STRONG FOUNDATIONS: HOUSING SECURITY SOLUTIONS FRAMEWORK JANUARY 2021 ABOUT THE ASPEN INSTITUTE ACKNOWLEDGEMENTS FINANCIAL SECURITY PROGRAM EPIC would like to thank Katherine Lucas McKay, Dyvonne The Aspen Institute Financial Security Program’s (Aspen Body, and Steve Holt of HoltSolutions for authoring this FSP) mission is to illuminate and solve the most critical report, and FSP’s Genevieve Melford for her leadership financial challenges facing American households and to make and contributions. Additional thanks to our Aspen financial security for all a top national priority. We aim for FSP colleagues: Karen Biddle Andres, Sheida Elmi, nothing less than a more inclusive economy with reduced Sohrab Kohli, Meghan Poljak, Ida Rademacher, Tim wealth inequality and shared prosperity. We believe that Shaw, Joanna Smith-Ramani, Emy Urban, and Elizabeth transformational change requires innovation, trust, leadership, Vivirito, for their assistance, comments, and insights. and entrepreneurial thinking. FSP galvanizes a diverse set We are grateful to our Advisory Group members for of leaders across the public, private, and nonprofit sectors their guidance: Luke Apicella, George Carter III, Robert to solve the most critical financial challenges. We do this Dietz, Stacey Epperson, Ingrid Gould Ellen, Mike Loftin, through deep, deliberate private and public dialogues and by Jeff Lubell, Alanna McCargo, Jud Murchie, Danushka elevating evidence-based research and solutions that will Nanayakkara-Skillington, Milton Pratt Jr., Vincent Reina, strengthen the financial health and security of financially Sherry Riva, Shamus Roller, Jenny Schuetz, Kristin Siglin, vulnerable Americans. To learn more, visit AspenFSP.org or Celia Smoot, Cindy Waldron, and Barry Zigas. follow @AspenFSP on Twitter. To stay up to date with our work, join our mailing list at http://bit.ly/fspnewsletter. This Solutions Framework would not be possible without the generous contributions of our advisors, the nearly ABOUT EPIC 100 additional experts who participated in an interview or Aspen FSP’s Expanding Prosperity Impact Collaborative expert convening over the past two years (See Appendix 2: (EPIC) is a first-of-its-kind initiative in the field of consumer Advisory Group, Interviewees, and Convening Participants), or finance, designed to harness the knowledge of a wide responded to one of two expert surveys (See Appendix 1: cross-section of experts working in applied, academic, Methodology). We are also extremely grateful to the 499 government, and industry settings toward the goal of individuals who participated in a survey or focus group on illuminating and solving critical dimensions of household their experiences of housing insecurity before and during financial insecurity. EPIC deeply explores one issue at a time, the COVID-19 pandemic. Finally, EPIC thanks our funders, focusing on challenges that are critical to Americans’ financial MetLife Foundation, The Prudential Foundation, and the security but are under-recognized or poorly understood. W.K. Kellogg Foundation, for their generous support. EPIC uses an interdisciplinary approach designed to uncover new, unconventional ways of understanding the issue and The findings, analysis, and conclusions expressed in this build consensus among decisionmakers and influencers report—as well as any errors—are EPIC’s alone and do representing a wide variety of sectors and industries. not necessarily represent the views of EPIC’s Advisory The ultimate goal of EPIC is to generate deeply informed Group members, their employers, our funders, or other analyses and build diverse expert networks that help participants in our research process. stakeholders (1) understand and prioritize critical financial security issues, and (2) forge consensus and broad support Voice Design Collective LLC, Arlington, VA to implement solutions that can improve the financial lives of millions of people. DESIGN: STRONG FOUNDATIONS: HOUSING SECURITY SOLUTIONS FRAMEWORK TABLE OF CONTENTS INTRODUCTION ........................................................................ 2 SECTION 1. SOLVING FOR HOUSING SECURITY AMID THE COVID-19 PANDEMIC ....................................... 6 SECTION 2. DESIGNING EFFECTIVE, EQUITABLE, AND SUSTAINABLE SOLUTIONS TO HOUSING INSECURITY ....................... 13 Special Section: Fair Housing Law is Broken But It Can Be Fixed .................................................................. 18 SECTION 3. SOLUTIONS FOR FEDERAL POLICYMAKERS ................................................ 22 Special Section: Cash Transfer Programs and Housing ............................................................ 27 Special Section: Solving for Housing Security in Rural America ........................................................................ 