Showing posts with label neighborhood. Show all posts
Showing posts with label neighborhood. Show all posts

Monday, June 4, 2018

Strategies for Responding to Gentrification

by Joe Kriesberg
MACDC
As more and more communities across the country experience gentrification—and others fear its imminent arrival—community developers are struggling to find ways to respond. At a minimum, we seek to slow, or mitigate the process to diminish the disruption to the lives of current residents. Ideally, we would find ways to create inclusive neighborhoods that welcome newcomers while enabling long-time residents to stay and benefit from new jobs, services, amenities, and maybe even better schools. Indeed, our best hope for reducing racial segregation in our country is to achieve such a result.



Not surprisingly, these issues are frequent topics of conversations I've had with members of the Massachusetts Association of Community Development Corporations (MACDC), as well as with our allies and partners. I don't presume to have answers, but I do want to offer a few ideas that I've been thinking about as those conversations have unfolded:
  • New affordable housing units (inclusionary or government-subsidized) may help retain the income mix of the neighborhood, but those units may or may not prevent displacement of existing residents because the people who move in could be from outside the neighborhood. To increase their efficacy as anti-displacement tools, we would need to offer a neighborhood preference for new tenants. Current fair housing rules, however, often prevent or severely limit such preferences.
  • Given this reality, I believe that key actors in the affordable housing system need to overcome their reluctance to acquire existing apartments and preserve their affordability before it is too late. This is the only way to truly prevent displacement of current residents since they live in buildings that already exist—not ones yet to be built. Several CDCs in Boston and nearby Somerville have begun to do this effectively. We have many brilliant affordable housing professionals in Massachusetts and we should be able to develop scalable models for doing more of this. I'm confident it can be done for less money than we now spend on new affordable housing developments.
  • The affordable housing system also needs to shift more of its resources to promoting homeownership as a stabilizing mechanism in gentrifying neighborhoods. Right now, the Commonwealth of Massachusetts spends 100 percent of its affordable housing development dollars on rental housing. Shifting 5 to 10 percent to homeownership could help stabilize our communities. Indeed, we need a full-scale effort to address the vast racial homeownership gap not only in our state, but in the rest of the country as well.
  • While housing displacement gets most of the attention, I am increasingly concerned about cultural and economic displacement. When longstanding, locally-owned small businesses are forced to move (or worse, close), it impacts not only the business owner, but the entire community. Similarly, as the demographics of a place change, many residents feel the loss of their cultural community and home. Advocates are now fighting to help local businesses stay open. CDCs and others are increasingly using the arts and creative place-making (and place-keeping) to claim (and retain) their communities' historic and cultural narratives. The good news is that, compared to housing development, these interventions are relatively inexpensive. The bad news is that there is little public funding to support such programs. This needs to change.
The biggest point of controversy, both among our members and in the broader community, is whether new housing development helps or hurts. Some argue that we must build new housing in gentrifying neighborhoods to take pressure off the market and to accommodate rising demand. Many urban planners promote greater density and large-scale development as a solution to gentrification. At the same time, others blame these very developments for accelerating the process of gentrification. They believe high-end units attract upper-income people to the neighborhood, bring higher-end retail, and begin to change the character of the place, even if they include a significant percentage of affordable units, which often are occupied by lower-income newcomers—not longstanding residents.

I agree with both sides. New development might very well speed up the gentrification process, but stopping development will also speed up gentrification, as pressure will continue to build on the housing stock in changing neighborhoods. Unfortunately, the intensity of this debate can itself become an impediment to progress because it can undermine trust among otherwise allied partners.

On balance, I'm generally inclined to support new development, but only if it is done wisely. I think we need to mitigate the impact of new development with more than just inclusionary units. Fighting over 15, 20, or even 25 percent affordability levels does not confront the core issue of neighborhood change. Instead, we should use some of the resources generated by new development to attack displacement more directly through measures such as acquiring existing properties, providing financial assistance to current homeowners and tenants, supporting locally-owned businesses, and making cultural investments that preserve a community's history and culture. We should also push for more three-bedroom units in new buildings because those units would allow more families to move into changing neighborhoods. Those families, in turn, not only might enroll children in local school,s, but they also are likely to press for improved schools, which would benefit all of the neighborhood's families.

I make these suggestions knowing there are no easy answers and no complete answers. Neighborhoods are always changing and demographics continually evolve. Sadly, in a society with vast and growing income and wealth inequity, these dynamics are going to continue. Perhaps the only long-term and scalable solution to gentrification and displacement is to restructure our economy in ways that will make it more fair and equitable.


This post is a response to the Panel 6 papers that were presented at our A Shared Future symposium in 2017. These papers are available on the JCHS website

Wednesday, April 18, 2018

Using a Full Portfolio of Tools (Including Vouchers) to Expand Access to High-Opportunity Communities

by Barbara Sard
Center on Budget
and Policy Priorities
The three papers from the rich and provocative A Shared Future symposium that focused on what it would take for housing subsidies to overcome affordability barriers to inclusion in all neighborhoods provide a multi-faceted and nuanced set of approaches that would expand possibilities for lower-income, non-white families to live in higher-opportunity communities. While these are important approaches that should be part of the policy portfolio, efforts to expand opportunities should also recognize that tenant-based vouchers are, and will likely remain, the primary policy tool for enabling poor and near-poor families to live in higher-opportunity communities.

In his paper, Chris Herbert reminds us that, typically, the housing stock in high-opportunity communities is predominantly owner-occupied. So, as part of a comprehensive portfolio, it’s important to consider strategies to make it possible for low-income (and other) families of color to purchase homes in such neighborhoods, including those where rents are starting to rise. However, even a robust set of tools to overcome downpayment and credit barriers may not be sufficient to make for-sale homes in neighborhoods with good schools and other amenities in many regions within reach of low-income families.



Both Steve Norman and Margery Turner highlight the key role acquisition by committed owners of multifamily rental properties can play, both in keeping rents affordable in “emergent” (i.e., gentrifying) neighborhoods and in making more units available to families with housing vouchers in those and already higher-rent communities. Federal housing policy has neglected such acquisition strategies: grants are rarely available to reduce the amount of debt such purchases will require, and tax credits are restricted to new development or substantial rehabilitation. Like the King County Housing Authority, some other mission-driven organizations, such as the National Housing Trust, have patched together state or local assistance with private market debt (and potentially project-based vouchers) to make such acquisitions feasible. Facilitating loans and grants to purchase rental properties tied to long-term affordability restrictions – including obligations not to discriminate against voucher holders – should be a goal of federal housing policy, including housing finance reform.

