Lesson 14 - Housing

Question 1

Housing NYC 1800s

Answer 1

The second half of the 1800’s was the time of the Public Health Movement. In 1855, the first model tenement was built in New York City. In 1879, the first dumbbell tenement was built. This form of housing was built throughout New York City but often had poor lighting, little air, and little space

New York City passed the Tenement House Act of 1867. This ordinance required new tenement buildings to provide a narrow air shaft between adjacent structures, windows that open into the shaft, two toilets on each floor, and a one square yard window in each room. This represented the first major housing code in the United States.

In 1890, Jacob Riis published How the Other Half Lives, which highlighted the plight of the poor in New York.

Question 2

Tenement House Law of 1901

Answer 2

New York State passed the Tenement House Law of 1901, which outlawed dumbbell tenements. The new housing code was vigorously enforced by the City. The City required inspection and permits for construction and alterations. It also required wide light and air areas between buildings and toilets and running water in each apartment unit.

Question 3

Neighborhood Unit Concept

Answer 3

Clarence Perry in 1920 defined the Neighborhood Unit Concept as part of the New York Regional Plan. The Neighborhood Unit Concept defines a neighborhood based on a five minute walking radius. At the center is a school. Each neighborhood is approximately 160 acres.

Question 4

Public Works Administration (PWA)

Answer 4

The Great Depression was combated through the Public Works Administration (PWA), created in 1934. The PWA provided 85 percent of the cost of public housing projects. This represented the first federally supported public housing program.

Question 5

National Housing Act of 1934

Answer 5

In 1934, the National Housing Act was passed by Congress. It established the Federal Housing Administration with the purpose of insuring home mortgages.

Question 6

Resettlement Administration

Answer 6

In 1935, the Resettlement Administration used New Deal funds to develop new towns. Greendale, WI, Greenhills, OH, and Greenbelt, MD, are all in existence today. In addition, 99 other communities were planned.

Question 7

U.S. Housing Act of 1937

Answer 7

In 1937, the U.S. Housing Act provided $500 million in home loans for the development of low-cost housing. This Act tied slum clearance to public housing.

Question 8

Servicemen’s Readjustment Act of 1944 (GI BILL)

Answer 8

In 1944, the Servicemen’s Readjustment Act, commonly known as the GI Bill, guaranteed home loans to veterans. The result was the rapid development of suburbs.

Question 9

The Housing Act of 1949

Answer 9

The Housing Act of 1949 was the first comprehensive housing legislation passed. The Act called for the construction of 800,000 new housing units and emphasized slum clearance.

Question 10

The Housing Act of 1954

Answer 10

The Housing Act of 1954 called for slum prevention and urban renewal. Additionally, the Act provided funding for planning for cities under 25,000 population. The 701 funds were later expanded to allow for statewide, interstate, and regional planning.

Question 11

The Housing Act of 1959

Answer 11

The Housing Act of 1959 made federal matching funds available for comprehensive planning at the metropolitan, regional, state, and interstate levels.

Question 12

The Housing Act of 1961

Answer 12

The Housing Act of 1961 provided interest subsidies to nonprofit organizations, limited-dividend corporations, cooperatives, and public agencies for the construction of public housing projects for low and moderate income families to rent.

Question 13

Housing and Urban Development Act of 1965

Answer 13

In 1965, the U.S. Department of Housing and Urban Development (HUD) was formed through the Housing and Urban Development Act of 1965. The act also put into place rent subsidies for the poor, home loans at reduced interest rates, and subsidies for public housing projects.

Question 14

Demonstration Cities and Metropolitan Development Act of 1966

Answer 14

In 1966, the Demonstration Cities and Metropolitan Development Act was the launch of the model cities program. The Act provided financial incentives for coordinated metro area planning for open spaces, water supply, sewage disposal, and mass transit. It also established a loan guarantee program to encourage the development of “new communities.” The Civil Rights Act of 1968 made racial discrimination in the sale or rental of housing illegal.

Question 15

Housing and Urban Development Act of 1968

Answer 15

The Housing and Urban Development Act of 1968 provided for the construction of six million subsidized housing units. The Act also authorized monthly subsidies for private houses for low income families.

Question 16

Miami Valley Regional Planning Commission

Answer 16

In 1970, the Miami Valley Regional Planning Commission in Ohio adopted a housing plan that called for low and moderate income housing to be allocated on a fair share basis.

Question 17

Pruitt-Igoe Project

Answer 17

In 1972, the Pruitt-Igoe Project was demolished in Saint Louis. The demolition of this public housing project marked a shift away from high-rise concentrated public housing.

