Issue #101, September/October 1998

Shelter Shorts

Section 8: More to Come Still Not Enough

 After a three-year drought, Congress has approved new Section 8 vouchers – 50,000 for FY '99. And in September, the Housing Authority of the City of Los Angeles (HACLA) reopened its tenant-based Section 8 registration list for the first time since 1990. But don't break out the champagne yet.

"We expect around 100,000 people, maybe more, to apply," said HACLA Section 8 Director Steve Renahan (Business Wire; 09/14/98). "But we only have about 2,000 to 3,000 certificates available annually due to lack of federal funding.We are trying to reach as many low-income populations as we can to let them know because this will be their first chance in eight years and may be their last chance for a long time."

A recent study in Missouri also reported a long wait for Section 8 vouchers, along with a decreasing number of available public housing and project-based Section 8 units. Kansas City had the longest waiting list in Missouri – 10,544 applicants for 4,603 certificates and vouchers – according to the report from Housing Comes First, an advocacy group in St. Louis.

Housing Comes First also found that tenants often have difficulty using Section 8 vouchers to rent private housing. The study, "All Vouchered Up and Nowhere to Go," does point to an increase in the number of tenants able to use their Section 8 subsidies in Kansas City – from 30 percent last year to 60 percent this year. But overall, the report finds that in Missouri, as elsewhere, most cities have far fewer Section 8 subsidies than applicants.

Housing Authority of the City of Los Angeles, George McQuade, 213-252-1862; Housing Comes First, Laura Barrett, 314-367-2993.

Moving To Opportunity?

Most low-income families leaving Chicago's public housing behind with the help of tenant-based Section 8 subsidies are trading one poor African American city neighborhood for another, an investigation by The Chicago Reporter (July-August '98) has found.

The Chicago Housing Authority (CHA) provided Section 8 subsidies to 1,044 families whose public housing units have been slated for closure or demolition since 1995. Most Section 8 recipients, including many who are not from public housing, rent in low-income, minority neighborhoods. But even more former CHA residents are relocating there.

According to the Reporter's analysis of data obtained from CHAC Inc., the private firm that administers Chicago's Section 8 program; and Claritas Inc., a market research firm:

  • Nearly 80 percent of CHA families relocated in the last three years are in Chicago census tracts that are at least 90 percent black, compared to 70 percent of the 19,095 families in the general Section 8 population.
  • More than 69 percent of the former CHA households are in areas with a per capita income below $10,000, compared to just more than half of the city's other Section 8 recipients.
  • Of the 30 Chicago census tracts receiving the most CHA families, only six have per capita incomes of more than $10,000, and all but two are at least 97 percent black.

While CHA Deputy Executive Director Ed Moses said Section 8 recipients are free to move anywhere in the city or suburbs, Paul Fischer, a professor of politics at Lake Forest College and author of two studies on Chicago-area Section 8 housing said that "whatever indicator you use, the relocated residents are living in less desirable census tracts." Whatever efforts CHA has made to expand housing choices have failed, he said.

Affirmative Action's Benefits in Black and White

A major, recently-released study by two former Ivy League presidents of the records and experiences of tens of thousands of students over 20 years concludes that affirmative action policies have led to the creation of the backbone of the emergent black middle class and demonstrated the value of integration to their white classmates. A rich database compiled from the nation's elite colleges will likely recast the debate about affirmative action policies.

The Andrew W. Mellon Foundation financed study broadens the notion of merit beyond tests and grades and hails affirmative action less as a means of overcoming past discrimination and more as a way to insure a healthier future for blacks and whites. The authors conclude that "fairness" in admissions based solely on a narrowly defined grade-based system fails to express what the institution is trying to accomplish in a larger context: substantial benefits through the civic and leadership activities of its graduates and the contributions the schools themselves make to a goals of a democratic society. This capacity to contribute to learning through diversity and strongly documented post-graduate achievement far outweighs the potential for "displacement" of otherwise qualified white applicants, the study holds. The authors counter such backlash with an analogy to parking spaces for handicapped drivers: eliminating the reserved spot would have statistically minuscule effect on the majority of non-disabled drivers while heavily affecting the minority.

