DECONCENTRATING POVERTY IN MINNEAPOLIS HOLLMAN Cv. I S N E R O S HOLLMAN v. CISNEROS Deconcentrating Poverty in Minneapolis Reports 1–8 by Edward G. Goetz Center for Urban and Regional Affairs University of Minnesota A publication of the Center for Urban and Regional Affairs (CURA), an all-University applied research and technology center at the University of Minnesota that connects faculty and stu- dents with community organizations and public institutions working on signifi cant public policy issues in Minnesota. The content of this report is the responsibility of the author and is not necessarily endorsed by CURA. ©2002 by The Regents of the University of Minnesota. This publication may be reproduced in its entirety (except photographs or other materials reprinted here with permission from other sources) in print or electronic form, for noncommercial educational and nonprofi t use only, provided that two copies of the resulting publication are sent to the CURA editor at the address below and that the following acknowledgment is included: “Reprinted with permis- sion of the University of Minnesota’s Center for Urban and Regional Affairs (CURA).” For more information regarding this copyright policy or for permission to reproduce portions of this publication, contact the Center for Urban and Regional Affairs at the address below. Publication No. CURA 02-03 (150 copies) Edited by Michael D. Greco This publication is available in alternative formats upon request. Printed with agribased inks on recycled paper, with a minimum of 20% postconsumer waste. Center for Urban and Regional Affairs (CURA) University of Minnesota 330 HHH Center 301—19th Avenue South Minneapolis, Minnesota 55455 Phone: (612) 625-1551 Fax: (612) 626-0273 E-mail: [email protected] Web site: http://www.cura.umn.edu The University of Minnesota is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation. TABLE OF CONTENTS Report No. 1: Policy Context and Previous Research on Housing Dispersal Report No. 2: Planning for North Side Redevelopment Report No. 3: Baseline Data Analysis for North Side Redevelopment Report No. 4: Changes to the Public Housing Stock in Minneapolis Report No. 5: Relocation of Residents from North Side Public Housing Report No. 6: The Experiences of Dispersed Families Report No. 7: Mobility Certifi cates Report No. 8: Replacement Housing iii ACKNOWLEDGMENTS The author would like to thank the Family Housing Fund and the Minnesota Housing Finance Agency for funding this research, and the Minneapolis Public Housing Authority for their cooperation in making data available. The conclusions contained within this report do not necessarily represent the views of these organizations. Chris Dettling, Lori Mardock, Elfric Porte, Kathy Ember, and Li Luan assisted with data collection and analysis. The Minnesota Center for Survey Research conducted the in-person interviews and imple- mented the mailed surveys. Finally, the author would like to thank the families of public housing who agreed to be interviewed for this study. v INTRODUCTION The consent decree in Hollman v. Cisneros, signed in 1995, committed the Minneapolis Public Housing Authority, the U.S. Department of Housing and Urban Development, and their co-defendants to a series of dramatic policy changes. First, four north side public housing projects and dozens of scattered-site public housing units would be reviewed for possible demolition or disposition. Second, the defendants would create up to 770 units of replacement public housing in nonimpacted areas of the city and suburbs. Third, the dis- placed residents of the demolished scattered-site and north side public housing were to be relocated with public assistance. Fourth, the 73-acre north side site was to be redeveloped. Fifth, hundreds of tenant-based housing subsidies would be made available to Minneapolis public housing residents to enable them to move out of areas of race and poverty concentra- tion. Sixth, changes in the operation of the Minneapolis Section 8 program would occur to make it easier for participants to exercise geographic choice. Finally, an affordable hous- ing clearinghouse would be created to provide low-income families a centralized source of information about housing options in the metropolitan area. The Center for Urban and Regional Affairs (CURA) at the University of Minnesota was contracted by