Question 18

Housing and Community Development Act of 1974

Answer 18

In 1974, the Community Development Block Grant Program (CDBG) was created under the Housing and Community Development Act. This grant program provides great flexibility for communities to use these federal funds for the improvement of blighted areas. The CDBG program consolidated six categorical urban programs into one. Additionally, the Act created the Section 8 program that provides rent subsidies for low-income housing.

Question 19

National Manufactured Housing Construction and Safety Act of 1974

Answer 19

The National Manufactured Housing Construction and Safety Act of 1974 regulated manufactured housing units and prohibited municipalities from regulating manufactured homes through the building code. The homes could be regulated in terms of location, size, and appearance. This act applied to all manufactured homes built in 1976 or later.

Question 20

Amendments to the 1974 Housing and Community Development Act

Answer 20

The Urban Development Action Grant Program (UDAG) was authorized under the 1977 amendments to the 1974 Housing and Community Development Act. The UDAG program promoted public-private partnerships for redevelopment of urban areas. It also required intergovernmental cooperation in the placement of projects. Finally, it cut funding for the Section 701 comprehensive planning program.

Question 21

National Affordable Housing Act of 1990

Answer 21

The National Affordable Housing Act of 1990 created the HOME program, which provides funds for housing rehabilitation.

Question 22

HOPE VI (1992)

Answer 22

In 1992, HOPE VI was passed by Congress. The HOPE VI grant program provided funds for the redevelopment of severely distressed public housing. It also allowed for the demolition of public housing as well as the construction of new public housing. The result has been a deconcentration of public housing.

Question 23

Consolidated Plan

Answer 23

In order for a community to be eligible to receive the funds for housing programs, they are required to prepare a Consolidated Plan. Beginning in 1995, the HUD required local communities to prepare a Consolidated Plan in order to receive funding from a number of HUD programs. The Consolidated Plan is a collaborative process whereby a community establishes a unified vision for community development actions. It is a means to analyze the entire community and explore the linkages to the larger region. It builds on local assets and coordinates a response to the needs of the community. It integrates economic, physical, and human development in a comprehensive and coordinated fashion so that individuals, families, neighborhoods, and communities can work together and thrive.

The Consolidated Plan is both a process and a document. It is a process through which a community identifies its housing, homeless and community development needs and establishes multi-year goals, priorities and strategies and an annual action plan for addressing those needs. The Consolidated Plan is also a public document that details a community’s community development and housing profile, needs assessment and barriers to meeting needs, an inventory of local institutions and resources, long-term strategic plan, annual action plan, and program performance reports.

Question 24

Consolidated planning process

Answer 24

The consolidated planning process replaces the planning and application requirements for the following:
Community Development Block Grant (CDBG)
HOME Investment Partnership Program (HOME)
Emergency Shelter Grant (ESG)
Housing Opportunities for Persons with AIDS (HOPWA)

Question 25

Sweat equity

Answer 25

Sweat equity is the interest or increased value in a property earned from labor put towards the restoration of a property. Habitat for Humanity is an example of a sweat equity program, helping families become homeowners by contributing hours of labor towards the construction of a home.

Question 26

Urban homesteading

Answer 26

Urban homesteading has been used by a number of cities to encourage residents to occupy and renovate vacant properties, such as Detroit. HUD allows for federally owned properties to be sold to homesteaders.

Question 27

Workforce housing

Answer 27

Workforce housing is a term that is increasingly popular among planners, government administrators, and housing activists. It is also gaining cachet with home builders, developers, and lenders. Workforce housing always refers to affordable housing. It ensures that teachers, nurses, police officers, and others can afford housing in the community. The term has much less social stigma than affordable housing.

Question 28

Community development

Answer 28

Community development is a broad functional topic that seeks to engage the community in solving problems to promote economic, social, environmental health. Community development is often thought about as being associated with the social aspects of the community’s well-being.

Question 29

Aging

Answer 29

The Aging of America is a critical issue facing cities across the United States. By 2030, people over the age of 65 are expected to represent 20 percent of the US population.

According to Deborah Howe, Baby Boomers “will swell the ranks of those aged 65-plus from 34.8 million in 2000 to a projected 70.3 million in 2030, ultimately representing 20 percent of the U.S. population.”

America is aging — rapidly. Older adults — 65 and over — represent 13 percent of the population today. By 2030, one in every five people living in the US will be over the age of 65. This aging of America is fueled by 72 million baby boomers aging through the life cycle in combination with a profound increase in longevity. Average life expectancy doubled from the mid-30s in the 19th century to age 78 today. Currently there are more than 70,000 centenarians in the United States, roughly four times the number from just 10 years ago. And according to the U.S. Census, that number will likely exceed 1 million by 2050.

