priced two-bedroom apartment, plus basic utilities — technically, the U.S. Department of Housing and Urban Development’s fair market rent. Here in the District, the FMR for the apartment is $1,458.

To afford it, based on the usual 30% of income standard, a worker would have to earn at least $28.04 an hour — $58,320 for the year.

Renters in the District, however, earn, on average, an estimated $26.08 an hour. So the apartment is roughly $100 a month more than what they can afford. Doesn’t seem so bad until we consider that we’ve got some very high earners who bump up the average because they prefer, at least for the time being, to rent.

Income shortfalls are much larger as we drill down. For example, an extremely low-income household could afford to pay only $819 for rent, plus those utilities. Or so the NLIHC report tells us.

We need to recall that many households have incomes far below what NLIHC uses for its affordability figure — the maximum for the ELI category, i.e., 30% of the median for the area. That’s true everywhere, of course.

What’s not is the basis for the figure. As I’ve said before, the median income that HUD — and hence NLIHC — use for the District is inflated because the area includes some very well-off suburbs. So the apartment is almost surely further out of reach for even the highest-income ELIs.

One would need to do some fancy number-crunching to say how much further. The DC Fiscal Policy Institute, which did something of the sort two years ago, found that the District’s own median income was 23% lower than the area median.

No such caveats needed as we move down the income scale. We learn, for example, that a District resident with a full-time minimum wage job could afford to pay $494 a month for rent — roughly a third of the FMR for the two-bedroom apartment.

In other words, a household would have to have three full-time minimum wage workers to afford it. Looked at another way, as NLIHC always does, a minimum wage worker would have to work 118 hours.

Residents with severe disabilities who rely on SSI (Supplemental Security Income) benefits are, as always, in the worst shape of the groups NLIHC reports on. Those who receive the maximum benefit could afford no more than $220 a month for rent.

Moving beyond the report itself, I’ll note that the maximum monthly benefit a parent with two children can receive from the District’s Temporary Assistance for Needy Families program falls short of the FMR for the apartment by more than $1,000.

Don’t need to add, I suppose, that the apartment is even more absurdly out of reach for the 6,300 or so families who’ve had their benefits cut repeatedly and will have to manage somehow on what remains during the one-year cut-off delay the DC Council just approved.

As the NLIHC report indicates, measly public benefits alone don’t account for the gaps between what low-income renters could afford and what they’d have to pay — or in many cases, are paying by scrimping on other needs, juggling bills and/or resorting to high-interest loans.

Nor does the fact that inexpensive apartments are “going, going, gone” from the local market, as DCFPI recently reported. As it also documented, incomes for renters in the bottom two-fifths of the income scale have actually lost purchasing power since 2002 — or at least had, as of 2013.

These all enter into the mix, however. We’ve got a shortage of low-cost rental housing, a commensurate shortage of vouchers that would make moderate-cost units affordable, public benefits that don’t cover basic living costs, a minimum wage that’s still far less than a genuine living wage and too many residents without the education, training and/or job opportunities they’d have if our laws and programs achieved what policymakers intended.

A web of problems underlying the seemingly straightforward “out of reach” update, but all within reach of solutions.



DC Moves Forward on Affordable Housing. House Republicans Pull Back.

May 18, 2015

Here in the District of Columbia, we’re hopeful about prospects for more affordable housing, especially for our very lowest-income neighbors — both those homeless now and those at high risk because they’re paying at least half their income for rent.

The Mayor’s proposed budget largely accounts for these hopes. Meanwhile, our Republican neighbors on Capitol Hill have decided to put a damper on our progress — and the progress of communities nationwide.

National Housing Trust Fund Defunded

The Mayor’s proposed budget would dedicate $100 million to the Housing Production Trust Fund — our largest source of public financial support for projects to build and renovate affordable housing.

This would double the amount the Fund has for the current fiscal year and probably expand the District’s affordable housing stock by 1,000 or more units, the DC Fiscal Policy Institute reports.

The District could have counted on a share of the revenues that at long last were to flow to the National Housing Trust Fund. But the House subcommittee responsible for the U.S. Department of Housing and Urban Development’s appropriations raided those revenues.

A bit of budgetary legerdemain here. Basically, the subcommittee cut funds for the HOME program, which provides grants to state and local governments for a wide variety of activities related to housing and home ownership.