While it’s important to include for-sale and multifamily acquisition strategies in a comprehensive strategy portfolio, tenant-based vouchers will likely remain the primary tool for enabling more poor and near-poor families to live in higher-opportunity communities. That’s true, given vouchers’ current scale — more than 2.2 million Housing Choice Vouchers are now in use and their flexibility to rent virtually any type of decent-quality dwelling at a wide range of price points.

Yet vouchers can do much more to expand housing choice. The implementation of HUD’s new Small Area Fair Market Rent (SAFMR) policy is a promising step, but other federal policy changes are needed to create stronger incentives for housing agencies to promote better locational outcomes. It’s also vital to make more funding available, from public as well as philanthropic sources, to meet agencies’ additional administrative costs of promoting voucher mobility. And federal policy should not only permit but encourage agencies to target vouchers combined with mobility assistance to families with young children living in the most severely distressed neighborhoods.

Such efforts to foster inclusion may cost more, though experience with SAFMRs shows this isn’t always the case. But if we really care about outcomes for families over the long term, we can’t wait until there are sufficient resources to make housing affordable to all before we start paying attention to the types of neighborhoods families live in. The desperation and long-term harm of homelessness and housing insecurity create understandable pressure to spread the limited subsidy resources to help as many families as possible. Yet mounting evidence demonstrates the real long-term harm of growing up in a very poor, violent neighborhood and attending low-performing schools. Affordable housing alone doesn’t improve life chances; where families are able to live must also be a first-order concern, not one that we’ll pay attention to if and when we remedy the shortage of subsidies.  

While housing practitioners work to do the best job possible with the available resources, we must also build the political will to expand investments in housing subsidies, so that more families have the chance to overcome affordability barriers and live in communities of their choice. The Center for Budget and Policy Priorities, along with the National Low Income Housing Coalition and others, has just launched the Opportunity Starts at Home campaign, a long-term effort to achieve this goal. 

Friday, April 6, 2018

What Would it Take for Housing Subsidies to Overcome Affordability Barriers to Inclusion in All Neighborhoods?

by Katie Gourley, Graduate Research Assistant

The design of housing voucher programs, site selection for new subsidized units, and federal, state, and local housing programs can all encourage—or hamper—efforts to create more inclusive residential communities. Three new papers released today by the Joint Center for Housing Studies examine many of the issues and historic legacies that policymakers need to address as they strive to meet this goal. The papers, which were presented at A Shared Future: Fostering Communities of Inclusion in an Era of Inequality, a symposium hosted by Joint Center last year, are:

Margery Austin Turner,
Urban Institute
What Would it Take for Housing Subsidies to Overcome Affordability Barriers to Inclusion in All Neighborhoods? by Margery Austin Turner, the panel moderator, begins by noting that, while there are many benefits associated with moving to higher-opportunity neighborhoods, the voucher and tax credit programs that are currently the largest source of federal subsidies for affordable housing often fail to offer those opportunities to low-income families. Part of the problem, she argues, is that too often, policies aimed at expanding access to opportunity-rich neighborhoods (i.e. fair housing policies) are pursued separately from housing subsidy policies, rather than as part of a strategic portfolio of investments. Such a portfolio approach would use different investment and interventions to four different types of neighborhoods. In severely distressed neighborhoods, subsidized housing probably should not be further concentrated, while in stable, low-income neighborhoods, subsidized housing investments should focus on renovation and preservation of the affordable housing stock. In emergent neighborhoods, preservation and expansion of affordable housing options should be the top priority, while in opportunity-rich neighborhoods, housing subsidies should be deployed (along with other policy tools) to expand affordable housing options.

Stephen Norman &
Sarah Oppenheimer,
KCHA
Expanding the Toolbox: Promising Approaches for Increasing Geographic Choice by Stephen Norman and Sarah Oppenheimer reviews the King County Housing Authority's (KCHA) ambitious efforts to use federal housing subsidies to provide families with broader neighborhood choice. Informed by growing national evidence on the effects of neighborhood quality on life outcomes, they note, KCHA has used both tenant-based mobility approaches and site-based affordability approaches to expand low-income families' access to a wider set of neighborhoods in the county, which includes Seattle and many surrounding communities. KCHA's tenant-based mobility strategies have included offering to pay higher rents in higher-opportunities areas and providing extensive counseling to voucher holders. The site-based strategies have focused on acquiring and preserving housing and using federal vouchers to support new development in higher-opportunity areas. As a result, about 31 percent of KCHA's federally-subsidized households with children currently reside in low-poverty areas.



Christopher Herbert,
JCHS
Expanding Access to Homeownership as a Means of Fostering Residential Integration and Inclusion by Christopher Herbert, Managing Director of the Joint Center for Housing Studies, notes that efforts to foster more inclusive communities have to confront issues related to housing affordability not only in more expensive, higher-opportunity neighborhoods, but in gentrifying ones as well. While many discussions about these issues focus on subsidized rental housing, Herbert argues that efforts to make homeownership more affordable should also be part of the portfolio of approaches used to foster more racially-, ethnically-, and economically-integrated communities. Potential appealing policies, he contends, fall into four broad categories: changes in federal income tax policy related to the mortgage interest deduction and savings; increased support for housing counseling; maintaining or modifying "duty to serve" obligations that affect mortgage lending; and better targeting and potentially expanding funding for downpayment assistance. He notes that, while these are not the only areas where action is needed to expand residential choice, they are critical (and sometimes overlooked) elements that should be included in a broader effort to foster more inclusive communities.



Additional papers from the A Shared Future symposium are available on the JCHS website. The papers will also be collected into an edited volume to be published later this year.

Wednesday, March 7, 2018

Furthering Fair Housing: It’s Not Too Late to Follow New Orleans’ Lead

by Cashauna Hill
Greater New Orleans Fair
Housing Action Center
Although the U.S. Department of Housing and Urban Development (HUD) has announced that state and local entities will have more time to detail their plans to affirmatively further fair housing, some localities are moving forward. These include the City of New Orleans, which in October 2016 became the country’s first jurisdiction to submit a legally required Assessment of Fair Housing plan (AFH).

