Section 8 of the Housing Act of 1937 ( 42 U.S.C. § 1437f ), commonly known as Section 8 , provides rental housing assistance to low-income households in the United States by paying private landlords on behalf of these tenants. Approximately 68% of this assistance benefits seniors, children, and individuals with disabilities. The Department of Housing and Urban Development (HUD) oversees Section 8 programs, which are administered locally by public housing agencies (PHAs).
107-703: The Marcy Houses , or The Marcy Projects , is a public housing complex built and operated by the New York City Housing Authority (NYCHA) and located in Bedford–Stuyvesant and is bordered by Flushing , Marcy, Nostrand and Myrtle avenues. The complex was named after William L. Marcy (1786–1857), a lawyer, soldier, and statesman. Consisting of 27 six-story buildings on 28.49 acres (0.1153 km; 0.04452 sq mi), it contains 1,705 apartments housing about 4,286 residents (average of 2.5 people to an apartment). The land Marcy
214-578: A broader scale, and the NHA dissolved in 1936. The City of Milwaukee , under mayor Daniel Hoan , implemented the country's first public housing project, known as Garden Homes , in 1923. This experiment with a municipally-sponsored housing cooperative saw initial success, but was plagued by development and land acquisition problems, and the board overseeing the project dissolved the Gardens Home Corporation just two years after construction on
321-455: A cabinet-level agency to lead with housing. This act also introduced rent subsidies for the first time, the beginning of a shift towards encouraging privately constructed low-income housing. With this legislation, the FHA would insure mortgages for non-profits which would then construct homes for low-income families. HUD could then provide subsidies to bridge the gap between the cost of these units and
428-601: A cause of the American apartheid residential pattern in the city. Martin Luther King Jr. made housing integration a key part of his civil rights campaign and one month after the publication of the Kerner Commission was published, King was assassinated. His murder instigated another wave of riots and in response, and no later than a week after the assassination of Martin Luther King Jr. , Congress passed
535-449: A characterization is a simplification of a much more complex set of social phenomena. According to Crump (2002), the term "concentrated poverty" was originally a spatial concept that was part of a much broader and complex sociological description of poverty, but the spatial component then became the overarching metaphor for concentrated poverty and the cause of social pathologies surrounding it. Instead of spatial concentration simply being
642-418: A community, leading to several negative externalities . Crime, drug usage, and educational under-performance are all widely associated with housing projects, particularly in urban areas. As a result of their various problems and diminished political support, many of the traditional low-income public housing properties constructed in the earlier years of the program have been demolished. Beginning primarily in
749-554: A disincentive to high-paying businesses to locate themselves in the area. He further argues that the pathologies caused by a concentration of poverty are likely to spread to surrounding neighborhoods, forcing local residents and businesses to relocate. Freeman and Botein (2002) are more skeptical of a reduction of property values following the building of public housing units. In a meta-analysis of empirical studies, they expected to find that when public housing lacks obtrusive architecture and its residents are similar to those already in
856-735: A heat map of crime created by Richard Janikowski and Phyllis Betts who is reported to have said they were "[...] amazed – and deflated – to see how perfectly the two data sets fit together." Janikowski and Betts later disavowed any connection between housing vouchers and increases in crime in the area in a later letter to the editor of the Atlantic. Rosin failed to mention that there was a consistent decrease and increase in crime from inner cities to inner-ring suburbs across most metropolitan areas due to shifting populations. Anrig argues that economic factors are more likely responsible for Memphis's increase in crime, as male unemployment almost doubled between
963-704: A home ownership model for Section 8, and expanded the HOPE VI program to replace traditional public housing units. The act also effectively capped the number of public housing units by creating the Faircloth Limit as an amendment to the Housing Act of 1937, which limited funding for the construction or operation of all units to the total number of units as of October 1, 1999 and repealed a rule that required one for one replacement of demolished housing units. According to HUD's Residential Characteristic Report,
1070-405: A landlord is able to accept for rent of a unit to a Section 8 voucher recipient. FMRs are gross rental rates and dictate the maximum rental rate to be agreed upon in a lease document. The calculation of FMRs is based on a standard quality rent from the five year American Community Survey , as well as a recent mover adjustment, which is the relationship between the standard quality for five years and
1177-573: A materials subsidy for housing construction. However, in the wake of the 1946 elections, President Truman believed there was insufficient public support to continue such materials restrictions and subsidies. The Veterans' Emergency Housing Program ended in January 1947 by an executive order from President Truman. With the Office of Housing Expediter ended, housing efforts moved to look at new, comprehensive approaches to address housing issues. The result
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#17327799644791284-538: A need to house those displaced by the clearance (Massey and Kanaiaupuni 1993). However, those in city governments, political organizations, and suburban communities resisted the creation of public housing units in middle and working-class neighborhoods, leading to the construction of such units around ghetto neighborhoods which already exhibited signs of poverty. Massey and Kanaiaupuni (1993) describe three sources of concentrated poverty in relation to public housing: income-requirements structurally creating areas of poverty,