But it then partially offset the cut by allocating to HOME all the funds that were supposed to go to the Trust Fund. And for reasons not altogether clear to me, it tucked into its bill a provision prohibiting any other funding for the NHTF.

The defunding — and the under-funding I’ll discuss below — were approved by the full Appropriations Committee last week, on a straight party-line vote.

So much then, so far as the majority’s concerned, for funds intensively targeted to rental housing for extremely low-income households, as only 40% of the District’s Trust Fund resources must be.

Federally-Funded Housing Vouchers at Risk

The Mayor’s proposed budget would expand the Local Rent Supplement Program — the District’s locally-funded version of the federal Housing Choice (formerly Section 8) voucher program.

LRSP would get an additional $6.1 million — $3.7 million for tenant-based vouchers, which go directly to extremely low-income households so that they can afford to rent at market rates, and $2.4 million for project/sponsor-based vouchers, which help cover the operating costs of housing that’s affordable for these households.

But it’s doubtful the DC Housing Authority, which administers both LRSP and Housing Choice, will have more vouchers to award.

The House HUD appropriation reduces the funding local housing authorities will have to renew Housing Choice vouchers. They’d be shy a total of $183 million of what HUD estimates they’d need to sustain all vouchers now in use.

Here in the District, about 280 fewer families would receive Housing Choice vouchers, according to a White House fact sheet. If accurate, this means that DCHA would have to retire even more vouchers than it did after the across-the-board cuts known as sequestration.

DCHA and other housing authorities may face similar problems with the contracts they’ve awarded to affordable housing projects. The President’s proposed budget included HUD’s best estimate of the cost of renewing all such contracts. The House HUD appropriations bill falls $106 million short of that.

Further Losses in Habitable Public Housing

A nationwide study conducted for HUD five years ago found a $26 billion shortfall in the funds needed to repair and renovate public housing units. DCHA alone figured it would need $1.3 billion to preserve and redevelop all the units it manages.

That was about a year ago, not long before Congress level-funded the public housing capital fund, leaving it with $625 million less than it had when the HUD study produced its shortfall estimate. And level-funding doesn’t translate into the same level and quality of goods and services, as all of us with personal and household expenses know.

The House Appropriations Committee has nevertheless cut funding for the capital fund by $194 million. Hard to see how this wouldn’t further increase the number of public housing units left vacant — or demolished — because they’re egregiously substandard or so damaged by fire, flooding and the like that repair costs exceed available resources.

Squeeze on Homeless Services

The Mayor’s proposed budget includes a range of investments to move the District forward toward the goal of making homelessness in the District “rare, brief, and non-recurring,” as the new Interagency Council on Homelessness strategic plan envisions.

Her budget also includes a more realistic estimate of the costs of providing emergency shelter for families during the winter months — a refreshing change from the past few years, when the Gray administration minimized family shelter needs and then had to shift funds from other human services programs to cover the costs of motel rooms.

As in the past, local funds would supply most of the homeless services budget. But the District also expects a small increase in homeless assistance funding from HUD.

The House Appropriations Committee would, in fact, provide a small, increase for the grants — $50 million more than approved for this fiscal year. For all intents and purposes, however, the grants would, at best, preserve the status quo.

No additional money to help communities achieve the goals set by the U.S. Interagency Council on Homelessness — a source for the District’s own ICH goals.

And lest I haven’t rained on this parade enough, the Mayor’s plan to expand permanent supportive housing includes an as-yet unreported number of Housing Choice vouchers supplied by DCHA. So we could be looking here at a robbing Peter to pay Paul.

Not the District’s fault. It’s what the Republican Congressional majority chose when it decided not to lift the caps imposed by the 2011 Budget Control Act, but instead to boost defense spending through another bit of budgetary legerdemain.

None of this is yet a cause for hand-wringing, though teeth-gnashing seems appropriate. A bill passed by one appropriations committee is a long way from becoming an agency’s budget.

But we’re a long, long way from a HUD budget that would meaningfully support the District’s commitments to more affordable housing and a lot less homelessness.




Not Nearly Enough Housing Affordable for Lowest-Income Renters, Nationwide and in DC

March 16, 2015

Nearly a quarter of renter households nationwide fell into the extremely low-income category in 2013, i.e., had incomes at or below 30% of the median for the area they lived in, according to a new National Low Income Housing Coalition report.

