How Chicago's Public Housing Transformation Can Inform Federal

brIe F# 0I Long-Term Outcomes jan. 2013 for CHa residents

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How Chicago’s Public Housing Transformation Can Inform Federal Policy Susan J. Popkin

Chicago has long dominated the national discourse about urban poverty in general and public housing in particu - lar, and the policy changes that affect Chicago tend to have repercussions for national policy. 1 The Chicago Housing Authority’s 1999 Plan for Transformation sought to undo the mistakes of decades of federal policy that had left Chicago and too many other cities blighted by large, decaying public housing properties (Turner, Popkin, and Rawlings 2008). Although other cities like Atlanta and San Francisco followed suit, the CHA’s Plan was the first— and largest —citywide public housing transformation initiative, representing an enormous investment of public and private resources (Popkin 2010).

he CHA’s efforts have received much approach and about what else it will take to federal government started its War on Drugs. local and national attention from fed - help address the problems of deep poverty In an effort to improve public housing—and eral and local policymakers, housing that keep too many public housing families its own image—the U.S. Department of authority administrators, advocates, from moving toward self-sufﬁciency. Housing and Urban Development (HUD) Tresearchers, 2 and the media. In many respects, For decades, high-rise public housing took control of the CHA in 1995 . The HUD the CHA’s story shows the potential of public developments like Cabrini-Green and the team, which included the assistant secretary housing transformation: attractive new devel - Robert Taylor Homes dominated Chicago’s and other senior staff, cleaned up the agency’s opments, better quality of life for most resi - landscape and became shorthand for the fail - books, subcontracted management of the dents, and a better-functioning housing ures of social welfare policy. Finding solu - Section 8 voucher program, and moved the authority. However, the CHA’s story also tions for those failures seemed more urgent as city’s ﬁrst large-scale HOPE VI redevelop - raises cautions about the limitations and the the crack epidemic took hold in Chicago and ment efforts forward. HUD handed the potential risks of this bold—and costly— other cities, gang violence escalated, and the CHA to city control in 1999 after approving How Chicago’s Public Housing Transformation Can Inform Federal Policy

the Mayor Daley–backed Plan for Transfor - Key Lessons for national Policy services, or access to jobs. A more targeted mation, which called for demolishing and The CHA’s transformation efforts offer lessons effort to provide mobility counseling— replacing all of the CHA’s 11 high-rise family about both the benefits and limitations of this perhaps focusing on families with children developments, as well as substantially reha - bold approach to reforming public housing. or adults who are “work ready”—might bilitating 10 ,000 units in senior buildings help more former public housing residents and low-rise properties. • Residents moving out of distressed public use their vouchers to move to even better The Plan unfolded over more than a housing reap benefits, even if most do not neighborhoods (Buron et al. 2013 ). decade, cost more than $ 1 billion, created new return to the new, mixed-income housing. models for partnerships with private develop - Through the Choice Neighborhood • Using housing as a platform for intensive ers, and markedly changed the landscape in Initiative, federal policy now prioritizes wraparound services helps adults in many Chicago neighborhoods. As a result of ensuring that former residents who have vulnerable families improve their lives. the transformation, the CHA’s public housing to relocate have the right to return to the Services that include intensive case man - portfolio is significantly smaller, and the size newly redeveloped property. This change age ment, access to clinical mental health of its Housing Choice Vouchers (HCV) acknowledges that residents of distressed services, and a transitional jobs program program has more than doubled to nearly properties targeted for redevelopment often that provides on-the-job training 38 ,000 households. Beyond the visible effects, move involuntarily. But, after a decade, have significant benefits for adult resi - the transformation wrought fundamental less than 20 percent of the original resi - dents, including improved physical changes at the CHA itself, helping it leave dents have actually returned to the CHA’s health, reduced depression and anxiety, behind a history of mismanagement and neg - new developments; most now either use a and increased employment (Popkin lect and evolve into a well-managed, very voucherto rent private-market units or live and Davies 2013 ). Although the cost of large housing authority. The Plan has been in rehabilitated traditional public housing providing comprehensive services is not and remains controversial; as the CHA pre - developments and are satisfied with their insignificant (about $ 2,900 per household pares to release its Plan 2.0, the agency is spar - new housing situation. Regardless of where annually), 4 the benefits could reduce costs ring with advocates over demolition and revi - they live, most of these residents report across a range of dimensions. For example, talization plans for three of its remaining they are living in better housing in safer improving participants’ mental health developments. 3 neighborhoods—an important outcome and functioning could reduce property For more than a decade, the Urban Insti - that policymakers should view as an management problems—especially the tute has been following the experiences of indicator of success (Buron, Hayes, and kind that lead to evictions—and, thus, CHA families as they were relocated and their Hailey 2013 ). costs for housing authorities. If residents buildings were demolished and replaced with earn more, then housing authorities can new, mixed-income housing. The lessons • Relocation is an opportunity to promote charge more rent. And if services increase from this research have important implica - mobility. Like most housing authorities, family stability, health care, child welfare, tions for cities across the nation grappling the CHA faced a steep learning curve in and criminal justice costs should decrease. with how to improve their most troubled developing relocation services for its resi - communities and provide decent, affordable dents. In the early stages of its transforma - • Residents’ biggest challenges require housing for vulnerable families in an era of tion plan, those in charge viewed reloca - ongoing services. The CHA’s robust resi - shrinking resources. tion logistically—that is, the buildings dent services department can be a model needed to be emptied for the redevelop - for other housing authorities. But this ment effort to proceed. As a result, reloca - achievement is now threatened by steep tion was rushed and out of sync with federal, state, and local budget cuts. It is school schedules. The CHA gradually especially important to find ways to main - added services like mobility counseling to tain these services in the face of evidence help residents make more informed choices of the potential benefits—and of the many about neighborhoods that might offer problems that remain. CHA families, like opportunities like better schools, public public housing residents nationwide, have