1391-831: A new program called the Rental Assistance Demonstration (RAD) program. Under the demonstration program, eligible public housing properties are redeveloped in conjunction with private developers and investors. The federal government, through its Low-Income Housing Tax Credit program (which in 2012 paid for construction of 90% of all subsidized rental housing in the US), spends $ 6 billion per year to finance 50,000 low-income rental units annually, with median costs per unit for new construction (2011–2015) ranging from $ 126,000 in Texas to $ 326,000 in California . In
1498-513: A package of across the board cuts. Additionally, emergency shelters for the homeless were expanded, and home ownership by low-income families was promoted to a greater degree. In 1990, President George H. W. Bush signed the Cranston-Gonzalez National Affordable Housing Act (NAHA), which furthered the use of HOME funds for rental assistance. In his address upon its passage, Bush said, "Although
1605-576: A part of the broad description of social pathologies, Crump (2002) argues that the concept replaced the broad description, mistakenly narrowing the focus to the physical concentration of poverty. The HUD's 2013 The Location and Racial Composition of Public Housing in the United States report found that the racial distribution of residents within individual public housing units tends to be rather homogeneous, with African Americans and white residents stratified to separate neighborhoods. One trend that
1712-766: A particular area who receive a voucher from the jurisdiction in which they live may use the voucher anywhere in the country, but nonresidents of the jurisdiction must live in the jurisdiction that issues the voucher to them for 12 months before they can move to a different area. In many localities, the PHA waiting lists for Section 8 vouchers may be thousands of households long, waits of three to six years to obtain vouchers are common, and many lists are closed to new applicants. Wait lists are often briefly opened (often for just five days), which may occur as little as once every seven years. To manage excess demand, PHAs often create preference policies that place specific categories of applicants at
1819-518: A particular community. As an example, the 2012 FMR for 1 bedroom housing in San Francisco is $ 1,522 and in New York is $ 1,280, while in many other places it is less than $ 500. The landlord cannot charge a Section 8 tenant more than a reasonable rent and cannot accept payments outside the contract. Landlords, although required to meet fair housing laws, are not required to participate in
1926-421: A set percentage of a household's income. The 1961 Housing Act quietly introduced a program under Section 23 which allowed local housing authorities to house individuals on their waiting lists in privately leased units through the mechanism of a voucher which covered the gap between household ability to pay and the market rent. This mechanism was repeatedly expanded in later legislation. In response to many of
2033-477: A significant public housing program. Title II of the legislation stated the goal of a "decent home in a decent environment for every American," and the legislation authorized $ 13 billion mortgage guarantees, $ 1.5 billion for slum redevelopment, and set a construction goal of 810,000 units of public housing. Upon its passage, Truman told the press: "[This legislation] opens up the prospect of decent homes in wholesome surroundings for low-income families now living in
2140-403: A strong bent towards local efforts in locating and constructing housing and would place caps on how much could be spent per housing unit. The cap of $ 5,000 was a hotly contested feature of the bill as it would be a considerable reduction of the money spent on PWA housing and was far less than advocates of the bill had lobbied to get. Construction of housing projects dramatically accelerated under
2247-491: A tenant's total income, the amount of imputed income from assets may affect a tenant's assigned portion of rent. The PHA pays the landlord the remainder of the rent. Each year, the federal government looks at the rents being charged for privately owned apartments in different communities, as well as the costs of utilities (heat, electricity, etc.) in those communities. The Fair Market Rents (FMRs) are amounts (rents plus utilities) for medium-quality apartments of different sizes in
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#17327799644792354-428: A voucher find and lease a unit (either in a specified complex or in the private sector) and pay a portion of the rent. Most households pay 30% of their adjusted income for Section 8 housing. Adjusted income is a household's gross (total) income minus deductions for dependents under 18 years of age, full-time students, disabled persons, or an elderly household, and certain disability assistance and medical expenses. There
2461-456: Is an asset test in addition to earned income. Over a certain amount, HUD will add income even if the Section 8 tenant does not receive any interest income from, for example, a bank account. HUD calls this "imputed income from assets" and, in the case of a bank account, HUD establishes a standard "Passbook Savings Rate" to calculate the imputed income from the asset. By increasing the amount of
2568-501: Is an example of how stigma and judgement around public housing and affordable housing resulted in a significant change in the racial demographics of urban housing. White flight is a sociological response to perceptions that racially diverse neighborhoods will decrease their home value and increase crime rates. McNulty and Holloway (2000) studied the intersection of public housing geography, race, and crime in order to determine if racial differences existed in crime rates when controlled for
2675-518: Is determined by Congressional funding. Since its inception, some Section 8 programs have been phased out and new ones created, although Congress has always renewed existing subsidies. The 2008 Consolidated Appropriations Act (Public Law 110-161) enacted December 26, 2007, allocated $ 75 million in funding for the HUD-Veterans Affairs Supportive Housing (HUD-VASH) voucher program, authorized under section 8(o)(19) of
2782-431: Is doubled for blacks compared to whites. The study further found that public housing tends to concentrate those who struggle the most economically into a specific area, further raising poverty levels. A different study, conducted by Freeman (2003) on a national level, cast doubt onto the theory that public housing units have an independent effect on the concentration of poverty. The study found that while out-migration of
