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U.S. Federal Affordable Housing Policies Housing Affordable Federal U.S H.J.Trip U.S. Federal affordable housing policies Based on ideology or effciency? U.S. Federal affordable housing policies U.S. Federal affordable About the author Hans J. Trip is a master student at the Delft University of Technology. He is interested in politics and the built environment. After having lived and studied in the United States and Australia Hans got more internationally orientated. Hans enjoys reading into complicated policy issues and contradictions. He is determined to commit himself to provide a better world for society. Hans J. Trip Colofon Title US federal affordable housing policies Subtitle: Based on ideology or effciency? University: Delft University of Technology Faculty: Architecture Mastertrack: Management in the Built Environment Supervisors: G.A. van Bortel, M.G. Elsinga Pages: 173 Date : July-6-2017 Author: Hans J. Trip Email: Student number: 4145801 Table of content Preface ......................................................................5 6. Conclusion ................................................................ 123 Terminology .............................................................6 6.1 Conclusion .....................................................124 Readers guide ..........................................................7 6.2 Recommendations ........................................130 Summary ........................................................................... 8 7. References ................................................................ 136 Abstract ....................................................................8 References ............................................................136 Summary...................................................................9 Appendix 1 ................................................................... 144 1. Introduction ................................................................ 21 APP 1 Input model public housing ....................144 1.1 Research framework ........................................22 Appendix 2 ................................................................... 154 1.2 Theoretical framework ....................................26 Graph public housing portfolio ..........................154 1.3 Conceptual model ...........................................30 Appendix 3 ................................................................... 156 2. Need for housing ....................................................... 33 Result cost effciency research PH ......................156 2.1 Why housing matters ......................................34 Result cost effciency research HCV ...................158 2.2 Housing demand .............................................36 Appendix 4 ................................................................... 160 2.3 Conclusion .......................................................41 Explanatory notes ................................................160 3. Historical analysis ....................................................... 42 Appendix 5 ................................................................... 162 3.1 Historical analysis federal policies..................43 Valuation method ................................................162 3.2 Pruitt-Igoe ........................................................59 Appendix 6 ................................................................... 164 3.3 Conducted cost effciency studies .................63 Interview protocol 2: ...........................................164 3.4 Proposal to change the system ......................68 Interview protocol 3: ...........................................165 3.5 Conclusion .......................................................72 Appendix 7 ................................................................... 166 4. Policy analysis ............................................................. 73 Summary Interview 1. ..........................................166 4.1 US housing system ..........................................74 Summary Interview 2. ..........................................167 4.2 Tenant-based ...................................................78 Summary Interview 3. ..........................................168 4.3 Project-based public housing .........................82 Appendix 9 ................................................................... 172 4.4 Project-based Section 8 ..................................86 Cost effciency study new program ....................172 4.5 Tax credits ........................................................91 4.6 Transformation programs................................98 4.7 Conclusion .....................................................105 5. New York City ........................................................... 106 5.1 Affordable housing in NYC ...........................107 5.2 NYCHA ...........................................................110 5.3 NYCHA housing portfolio .............................113 5.4 NYCHA cost effciency research ...................114 5.5 Conclusion .....................................................122 “What you do makes a difference and you have to decide what kind of difference you want to make” - Jane Goodall 4 Preface Dear reader, With great pleasure I am presenting to you my fnal master thesis, which is written at the Delft University of Technology. This thesis will describe the cost effciency and ideology of the federal affordable housing policies in the United States of America. It is often that I am asked: how did a Dutch student end up researching and analyzing the United States affordable housing system. This idea started in the summer of 2016 when I was in charge of company relations at the MBE Studytrip. We went to three different Anglo-Saxon countries to study the housing affordability issues and the national affordable housing policies in England, Canada and the United States. Especially in Canada and the United States we have met some great for proft and non proft organizations that are developing or operating affordable housing units. At the same time we saw a lot of people living on the streets in San Francisco, these people really got my attention and interested me to look further into the affordable housing system in the United States. This trip is almost twelve months ago and this thesis is the result of almost a years work. Overall I have always been interested in politics and society, it was therefore no punishment to analyze the American affordable housing system and to contribute to a solution of the enormous affordable housing issue in the United States. Now that I have answered the question of how a Dutch student ends up conducting such research, it is important to emphasize that I could not have done it on my own. I want to give special thanks to my supervisors Gerard van Bortel and Marja Elsinga for all their great support, critical feedback and guidance. The American housing system is not the expertise of my two mentors, however they have read into the subject, let me continue with this subject and have supported me along the way. Another thanks to HUDuser and the NYCHA foil department, both institutions have helped me a lot by providing the information needed for this research and by answering questions when I was stuck. Besides the departments I would like to thank the people who were kind enough to participate in this research through interviews, these interviews were essential for this research and gave me the chance to refect on this research and to improve it. All together I can say that I have put a report in front of you that I am genuinely proud of. I hope you enjoy reading this graduation thesis as much as I have enjoyed writing it. Hans Trip, July, 2017 5 Terminology Affordable housing units HCV (housing choice vouchers (Section 8 TBRA)) PBRA (Project-based rental assistance.) Rental housing units that are affordable for the Housing vouchers is a federal tenant-based PBRA is federal assistance that is assigned to certain intended income groups according to HUD program that was previously known as Section 8. projects/buildings instead of to tenants. regulations. HOPE VI (home ownership for peoples (P)HA ((public) housing authorities) AMI (area median income) everywhere) The PHA’s are public organizations that provide Acceptable rents for households are often calculated The HOPE VI program is established to diminish the affordable homes to those in need. The PHA’s get as a percentage of the AMI. AMI is dependent on maintenance backlog and to improve the quality of their funding and policies from HUD and local the area and the household size. public housing units. It demolishes obsolete public governmental institutions. housing and replaces it with new mixed income low CNI (choice neighborhood initiative) rise housing. Public housing The choice neighborhood initiative is the successor Public housing is the oldest US affordable housing of HOPE VI. It renovates or newly builds public HUD (United States Department of Housing and program. Public housing is owned and managed by housing units. The main difference with HOPE VI is Urban Development.) housing authorities. that CNI uses a one for one replacement rule. HUD is responsible for most affordable housing programs PUM (per unit per month) Cost effciency PUM is often used in the cost effciency analysis and The term cost effciency is one of the most important IRS (Internal Revenue service) calculations. It means that the amount is the cost terms throughout this report. With cost effciency IRS is a bureau under
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