Three quarters of these 10.3 million or so households paid at least half their income for rent and basic utilities. This is one measure of the shortage of affordable rental housing in our country — only 31 units affordable and available to rent for every 100 ELI households.

The gap was much greater for the subset of households NLIHC classifies as deeply low-income, i.e. those with incomes no greater than 15% of their area’s median. Only 17 affordable, available units for every 100 of them, making for a shortage of 3.4 million units.

All but 5% of the DLI households paid more than half their income for rent, plus utilities. These, recall, are households that somehow scraped up the money. We don’t have a reliable figure for those who were homeless because they couldn’t.

Surprisingly, at least to me, the figures for the District are somewhat better. But they still confirm the need for more affordable housing, especially for the very lowest-income residents.

And perhaps the figures are overly rosy because, as I’ve written before, the area the District belongs to for affordability calculations includes some very well-off nearby communities.

With that caveat, here’s what NLIHC reports. In 2013:

  • The District had 40 affordable, available units for every 100 ELI households, making for a total shortage 32,752.
  • For every 100 DLI households, only 34 units were affordable and available — a shortage of 21,038.
  • All but 35% of ELI households and 26% of DLI households paid at least half their income for rent, plus utilities.

These figures, recall, are more than a year old. We’ve had condo conversions, out-in-out apartment house demolitions and subsidized housing losses since. Rents have risen, sometimes quite a lot, even for tenants supposedly protected by the District’s rent control laws.

The figures are nevertheless timely because the Mayor and her people are deep into developing the proposed budget for the upcoming fiscal year. As the DC Fiscal Policy Institute reports, they’ve got to close a $200 million gap between projected revenues and the funds needed to sustain existing programs and services.

Any significantly larger investment to create and preserve affordable housing would widen the gap the Mayor would have to close because the District’s budget must, by law, balance every year.

A wider gap likewise if she — or alternatively, the DC Council — opts for greater investments in housing vouchers — either those that subsidize affordable housing operations or those that enable ELI/DLI households to rent at market rates or both, as the Fair Budget Coalition has recommended.

And again a wider gap if our policymakers boost funding for short-shot assistance that would enable some of those households to catch up on overdue rent or move to a cheaper place, if they can find it.

DCFPI recommends that the Mayor use some of the funds left over from last fiscal year, but they can’t be used for investments that involve multi-year commitments. So it also recommends that she “find ways to raise revenues.” This, I take it, is a tactful way to broach the subject of tax increases.

It’s hard to see how the District will significantly reduce homelessness without them. Because, however complex and diverse the root causes, homelessness for each individual and family reflects their inability to pay for rent, plus the bills for lighting, heating and the like.

Every one of the ELI and DLI households that’s paying over half its income for rent, plus utilities is at high risk of homelessness. Investments in affordable housing for them will pay off in lower costs in other areas — including, but not limited to shelter.

That’s not the only reason the Mayor and Council should make affordable housing a priority — preservation, first and foremost, but creation to replace lost units too.

We have the diversity of our community to consider. We’ve got the well-being and future prospects of children who suffer not only from homelessness, but from unstable housing — and from the stresses their parents experience as they try to earn enough and juggle the bills to keep them somehow housed.

If tax increases are needed, I’ll willingly pay my share. I’d like to think that others whose incomes are well above the ELI/DLI maximums will do so too.

NOTE: As I put the finishing touches on this post, DCFPI issued its own meaty report on “DC’s vanishing affordable housing.” The report includes a number of recommendations for policies to reverse the trends it documents. Highly recommended.

DC Coalition Calls for Some Spending Increases, But They Could Save Money … and Lives

January 29, 2015

A new mayor in the District of Columbia. New appointments to senior administrative positions. Three new Councilmembers — and two more to come.

Unexpected challenges for them all because the current fiscal year’s budget seems likely to be short about $83.3 million. It could be considerably more if the District decides to, at along last, settle its overtime dispute with the firefighters.

And there’s a bigger potential budget gap for next fiscal year — perhaps $161.3 million, according to the Chief Financial Officer’s latest estimate of the costs of District agency operations.