2889-411: Is limited to a specific apartment complex ( public housing agencies (PHAs) may reserve up to 20% of its vouchers as such )—or "tenant-based", where the tenant is free to choose a unit in the private sector, is not limited to specific complexes, and may reside anywhere in the United States (or Puerto Rico) where a PHA operates a Section 8 program. Under the voucher program, individuals or families with
2996-511: Is not the rebuilding of cities. This is the sacking of cities." Several additional housing acts were passed after 1949, altering the program in small ways, such as shifting ratios for elderly housing, but no major legislation changed the mechanisms of public housing until the Housing and Urban Development Act of 1965 . This act created the Department of Housing and Urban Development (HUD),
3103-523: Is observed is that black neighborhoods tend to reflect a lower socioeconomic status and that white neighborhoods represent a more affluent demographic. More than 40% of public housing occupants live in predominantly black neighborhoods, according to the HUD report. Even though changes have been made to address unconstitutional housing segregation , stigma and prejudice around public housing projects are still prevalent. Segregation in public housing has roots in
3210-486: Is on was bought in 1945 by the City of New York; it had been the site of an old Dutch windmill. Homes and businesses (including two banks) were cleared for the construction of Marcy, as well as sections of Hopkins, Ellery, Floyd (now Martin Luther King Jr. Place), and Stockton streets that went through where the complex now sits. Marcy was completed on January 19, 1949. In 1946, 3.2 acres (0.013 km; 0.0050 sq mi) of
3317-510: Is to foster self-sufficiency for those who are on subsidies and disability and other assistance. Howard Husock , vice president for policy research at the conservative Manhattan Institute , heavily criticized Section 8 in a 2003 book on housing policy as a vehicle for exporting inner city social problems to the suburbs. Hanna Rosin , an American journalist, has argued that Section 8 has led to crime being more evenly spread out across U.S. metropolitan areas , without any net decrease. This
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3424-618: Is voluntary, some states and municipalities have laws preventing income-based discrimination. Voucher amounts vary depending on city or county, size of unit, and other factors. Voucher recipients typically have 2 to 4 months to secure housing that meets HUD standards; otherwise, they lose their vouchers and must reapply. Wait lists for vouchers can be very long, ranging from 10 to 20 years, with many local programs closed to new applicants. Voucher amounts are based on Fair Market Rents (FMRs) set by HUD. The recently introduced Small Area Fair Market Rents (SAFMRs) program refines these calculations to
3531-565: The Fair Housing Act which prohibited discrimination in housing. However, since the Fair Housing Act was passed, housing policies restricting minority housing to segregated neighborhoods are still heavily debated because of the vague language used in the Fair Housing Act. In the 2015 Supreme Court case Texas Department of Housing and Community Affairs v. The Inclusive Communities Project , Justice Kennedy clarified that
3638-734: The Federal Housing Administration (FHA), which used only a small capital investment from the federal government to insure mortgages. Construction of public housing projects were therefore only one portion of the federal housing efforts during the Great Depression. In 1937, the Wagner-Steagall Housing Act replaced the temporary PWA Housing Division with a permanent, quasi-autonomous agency to administer housing. The new United States Housing Authority Housing Act of 1937 would operate with
3745-467: The Section 8 Housing Program to encourage the private sector to construct affordable homes. This kind of housing assistance assists poor tenants by giving a monthly subsidy to their landlords. This assistance can be 'project based,' which applies to specific properties, or 'tenant based,' which provides tenants with a voucher they can use anywhere vouchers are accepted. Tenant based housing vouchers covered
3852-476: The United States Department of Housing and Urban Development (HUD). In 2020, there were one million public housing units. In 2022, about 5.2 million American households received some form of federal rental assistance. Subsidized apartment buildings, often referred to as housing projects (or simply "the projects"), have a complicated and often notorious history in the United States. While
3959-473: The zip code level in major metropolitan areas. Federal housing assistance programs started during the Great Depression . In the 1960s and 1970s, the federal government created subsidy programs to increase the production of low-income housing and to help families pay their rent. In 1965, the Section 236 Leased Housing Program amended the U.S. Housing Act. This subsidy program, the predecessor to
4066-496: The ' towers in the park ' style of Le Corbusier . Jane Jacobs would famously describe the new products as, "Low-income projects that become worse centers of delinquency, vandalism, and general social hopelessness than the slums they were supposed to replace. Middle-income housing projects which are truly marvels of dullness and regimentation, sealed against any buoyancy or vitality of city life. Luxury housing projects that mitigate their inanity, or try to, with vapid vulgarity ... This
4173-543: The 1960s, across the nation, housing authorities became key partners in urban renewal efforts, constructing new homes for those displaced by highway, hospital and other public efforts. When US entry to World War II ended the era of New Deal reforms, the call for public housing from the NAACP , women's groups and labor unions was quieted. As part of the war mobilization, entire communities sprang up around factories manufacturing military goods. In 1940, Congress therefore authorized
