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Innovations in Federal Housing Policy: HOPE VI
Eva Thomas
Junior Seminar: U.S. States in Comparative Perspective
Prof. Rodney Hero
12!2"1#
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Innovations in Federal Housing Policy: HOPE VI
I. Introduction
H$PE %& represented a fundamenta' shift in housin( po'icy) an attempt to
overhau' the system of pu*'ic housin( in the U.S. *y demo'ishin( e+istin(
housin( pro,ects and creatin( ne- *ui'din(s -ith *etter 'ivin( conditions as
-e'' as inha*itants of a mi+ of dierent income 'eve's. /'asheen and Pea'er
refer to it as a 0comp'ete reversa' of momentum in housin( po'icy 2""#3.
4ost nove' -ere the pro(ram5s stated (oa's to incorporate in housin( po'icy
so'utions to socia' issues: racia' and economic se(re(ation) hi(h rates of
vio'ent and dru(6re'ated crime) and unemp'oyment amon( residents in pu*'ic
housin( Pop7in et a'. 2""83. The path-ays throu(h -hich H$PE %&
attempted to carry out these reforms -ere a'so nove' for federa' housin(
po'icy: the pro(ram a''ocated (rants not *y a formu'a) *ut throu(h
competitive app'ications) -hich represents a departure from previous (rant
a''ocation) such as in the ear'ier formu'a6*ased Comprehensive /rant
Pro(ram 9oc7e) Pop7in) and os*ur( 1;;y'y 2"""3.
$ne stri7in( aspect of H$PE %& is the e+pansion of the ro'e of the federa'
(overnment in housin( po'icy. ?ot on'y -as the pro(ram a hu(e monetary
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investment 6 Con(ress appropriated @1.< *i''ion for H$PE %& *et-een 1;;A
and 1;;#) in the Brst round of (rant dis*ursement 6 *ut it a'so inserted the
federa' (overnment into the a(enda6settin( and (oa'6formu'atin( process of
city (overnments and 'oca' housin( authorities 9oc7e) Pop7in) and os*ur(
1;;
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po'icy. Hence) the near'y simu'taneous institution of H$PE %& and T=?
su((ests inconsistency in po'icy priorities of federa' (overnment. &t may *e
that there e+ists some fundamenta' dierence *et-een the provision of
housin( for the needy and the provision of other *eneBts) or there may have
*een a chan(e in (overnment priorities *et-een the imp'ementation of
these t-o pro(rams) perhaps associated -ith e'ections in 1;;8 and 1;;
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a. Roles of federal housing policy in historical perspective
&n order to e+amine the p'ace of H$PE %& in trends to-ards devo'ution)
it is necessary to p'ace the pro(ram in the conte+t of the evo'ution of federa'
housin( po'icy over time. To this end & have revie-ed severa' reports on
H$PE %& -hich inc'ude a section on the history of housin( po'icy and the
p'ace of the pro(ram in that history) and constructed a time'ine to i''ustrate
ua'itative'y chan(e in the sie of the federa' ro'e in housin( po'icy in ma,or
ur*an centers.
*. Allocation of funds to sites
& e+amined economic and po'itica' characteristics of the 8" 'ar(est ur*an
centers in the United States circa 2""". The 8" 'ar(est cities -ere e'i(i*'e to
app'y for H$PE %& fundin() as -e'' as any cities -hich -ere reported to have
0severe'y distressed pu*'ic housin( units 9oc7e) Pop7in) and os*ur( 1;;
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determined -hether severe distress corre'ated -ith hi(her a-ard amounts
9oc7e) Pop7in) and os*ur( 1;;
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directin( fundin( to-ards ur*an areas as a -ho'e) & have not *ro7en do-n
these (rants into fundin( per pro,ect.
4y Bna' varia*'e) po'itica' a'iation of state and 'oca' e+ecutives) is an
ordina' varia*'e ran(in( from " to 8. = city received 2 points for havin( had a
Femocratic mayor throu(hout the entire period 1;;A61;;
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19#1: edera' (overnment provides 'imited funds for operatin( costs.
19#9 and $%": =mendments to the Housin( =ct of 1;A! 'imit rent payments
to 2#M of income) fue'in( the trend to-ards 'o-6income residence in pu*'ic
housin(.
19#"s: edera' Performance undin( System provides more money via
formu'a to 'oca' housin( authorities to cover the 'ost revenues in rent. This
system did not provide fundin( for moderniation) -hich *ecame a pro*'em
as physica' structures *e(an deterioratin(.
19#&: edera' (overnment *e(an providin( 'imited funds for moderniation)
often restricted to items that -ere priorities for the federa' (overnment.
19%"s: Costs for moderniation -ere covered *y reopenin( the ori(ina' 8"6
year contract and addin( funds over the remainin( years. This
disadvanta(ed o'der deve'opments) -hich had fe-er years 'eft on their
contract.