2. How Chicago’s Public Housing Transformation Can Inform Federal Policy

extremely high rates of debilitating chronic 2008 ). While vouchers offer recipients ing agency—these victories are fragile. Like illness; even those who are employed have greater flexibility and choice, administering housing authorities nationwide, the CHA is very low incomes and cycle in and out of them requires housing authorities to deal now faced with maintaining its new and the workforce. The stunningly high mor - with a large number of private landlords, renovated properties, managing its very large tality rates are sad evidence of the toll that ensuring that the units meet federal hous - and growing voucher program, and most chronic stress and disease has taken on ing quality standards and negotiating rents. important, continuing its major investment these residents (Popkin and Davies 2013 ). This challenge is made even more difficult in resident services in the face of dramatically by continuing reductions in federal fund - reduced resources. Improving public housing • Improving the life chances for youth ing, especially to the administrative fees is still a federal priority, as evidenced by the growing up in public and assisted housing meant to compensate housing authorities high-profile Choice Neighborhoods Initia - requires new, innovative solutions. for the additional costs. The growing size tive, which builds on HOPE VI and provides Although CHA families’ quality of life of the HCV program, coupled with the grants to cities for comprehensive neighbor - has improved, the youth are struggling: federal cutbacks, creates a risky situation hood revitalization efforts. Chicago and they have high rates of risky behavior, for voucher holders; some are ending up other cities continue to work to transform delinquency, and disconnection from both in substandard units with significant hous - their remaining distressed public and assisted work and school. Without intensive— ing hazards and are experiencing housing housing properties. But without sustained and effective—intervention, these young instability. Further, because voucher hold - funding and attention, the CHA and its people are on track to end up as badly ers are scattered widely across communi - counterparts risk sliding back into the kinds off—or even worse off—than their ties, providing effective supportive services of disinvestment and neglect that created parents (Hailey and Gallagher 2013 ). will require innovative strategies like distressed housing and neighborhoods in the To address the crisis in its youth, the needs-based targeting to ensure that the first place. • CHA and the Urban Institute are most at-risk households—such as those developing an innovative two-generation with teens or family members with disabil - intensive case management model. The ities—are connected to community services. Housing Opportunities and Services Together Demonstration is testing the • HUD needs to address the chronic feasibility of providing intensive, wrap - problem of utility costs. A large body of around services to the most vulnerable research has documented that public hous - public housing families in five cities; ing residents who relocate with vouchers the goal is to develop a “whole family” struggle to pay their utilities. CHA approach that will improve outcomes residents did not pay their own utilities in for both adults and children. public housing and are not used to having to budget for seasonal spikes in costs. • Effectively administering a very large Costs for electricity and gas have increased Housing Choice Vouchers program creates rapidly over the past decade, and utility new challenges. The growth of CHA’s costs can be high in the older private-mar - HCV program relative to its shrinking ket units that voucher holders can afford. public housing stock is part of a national With their very low incomes, these resi - trend and the result of deliberate federal dents are left choosing between affording policies that required the “vouchering out” food for their families and paying their of properties where the costs of rehabilita - utility bills. tion exceeded the costs of demolition (Buron et al. 2013 ). Nationally, the voucher While the CHA has had notable success in program is now twice the size of the public transforming its distressed public housing— housing program (Turner and Kingsley and transforming itself into a well-function -