4280-658: The 1970s the federal government turned to other approaches including the Project-Based Section 8 program, Section 8 certificates, and the Housing Choice Voucher Program. In the 1990s the federal government accelerated the transformation of traditional public housing through HUD's HOPE VI Program. Hope VI funds are used to tear down distressed public housing projects and replace them with mixed communities constructed in cooperation with private partners. In 2012, Congress and HUD initiated
4387-414: The 1970s, when studies showed that the worst housing problem afflicting low-income people was no longer substandard housing, but the high percentage of income spent on housing, Congress passed the Housing and Community Development Act of 1974 , further amending the U.S. Housing Act of 1937 to create the Section 8 Program. In the Section 8 Program, tenants pay about 30 percent of their income for rent, while
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4494-475: The 19th and early 20th centuries, government involvement in housing for the poor was chiefly in the area of building code enforcement, requiring new buildings to meet certain standards for decent livability (e.g. proper ventilation), and forcing landlords to make some modifications to existing building stock. Photojournalist Jacob Riis' How the Other Half Lives (1890) brought considerable attention
4601-490: The 28.49 acres (0.1153 km; 0.04452 sq mi) were set aside for a playground; this playground was reconstructed in 1989. Marcy has taken steps to become more environmentally friendly ; in 2006, it replaced all conventional water heaters with energy-saving, instantaneous water heaters. In October 2008, Marcy's neighborhood garden earned 3rd place at the 43rd Annual Garden and Greening Awards Ceremony, and its evergreen garden earned second place. On January 19, 2009,
4708-540: The 60th anniversary of the building's completion, Mayor Michael Bloomberg proclaimed the day Marcy Houses Day. [1] Public housing in the United States In the United States, subsidized housing is administered by federal, state and local agencies to provide subsidized rental assistance for low-income households. Public housing is priced much below the market rate, allowing people to live in more convenient locations rather than move away from
4815-514: The Equal Protection Clause of the 14th Amendment. However, according to Gotham (2000), Section 235 of the Housing Act of 1968 encouraged white flight from the inner city, selling suburban properties to whites and inner-city properties to blacks, creating neighborhoods that were racially isolated from others. White flight - white people moving out of neighborhoods that have become more racially or ethnoculturally heterogeneous -
4922-419: The Fair Housing Act was intended to promote equity, not just eliminate explicit acts of discrimination. Changes in both public policy and social narrative are equally necessary for establishing equitable housing opportunities for all Americans. Section 8 (housing) In 2022, about 2.3 million out of the 5.2 million households receiving rental assistance used Section 8 vouchers. While landlord participation
5029-832: The Federal Government currently serves about 4.3 million low-income families, there are about 4 million additional families, most of them very low income, whose housing needs have not been met. We should not divert assistance from those who need it most." The next new era in public housing began in 1992 with the launch of the HOPE VI program by the United States Department of Housing and Urban Development . HOPE VI funds were devoted to demolishing poor-quality public housing projects and replacing them with lower-density developments, often of mixed-income. Funds included construction and demolition costs, tenant relocation costs, and subsidies for newly constructed units. HOPE VI has become
5136-468: The HQS, thus ensuring that the family has a healthy and safe place to live. This improvement in the landlord's private property is an important byproduct of this program, both for the individual families and for the larger goal of community development. Applicants may apply for a Section 8 housing voucher at any county or city housing authority office. Although rules vary across housing authorities, residents of
5243-606: The Housing Division of the PWA and headed by architect Robert Kohn , the initial, Limited-Dividend Program aimed to provide low-interest loans to public or private groups to fund the construction of low-income housing. Too few qualified applicants stepped forward, and the Limited-Dividend Program funded only seven housing projects nationally. In the spring of 1934, PWA Administrator Harold Ickes directed
5350-412: The Housing Division to undertake the direct construction of public housing, a decisive step that would serve as a precedent for the 1937 Wagner-Steagall Housing Act , and the permanent public housing program in the United States. Kohn stepped down during the reorganization, and between 1934 and 1937 the Housing Division, now headed by Colonel Horatio B. Hackett, constructed fifty-two housing projects across
5457-528: The National Housing Association (NHA) was created to improve housing conditions in urban and suburban neighborhoods through the enactment of better regulation and increased awareness. The NHA was founded by Lawrence Veiller , author of Model Tenement House Law (1910), and consisted of delegates from dozens of cities. Over time, the focus of the housing movement shifted from a focus on proper building typology to community development on
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#17327799644795564-567: The Section 8 program. As a result, some landlords will not accept a Section 8 tenant. This can be attributed to such factors as: Depending on state laws, refusing to rent to a tenant solely for the reason that they have Section 8 may be illegal. Landlords can use only general means of disqualifying a tenant (credit, criminal history, past evictions , etc.). It also may be illegal to post "No Section 8" advertisements. However, other landlords willingly accept Section 8 tenants, due to: Whether voucher- or project-based, all subsidized units must meet
5671-582: The Seventies was instrumental in crafting new housing legislation the following year. In keeping with Nixon's market-based approach, as demonstrated by EHAP, Nixon also lifted the moratorium on the Section 23 voucher program late in September, allowing for 200,000 new households to be funded. The full moratorium was lifted in the summer of 1974, as Nixon faced impeachment in the wake of Watergate . The Housing and Community Development Act of 1974 created