New Orleans’ AFH, which was submitted jointly by the city government and the Housing Authority of New Orleans (HANO), not only represents a shift in the way that jurisdictions report on the state of housing access in their communities but also could serve as a model for other jurisdictions around the country. Most notably, in accordance with guidance provided by HUD in 2015, the New Orleans AFH was prepared with significant community input. 

Specifically, at the outset of the process, the city and HANO partnered with the Greater New Orleans Fair Housing Action Center (GNOFHAC), which I lead, to ensure that the AFH reflected the concerns of community leaders and community-based organizations. To make this happen, GNOHFAC designed and implemented a community engagement strategy that aimed to organize, educate, and engage with community stakeholders—particularly leaders of color and organizations that represented communities of color. In addition to facilitating a robust community engagement process, the city and HANO welcomed GNOFHAC’s assistance in analyzing relevant data that was included in the AFH plan. Finally, GNOFHAC helped provide both context and data on public and private acts of discrimination that affect housing choices in the New Orleans market.



Taken as a whole, these activities created a process that reflected an unprecedented level of community engagement in planning the city’s fair housing efforts. This engagement led to several notable recommendations in the AFH, such as a framework for improving the access that Housing Choice Voucher (HCV) participants have to low-poverty, high-opportunity neighborhoods, particularly areas connected job centers via dependable public transit services. Community leaders also helped develop other important recommendations, such as developing and implementing a “strategic plan to address environmental hazards, including lead in water and housing.” The AFH’s recommendation to address substandard housing in New Orleans by establishing a rental registry also was a direct result of engagement with community members who often accept substandard conditions when seeking affordable rental housing.

As noted above, in January 2018 HUD announced that it intends to delay required submission of AFH plans from jurisdictions that have yet to submit them. For persons in communities without a commitment from city leadership, or where the AFH will not be submitted in the near future as planned, this change could make it harder for people of color and lower-income households to access higher-quality housing, and programs designed to support existing homeowners.

However, despite that change in HUD’s policies, implementation of New Orleans’ AFH’s recommendations is expected to continue without interruption. We commend policymakers and leaders in New Orleans for continuing to support equal access to housing and the positive life outcomes that flow from access to better housing. Further, we hope that even with the delays, other jurisdictions follow New Orleans’ lead and work with affected communities to develop meaningful efforts to achieve the Fair Housing Act’s long-standing goal of “affirmatively furthering fair housing” throughout the United States.


This post is a response to the Panel 4 papers that were presented at our A Shared Future symposium in 2017. These papers are available on the JCHS website

Friday, March 2, 2018

Assessing Fair Housing: HUD's Delay and the Dilemma this Poses for Jurisdictions

by Katherine M. O'Regan,
NYU
How should the numerous jurisdictions poised to start their Assessments of Fair Housing (or those who are already mid-process) proceed in the wake of an announcement that the federal government planned to push back deadlines for using this specific form of assessment as part of their legally-required planning process?

That's the question facing thousands of entities after the US Department of Housing and Urban Development (HUD) announced in January that it was delaying a previously issued final rule requiring that jurisdictions receiving HUD funding conduct an Assessment of Fair Housing (AFH) to meet, in part, their obligation to comply with the federal Fair Housing Act's requirement that they "affirmatively further fair housing" (AFFH).


HUD's notice extended the AFH deadline for one cycle for jurisdictions that had not yet had an AFH accepted and whose AFH deadline date fell before October 31, 2020. These jurisdictions, the announcement emphasized, must still meet their AFFH obligations. During the delay, they must conduct an Analysis of Impediments (AI) to fair housing choice (as they had prior to HUD's final AFFH rule) and take appropriate actions to overcome impediments identified by the analysis. However, unlike an AFH, there is no standardized form or specific content required for an AI, it need not be submitted to HUD, and HUD will not review it. (While the notice specified that the delay would be applicable as of the day it was issued, public comments on the notice can be submitted through March 6, 2018.)

When the delay was announced, many jurisdictions were in the final stages of conducting their AFHs; hundreds more were about to start. This raises two related questions that this blog tries to briefly answer. First, what does this delay mean for these jurisdictions? Second, how should they proceed?

Returning to the Flawed Analysis of Impediments (AI) Process

The notice calls for jurisdictions to return to a process that both the GAO and HUD itself deemed to be highly flawed. A 2010 GAO study reported that only 64 percent of program participants appeared to have AIs that were current, and questioned the usefulness of many of the AIs that did exist. It concluded that "[a]bsent any changes in the AI process, they will likely continue to add limited value going forward in terms of eliminating potential impediments to fair housing that may exist across the country." HUD's own internal analysis in 2009 came to the same conclusion, finding that about half of the AIs it collected for the study were outdated. incomplete, or otherwise of unacceptable quality.

To address some of the concerns raised in the GAO's report, HUD requires that AFHs be conducted with a standardized assessment tool and that jurisdictions provide measurable goals with a timeline for achieving them. As part of its justification for AFH postponement, HUD noted that 35 percent of the first AFHs submitted to HUD were initially not accepted. The AFH process, however, requires that HUD give feedback on AFHs that are not accepted. HUD provided such feedback and worked with jurisdictions to resolve deficiencies in the submissions. Ultimately, almost all of the 49 first submissions were accepted. In contrast, with AIs, there is no review or feedback from HUD. Notably, HUD's 2009 internal report found no evidence that jurisdictions were improving their AIs over time.

The combination of tighter standards, a better assessment tool, and a feedback loop seems to have produced stronger plans, according to MIT's Justin Steil and Nicholas Kelly, who compared the first 29 AFHs (as modified in response to HUD's comments on initial submissions) to the AIs previously conducted by those same jurisdictions. They found that compared to the earlier AIs, the final AFHs included more quantifiable goals as well as more specific policies and programs meant to achieve those goals. Such results, they noted, suggest the rule is working. "[T]he non-acceptances provided participants with the opportunity to respond to HUD feedback and to strengthen their final AFHs so as to meet their fair housing obligations. In short, the non-acceptances should be seen as strengths of the new rule not a failure."

