Affordable Housing Corruption Case Study

Initially, Matthew Desmond’s book Evicted represents a profound and realistic ethnography about people’s day-to-day experiences of poverty with a particular focus on the outcomes of housing instability within the state. He exploits the evidence from housing court administrative records, excerpts from the news, and different surveys of renters to support his point of view revealed in the book. In his work, Desmond raises questions why the state is introducing the housing policy that deteriorates the position of tenants renting from private landlords and how a person with the monthly income of $628 and rent of $550 can not only provide his family but also survive. In Evicted, Matthew Desmond reasonably criticizes the American housing system according to which most of the low-income tenants are left alone in the private rental market and have no options to receive affordable apartments.

Chicago’s Cabrini-Green public housing project is notorious in the United States for being the most impoverished and crime-ridden public housing development ever established. Originally established as inexpensive housing in the 1940’s, it soon became a vast complex of unsightly concrete low and high-rise apartment structures. Originally touted as a giant step forward in the development of public housing, it quickly changed from a racially and economically diverse housing complex to a predominantly black, extremely poor ghetto. As it was left to rot, so to speak, Cabrini-Green harbored drug dealers, gangs and prostitution. It continued its downward spiral of despair until the mid 1990’s when the Federal Government assumed control the

California’s housing situation is severe compared to the rest of the United States. California is included in the top three states with the most “housing cost burdened individuals” (Joint Center for Housing Studies of Harvard University, 2015). In a list of 20 cities where rents were highest compared to income, 10 of the 20 cities were in California with Los Angeles, CA topping the list (Dewan, 2014). Opponents might say that households in poverty could never afford housing due to their impoverished state but poverty measures of California show that the abnormally high cost of housing in California makes matters more severe and causes the amount of households that are severely cost afflicted to increase. Furthermore, when poverty measures take into account California’s uniquely expensive and insufficient housing supply, the results show that housing costs contribute significantly to poverty. For example, when housing costs were included in the California Poverty Measure as well as federal Supplemental Poverty Measure, the poverty rates rose substantially (Wimer, Mattingly, & Levin, 2013) (Short, 2015). And when high housing costs were artificially substituted with low housing costs, poverty rates significantly dropped (Bohn, Danielson, & Levin, 2013). And it’s not just the poor who are affected! Even those who are moderate income earners are becoming financially burdened by high housing costs. Those who are moderately well off compared to low income earners are financially burdened by rent costs in expensive cities like San Francisco and Los Angeles, CA (Joint Center for Housing Studies of Harvard University,

Another flawed institution was the Chicago Housing Authority, which demolished public housing to replace it with recreation (262). Not only did they take away the only homes the poor had, but also ineffectively relocated them to a community where they could thrive.

In “The Complexities and Processes of Racial Housing discrimination” by Vincent J. Roscigno, Diana L. Karafin, and Griff tester, the main concept of racial disparity and inequality among neighborhoods is discussed, and how those inequalities became to be. They first highlight the wide range of potentially exclusionary practices, through qualitative and quantitative data comprised of over 750 verified housing discrimination cases (Roscigno, p. 162). Citing the U.S. Census, it is found that Blacks, compared to Hispanics and Asians, continue to experience high levels of residential segregation. This is done through discriminatory practices, whether they be by exclusionary or non-exclusionary methods. Even after the passing of the Fair Housing Act in 1988, discrimination against Blacks and Hispanics decreased somewhat, though African Americans still appeared to take part in racial steering, and Hispanics continued to have limitations in regards to opportunities and access to rental units (Roscigno, p. 163).

Article 25 of the Universal Declaration of Human Rights asserts that housing is a fundamental component to a decent standard of living, yet few city governments--even in the most developed economies--have proven themselves capable of ensuring such a basic right to their constituents (United Nations, General Assembly). Ranked 49th among the 50 U.S. states for its number of housing units per capita, California has notoriously struggled with chronic shortages in its urban housing market. With 118,142 homeless people recorded in 2016, California holds almost 22% of the nation’s homeless population (Fact Sheet: Homelessness in California 1).

For the past fifty years the shift from meeting the housing needs of the poor through government projects-based housing to a more individual approach, has been slowly implemented. Housing vouchers now enable underprivileged populations to move from high-poverty, segregated neighborhoods to more un-segregated, low-poverty neighborhoods. Low-poverty neighborhoods have less crime, better opportunities for employment, and more diverse schooling options. Some housing advocates however, contend that housing assistance is unnecessary and is an income subsidy that should be combined with other social safety nets (Clark, W. 2008).

One of the causes of homelessness in Baltimore City is lack of affordable housing, this includes subsidized housing from the state. Lack of affordable housing in Baltimore City is due to an increase luxury housing and Baltimore’s decrease desire for rental housing (Mayor’s Office of Human Services, 2013). Available housing is not proportional to the wages of people living in Baltimore City. Nearly half of renters in Baltimore spend 35% of their income or more on their rent. The waiting list for Baltimore City opened in 2014 and 74,000 households applied for 25,000 available slots for up to six years to own a voucher (“Homelessness in Baltimore,” 2017). For the extremely poor population there are only 42 available homes for over 100 people who identify with the population (Public Justice Center, 2015). Therefore, Baltimore needs to make affordable housing for their population or there should be an increase in jobs and wages. However, the private sector is not interested in developing houses for the low-income population because it is not profitable compared to selling a building to a company to make luxury housing (Richman, 2015).

