Tuesday, September 27, 2005

Housing Solutions

Over the past several weeks, thousands of evacuees from the Gulf Coast have made their way to Dallas. Many more may be joining us in Hurricane Rita's wake.

During the first week following Katrina, I was amazed at how quickly the Dallas Housing Authority managed to place people in housing. The operative rule was simple: if you had a housing voucher or public housing in New Orleans, you received it here as well. Our housing authority continues to do a great job of placing families in homes.

That's the good news.

The bad news is being overlooked.

Multi-family housing developers in Dallas have hundreds of units of rental property just waiting for families who have housing vouchers. It is clear to me that the supply currently exists in the Dallas market.

The problem is simple: the U. S. Department of Housing and Urban Development has limited the number of persons who can participate in the program.

The units are there waiting to be leased. But not enough low-income families are allowed into the program to receive the vouchers to take advantage of the housing.

As a result, families are forced to live in sub-standard housing while waiting for their names to creep forward on a local waiting list that currently contains well over 10,000 names.

In essence, our new neighbors from New Orleans went to the head of this line, as they should have. At the same time, people already in Dallas will now have to wait longer for housing improvement.

Alfonzo Jackson, formerly the CEO of the Dallas Housing Authority, serves as Secretary for HUD. Thanks to his executive orders and to administration policy, the housing voucher program has been frozen and plans for the FY2006 budget envision further cutbacks.

Families who possess a housing voucher make rental payments equal to 30% of their income and HUD reimburses property owners the balance. The program allows participants to live anywhere in the community where owners accept vouchers as payment. This approach decentralizes publicly assisted housing while undermining the concentration of poverty that destroys communities.

At the same time, the voucher program encourages the development of much-needed, affordable, workforce housing. In short, the program is a boon to developers both for-profit and non-profit.

Without the voucher program it is unrealistic to expect developers to continue to produce affordable housing. The poor cannot afford the rents that are required due to production costs. Real estate developers do not build housing to lose money.

When housing vouchers are cut back, everyone loses. The program is a great blend of social uplift opportunity that is tied to employment and economic development that harnesses market forces to improve neighborhoods and lives.

Housing, like health care, education and employment, is a major determinant of the overall quality of life for people. Poor, substandard housing stock diminishes health, affects educational outcomes and derails economic development. Every dollar invested in community housing is a dollar whose continued circulation improves everything.

FEMA now estimates--and this before Rita hits--that 200,000 former Gulf Coast residents are in need of housing. The number is likely much higher and will only rise following the next storm.

The solution?

Trailers--thousands of manufactured housing units to be placed in gigantic campuses. Now, there is a plan. Wouldn't you love to live in that sort of a neighborhood?

I read recently that there are 1.1 million apartment units across the South that are available for rent today. I expect that is why the U. S. Senate voted week before last to authorize an emergency expansion of the voucher program for families affected by Katrina. Good move.

Now our national leaders need to direct Mr. Jackson to rethink his policy about opening the voucher program in cities like Dallas to people who have been caught up in a different sort of storm for over two decades.

6 comments:

JBS said...

Larry, what is Mr. Jackson's rationale for limiting access to the voucher program? What is the rhetoric at work to support such policy?

js

Anonymous said...

Shortly after Katrina when DHA began moving families into their properties, a rumor flew through Turner Courts (where I work) that Section 8 would be "unfrozen" and those who are in public housing and currently on the waiting list for vouchers would be moved up to make room in p.h. for the families who were moving in. Many residents that I talked to were hopeful and excited that after years of waiting, they could soon begin receiving their long-needed vouchers. Imagine their disappointment and frustration when they were informed that this was not at all the case...that in fact, the list remained frozen and that because of the evacuees, their wait would most likely be extended for quite some time. This has resulted in a lot of bitterness and anger toward the Louisiana victims, which is unfortunate. Yet their frustration is understandable. I really hope that awareness about this crucial issue will continue to grow. As I visit with friends in Turner Courts and hear their frustration, I can't help but wish their stories could be heard. Thanks, Larry, for being a persistent voice on their behalf! --Rachel

Unknown said...

This kind of ties into JBS' question, but I assume the rationale is budgetary. Are they spending the money elsewhere in HUD, or is the department's overall budget being cut?

Anonymous said...

Larry,

I am confused as well. I offered my home for anyone to lease/purchase which I believe is one of the best ways for people to get into a home and be a home owner soon. In light of the hurricane victims I wanted to just give them the whole house with furnishing. I had some takers until debit cards came out, and no one wanted my offer. I am here in south dallas. I thought I heard some places where 25 people living in a two bedroom apartment. I want to help and I am not a developer. Just a single guy who can go live in an apartment but can not afford to give the house away and make payments on two places. How can I in this situation help out? I am not the government. Thanks Helper for Jesus

Larry James said...

JS, the rhetoric coming back from the policy makers is all about "home ownership" for those near the bottom, actually the bottom of the middleclass. The problem with HUD's current strategy is that much of the push for new homeowners--who could argue against that!--is that it is funded in large part by deep cuts to initiatives like the voucher program that serve those at or very near the very bottom.

My son-in-law, Brandon Toombs, sent me a copy of a recent article in The Economist, titled "How should America house its poor?" that makes the case for the use of housing vouchers for low-income families. You might want to check that out.

Thanks for asking and for reading.

Larry James said...

JS and others: here is the link to The Economist essay that Brandon put me on to:
http://www.economist.com/World/
na/displayStory.cfm?story_id=4424772