What is HUD's Advice for a Good AI? Conduct an AFH?

For jurisdictions that have already begun their AFH, HUD's notice states that jurisdictions may continue to do so, as "the AFFH rule may provide program participants with a useful framework for complying with their AFFH obligations." HUD encouraged all participants to use the data and mapping tools as well as the AFH Assessment Tool in conducting their AIs, and to collaborate with other submitters in their region. But this vague guidance puts jurisdictions in the precarious position of identifying which elements of the AFH tool and process are necessary to meet its AFFH obligations.

Will Legal Challenges Reinstate the AFH?

The Trump administration has been aggressive in its use of delays to forestall the implementation of rules, temporarily or indefinitely. Many of these delays have been successfully challenged in the courts under the Administrative Procedures Act, which governs most federal rulemaking. For example, in December 2017, the US District Court for the District of Columbia enjoined HUD's two-year delay of its Small Area Fair Market Rent (FMR) rule, which would have required 24 metropolitan areas to use ZIP-code-level FMRs in setting rent payment standards for voucher recipients. HUD has since dropped its plans for delay, and advised more than 200 affected public housing authorities they must implement the new process within three months.

While no lawsuit has yet been filed against HUD's AFH delay, it is likely to come. (In theory, HUD could also modify its announcement in response to public comments, which, as noted above, must be submitted by March 6.) This suggests that jurisdictions should carefully weigh the risk that the delay will be reversed, and their duty to Affirmatively Further Fair Housing, as they determine how to conduct their new AIs. HUD's AFFH framework and assessment tool seem the best place to start. Notably, officials in some jurisdictions, such as New York City, have made public statements that they will move forward with a process that is true to the principles of the AFH.

However, whether jurisdictions will stay true to key advantages of the AFH, including robust public engagement and an open and transparent drafting process, remains to be seen. As Michael Allen notes in his contribution to the Joint Center's panel "What would it take for the HUD AFFH rule to meaningfully increase inclusion?," that may depend on whether a broad set of constituents come together to mobilize a strong ground game. Meanwhile, until the uncertainty created by HUD's decision is resolved, the AFH process and assessment tool may provide the safest and clearest path forward for jurisdictions.



Papers from the A Shared Future symposium are available on the JCHS website

Wednesday, February 28, 2018

What Would it Take for HUD to Meaningfully Increase Inclusion?

by Katie Gourley, Graduate Research Assistant

What would it take to meet the 1968 federal Fair Housing Act's requirement that federal entities use their power to "affirmatively further" fair housing? Four new papers published today look at this question by examining whether and how the US Department of Housing and Urban Development's (HUD) now-delayed Affirmatively Furthering Fair Housing (AFFH) rule might spur more inclusive communities.

Under the rule, which was finalized in 2015, local and state institutions receiving federal housing funds must use maps and other local data to conduct an Analysis of Fair Housing (AFH), and also describe their goals for affirmatively furthering fair housing. Many advocates believed the rule was a long overdue effort to finally achieve one of the Fair Housing Act's key, but unmet, goals. However, critics, including many Republican members of Congress as well as then-presidential candidate (and now HUD Secretary) Ben Carson, criticized it as inappropriate social engineering. In January 2018, HUD announced that states and localities do not have to submit their analyses until 2020. While HUD's announcement also noted that entities still have a legal obligation to further fair housing, the rule's supporters fear the delay effectively suspends enforcement of the rule and gives HUD time to dismantle or substantially weaken the new rule. A group of civil rights organizations is currently preparing litigation to enjoin the suspension of action.

The papers, which were originally presented at the symposium A Shared Future: Fostering Communities of Inclusion in an Era of Inequality in April 2017 (before HUD suspended enforcement actions) examine the rule's potential to produce meaningful change and, in doing so, provide critical context for understanding the implications of HUD's decision to delay the submission of required plans. The four papers are:

Katherine O'Regan,
NYU
Affirmatively Furthering Fair Housing: The Potential and the Challenge for Fulfilling the Promise of HUD's Final Rule by Katherine O'Regan, the panel's moderator, begins by noting that while the Fair Housing Act codified an ambitious goal, the nation has long lacked a clear, effective, and politically acceptable processes for achieving that goal. After explaining how the AFFH process was supposed to work and discussing how it was received by a variety of stakeholders, O'Regan discusses how the panel's authors posed key questions about what it would take for the 2015 AFFH rule to meaningfully increase inclusion int he near future.

Raphael Bostic, USC
Arthur Alcolin,
U of Washington
The Potential for HUD's Affirmatively Furthering Fair Housing Rule to Meaningfully Increase Inclusion by Raphael Bostic and Arthur Acolin discusses how the AFFH Final Rule might produce meaningful change. After reviewing the history of residential segregation in the US, the paper explains how the new rule would have differed from and improved upon previous efforts to "affirmatively further" fair housing. However, they note, the full impact of the rule will depend on HUD's commitment to its philosophy and HUD's devotion of resources to the implementation of the law. Moreover, they add, the rule's impact will also depend critically upon decisions by local governments, community organizations, and individuals to use the resources they have to effectively remove barriers to fair housing in their communities.






Michael Allen,
Relman, Dane &
Colfax, PLLC
Speaking Truth to Power: Enhancing Community Engagement in the Assessment of Fair Housing Process by Michael Allen notes that the new rule "sets the table for robust conversations about hard topics—like discrimination and segregation—that most communities have tried hard to avoid for decades." However, he notes, "it leaves to local discretion to how to get the right stakeholders to the table for those conversations." Achieving the rule's promise, he adds, can only occur in places where community groups, academics, and foundations make concerted efforts to develop and carry out AFFH plans. These efforts, he continues, need to include strategies to ensure meaningful participation by people of color and their advocates; local data collection and analysis; mobilization of political constituencies; and a commitment to enforcement via litigation, administrative complaints, and grassroots advocacy. Allen concludes by detailing six successful community housing justice campaigns—in New Orleans, Milwaukee, New Jersey, Texas, Westchester County (NY), and the Minneapolis/St. Paul region—that could serve models for advocates in other locales.