19%&: Gias a(ainst o'der pro,ects corrected *y esta*'ishin( separate pro,ects
for moderniation.
19%9: Pu*'ic Housin( Ur*an &nitiatives Pro(ram addresses *oth physica'
pro*'ems and socia' pro*'ems such as crime) and provides assistance to
improve mana(ement.
19&": Su*stantia' moderniation fundin( provided for the Brst time in the
Comprehensive &mprovements =ssistance Pro(ram. Pu*'ic Housin(
=uthorities competed for funds intended to address a'' needs at a (iven
pro,ect.
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199': Comprehensive /rant Pro(ram) a''ocated *y formu'a) rep'aced C&=P
for 'ar(er housin( authorities. This does not provide fu'' fundin( for
reha*i'itatin( severe'y distressed pro,ects) *ut is rather a -ay to provide
housin( authorities -ith a re'ia*'e fundin( source for capita' improvements.
&t a'so imp'emented more discretion for 'oca' housin( authorities.
Trac7in( the ro'e of federa' (overnment in housin( po'icy over time
revea's the trend that as the ro'e of pu*'ic housin( *ecame more focused
to-ards providin( cheap housin( for the needy in the #"s and
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Thou(h H$PE %& carried on the 'e(acy of addressin( socia' pro*'ems
and competitive (rant a''ocation of ear'ier pro(rams) it a'so made one of its
o*,ectives a reversa' of the trend to-ards the concentration of very 'o-6
income persons in pu*'ic housin(. Thou(h this reuired a massive federa'
intervention at the time of imp'ementin( the H$PE %& pro(ram) there -as
a'so the u'timate vision of creatin( housin( deve'opments that -ou'd
*ecome se'f6sustaina*'e over time) -ith rents from hi(her6income residents
a*'e to cover operatin( costs. Hence) despite the input of @1.< *i''ion of
federa' money into municipa'6'eve' a(encies) the desired eventua' outcome
of H$PE %& -as comp'ete'y consistent -ith other po'icies of the 1;;"s -hich
pushed to-ards a sma''er ro'e of the federa' (overnment in -e'fare
pro(ramsD the increased 'in7s *et-een private contractors and housin(
authorities that H$PE %& sou(ht to foster a'so Bt into the privatiation
movement Hamme' and >y'y3.
ina''y) thou(h H$PE %& increased the Bnancia' ro'e of the federa'
(overnment in 'oca' housin( po'icy) it a'so oered 'oca' housin( authorities
e+i*i'ity in determinin( the e+act p'an and imp'ementation of funds in order
to reha*i'itate the (iven pro,ect 9oc7e) Pop7ins) and os*ur( 1;;
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si(niBcant than the source of the fundin(. Hamme' and >y'y refer to the
pro(ram as uti'iin( the 0discourse of devo'ution a'on( -ith federa' contro')
as H$PE %& increased 'in7s *et-een 'oca' housin( authorities and the federa'
(overnment 2"""3.
*. Allocation of funds to sites
& -i'' discuss three varia*'es to determine -hether fundin( in the Brst
round of (rant a''ocation in H$PE %& varies -ith economic or po'itica'
characteristics of cities. & a'so compare the characteristics of cities
participatin( in the pro(ram durin( its Brst imp'ementation in 1;;A61;;<
-ith cities -hich -ere e'i(i*'e to participate *ut did not. Since on'y L"M of
e'i(i*'e cities app'ied for fundin() some cities -hich did not receive fundin(
may not have app'ied for the pro(ram in the Brst p'ace the 'ist of cities
-hich app'ied for the Brst round is unavai'a*'e) and research on the topic is
further comp'icated *y the fact that some of these cities may have app'ied
for and received fundin( in su*seuent rounds3. Hence & -i'' consider these
non6H$PE %& 'oca'es *oth as vo'untary nonparticipants and ur*an centers
-hich -ere not prioritied *y the pro(ram.
$ne of the most heavi'y6-ei(hted cate(ories of the H$PE %& app'ication
-as the estimated need of the recipient. &n order to test -hether the
recipient5s needs corre'ate -ith (rant amount) & have compared those cities
-hich -ere and -ere not considered in 1;;< *y the Fepartment of Housin(
and Ur*an Feve'opment to *e 0severe'y distressed 9oc7e) Pop7in) and
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os*ur( 1;;
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i.e.) cities -ith housin( pro,ects that -ere not severe'y distressed -ere 'ess
'i7e'y to see the need to app'y for fundin(.