The report, by William G. Bower, Princeton economist, and Derek Bok, Harvard political scientist, is published by Princeton University Press.

Short Takes

Legislative Grand Slam

 The Massachusetts Association of CDCs (MACDC), aided by the National Congress for Community Economic Development (NCCED), has hit "a grand slam" in legislative success this year. Massachusetts has committed more than $500 million in funding for CDCs, with $296 million in new funds slated for public and subsidized housing, and a $200 million investment with strong reporting provisions from the life and property/casualty insurance industry for affordable housing and CDC projects. Another $30 million was committed to a bill creating financial and legal incentives to develop brownfields. Support for the Community Economic and Enterprise Development Program was increased to a record $1.9 million. NCCED: 202-234-5009. MACDC: 617-426-0303.

Rents "Out of Reach"

 The Fair Market Rents (FMRs) that HUD establishes annually for the Section 8 certificate and voucher programs are unaffordable for large numbers of renters, including many working families. That's the self-evident conclusion of this year's Out of Reach: Rental Housing at What Cost? report released by the National Low Income Housing Coalition (NLIHC) in early October. The report found that: at least one-third of renters in all but one metro area could not afford the FMR for a two-bedroom apartment; and in every state, metro area, and county, renters needed more than a full-time, minimum wage job to afford the FMR for a one- bedroom apartment. The number of hours per week needed to work at the federal minimum wage to afford a two-bedroom apartment were 124, 122, and 121 in New Jersey, New York, and Washington, DC, respectively. For more information or a copy of the report, contact NLIHC: 202-662-1530. www.nlihc.org

Few Protections = More Evictions

 Tenant supporters in Massachusetts have seen a rash of evictions since the state abolished most tenant protection laws in 1994. In 1996 alone, there were over 37,000 eviction cases, nearly one-third more than five years ago. An initiative on the November ballot would limit the causes for which a tenant could be legally removed from an apartment, and would guarantee tenants the right to counsel. The Tenant's Rights Initiative of Massachusetts cites harassment, skyrocketing rents and dried-up subsidies as factors in the anti-tenant climate in their state.

Unit-Reducing Reform

 New York State's Rent Regulation Reform Act of 1997 is reducing the number of rent-stabilized units, according to the New York City Rent Guidelines Board (RGB) 1998 Recent Movers Study. The study found a 12 percent median increase for apartments that were rent-stabilized in April 1997 and became vacant after June 15, 1997 – an increase of 4 percent over the average prior to the act's passage. An estimated 3,500 to 5,000 apartments were deregulated during the last year. Three to four percent were "luxury decontrol" units, renting at over $2,000 or more upon vacancy. Nearly all of the deregulated units were in Manhattan neighborhoods, where 9 percent of rent-stabilized units which had a vacancy were deregulated. A revised report is available at RGB's internet site: www.housingnyc.org; or call 212-385-293 x11.

Part-Time Work, Full-Time Bills

 America's booming "new economy" has left behind 21 million Americans who work part time, concludes a new AFL-CIO report, Part-Time Work, Full-Time Bills released in August at Disney World in Florida. About 5,000 part-time Disney workers are organizing with the Service Trades Council, a group of unions representing about 20,000 Disney workers. "It's time that corporate America stopped overpaying executives and began giving workers a real opportunity to do better for themselves and their families,"  said AFL-CIO President John Sweeney. Added Murray Cohen, a full-time Disney ride loader, "I work next to people whom Disney calls permanent casual regular part-time employees. What that really means is they're underpaid, overworked and have no job security." Nationally, part-timers' hourly wages average just 70 percent of full-time workers – even with the same skills, education, and experience. Only 20 percent of part-time workers have health insurance, compared to 75 percent of full-time workers. Part-timers are three times less likely to have pensions and aren't covered by the Family and Medical Leave Act. Women comprise 70 percent of the part-time workforce. For a copy of the report, call 202-637-3962.