Elizabeth Julian,
Inclusive Communities
Project
The Duty to Affirmatively Further Fair Housing: A Legal as Well as Policy Imperative by Elizabeth Julian predicts that jurisdictions would respond to the new rule in one of our four basic ways. Some would accept that the letter and the spirit of the law have the capacity to develop and carry out an effective plan, while others would accept the rule's letter and spirit but lack the capacity to do so. Third, while some would accept the need to comply with the rule's requirements (if only to secure desired federal funding), they might be unwilling to develop an effective plan. Finally, some communities would resist the rule's letter and spirit. While HUD can help localities in the first three categories achieve meaningful progress, jurisdictions in the fourth "will have to be dealt with by an external, relatively independent, and well-resourced enforcement structure," she asserts. Even though HUD's current leaders are not likely to support this approach, Julian asserts that a long history of court decisions shows that civil rights advocates do have the tools needed to effectively press for desired changes.




Additional papers from the A Shared Future symposium are available on the JCHS website. The papers will also be collected into an edited volume to be published later this year.

Friday, January 26, 2018

What Would it Take to Overcome Exclusionary Barriers, and Promote More Affordable Options in All Neighborhoods?

by Katie Gourley, Graduate Research Assistant

What would it take to make new neighborhoods, and remake old ones, so that large, complex, metropolitan areas moved decisively toward racial and economic integration? What local and regional governance strategies could most effectively overcome barriers to these goals?

Today, we published four papers exploring these questions. The papers—an overview essay and case studies of Washington, DC, Houston, and Chicago—were presented at A Shared Future: Fostering Communities of Inclusion in an Era of Inequality, a symposium we hosted in April 2017. The four papers are:


Rolf Pendall,
Urban Institute
Pathways to Inclusion: Contexts for Neighborhood Integration in Chicago, Houston, and Washington, by Rolf Pendall, who moderated this panel at our symposium, offers an overview of the major demographic changes that are transforming US housing markets and describes two distinct patterns of political geography that will affect local and regional decisionmaking about neighborhood inclusion. He begins by reporting that the population of the United States – particularly its metropolitan areas – is both growing and becoming more diverse by age, race and ethnicity, household composition, and income. He then describes the two principal patterns of political geography that affect decisionmaking about neighborhood inclusion: fragmentation of local governments (particularly in the Northeast and Midwest where control of land use is in the hands of many local governments) and polycentricity (particularly in the South and the West, where larger county governments have much more control over land uses). Fostering inclusion in both types of places is challenging. In the former regions, he notes, it tends to require state-level action. In the latter, the efforts often focus on school districts as well as school assignment zones within particularly large school districts. He concludes by showing the interplay between the national demographic trends and political geographies of the three case study regions.


Willow Lung-Amam,
University of Maryland
An Equitable Future for the Washington, DC Region?: A "Regionalism Light" Approach to Building, by Willow Lung-Amam, begins by noting that while that DC region is racially and economically diverse, it also is highly segregated and has some of the nation's highest housing prices. Moreover, because it is politically fragmented, it has uneven patterns of development. Given this, Lung-Aman proposes a “regionalism-light” approach that focuses on the protection and production of affordable housing. In particular, she says four approaches should be the central part of any effort to break down barriers to housing inclusion in existing neighborhoods and build a strong platform for current and future residents to be a part of the region’s continued growth and prosperity: preserving existing affordable units through aggressive anti-displacement strategies; capturing land value to produce new affordable housing, especially near transit stations; increasing the density and diversity of suburban housing; and tackling the region’s stark east-west divide with fair-share policies.


William Fulton,
Rice University
Can a Market-Oriented City Also Be Inclusive?, by William Fulton, explains that while Houston has emerged in the last 30-plus years as one of the country's most ethnically diverse and affordable cities, these measures mask significant amounts of inequality and disparity that are at least as bad as, and perhaps worse than, those in other metro areas. At first glance, he notes, Houston seems unable to address these challenges, largely because it has a reputation for being one of the nation’s most market-oriented cities for real estate development. However, he contends, the city has a unique and important opportunity to address these issues because it also has abundant amounts of vacant land, limited zoning regulations that could block the development of affordable housing, regulatory tools that could encourage such development, and a potentially useful but currently uncoordinated set of financial incentives for economic development and real estate development. Accomplishing this task, he explains, would require both a comprehensive citywide approach and targeted efforts in underserved neighborhoods threatened by gentrification. In particular, the following strategies are especially promising: aligning both economic development incentives and regulations with inclusiveness goals; using government and institutional landholdings to strategically to pursue those goals; and creating a broad and comprehensive approach to inclusiveness that includes both underserved and high-opportunity areas. He notes that while Houston has taken some steps in this direction, it has fallen short in others, particularly in efforts to bring affordable housing to high-opportunity areas.

(Please note that Fulton's paper was completed before Hurricane Harvey caused extensive damage and displacement in Houston during August 2017.)


Marisa Novara &
Amy Khare,
Metropolitan Planning
Council
Two Extremes of Residential Segregation: Chicago's Separate Worlds & Policy Strategies for Integraion, by Marisa Novara and Amy Khare, argues that a movement is needed to rethink strategies for desgregation at the region's two poles: concentrated poverty and concentrated wealth. The Chicago region, they note, ranks in the top quarter of all metros with regard to economic segregation and is in danger of becoming even more segregated by race and class. In areas suffering from disinvestment, Novara and Khare argue that carefully revised lending criteria and improved appraisal processes, along with other complimentary policies, could lead to increased investment. This, in turn, might create more integrated communities. In contrast, they note that political realities make it unlikely that the state will step in to override local land-use restrictions that stymie the development of affordable housing (as Massachusetts has done via a law passed in 1969). Given this situation, they suggest that Illinois instead draw on a different Massachusetts law that offers incentives to more affluent communities that zone for dense, mixed-income residential developments, particularly in locations well-served by transit.




Additional papers from the A Shared Future symposium are available on the JCHS website. The papers will also be collected into an edited volume to be published later this year.

Thursday, January 11, 2018

How Housing Counseling Creates More Neighborhood Choice for Buyers

by Marietta Rodriguez
NeighborWorks
The US housing system simultaneously is one of the most efficient markets in the world and one of the most complex.