&n a redistri*utive fundin( pro(ram aimed at standardiin( conditions in
housin( *et-een poorer cities and -ea'thier ones) one -ou'd e+pect that
cities -ith 'o-er /FP per capita -ou'd receive more fundin(. medium6
income. The poorest city in my samp'e Tucson) =K3 did not receive fundin()
-hi'e the -ea'thiest San rancisco) C=3 did. >ithin H$PE %& cities) /FP per
capita had a stron( ne(ative corre'ation -ith a-ard amount: R2N.1
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more funds to cities that are poorer *ut don5t necessari'y have severe'y
distressed housin( systems. =ccordin( to the H$PE %& Gase'ine =ssessment)
some deve'opments have e+perienced distress *ecause of poor
mana(ement *y the housin( authority) -hi'e others are distressed simp'y
*ecause they are very o'd and hence the physica' structure has deteriorated
9oc7e) Pop7in) and os*ur( 1;;
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(oa's and imp'ementation of H$PE %& after 1;;< Hamme' and >y'y 2"""3.
=mon( a'' 8" top ur*an centers) party of (overnors and mayors corre'ates
positive'y -ith H$PE %& participation R2N.1"A
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G'ac7 or Hispanic -as corre'ated -ith hi(her a-ard amounts) *ut did not
discuss this Bndin( as it -as outside the scope of this paper.
H$PE %& at its initia' conception -as a pro(ram that sou(ht to a'ter the
ro'e of the federa' (overnment in 'oca' housin( po'icy) to move a-ay from
pro,ects -hich concentrated the e+treme'y 'o- income and iso'ated them
from the *roader community) and to-ards mi+ed6income housin(
deve'opments -hich -ou'd -or7 -ith 'oca' partners in the pu*'ic and private
sector to achieve sustaina*i'ity over time. Ho-ever) the pro(ram -as a point
of po'itica' contention in the atmosphere of the ;"s) in -hich the trend -as
to-ards dere(u'ation and devo'ution of contro' to the state and 'oca' 'eve')
particu'ar'y in -e'fare po'icy. inancia''y) H$PE %& vast'y increased the ro'e of
the federa' (overnment in housin( po'icy) thou(h it (ave si(niBcant'y 'ee-ay
to 'oca' authorities in imp'ementin( and directin( its fundin(. Thus it
occupied a (ray space *et-een decentra'iation and federa' oversi(ht of
sometimes poor'y6mana(ed housin( pro,ects. &t tar(eted housin( pro,ects
-hich -ere in need of reform) *ut a'so those -hich promised a (ood return
on investmentD H$PE %& in its Brst iteration had characteristics *oth of an aid
pro(ram to stru(('in( cities and a Bnancia' investment.
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,or-s (ited
0Census 2""" Fata. U.S. Gureau of the Census. 2""1. =ccessed Fecem*er
here The Poor 9ive: Ho- edera' Housin( Po'icy
Shapes Residentia' Communities. Urban Anthropology and Studies of
Cultural Systems and World Economic Development A1) no. 1 2""23:
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Urban Development . %o'. 1 1;;
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Aendi/ A: (ity Data
(ityPoulation0'"""
Inco2e er (a0'""1
A2ountA3arded
Chica(o) &9 2)!LA)!2< ##)"11 #")""")"""
Phi'ade'phia) P= 1)#L#)#!! #A)"28 #")""")"""
9os =n(e'es) C= A)8L#)A;L #1)8#L #")""")"""
C'eve'and) $H #"#)
>ashin(ton) FC
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San Jose) C= !L2)28L !2)1LA "
San Fie(o) C= 1)11")#8; #1)18# "
Phoeni+) =K ;LA)8"A 8#)821 "
?ashvi''e) T? 8LL)A!8 8L)!8L "$7'ahoma City)
$Q 888)!1; 82)1A1 " Tucson) =K 8"#)A;" AA)A8" "%ir(inia Geach)%= A;A)"orth) TI 88!)= " " 2 2Qansas City)4$ 1 2 2 8
St. 9ouis) 4$ " 2 2 8
4i'-au7ee) >& " " 2 2?e- $r'eans)9= 1 2 2 8
Fetroit) 4& 1 2 2 8
=t'anta) /=1 2 2 8
Char'otte) ?C " 2 " 2
Co'um*us) $H " " " "
Houston) TI " 1 2 A
E' Paso) TI " 1 2
Pitts*ur(h) P= " 1 2 A
&ndianapo'is) &? 1 2 " 2
Fa''as) TI " 1 1 2
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Fenver) C$ " 2 2 8
$a7'and) C= " " 2 2
>ashin(ton) FC 1 2 8
San Jose) C= " " 2 2
San Fie(o) C= " " " "
Phoeni+) =K " " "
?ashvi''e) T? " 2 2 8$7'ahoma City)$Q " 1 " 1
Tucson) =K " " 2 2%ir(inia Geach)%= " 1 2
Port'and) $R " 2 2 8
=ustin) TI " 1 2
ort >orth) TI " 1 " 1
9on( Geach) C= " " "='*uuerue)?4 " 1 2 A
Jac7sonvi''e) 9 1 2 1 A
Aendi/ ;: 7rahs o* (orrelations
AA)A8" 8A)A8" #A)A8"
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AA)A8" 8A)A8" #A)A8"
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" ".# 1 1.# 2 2.# A A.# 8 8.#"
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