5778-465: The Summer of 2001 that examines the effects of housing placement specialists on the Section 8 voucher program. Marr finds that housing placement specialists function as an intermediary between tenants and landlords that help increase the mobility of Section 8 voucher recipients. Tight rental markets can pose a challenge to Section 8 voucher recipients. Marr finds, through observations and interviews, that
5885-589: The US Housing Authority to build twenty public housing developments around these private companies to sustain the war effort. There was considerable debate over whether these should be permanent dwellings, furthering reformer goals of establishing a broader public housing effort, or temporary dwellings in keeping with the timeliness of the need. The Defense Housing Division was founded in 1941 and would ultimately construct eight developments of temporary housing, though many ended up as long-term housing after
5992-552: The United States Housing Act of 1937. This new program combines HUD Housing Choice Voucher rental assistance for homeless veterans with case management and clinical service support which is provided by the Veterans Affairs administration at its own medical centers and also in the community. The main Section 8 program involves the voucher program. A voucher may be either "project-based"—where its use
6099-892: The United States, as well as Puerto Rico and the Virgin Islands. Atlanta's Techwood Homes opened on 1 September 1936 and was the first of the fifty-two opened. Based on the residential planning concepts of Clarence Stein and Henry Wright, these fifty-two projects are architecturally cohesive, with composed on one to four story row house and apartment buildings, arranged around open spaces, creating traffic-free play spaces that defined community life. Many of these projects were built on slum land, but land acquisition proved difficult, so abandoned industrial sites and vacant land were also purchased. Lexington's two early projects were constructed on an abandoned horse racing track. At Ickes' direction, many of these projects were also segregated, designed and built for either whites or African-Americans. Race
6206-634: The United States, the federal government provides funding for public housing from two different sources: the Capital Fund and the Operating Fund. According to the HUD, the Capital Fund subsidizes housing authorities to renovate and refurbish public housing developments; meanwhile, the Operating Fund provides funds to housing authorities in order to assist in maintenance and operating costs of public housing. Furthermore, housing projects have also been seen to greatly increase concentrated poverty in
6313-610: The agreement with the private landlord, housing authorities agreed to perform regular building maintenance and leasing functions for Section 236 tenants, and annually reviewed the tenant's income for program eligibility and rent calculations. The Housing and Urban Development Act of 1970 introduced the federal Experimental Housing Allowance Program (EHAP) and the Community Development Corporation and authorized larger outlays for housing subsidy programs and rent supplements for moderate-income households. In
6420-402: The amount of which was determined by a formula focusing on population, given to state and local governments for housing and community development work. The sum could be used as determined by the community, though the legislation also required the development of Housing Assistance Plans (HAP) which required local communities to survey and catalog their available housing stock as well as determine
6527-498: The average annual income in 2013 for a resident of a public housing unit is $ 13,730. The same report classifies 68% of residents as Extremely Low Income, with the largest annual income bracket being $ 5,000 to $ 10,000, containing 32% of public housing residents. Trends showing an increase in geographic concentration of poverty became evident by the 1970s as upper and middle-class residents vacated property in U.S. cities. Urban renewal programs led to widespread slum clearance, creating
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#17327799644796634-491: The chance to leave, families still received modest academic and psychological benefits. In fact, according to a paper prepared for the U.S. Department of Housing and Urban Development and the Office of Policy Development and Research rather than an increasing crime, those who use housing vouchers are more likely to move into areas where crime is increasing. Matthew Marr published a study of the Los Angeles housing market in
6741-465: The city in search of lower rents. In most federally-funded rental assistance programs, the tenants' monthly rent is set at 30% of their household income. Now increasingly provided in a variety of settings and formats, originally public housing in the U.S. consisted primarily of one or more concentrated blocks of low-rise and/or high-rise apartment buildings. These complexes are operated by state and local housing authorities which are authorized and funded by
6848-563: The concentration of poverty, some contended these developments were declared unsuitable for families. One of the most notorious of these developments was the Pruitt-Igoe development in St. Louis, Missouri , constructed in 1955 and 1956. This development posted 2,870 units in thirty-three high rises buildings. By the late 1960s, vacancy rates reached as high as 65%, and the project was demolished between 1972 and 1975. More recent scholarship about
6955-463: The concentration of voucher recipients in a given metropolitan area. While the program was originally intended to be mandatory for several metropolitan areas immediately, the requirement for the use of SAFRMs was delayed to October 1, 2019. SAFMRs can now be found through the HUD database . The implementation of this program follows a demonstration project coordinated by HUD in 2010. The project included
7062-793: The conditions of the slums in New York City, sparking new attention to housing conditions around the country. Early tenement reform was primarily a philanthropic venture, with Model Tenements built as early as the 1870s which attempted to use new architectural and management models to address the physical and social problems of the slums. These attempts were limited by available resources, and early efforts were soon redirected towards building code reform. The New York Tenement Act of 1895 and Tenement Law of 1901 were early attempts to address building codes in New York City, which were then copied in Chicago, Philadelphia, and other American cities. In 1910,