While the efficiency offers consumers many opportunities, the complexity makes it more likely that consumers will make housing and mortgage choices that are not in their best interests. However, our experience at NeighborWorks® shows that housing counseling programs can greatly increase buyers' ability to find and finance homes that are right for them.

With transparent pricing, multiple participants, and regulations that help ensure its stability and strength, the US housing system has many of the attributes of an efficient market. Moreover, as the papers in this panel describe, new technologies are making it even easier to access information about both homes for sale and ways of financing the purchases of those dwellings.



However, many consumers find the home buying process to be daunting. Illustratively, a recent household survey conducted for NeighborWorks® America found 74 percent of Americans (and more than 80 percent of millennials) think that the home buying process is complicated. The survey also found that while the overwhelming share of Americans (including millennials) consider homeownership a key component of the American dream—especially people of color and millennials—thousands of would-be buyers are shut out of the market because of confusion about down payment requirements, lack of information about credit standards, and the burden of student loan debt. Moreover, the complexity of the housing system creates the possibility that consumers who are in the market may make housing and mortgage choices that are not in their best interests, including limiting their home choices without looking at all of the available options and selecting mortgage products that are unsuitable or too expensive.

Part of the problem may be that when seeking information on buying a home, Americans are most likely to consult a real estate agent, search the web, or talk with friends or family who are homeowners. In contrast, only about 40 percent of adults (and half of millennials) are likely to seek counsel from a non-profit organization, such as the many NeighborWorks® member organizations that provide advice on buying a home (and only a fifth said they were very likely to do so).

This is unfortunate because our experience at NeighborWorks® strongly suggests that working with certified housing counselors (at a NeighborWorks® Homeownership Center or other HUD-approved housing counseling agencies) can help consumers make good choices about whether and what to buy, how to finance those purchases, and how to maintain their new homes. Housing counselors do so by working one-on-one with potential homebuyers, helping them develop a budget and to strengthen their credit so they can maximize their chance of getting the lowest possible mortgage rate. Moreover, because they are tightly connected to the communities they serve, housing counselors are aware of  trends practically on a block-by-block basis, knowledge that can help a homebuyer sift through the mountains of data on everything from traffic patterns, crime statistics, and school ratings to which community is closest to the best green space and other amenities.

Housing counselors also can help consumers gain access to a myriad of down payment assistance programs and mortgage products that can make it possible to either spend less than they had planned on mortgage payments or to purchase higher priced homes in more desirable communities. The down payment assistance programs, for example, can not only reduce the time and amount of cash consumers must save on their own to buy a home, they can also reduce the amount they need to borrow, which can lover monthly mortgage payments. Knowing about these programs may be especially important for non-White consumers. According to the 2017 NeighborWorks® America Housing Survey, the average African-American and Hispanic consumer assumed that the minimum down payment generally was a little more than 20 percent, an amount substantially higher than the typical down payment made by first-time homebuyers or the 3.5 percent down payment requirement for an FHA loan.

Moreover, because the role of a housing counselor is to help a homebuyer make the right choice for themselves, a housing counselor is not limited to a small set of mortgage choices the way a mortgage officer at a particular lender would be. For example, the largest mortgage lenders originate very few loan products that are offered by state housing finance agencies (HFAs). These HFA mortgages often have strong, but more flexible underwriting criteria that can help overcome mortgage denial issues that may happen with standard mortgage products and underwriting policies.

Combined, all this assistance can help ensure that homebuyers are more likely to choose affordable homes and mortgages, according to a 2013 study done for NeighborWorks® by Neil Mayer and Associates. The study, which looked at 75,000 homeowners who received housing counseling from NeighborWorks® organizations, found that compared to similar homeowners who did not receive counseling, homeowners who received counseling were one-third less likely to fall seriously behind on their mortgages. Such data, and other findings from the study, confirm that housing counseling allows consumers—particularly low and moderate-income and minority consumers—to access and remain in affordable homes in a wider and more diverse array of neighborhoods and communities.



Papers from the A Shared Future symposium are available on the JCHS website

Thursday, December 21, 2017

What Would it Take to Make Neighborhoods More Equitable and Integrated?

by Katie Gourley, Graduate Research Assistant

How do household decisions about where to live perpetuate residential segregation, and what would it take for such choices to result in more inclusive neighborhoods? Three papers released today by the Joint Center for Housing Studies explore these questions from somewhat different perspectives. The newly released papers, which were presented at A Shared Future: Fostering Communities of Inclusion in an Era of Inequality, a symposium hosted by the Joint Center, include an overview paper by the panel’s moderator and two papers by panelists examining key issues in more detail. The papers are:


MIT
Household Neighborhood Decisionmaking and Segregation, an overview paper co-authored by Justin Steil, the panel’s moderator, and Reed Jordan, investigates what we know about households’ decisionmaking processes and explores the ways that technology and other interventions might help create more integrated places. They note that notwithstanding the significance of schools and other local amenities, the racial composition of a neighborhood is a significant determinant in the residential decisionmaking process. Moreover, they add, while homeseekers increasingly rely on the internet, it is not yet clear how that reliance impacts the makeup of neighborhoods. However, they note, it seems clear that different sources of information have implications for segregation and may serve as points of leverage for pro-integration interventions.

Trulia
Data Democratization and Spatial Heterogeneity in the Housing Marketby Ralph McLaughlin and Cheryl Young, argues that improved access to residential real estate data has the potential to affect residential settlement patterns in two countervailing ways. On the one hand, it could expand individuals’ housing search choice to include properties in more diverse neighborhoods. Alternatively, it could increase the demand to live in amenity-rich locations, which might price out existing and future residents (unless the supply of housing in those locations grew at a similar rate). However, they argue, the extent to which households might be priced out of a neighborhood is not primarily influenced by data availability but rather by the ease with which housing supply can be increased to meet demand in those areas. They therefore recommend three policy approaches: reducing exclusionary and restrictive zoning policies in expensive, amenity-laden markets; giving housing choice voucher (HCV) recipients the option to conceal their voucher status from landlords during the application process; and requiring that some available Low Income Housing Tax Credit funds be used in “high-value” Census tracts.