31 Special Section: Solving for Housing Security in Indigenous Communities ................................................... 36 SECTION 4. SOLUTIONS FOR NATIONAL FINANCIAL INSTITUTIONS ............................................... 38 Special Section: Zoning for Accessory Dwelling Units ....................................................... 47 SECTION 5. SOLUTIONS FOR Data Tables & Figures: STATE POLICYMAKERS ..................................................... 48 Survey Results on Housing Stability .......................5 SECTION 6. SOLUTIONS FOR COVID-19: State by State Evictions Map ...............9 LOCAL STAKEHOLDERS ..................................................... 54 The Spectrum of Housing Across the US ............. 11 Special Section: Increasing Housing Security Homeowner vs. Renter Income ........................... 16 Requires Difficult Trade-Offs ................................................ 58 Table 1: High-Priority Housing Solutions Special Section: Solving for Housing Security for Federal Policymakers ................................... 24 in Immigrant Communities .................................................... 61 Table 2: High-Priority Housing Solutions for National Financial Institutions ....................... 41 SECTION 7. CONCLUSION & CALL TO ACTION ......... 70 Table 3: High-Priority Housing Solutions for State Policymakers ........................................ 50 Appendix 1: Methodology ..................................................... 79 Table 4: High-Priority Housing Solutions for Local Policymakers ........................................ 57 Appendix 2: Advisory Group, Interviewees, Table 5: High-Priority Housing Solutions and Convening Participants ................................................... 80 for Local Financial Institutions ........................... 65 Appendix 3: Glossary ............................................................ 82 Table 6: High-Priority Housing Solutions Citations ................................................................................... 86 for Landlords and Property Managers ................. 70 INTRODUCTION HOUSING SECURITY SOLUTIONS FRAMEWORK Introduction EPIC’s January 2020 research primer Strong To set our country on an inclusive path to growth, Foundations: Financial Security Starts with resilience and well-being, housing security must Affordable, Stable Housing outlines how housing is be at the core of economic and pandemic recovery the foundation of both household financial security efforts. Housing recovery policies must first address and the national economy and diagnoses the roots acute needs, keeping people in their homes during the of why that foundation is cracked. Even prior to the public health crisis. Although a patchwork of policy tidal wave of financial distress brought on by the responses implemented nationwide, statewide, and COVID-19 pandemic in 2020, 1 in 3 US households locally have been somewhat effective, they have were struggling with housing costs that jeopardize not provided comprehensive protections nor been their financial security. Now the global pandemic— funded at a level commensurate with the scale of and inadequate governmental responses to the public the problem. More federal intervention is critical to health threat—have created a historic labor crisis containing the pandemic. and left millions unable to pay their rent or mortgage. Overcrowding and homelessness are both rising in Addressing people’s acute and immediate housing response—and contributing to infection rates.1 By security needs is only the first step; policymakers and the end of 2020, renters will owe their landlords $7.2 other housing leaders also must ensure that people billion in back rent;2 many corporate landlords are will be able to continue to access housing that meets losing patience and filing record numbers of evictions.3 their basic needs in the future, by systematically EVERYONE BENEFITS FROM STABLE, AFFORDABLE HOUSING EDUCATION HEALTHCARE • Improve academic • Fewer chronic illnesses performance in community • Improve attendance • Reduce need for • Reduce need for school- unfunded acute care based social services • Meet Affordable Care Act community health and charity care requirements GOVERNMENT BUSINESS FAMILIES • Serve the public interest • Able to recruit and • Able to pay other bills • Reduce reliance on retain talent on time and weather food and utilities • Improve employee financial shocks assistance programs financial wellness • Able to save and invest • Stronger tax base • Stronger consumer for the future spending environment • Children can thrive 2 Aspen Institute Financial Security Program HOUSING SECURITY SOLUTIONS FRAMEWORK INTRODUCTION supporting renters and homeowners.