7169-461: The demand side of the housing market rather than the supply side by supplementing a household's rent allowance until they were able to afford market rates. EHAP was designed to test three aspects of the impact of vouchers: Ultimately, new legislation on housing vouchers did not wait for the conclusion of the experiment. When the program concluded over a decade later, it was discovered that the program had minimal impact on surrounding rents, but did have
7276-620: The early developments and activities of the Federal Housing Administration (FHA), created by the Housing Act of 1934 . The FHA institutionalized a practice by which it would seek to maintain racially homogenous neighborhoods through racially restrictive covenants - an explicitly discriminatory policy written into the deed of a house. This practice was struck down by the Supreme Court in 1948 in Shelley v. Kraemer because it violates
7383-505: The emerging concerns regarding new public housing developments, the Housing and Urban Development Act of 1968 attempt to shift the style of housing developments, looking to the Garden Cities model of Ebenezer Howard . The act prohibited the construction of high-rise developments for families with children. The role of high-rises had always been contentious, but with rising rates of vandalism and vacancy and considerable concerns about
7490-417: The first decades of projects were built with higher construction standards and a broader range of incomes and same applicants, over time, public housing increasingly became the housing of last resort in many cities. Several reasons have been cited for this negative trend including the failure of Congress to provide sufficient funding, a lowering of standards for occupancy, and mismanagement at the local level. In
7597-727: The following Public Housing Authorities (PHAs): The Housing Authority of the County of Cook (IL), the City of Long Beach (CA) Housing Authority, the Chattanooga (TN) Housing Authority, the Town of Mamaroneck (NY) Housing Authority, and the Housing Authority of Laredo (TX). An early report states that the effects of this program need to be analyzed over a long period of time before determining results. Vincent Reina, Arthur Acolin, and Raphael W. Bostic published an early examination of
7704-550: The funding resources of the G.I. Bill to start a new mortgage. However, there was not enough housing stock to accommodate the demand. As a result, President Truman created the office of Housing Expediter by executive order on January 26, 1946, to be headed by Wilson Wyatt. Through this office, government intervened in the housing market largely through price controls and supply chain restrictions, despite political pressure from some factions to directly construct housing. Efforts moved to focus exclusively on veterans housing, specifically
7811-550: The gap between 25% of a household's income and established fair market rent . Virtually no new project based Section 8 housing has been produced since 1983, but tenant based vouchers are now the primary mechanism of assisted housing. The other main feature of the Act was the creation of the Community Development Block Grant (CDBG). While not directly tied to public housing, CDBGs were lump sums of money,
7918-614: The heels of the passage of Title I and the Housing Act of 1949. Urban renewal had become, for many cities, a way to eliminate blight, but not a solid vehicle for constructing new housing. For example, in the ten years after the bill was passed, 425,000 units of housing were razed under its auspices, but only 125,000 units were constructed. Between Title I and the Federal Aid Highway Act of 1956 , entire communities in poorer, urban neighborhoods were demolished to make way for modern developments and transportation needs, often in
8025-434: The home ownership market through the expansion of the FHA. Ginnie Mae was initially established to purchase risky public housing projects and resell them at market rates. In addition, Section 235 originated mortgage subsidies by reducing the interest rate on mortgages for low-income families to a rate more comparable to that of the FHA mortgages. The program suffered from high foreclosure rates and administrative scandal, and
8132-683: The homes was completed. Permanent, federally funded housing came into being in the United States as a part of Franklin Roosevelt's New Deal. Title II, Section 202 of the National Industrial Recovery Act , passed June 16, 1933, directed the Public Works Administration (PWA) to develop a program for the "construction, reconstruction, alteration, or repair under public regulation or control of low-cost housing and slum clearance projects ...". Led by
8239-508: The housing projects constructed in the prior two decades. HUD Secretary George Romney declared that the moratorium would encompass all money for Urban Renewal and Model Cities programs, all subsidized housing, and Section 235 and 236 funding. An intensive report was commissioned from the National Housing Policy Review to analyze and assess the federal government's role in housing. This report, entitled Housing in
8346-534: The implementation of the program. There is a provision for disabled people who have a Section 8 subsidized dwelling to have their rent frozen for a specified time if they are working part-time below a certain income level. This is called the Earned Income Disallowance or Earned Income Disregard (EID) and is stipulated under US 24 CFR 5.617, "Self-sufficiency incentives for persons with disabilities—Disallowance of increase in annual income". This
8453-470: The landlord. FMRs can be found using HUD's Database . The Small Area Fair Market Rents Program (SAFMRP) was officially implemented by HUD in January 2017. This system is an update to the system HUD uses to calculate Fair Market Rents (FMRs) in metropolitan areas. The purpose is to examine metropolitan area FMRs by ZIP code, as opposed to in total. HUD stated that this program is aimed to allow voucher recipients to move into higher opportunity areas and reduce