Tarry Hum,
Queens College
Minority Banks, Homeownership, and Prospects for New York City's Multi-Racial Immigrant Neighborhoodsby Tarry Hum, focuses on the role of Asian minority banks in in lending to Asian borrowers for residential property purchases in Queens and Brooklyn. Established to counter financial exclusion resulting from discrimination and linguistic and cultural barriers, these banks historically have been a key source of credit, especially for Asian immigrants who may not qualify for conventional loans. However, using data sets from 2010 and 2015, Hum shows that there was a significant rise in lending by these banks to investors rather than owner-occupants. She concludes by exploring how these changes may be driving up prices, displacing low- and moderate income renters, and spurring illegal conversions – changes that together may be destabilizing many of the neighborhoods where the loans are being made.

The three papers build on previously released papers from the symposium that discuss the nature of residential segregation in the US, its consequences, rationales for public policies to address those consequences, and priorities for action. Over the next several months, the Joint Center will be releasing additional papers from the symposium that will focus on promising strategies in a variety of areas that would help foster more inclusive residential communities. The papers also will be collected into an edited volume that will be published in 2018.



Additional papers from the A Shared Future symposium are available on the JCHS website

Wednesday, December 6, 2017

Fostering Inclusion: Whose Problem? Which Problem?

by Xavier de Souza Briggs
Ford Foundation
Asking "what would it take"—about housing segregation or any other challenge— assumes, on some level, that we have adequate agreement that some condition or pattern is, in fact, a problem. But in America, we have never been able to take that for granted, not about most of our big challenges, not even about the things that strike many of us as profoundly inconsistent with fairness and equal opportunity as core American values. Moreover, we have shown a persistent and very particular indecision and impasse when it comes to acting on housing segregation. The political Left remains ambivalent about it, wondering whether it is urgent to address segregation per se, whether such effort comes at a cost to other urgent efforts, and whether segregation can be tackled in ways that do not stigmatize poor people of color in particular. Put another way, the seemingly natural allies for an agenda to tackle inequality by addressing segregation have mixed feelings about both the problem and at least some of the solutions. The political Right, on the other hand, has been generally hostile to the idea that segregation is a problem, even if most Americans, on both Left and Right, agree that discrimination in the housing market is not only illegal but morally wrong. And many who go further—who agree that segregation itself is a problem—are less convinced that it warrants government intervention.

These are some of the reasons that we, as a country, "rediscover" segregation and its enormous human costs every decade or so, only to conclude that it is too intractable or questionable to tackle with serious resolve. This rediscovering happened after the civil unrest in Los Angeles in 1992, again after Hurricane Katrina put concentrated black poverty and public outrage squarely on TV screens nationwide, and again as political and media attention to extreme inequality has gown in recent years. Among scholars and opinion leaders, the influential work of economist Raj Chetty and collaborators points to segregation as a key barrier to economic mobility in America—and one that varies sharply between more and less segregated regions of the country. This latest-generation work supports earlier conclusions, by sociologists Douglas S. Massey and Nancy A. Denton in American Apartheid: Segregation and the Making of the Underclass and by others, that housing segregation by race and income is, in fact, one of the lynchpins of American inequality. Along with mass incarceration, it is one of the structural patterns that differentiates America from other wealthy nations (though Europe faces growing challenges too). Segregated housing patterns are durable and enduring in part because they are sustained by forces that many view as legitimate and even unavoidable, if unfortunate. These patterns have been called out explicitly at least since lawyer and planning professor Charles Abrams's book, Forbidden Neighbors: A Study of Prejudice in Housing, and by national policymakers since the landmark Kerner Commission report on the riots that tore apart American cities 50 years ago. For now, there are no signs that we as a people are serious about changing segregation.

In this brief post, I'd like to offer a specific reading of the very thoughtful symposium framing paper and the larger project of which it is a part. I work at a grant-making foundation long committed to expanding knowledge about, and promoting solutions to, inequality, including solutions that center on housing and specifically housing segregation. I have also pursued these aims over several stints in federal government service and tackled them as a community planner at the local level. Finally, about sixteen years ago, when I was a researcher and educator, I organized a symposium and collection of papers—led by the Harvard Civil Rights Project and cosponsored by the Joint Center for Housing Studies and the Brookings Institution's Metropolitan Policy Program—focused on segregation, its causes and consequences, and "what it would take" to effect real change at scale. That produced an edited volume, The Geography of Opportunity: Race and Housing Choice in Metropolitan America. I want to briefly look back—asking what has or has not changed in our understanding of the problems and potential solutions over the past decade plus—and also look forward.



Starting Points

The 2001 symposium had several points of departure, and revisiting them now offers some perspective on how our national mood, key attention-getting trends, political leadership, and more have evolved. One starting point was the sharply increased attention, in the late 1990s, to America's dominant pattern of urban sprawl and the idea of pursuing more sustainable or "smart" growth alternatives. The interest in this issue sparked healthy debate, though mainly among scholars, planners and allied professionals, about the tradeoffs between environmental aims and values of equity, including housing affordability. The environmental justice movement also drew attention to spatial inequality, focusing on the highly disproportionate exposure of poor communities of color to toxins and other environmental risks.

Advancing this debate seemed important in light of evidence that economic inequality was increasing sharply in America, whether measured in wealth, income, or other dimensions. We wondered about more environmentally sustainable but increasingly unaffordable communities pulling away from distressed, built-up and—in some cases—highly polluted places.

Other starting points were even more tectonic, driven by large-scale demographic change. Much of the wealthy world has modest to zero population growth, but America is different: We are a large and still-growing nation, thanks mainly to immigration, which is, in turn, driving greater racial and ethnic diversity. In the 1990s, for example, the population of most American cities would have shrunk if not for immigration. What is more, as of the 2000 census, an estimated one-third of the built environment needed to accommodate population growth in America over the next generation did not yet exist. It represented projected new development. This underscored the huge stakes associated with how we grow, particularly the prospects for inclusionary growth. It also underlined the fact that our debates about persistent segregation cannot be limited to public housing in inner cities or to other long-established fixtures of our current spatial footprint. We always need to be asking about what's next too—about the course of new development, both infill and at the edges of urban regions. And of course, we need to pay attention to how these development trends influence each other and influence our politics and sense of what's possible.

To sum up, in 2001, for the intersecting reasons outlined above, we asked: Can an increasingly diverse nation hope to deal with growing economic inequality if the dominant growth model "on the ground" is one of persistent segregation by race and income? Do the parts of that equation add up?