the Family Housing Fund of Minneapolis–St. Paul and by the State of Minnesota in 1998 to conduct an evaluation of the implementation of the consent decree. This publication contains all eight reports generated by the consent decree. vii HOLLMAN v. CISNEROS Deconcentrating Poverty in Minneapolis Report No. 1: Policy Context and Previous Research on Housing Dispersal by Edward G. Goetz Center for Urban and Regional Affairs University of Minnesota A publication of the Center for Urban and Regional Affairs (CURA), an all-University applied research and technology center at the University of Minnesota that connects faculty and students with community organizations and public institutions working on significant public policy issues in Minnesota. The content of this report is the responsibility of the author and is not necessarily endorsed by CURA. © 2002 by The Regents of the University of Minnesota. This publication may be reproduced in its entirety (except photographs or other materials reprinted here with permission fro m other sources) in print or electronic form, for noncommercial educational and nonprofit use only, provided that two copies of the resulting publication are sent to the CURA editor at the address below and that the following acknowledgement is included: “Reprinted with permis- sion of the University of Minnesota’s Center for Urban and Regional Affairs (CURA).” For information regarding commercial reprints or reproduction of portions of this publica- tion, contact the CURA editor at the address below. Publication No. CURA 01-5 (100 copies) Edited by Michael D. Greco This publication is available in alternate formats upon request. Printed with agribased inks on recycled paper, with a minimum of 20% postconsumer waste. Center for Urban and Regional Affairs (CURA) University of Minnesota 330 HHH Center 301—19th Avenue South Minneapolis, Minnesota 55455 Phone: (612) 625-1551 Fax: (612) 626-0273 E-mail: [email protected] Web site: http://www.cura.umn.edu The University of Minnesota is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation. TABLE OF CONTENTS List of Tables. vii List of Figures . vii Acknowledgments . ix Introduction . 1 Part One: Concentration of Poverty . 3 Causes of Concentrated Poverty . 4 Subsidized Housing and Its Impact on Concentrated Poverty. 7 How Public and Subsidized Housing Came to Be Concentrated. 7 Slum Clearance. 7 Local Authority and Site Selection. 8 Tenant Selection . 10 Spatial Concentration of Public and Assisted Housing . 10 Concentration of Units in Central Cities . 10 Concentration by Racial Makeup of Neighborhoods . 11 Concentration by Neighborhood Income. 12 Concentration of Subsidized Housing by Neighborhood Housing Stock Characteristics. 14 Segregation within Public and Subsidized Housing . 14 Effects of Concentrated Public Housing . 14 Why Neighborhoods Matter. 16 Part Two: Policy Responses . 21 Dispersal Approaches . 22 Unit-Based Programs . 24 Scattered-Site Programs. 24 iii Hollman v. Cisneros Implementation of Scattered-Site Programs. 25 Resident Experience . 25 Impact of Scattered Site on Receiving Communities. 26 Resident Perceptions . 27 Property Value Impacts . 27 Yonkers . 28 Fair-Share Housing Programs . 30 Impact on Mobility . 32 Mixed-Income Developments. 33 Tenant-Based Programs . 35 Cost. 37 Choice and Desegregation . 37 Reduction in Segregation . 38 Experimental Housing Allowance Program (EHAP) . 39 The Section 8 Program . 41 Program Evolution . 41 Vouchers. 42 Portability. 42 Summary of Section 8 Program Experience . 43 Lease-Up Rates. 43 Geographic Dispersion of Subsidized Households . 44 Economic and Racial Integration of Program Participants . 45 Neighborhood Impacts of Section 8 Units . 47 Portability . 47 Mobility Programs . 48 Vouchering Out. 50 Housing Search . 50 Locational Outcomes . 51 Individual Outcomes. 51 Gautreaux . 52 Education . 53 Employment . 54 Social Interaction . 55 Satisfaction . 55 Scale . 55 Recent HUD Desegregation Lawsuits . 56 Moving to Opportunity . 59 Housing Search . 61 Experience in the New Neighborhood. 62 iv Report No. One Summary of Mobility Programs. 62 Program Operations . 63 Program Impacts . 64 Limitations and Opposition . 65 HOPE VI. 66 Program Features . 67 Demolition . 67 Involuntary Deconcentration . 68 Impact on Concentrations of Poverty. 69 HOPE VI Program Summary. 70 Summary of Dispersal Policy . ..