Partnership Creates Jobs, Business

 Jobs and new business for residents and minority enterprises will result from one of the country's first community-corporate jobs partnerships between Marriott International Corp. and Congregations United for Community Action in Florida. The Southeast Regional director for Marriott committed to contract eight minority vendors and sponsor a job fair at a local college to fill 75 positions. Seeking neighborhood reinvestment and jobs, Congregations United initially met with the first-reluctant Marriott at the April 1997 conference of National People's Action. Chicago groups hope to gain next in talks with the hotel.

Culture for Sale

 About 300 protesters at One Police Plaza in New York City in July greeted Mayor Giuliani's latest maneuver to turn cultural institutions and community gardens into cash during an auction of city-owned land. The Lower East Side Charas/El Bohio Community and Cultural Center, a performance/rehearsal space and community workshop, sold for $3.15 million. A widespread coalition of public interest groups called for a moratorium on the sale of the parcels until a plan addresses the most favorable uses and best interests of the community.

Study Touts Inner Cities for Retailers

 Inner cities offer wide-ranging opportunities for retailers, according to a study released in June by The Boston Consulting Group and The Initiative for a Competitive Inner City. The study found that the inner city contains a strong consumer base, a diverse consumer group with a variety of needs, and a high volume of shopper traffic. It reported that a critical factor to achieving success is commitment to the inner city as a market and that tailoring businesses to local needs while maintaining high operational standards is also essential. For a full report, call 617-292-2363, or visit www.icic.org

Community-Based Research

Community-based research – "conducted by, with or for communities" – results in concrete, positive changes, according to an August report on twelve case studies from The Loka Institute. The Loka Institute has identified approximately 50 community-based research centers in the US, but there may be as many as 400-1,200 annual studies currently being conducted. Community-based research, the study finds, is unique in its grassroots, practical approach. The Loka Institute:  413-559-5860 or www.loka.org

Breathe Easy

 "How Mid-Sized Cities Can Avoid Strangulation" cites Curitiba, Brazil, and Portland, Oregon, as models for overcoming traditional problems such as traffic, pollution, haphazard development, and urban tension. The article points to economic planning, environmental education, and transportation reform as essential to the success of cities, suggesting that their health can have a positive "regional, national, and global" impact. World Watch, Sept./Oct. 1998.

Bicycling for Cities

 "When Cities Take Bicycles Seriously" reports on the potential bicycles have to make the increasingly urban living space more bearable. Noting successful models in Europe, Asia, and South America, the article focuses on the advisability of using bicycles to reduce city administrative costs, combat crime, and improve both the environment and citizens' health. WorldWatch, Sept./Oct. 1998.

GM Settles Lead Paint Suit

 A division of General Motors recently settled complaints of pollution by paying $100,000 to the Chicago Housing Authority's lead program. Illinois began its investigations in 1996 after complaints were filed alleging that a GM plant was emitting hazardous chemicals without proper state permits.  Similar settlements are a growing trend, as fines from pollution are being used for local prevention efforts. Last year, the Delaware Water Quality Control Authority agreed to pay $200,000 for a childhood lead poisoning prevention program in Chester, PA, to settle a lawsuit over alleged chronic air pollution violations. Chicago Housing Authority: 312-791-8500 x4449.

State Action on Lead Poisoning

 Michigan legislators took the first significant state action against lead poisoning recently by earmarking $5 million for a proposed environmental bond program for lead abatement and enacting related state law. Legislation calls for a contractor certification program; development of appropriate maintenance procedures; a comprehensive education and community outreach program; education for owners, managers, maintenance staff and renovators on safe work practices; and establishment of a case management protocol for EBL children by the state department. Dave Dempsey, MI Environment Council: 517-487-9539; davemec@voyager.net

Improvements Needed

 New Jersey's Council on Affordable Housing documents the history of the effects of the state's 1985 Fair Housing Act, including a section on the communities' ability to collect development fees.  The report notes that of 566 municipalities, 219 participate in the COAH process, and 67 are providing alternate low-cost housing. A more critical report, prepared in 1996 by scholars and activists who gathered at Seton Hall University, calls for improvement in targeting extremely low-income residents, as well as promoting racial integration and ensuring suburban compliance with the law. Housing New Jersey, Inc., 908-545-6166; COAH, 609-292-3000.

Copyright 1998

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