8560-469: The late 1970s and 1980s. Since that time, cities across the country have implemented such programs with varying levels of success. Changes to public housing programs were minor during the 1980s. Under the Reagan administration, household contribution towards Section 8 rents was increased to 30% of household income and fair market rents were lowered. Public assistance for housing efforts was reduced as part of
8667-419: The modern program, was not a pure housing allowance program. Housing authorities selected eligible families from their waiting list, placed them in housing from a master list of available units, and determined the rent that tenants would have to pay. The housing authority would then sign a lease with the private landlord and pay the difference between the tenant's rent and the market rate for the same size unit. In
8774-775: The narrative of racially segregated housing in the 20th Century. The rebellion in Detroit in 1967 was a symptom of racial tension that was in part due to unfair housing policies. In July 1967, President Lyndon B. Johnson issued a commission, led by Illinois Governor Otto Kerner to determine the causes of the riots. The Kerner Commission clearly articulated that housing inequality was solely determined by explicitly discriminatory policies. It stated that " White institutions created it, white institutions maintain it, and white society condones it ". The Kerner Commission blatantly condemned white institutions for creating unequal housing opportunities, specifically highlighting restrictive covenants as
8881-414: The neighborhood, property values are not likely to fluctuate. However, a review of the literature yielded no definitive conclusions on the impact of public housing on property values, with only two studies lacking methodological flaws that had either mixed results or showed no impact. Others are skeptical of concentrated poverty from public housing being the cause of social pathologies, arguing that such
8988-489: The new SAFMRP in 2019. This study finds varied results in the SAFMRP based on different metropolitan areas. Two areas of note are the highest performing city in the study and the lowest, Dallas, TX, and Chattanooga, TN, respectively. The authors argue that Dallas performed well with the SAFMRP because the city was required by court order to implement the program, and the program has been in place for longer than all other cities in
9095-531: The new structure. In 1939 alone, 50,000 housing units were constructed—more than twice as many as were built during the entire tenure of the PWA Housing Division. Building on the Housing Division's organizational and architectural precedent, the USHA built housing in the build-up to World War II, supported war-production efforts and battled the housing shortage that occurred after the end of the war. In
9202-634: The non-poor and in-migration of the poor were associated with the creation of public housing, such associations disappeared with the introduction of statistical controls, suggesting that migration levels were caused by characteristics of the neighborhood itself rather than the public housing unit. Concentrated poverty from public housing units has effects on the economy of the surrounding area, competing for space with middle class housing. Because of social pathologies incubated by public housing, Husock (2003) states that unit prices in surrounding buildings fall, reducing city revenue from property taxes and giving
9309-454: The one year recent mover rents. FMRs also include a CPI adjustment and a trend factor adjustment. The trend factor adjustment is how HUD expects rental rates to grow. FMRs include all major utilities (heat, electricity, etc.), but does not include telephone, cable, satellite television, or internet service. Utilities are included in FMRs whether the obligation of payment is under the tenant or
9416-528: The populations most in need of assistance. These were submitted as part of the CDBG application. Again in response to the growing discontent with public housing, urban developers began looking for alternate forms of affordable, low-income housing. From this concern sprang the creation of scattered-site housing programs designed to place smaller-scale, better-integrated public housing units in diverse neighborhoods. Scattered-site housing programs became popularized in
9523-416: The potential to tighten the market for low-income housing, and communities were in need of an infusion of additional units. Some therefore argued that public housing was the appropriate model for cost and supply-chain reasons, though vouchers did not appear to overly distort local housing markets. In 1973, President Richard Nixon halted funding for numerous housing projects in the wake of concerns regarding
9630-514: The primary vehicle for the construction of new federally subsidized units, but it suffered considerable funding cuts in 2004 under President George W. Bush who called for the abolition of the program. In 1998, the Quality Housing and Work Responsibility Act (QHWRA) was passed and signed by President Bill Clinton . Following the frame of welfare reform , QHWRA developed new programs to transition families out of public housing, developed
9737-408: The program must abide by a series of rules and regulations, often referred to as "family obligations", in order to maintain their voucher, including accurately reporting to the PHA all changes in household income and family composition so the amount of their subsidy (and the applicable rental unit size limitation) can be updated accordingly. Fair Market Rents (FMRs) are calculated to determine how much
9844-529: The projects continue to operate as mutual housing corporations owned by their residents. These projects are among the very few definitive success stories in the history of the US public housing effort. During World War II, construction of homes dramatically decreased as all efforts were directed towards the War. When the veterans returned from overseas, they came ready to start a new life, often with families, and did so with
9951-591: The proximity of public housing units. The study found that "the race-crime relationship is geographically contingent, varying as a function of the distribution of public housing". This suggests that a focus on institutional causes of crime in relation to race is more appropriate than a focus on cultural differences between races being the cause of differing crime rates . Public housing units were often built in predominantly poor and black areas, reinforcing racial and economic differences between neighborhoods. These social patterns are influenced by policies that constructed