Question 30

Community Development Banks

Answer 30

Community Development Banks are those that operate with a focus on economic development in low to moderate income areas. These banks are certified by the US Department of Treasury. In addition, banks can seek the alternative designation by the National Community Investment Fund for banks that locate branches and provide loans in economically distressed areas.

Question 31

Colonias

Answer 31

Colonias are unincorporated subdivisions with little or no infrastructure that are sold to low-income individuals. Colonias are located in Arizona, California, New Mexico, and Texas and their residents are predominantly Hispanic. Colonias have grown as a result of a limited supply of adequate, affordable housing near the Mexico border. For example, in Texas there are more than 400,000 people living in more than 2,200 colonias.

Question 32

Child care

Answer 32

Child care is a critical part of a livable community. Many communities are challenged with a lack of quality, affordable child care and it is an issue that planners have a responsibility to address. The American Planning Association has a briefing paper on the importance of ensuring adequate child care. The City of Milpitas California has a Child Care Master Plan.

State spending on preschool increased from $2.4 billion to $4.2 billion nationwide between 2005 and 2007 (Wat 2007). Although federal and state spending on child care subsidies has more than tripled in the last decade, most communities still face problems with inadequate supply of quality, affordable child care (Warner 2007).

Question 33

Homelessness

Answer 33

Homelessness has risen over the last twenty years as a result of a growing shortage of rental housing and an increase in poverty. The National Coalition for the Homeless provides a summary of issues driving the increase in homelessness.

Two trends are largely responsible for the rise in homelessness over the past 20-25 years: a growing shortage of affordable rental housing and a simultaneous increase in poverty. Below is an overview of current poverty and housing statistics, as well as additional factors contributing to homelessness. A list of resources for further study is also provided.

FORECLOSURE -
The National Coalition for the Homeless report found that there was a 32% jump in the number of foreclosures between April 2008 and April 2009. Since the start of the recession, six million jobs have been lost. In May 2009, the official unemployment rate was 9.4%.

POVERTY -
In 2007, 12.5% of the U.S. population, or 37,300,00 million people, lived in poverty. The official poverty rate in 2007 was not statistically different than 2006 (U.S. Bureau of the Census, 2007). Children are overrepresented, composing 35.7% of people in poverty while only being 24.8% of the total population. Two factors help account for increasing poverty: eroding employment opportunities for large segments of the workforce and the declining value and availability of public assistance.

ERODING WORK OPPORTUNITIES -
The real value of the minimum wage in 2004 was 26% less than in 1979. Factors contributing to wage declines include a steep drop in the number and bargaining power of unionized workers; erosion in the value of the minimum wage; a decline in manufacturing jobs and the corresponding expansion of lower-paying service-sector employment; globalization; and increased nonstandard work, such as temporary and part-time employment. To combat this, Congress has planned a gradual minimum wage increase, resulting in minimum wage raised to $9.50 by 2011.

U.S. Conference of Mayors report stated that in every state more than the minimum-wage is required to afford a one or two-bedroom apartment at 30% of his or her income, which is the federal definition of affordable housing. Unfortunately, for 12 million Americans, more then 50% of their salaries go towards renting or housing costs.

In 2007, a survey performed by the U.S. Conference of Mayors found that 17.4% of homeless adults in families were employed while 13% of homeless single adults or unaccompanied youth were employed. In the 2008 report, eleven out of nineteen cities reported an increased in employed homeless people.

DECLINE IN PUBLIC ASSISTANCE -
Until its repeal in August 1996, the largest cash assistance program for poor families with children was the Aid to Families with Dependent Children (AFDC) program. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (the federal welfare reform law) repealed the AFDC program and replaced it with a block grant program called Temporary Assistance to Needy Families (TANF). In 2005, TANF helped a third of the children that AFDC helped reach above the 50% poverty line. Unfortunately, TANF has not been able to kept up with inflation. In 2006-2008, TANF case load has continued to decline while food stamp caseloads have increased

HOUSING -
According to HUD, in recent years the shortages of affordable housing are most severe for units affordable to renters with extremely low incomes. Federal support for low-income housing has fallen 49% from 1980 to 2003 (National Low Income Housing Coalition, 2005). About 200,000 rental housing units are destroyed annually. Renting is one of the most viable options for low income people (Joint Center for Housing Studies).

Since 2000, the incomes of low-income households has declined as rents continue to rise (National Low Income Housing Coalition, 2005). In 2009, a worker would need to earn $14.97 to afford a one-bedroom apartment and $17.84 to afford a two-bedroom apartment. There has been an increase of 41% from 2000 to 2009 in fair market rent for a two-bedroom unit, according to HUD (National Low Income Housing Coalition, 2009).

OTHER FACTORS -
Lack of Affordable Health Care, Domestic Violence, Mental Illness, Addiction Disorders