Into this still-fluid environment comes the Fair Budget Coalition, with its annual recommendations for (what else?) a budget and related policies that are fair to all District residents. “Fair,” as its mission statement says, means policies, including budgets, that “address poverty and human needs.”

As I’ve remarked before, FBC’s recommendations, worthy as they all may be, tend to be difficult to wrap up in a blog post because they’re a compendium of top priorities identified by working groups that focus on diverse issue areas — housing and homelessness, workforce development and income supports, etc.

So, at least for now, just a few observations.

Everything Is Connected To Everything Else

Though FBC offers diverse recommendations, they fit together, as all speakers on the panel the coalition hosted on report release day emphasized.

For example, if you’re homeless, free health care — and prescription drugs — won’t keep you from suffering life-threatening emergencies because it’s hard to follow a doctor’s recommendations when you’re out on the streets. And impossible, of course, to keep medications refrigerated, though you know some won’t be effective if you don’t.

Thus, said panelist Maria Gomez, the founder and CEO of Mary’s Center, “Health care will not help without other investments” — in the immediate case, obviously affordable housing. Perhaps other public benefits also, e.g., nutrition assistance, transportation subsidies.

A Budget Gap Doesn’t Make Spending Recommendations Moot

FBC’s recommendations seem to involve about $45.2 million in additional spending, plus some unspecified amounts, at least one of which would add to the tab. Some of the total could be offset by a pair of tax recommendations, however.

One would make the local income tax system “more progressive,” i.e., shift more of the tax burden to high-earners. The other would raise the property tax rate on “high value” homes and homes that the owners don’t live in for most of the year.

No revenue estimates for these, however — at least, not yet. More importantly, I’m inclined to doubt that the Bowser administration and the Council would revisit tax reform at this point, since the current budget adopts key recommendations that emerged from the Tax Revision Commission’s studies, debates and ultimate compromises.

This doesn’t mean that the District simply can’t afford the spending FBC recommends, budget gap notwithstanding. For one thing, the gap, large as it may seem, is only 2.3% of the projected FY 2016 budget.

For another, it’s far from certain that everything the District now spends money on is the best investment of our taxpayer dollars.

Take, for example, the Film Incentive Fund, beloved by Councilmember Vincent Orange. We’ve got research showing that the tax subsidies and other incentives used to entice TV and movie companies to film in the District don’t even pay for themselves, let alone generate additional revenues.

Nor, according to studies elsewhere, do they create steady, full-time work for residents. Not much work at all, in fact.

Just an example of where one might look for funds to, say, actually improve employment prospects for low-income residents. The modest investment FBC recommends to create career pathways for D.C. adults without basic literacy and math skills probably would.

Connections Have Budget Implications

The Mayor and Council don’t need to short worthwhile programs in order to shore up others because investing more in some yields high returns in savings and/or revenue increases. Here’s a pair of related examples — often cited.

FBC recommends an additional $12 million to expand permanent supportive housing for people with disabilities who’ve been homeless for a long time or recurrently. Studies in other communities have found that PSH not only prolongs and improves lives, but usually costs less than leaving chronically homeless people on the streets or sheltering them overnight.

Likewise, vouchers that enable homeless and at-risk families to afford market-rate housing and other vouchers that help cover the operating costs of affordable housing not only provide families with a safe, stable place to live — and thus a healthier environment and a secure platform for working or preparing for work.

These indefinite-term vouchers also cost less than a third of what the District spends, per family, on shelter at the notoriously awful DC General — or the hotels that it’s again constrained to use as shelter because there’s no room left at DCG.

No room left because the Department of Human Services can’t move enough families out fast enough to make room for all the newly-homeless families entitled to shelter. While DHS had reportedly achieved a so-called exit rate of 64 families per month, only 37 families exited the emergency shelter system during the last four weeks we’ve got (unpublished) reports on.

More locally-funded housing vouchers, especially the kind families can use in the private market as long as they have to would swiftly free up shelter space and/or keep families from needing it.

Cost-savings include not only shelter, but the collateral costs of harms associated with homelessness, especially for children. These include, but are not limited to health, behavioral and academic problems that can ultimately diminish earning power — and thus tax revenues. More immediate costs — some justified, some perhaps not — include interventions by the child welfare agency.

By these lights, FBC’s recommendation for an additional $10 million in locally-funded housing vouchers, split evenly between the first and second type, makes sense from a fiscal, as well as a moral — or if you prefer, humanitarian — perspective.