By comparison, the framing paper for this year's symposium centers more squarely on the growth of inequality and the much greater political and even cultural salience of the issue now versus 15 or so years ago. That salience is encouraging. In terms of local trends, the American media and the public are even more aware now, than after the economic boom of the late 1990s, that "cities are back." Major cities that still showed substantial decline a decade ago—New Orleans and large sections of Detroit, for example—have seen their population trends reverse and have attracted enormous investment since, especially over the course of the recovery from the Great Recession. Housing prices are up, structurally, along with the job economy in those and other revitalizing cities. So, a debate about the drivers of segregation and responses to it today appropriately gives greater weight, than did earlier discussions, to urban redevelopment—and the need for "development without displacement," as advocates in revitalizing cities frame the need.

The sense of displacement, of being pushed out, is much sharper now than in 2001. But in point of fact, the pattern is nothing new, and some observers forecast this predicament long ago, linking it to the forces driving urban vitality after decades of decline. For example, in Dual City: Restructuring New YorkJohn H. Mollenkopf and Manuel Castells showed that New York's comeback from the low point of the bankruptcy crisis of the 1970s had made the city a global magnet for investment capital and high-income occupations, sharply inflating land values and housing prices. Over the 1980s, they reported, poverty had been pushed outward, "like a ring donut," from neighborhoods in the city's core to its outer boroughs as well as its more racially diverse, fiscally vulnerable inner suburbs. The subsequent decades have merely sustained and accelerated those trends, with New York City showing itself one of the canaries in the coal mine. What Detroit and other cities are seeing and debating now, New York, Boston and other "comeback cities" experienced a couple of decades earlier. And it is structural, not an artifact of one business cycle or another. These trends were barely interrupted by the Great Recession.

Finally, having thus far emphasized those durable, long-run structural trends, I want to acknowledge more recent developments. In addition to the growth of inequality, the framing and other papers in this year's symposium reflect the enormous impacts of the foreclosure crisis, which we had only dimly foreshadowed in the 2005 book's chapter on "The Dual Mortgage Market: The Persistence of Discrimination in Mortgage Lending," by William Apgar and Allegra Calder. Beyond a huge loss of housing wealth and greater regulation in the mortgage market, there is another important legacy of the crisis, and it is a healthy one: We are much more conscious now, than in the real estate boom of the early 2000s, about how profoundly the workings of the real estate industry, and its rapid evolution thanks to information technology, can hurt us. In that vein, one of the most ground-breaking sessions in this year's JCHS symposium focused on the present and future of housing searches in an era of platform apps, algorithms, and technology-mediated screening of many kinds. The session put housing scholars in direct exchange with senior analysts and strategists from online real estate search companies that dominate the housing marketplace. Housing searches were different, and our understanding of them much more limited, 15 years ago.


Solution Set

If the unequal housing marketplace has evolved—dramatically in some ways—over the past 15 plus years, our sense of the best-available levers for changing segregation has not. Nor has our story about why acting on segregation is both legitimate and urgent, both big and structural and doable and achievable. To be fair, by some measures, our prescriptions today are not all that different from those championed by the "open housing" movement—the inheritors of the civil rights movement and the Kerner Commission warnings—in the early 1970s. This suggests at least three lessons over the long run.

The first is that we, as a country, lack will more than we lack imagination—let alone sophisticated analysis. The second is that we need new stories and ways to tell them. In recent memory, the very best case against segregation was made by comedian, John Oliver, who in 2016 used his satirical cable news program Last Week Tonight to explain three extremely important things about how America works: first, how school and housing segregation enable each other; second, why they guarantee that America will reproduce stark inequalities from one generation to the next; and third, how these closely linked forms of segregation stubbornly resist change.

The third lesson over the long run is that beyond lacking a compelling story to motivate change, we sometimes lack perspective as well. Take the persistent tendency to conflate discrimination, which the framing paper emphasizes, with segregation. People in America continue to experience housing discrimination, which is illegal, and continue to under-report it. As we analyzed in detail in the 2005 book, such discrimination, while inconsistent with public opinion in America, is challenging to detect and enforce against. But the larger and less acknowledged point was and is this: discrimination, whether conscious or unconscious, against particular kinds of consumers is far less important, as a driver of segregation, than is the avoidance of certain neighborhoods or localities by those with the best housing options, especially whites and higher skill, higher income people of color. This "self-steering" behavior has big social and fiscal costs, as scholars of segregation have pointed out for nearly half a century now. But it is not illegal. Moreover, as sociologist Camille Charles argued in her 2005 chapter on attitudes toward the racial make-up of neighborhoods, many of us balance what we think we owe our families with what we think might contribute, however modestly, to a fairer and more just society. And many of us experience these values as frequently in conflict, especially when faced with decision to move somewhere.

Laws against housing discrimination by realtors, lenders or others in the marketplace are important and should be enforced. But doing so would have limited effects on segregation. It is far more important to expand real housing choices, especially for lower income people of color, and to understand how people choose among the options available to them.

Finally, as the framing paper demonstrates, the Joint Center's 2017 symposium encompasses an extraordinarily rich and in-depth update of what I think of as the four enduring debates about segregation: the what (the descriptive patterns or shape of the problem), the why (causes), the so what (consequences), and the now what (solutions). And thanks to big data, mobile broadband, a more visible inequality debate, and other developments, it offers a very contemporary take on what's possible, in theory, when it comes to change. In the language of our 2005 redux, the solutions boil down to "curing" segregation (changing stubborn housing patterns) or "mitigating" it (making the patterns less socially costly, by shifting the relationship between where you live and the risks and resources you encounter). The former centers on relocation and inclusionary development strategies, the latter on reinvestment, connectivity, and access to institutions—sometimes life-changing ones—beyond one's segregated neighborhood.

This body of work and those solutions deserve an equally serious and committed story—a resonant narrative—joined to an advocacy and constituency building effort that's relevant in a changing, polarized, deeply unsettled American body politic. Without that, we seem consigned, in practice, to continue rediscovering segregation and also to continue lamenting that it is just too hard—or worse yet, un-American—to undo.



Papers from the A Shared Future symposium are available on the JCHS website