10058-499: The reinforcement of patterns of poverty via the location of the public housing units, and the migration of impoverished individuals towards the public housing, although this effect is relatively small in comparison to the other sources. A study of public housing in Columbus, Ohio , found that public housing has differing effects on the concentration of black poverty versus white poverty. Public housing's effect on concentrated poverty
10165-561: The rest of the rent is paid with federal money. The Section 8 program initially had three subprograms—New Construction, Substantial Rehabilitation, and Existing Housing Certificate programs. The Moderate Rehabilitation Program was added in 1978, the Voucher Program in 1983, and the Project-based Certificate program in 1991. The number of units a local housing authority can subsidize under its Section 8 programs
10272-421: The squalor of the slums. It equips the Federal Government, for the first time, with effective means for aiding cities in the vital task of clearing slums and rebuilding blighted areas. This legislation permits us to take a long step toward increasing the well-being and happiness of millions of our fellow citizens. Let us not delay in fulfilling that high purpose. Discontent with Urban Renewal came fairly swiftly on
10379-455: The story of Pruitt-Igoe, which has often been used as a parable for the failures of large-scale public housing in the United States, has elucidated that the unraveling of the complex had more to do with structural racism, disinvestment in the urban core, white flight, and the diminishing post-industrial incomes of the buildings' residents than with high rise architecture or the nature of publicly owned and -operated housing. The Act also impacted
10486-462: The study. The authors state that the benefits of the SAFMRP change over time and analysis of the program must include a time series analysis for all effects. The authors also explain why Chattanooga, TN may have performed the lowest in the study. Two reasons include the fact that most rental units were already inaccessible areas, and most residential areas in Chattanooga are low opportunity, therefore voucher recipients did not have increased choice with
10593-422: The top of wait lists. Some PHAs also use a "lottery" approach, where there can be as many as 100,000 applicants for 10,000 spots on the waitlist, with spots being awarded on the basis of weighted or non-weighted lotteries. Priority is often extended to local residents, disabled people, veterans, and the elderly. There is no guarantee that anyone will ever be selected from a wait list. Families who participate in
10700-651: The war. One of the most unusual US public housing initiatives was the development of subsidized middle-class housing during the late New Deal (1940–42) under the auspices of the Mutual Ownership Defense Housing Division of the Federal Works Agency under the direction of Colonel Lawrence Westbrook . These eight projects were purchased by the residents after the Second World War and as of 2009 seven of
10807-400: The years of 1990 and 2000. Anrig also refers to Moving to Opportunity (MTO), a randomized policy experiment. The study concludes that there was no increase in violent crime for the participants of subsidized housing or their surrounding neighborhoods in the five cities tested; Memphis was not a part of the study. Even though the participants were far more likely to stay in poorer areas when given
10914-541: Was dramatically scaled down in 1974. The Section 236 program subsidized the debt service on private developments which would then be offered at a reduced rates to households below a certain income ceiling. The Housing Act of 1970 established the Experimental Housing Allowance Program (EHAP), a lengthy investigation in the potential market effects of housing vouchers. Vouchers, initially introduced in 1965, were an attempt to subsidize
11021-406: Was enacted as part of the Quality Housing and Work Responsibility Act of 1998 (QHWRA) (Sec. 508(b); 42 U.S.C. 1437a(d)). This requires Public Housing Authorities and some owners, in calculating rent, to temporarily "disregard" increased income earned when certain public housing residents and disabled participants in certain housing assistance programs return/go to work or job-related programs. The idea
11128-514: Was largely determined by the neighborhood surrounding the site, as American residential patterns, in both the North and South, were highly segregated. Coming out of the housing movement at the turn of the century, the 1930s also saw the creation of the Home Owners' Loan Corporation (HOLC), which refinanced loans in order to keep the housing market afloat. The National Housing Act of 1934 created
11235-519: Was later criticized by Greg Anrig in an article published on The American Prospect . In the article, Anrig accuses Rosin of placing an excessive amount of blame on housing policy for the reported increase in crime. The article refers to the fact that Rosin never made a conclusive argument that those who participate in Section 8 were responsible for the higher rates of crime, as those who receive housing support are subject to screenings based on drug use and previous criminal activity. Rosin instead relies on
11342-504: Was the Housing Act of 1949 , which dramatically expanded the role of the federal government in both public and private housing. Part of Truman's Fair Deal , the Act covered three primary areas: (1) It expanded the Federal Housing Administration and federal involvement in mortgage insurance, (2) under Title I, it provided authority and funds for slum clearance and urban renewal , and (3) initiated construction of
11449-711: Was the core thesis of her article published by The Atlantic in 2008, in which she linked Section 8 to a crime wave in the Memphis, Tennessee , metropolitan area. Rosin's article attempted to position Memphis as just one particularly troubling example of a nationwide trend: "Still, researchers around the country are seeing the same basic pattern: projects coming down in inner cities and crime pushing outward, in many cases destabilizing cities or their surrounding areas." Rosin's article has been highly influential among politicians in cities claiming to be negatively affected by Section 8, such as Lancaster, California . Rosin's article
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