More High-Poverty Neighborhoods in DC Area, Less Affordable Housing in DC

January 8, 2015

I couldn’t say nearly everything I wanted to about high-poverty neighborhoods in a single post. So I focused only on the big picture. The report I took off from, however, includes breakdowns for each of the major metro areas the researchers analyzed.

So here’s what we learn from it and other sources about the District of Columbia.

The report itself doesn’t provide figures for the District because it carves out some census tracts, i.e., small, relatively permanent subdivisions of a county or the equivalent, as a surrogate for a neighborhood.

So what we get are figures for the central business district and tracts within 10 miles of that — basically, what we consider the Washington metro area, less perhaps some of the more distant suburban neighborhoods.

Some surprises here, at least for me, especially given all we hear about gentrification — and all we who live in the District and nearby suburbs see.

For example, the number of high-poverty neighborhoods in the metro area increased from 19 to 41 between 1970 and 2010. And the number of poor people in these neighborhoods more than doubled.

Only six neighborhoods that were high-poverty at the beginning of the period had poverty rates at or below 15% at the end. And only seven had poverty rates at or above 30% in both years. So newly high-poverty neighborhoods account for most of the increase.

This may have something to do with the fact that the metro area, like the country as a whole, had experienced large poverty increases during the Great Recession, which officially ended less than a year before the Census Bureau took its read on poverty in 2010. But that’s not the whole story.

An earlier Urban Institute study traced the growing diversity of the area’s poor population — and more to the point, where poor blacks, whites and Latinos lived in 1990 and during what was then the most recent five-year period the American Community Survey covered.

The Institute’s maps show how poor blacks had remained heavily concentrated east of the Anacostia River. Poor Latinos, who were once clustered in the now-gentrified Mount Pleasant and Columbia Heights neighborhoods, had been displaced. Both they and poor whites were widely scattered throughout the region.

As a result, only one high-poverty census tract was outside the city limits during 2005-9, even though far more poor people lived in the suburbs than in the District. What we see here, the researchers say, is “how stubborn” the legacy of official segregation, persistent race discrimination and public housing policies are.

Still another evolving Institute study focuses solely on changes in the District itself. We see how the population has rebounded, mainly because whites are moving in faster than blacks are moving out.

We see, as if we didn’t already know, how housing costs are soaring, sending the number of units affordable for the lowest-income residents plummeting.

Somewhere around 46,500 households lived in subsidized housing in 2013, according to Institute estimates. As many as 28,000 were in “assisted” housing that’s privately owned. Local funds presumably supplied the assistance, since the Institute accounts for public housing and federally-funded vouchers separately.

It warns that affordable housing owners and developers in fast-growing, gentrifying neighborhoods “may decide it is more lucrative to switch to … providing luxury apartments or condominiums.”

Some already have. Between 2000 and mid-2007, the city lost nearly 2,000 affordable units because owners decided not to renew the time-limited contracts they’d agree to in exchange for federal vouchers that subsidized below-market rents.

Aaron Wiener at Washington City Paper warns of more affordable unit losses when obligations based on another financing source expire. But some owners may keep their apartments affordable, he says, especially those in the poor neighborhoods east of the river.

Not a good sign for achieving less concentrated poverty there, though one wouldn’t wish for even less affordable housing, of course.

“DC has a challenge ahead,” the Urban Institute observes. “Once-neglected neighborhoods … are now recovering and even thriving — but revitalization can drive out long-time residents. How can we make sure they have the opportunity to stay and benefit from the city’s new prosperity?”

And how can we ensure they’re not packed into high-poverty neighborhoods, with all the disadvantages those entail?

We have a new mayor now. She’s said that affordable housing is a high priority for her. And the people she’s chosen to head both the Department of Housing and Community Development and Human Services seem to back that up.

Over in the DC Council, Chairman Mendelson has restructured committee responsibilities, in part to sharpen the Council’s focus on housing and homelessness.

The new chair of the Housing and Community Development sponsored a bill that would have accelerated the loss of affordable housing. But we’ll have to wait and see how she addresses her part of the challenge.

To say it’s a big challenge for all concerned would be an understatement, even if everyone were on the same page. Doubtful, if past is prologue. But again, we’ll have to wait and see.


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