It is often easy to castigate large cities or third world countries as failures in the field of affordable housing, yet the crisis, like an invisible cancer, manifests itself in many forms, plaguing both urban and suburban areas. Reformers have wrestled passionately with the issue for centuries, revealing the severity of the situation in an attempt for change, while politicians have only responded with band aid solutions. Unfortunately, the housing crisis easily fades from our memory, replaced by visions of homeless vets, or starving children. Metropolis magazine explains that “…though billions of dollars are spent each year on housing and development programs worldwide, ? At least 1 billion people

“I took a trip to Oakland, California and fell in love with the area. We stayed at an Air B&B for the three days of our stay and the house was absolutely beautiful, it looked like my dream home. Despite all the glitz and glamour around us we noticed a large amount of homelessness compared to Columbus. We found out that this property is not someone’s home but a house used strictly as an Air B&B. When you hear something like that and see the amount of homelessness it makes you wonder how many of these homes are strictly for show? So after researching I found out, the reason for the rampant homelessness can be attributed to large increases in rent. Even worse, the cause for the increase is due to Silicon Valley” (Kasongo, 2017). Unfortunately, rent increasing virtually overnight is the reality of many low-income families. This situation is called gentrification and is felt throughout the world, from the Midwest, East coast or even Western Europe, no region is immune to this process. Gentrification in the Midwest is extensive and wide causing the displacement of many low-income minority residents which can lead to even bigger issues.

Those who cannot afford the high prices of housing are often forced out into the streets where they face a very uncertain future due to the number of abuses they encounter daily from all walks of life, with the most damning being the vagrancy laws that come into vogue in areas that are getting gentrified, which many cities have passed to “protect” their newfound assets and tax base from the “lowering” of property values. Furthermore, when cities such as Los Angeles demand that property developers set aside affordable housing for lower income people, they get sued in court, such as in 2009, when real estate developer Geoffrey Palmer successfully sued in order to overturned an ordnance which required that. This was also the same man who also proposed building a footbridge connecting two of his buildings to minimize contact with people he deemed undesirable (Davis).

Today, I am going to speak about the affordable housing in Pittsburgh .First let me tell about why the affordable housing is preferred. People who live in affordable housing today want safe, decent housing for the same reasons that we all do. The reasons are mainly to provide a nurturing environment to raise their children. Another reason is to remain in the community where they were raised or to become part of a community in which they want to settle. Finally, to live in an attractive, safe environment that they can afford. People who need affordable housing are ones that are employed as secretaries, school teachers, local government employees, restaurant workers and sales clerks. These workers need affordable housing because of the wide gap

The problems that arise from housing are numerous. Housing takes up more than half of all real property tax. Not only that, it’s also the largest issue in a family’s budget. The federal government spent $38 billion in preferential subsidies and $2 trillion on housing in total in the year 2006. Rigid zoning codes prohibit certain types of housing from being built. This prevents some citizens from being provided with homes that fit their budget and ads to the chronic problem of homelessness our communities face. Too many houses can crowd neighborhoods and make transit difficult. They can also obstruct view and, when foreclosed upon, lead to plummeting property values.

Affordable housing has become the paramount issue of cities and dense urban areas. San Francisco is the posterchild of an unaffordable city that regardless of immense investment from blue chip firms like Google, Facebook, and their ilk of startups evaluated at $1 billion or more, policymakers and elected officials must wrestle with the housing affordability crisis that is considered endogenous to swaths of homelessness and record statistics on crime. In New York City, Mayor Bill de Blasio has made affordable housing the centerpiece of his legislation and championed the cause as a social justice issue—neighborhoods must remain affordable to maintain diversity for all races, ethnicities, and low-income families. A small sample of 827 New Yorkers by the NY1-Baruch College City Poll found the main concern of respondents was affordable housing while crime, jobs, and homelessness were peripheral problems (Cuza, 2016). The public discourse on how to address housing across the United States has pointed to negative externalities that surround rent-regulation and homeownership. Conversely, for this essay I will present various cases in order to illustrate the housing crunch is influenced less by housing and land regulations, or antagonistic homeowners but is induced by global market forces.

The lack of affordable housing in the United States is a problem that doesn 't receive nearly the attention that it necessitates. This absence of affordable housing became especially prevalent following World War II when suburbanization spread across the country like wildfire. Although the sheer number of homes increased, Jim Crow segregation influenced housing policy, meaning that white institutions prevented blacks from obtaining the mortgages needed to afford such homes. Therefore, rather than accept subprime loans, which often result in foreclosure, many black people have been pigeonholed into paying exorbitant rates for dilapidated rental properties located in inner-cities, thereby creating the affordable housing problem. Although the situation seems bleak, with careful planning and execution, we can solve the affordable housing problem. Specifically, my proposal involves the following two components: the government must first revise and draft three forms of legislation that create strict yet concise standards that landlords must follow, and then allocate federal funding to health and wellness programs within poor communities. By examining the contributing societal factors to the lack of affordable housing in Milwaukee, Wisconsin, and then implementing the proposal mentioned above, one could potentially solve the affordable housing problem there and transpose the plan to other impoverished cities across the country.