3. notes This brief summarizes ﬁndings from the Long-Term 3. For recent advocacy debates about CHA’s Altgeld Popkin, Susan J., and Elizabeth Davies. 2013 . Outcomes for CHA Residents study, which builds Gardens, Lathrop Homes, and Cabrini Row “Improving the Lives of Public Housing’s Most on two major Urban Institute research initiatives Houses, see Cheryl Corley, “A Vision for Chicago Vulnerable Families.” Long-Term Outcomes that examined the effects of the Chicago Housing Public Housing, Stymied and Contested,” NPR, for CHA Residents Brief 4. Washington, DC: Authority’s Plan for Transformation on resident December 15 , 2012 ; Derrick Blakely, “CHA The Urban Institute. well-being: the Chicago Panel Study and the Targeting Nearly 650 Units at Altgeld Gardens for Popkin, Susan J., Diane K Levy, Larry Buron, Megan Chicago Family Case Management Demonstration Demolition,” CBS Chicago, October 16 , 2012 ; and Gallagher, and David J Price. 2010 . “The CHA’s Plan Evaluation. The four other briefs in this series Igor Studenkov, “Still Standing: At Last Remnants for Transformation: How Have Residents Fared?” examine long-term effects of the Plan for of Cabrini-Green, Residents Await Uncertain CHA Families and the Plan for Transformation Transformation as a whole (Popkin et al. 2013 ), Future,” Chicago Journal, September 12 , 2012 . Overview Brief. Washington, DC: The Urban Institute. the stability and quality of the homes and neighbor - 4. See Popkin et al. ( 2010 ). hoods where CHA residents moved (Buron et al. Rubinowitz, Leonard S., and James E. Rosenbaum. 2013 ), the effects of intensive services for vulnerable 2000 . Crossing the Class and Color Lines: From families (Popkin and Davies 2013 ), and the conse - references Public Housing to White Suburbs. Chicago, IL: quences of chronic violence for families and Briggs, Xavier de Souza, Susan J. Popkin, and John University of Chicago Press. children (Hailey and Gallagher 2013 ). More infor - Goering. 2010 . Moving to Opportunity: The Story Sampson, Robert J. 2011 . Great American City: mation on the Long-Term Outcomes Study, and of an American Experiment to Fight Ghetto Poverty. Chicago and the Enduring Neighborhood Effect on the Urban Institute’s decade of research into New York: Oxford University Press. Chicago, IL: University of Chicago Press. Chicago’s public housing transformation, is available Buron, Larry, Christopher Hayes, and Chantal at http://www.urban.org/housing/Transforming- Hailey. 2013 . “An Improved Living Environment, Turner, Margery Austin, and G. Thomas Kingsley. Public-Housing-in-Chicago.cfm. but…” Long-Term Outcomes for CHA Residents 2008 . Federal Programs for Addressing Low-Income Housing Needs: A Policy Primer. Washington, DC: 1. Three major examples of the Chicago focus are Brief 3. Washington, DC: The Urban Institute. The Urban Institute. William Julius Wilson’s work on the urban under - DeLuca, Stefanie, Greg J. Duncan, Micere Keels, class ( 1987 ); the Project on Human Development and Ruby Mendenhall. 2010 . “Gautreaux Mothers Turner, Margery Austin, Susan J. Popkin, and in Chicago Neighborhoods, summarized in and Their Children: An Update.” Housing Policy Lynette A. Rawlings. 2008 . Public Housing and Sampson ( 2011 ); and the large body of research Debate 20 :7–25 . the Legacy of Segregation. Washington, DC: on the Gautreaux Housing Desegregation Urban Institute Press. Program (see Rubinowitz and Rosenbaum 2000 Hailey, Chantal, and Megan Gallagher. 2013 . Vale, Lawrence J., and Erin Graves. 2010 . The and Deluca et al. 2010 ). The Gautreaux case was “Chronic Violence: Beyond the Developments.” Chicago Housing Authority’s Plan for Transformation: the model for other civil rights litigation nation - Long-Term Outcomes for CHA Residents Brief 5. What Does the Research Show So Far? Cambridge, wide, and research on Gautreaux inspired the Washington, DC: The Urban Institute. MA: Department of Urban Studies and Planning, Moving to Opportunity demonstration (Briggs, Popkin, Susan J. 2010 . “A Glass Half-Empty: Massachusetts Institute of Technology. Popkin, and Goering 2010 ). Public Housing Families in Transition.” Housing Wilson, William J. 198 7. 2. See Vale and Graves ( 2010 ) for a summary of Policy Debate 20 (1): 42 –62 . The Truly Disadvantaged: the many studies of the Plan for Transformation. The Inner City, the Underclass, and Public Policy . Chicago, IL: University of Chicago Press.

Copyright © January 2013 The views expressed are those of the authors and do not necessarily reﬂect those of the Urban Institute, its trustees, or its funders. Permission is granted for reproduction of this document, with attribution to the Urban Institute.

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