Understanding How Public Housing Is Funded… It’s Harder Than You’d Think

Emily McDonald is a graduate student in the sociology department of George Mason University. She has been a volunteer intern for Grassroots DC since May 2016.

THE FIGHT FOR PUBLIC HOUSING IN 2016

In my time with Grassroots DC, I was given the underestimated task of tracking DCHA’s budget from the founding of Potomac Gardens on Capitol Hill until now. I began looking through HUD documents, only to find different structures of information for each year. I was able to track large budget numbers, indicating a large pullback in federal spending, but little evidence of what was appropriated specifically to DC. Rather, I found changing agreements between the federal and the local every few years with little overall consistency in the federal government fully funding the DC Housing Authority, leaving public housing residents feeling the pinch.

As a sociologist, I started to see connections between what is happening with public housing in the United States and the current social concerns of our nation as a whole. Specifically, I started to understand that the fight for public housing cannot stop with pressuring local governments to subsidize housing authorities which were created to be fully funded by the federal government, but must also take on a the 21st century conversation about neoliberalism.

HOW IS DCHA FUNDED AND GOVERNED?

For a brief background, the process of funding DCHA is a bit more complicated than a strictly local DC agency. Funds are appropriated first to the the Department of Housing and Urban Development (HUD), then to local housing authorities. The District of Columbia Housing Authority (DCHA) is an entity of HUD and an independent agency of DC local government. This means the agency is particularly susceptible to federal pullbacks depending on the current political and economic ideology of the time, but is governed by a board appointed by the DC Mayor. The DC local government then subsidizes DCHA, though the only legal responsibility to fund the agency lies with HUD and the federal government.

WHAT DOES THIS MEAN FOR PUBLIC HOUSING RESIDENTS AND ADVOCATES?

It is important to understand the pullback of federal funding as a national trend trickles down to local spending. According to a 2016 DC Fiscal Policy Institute report, DC Council funding is not only a subsidy, but a requirement for DCHA to sustain. I found the same through DCHA director Adrianne Todman’s 2016 testimony to the DC Council. She urges for DC local spending to continue as they have for the few years prior. Her testimony includes an appeal for funding that is not only to promote new programs, but a basic necessity for the agency to sustain itself. I make this distinction to say Todman is not asking for additional money to add programming to additionally benefit the district, but a subsidy without which the agency may not operate at its expected capacity.This indicates the federal funding is insufficient for operation.

The central problem is the basic capacity of DC local government in contrast to the federal budget. As the cost of living in the district increases for residents who have, quite literally, built DC local, they are left with little options for housing in the city that is their birthright. This remains particularly true for the elderly, disabled, and families with children. While DC local government is subsidizing the agency to ensure the operation continues, there is a changing landscape at the federal level that I argue requires a new form of understanding.

According to theories of neoliberalism, big institutions are broken down, then slowly discarded in pieces in the name of private rule and small tax burdens on the rich (Brown 2015). This is often masked as freedom and flexibility for agencies like DCHA. Government programs aimed to support the lower and middle classes under a capitalist system are chipped away. Public-private partnerships are emphasized to reduce the burden of government. In turn, what is traditionally a public good paid for by publicly accountable funds are privatized.

In terms of housing, The free market certainly has not shown the ability to self-produce adequate, accessible housing for all. Without the protection of dedicated public housing, the affordable housing market begins to dwindle, forcing low-income residents in the area to relocate elsewhere. According to a 2015 report by the DC Fiscal Policy Institute, since 2012, should the lowest DC residents not receive housing subsidies and reside solely in the private market, “the average rent for this group [would equal] 80 percent of average income” . . . → Read More: Understanding How Public Housing Is Funded… It’s Harder Than You’d Think

A Place to Play: Potomac Gardens, Public Housing and Our Kids

Below are images of the playground on the Potomac Gardens public housing complex as it was when Grassroots DC was founded and moved onto the property back in 2013. Broken down and missing safety rails, is the playground at Potomac Gardens Public Housing Complex safe? How do public housing communities fix these issues?

playground no safety rails swingset but no swings no safety rails here either

The state of the playground was a topic of discussion in our basic computer class and a cause for concern in resident council meetings. Little Lights Urban Ministries, another nonprofit located in Potomac Gardens, who offers tutoring and a summer program for kids from pre-k to the 8th grade, also had concerns. The basketball court was another issue. Potomac Gardens’ resident Carlton Moxley sometimes laid out his own cash to replace the backboards.

One might assume that the playground of a public housing complex would be paid for and maintained by the government, but public housing is a complicated business. Most of us don’t even know who owns public housing. Is it the city? Is it the federal government? Below are some answers.

While the United States Department of Housing and Urban Development (HUD) oversees the public housing program, it is administered locally by about 3,100 public housing agencies across the United States. The local public housing agency that administers Potomac Gardens and indeed all of D.C.’s public housing complexes is the District of Columbia Housing Authority (DCHA). Most public housing agencies own and manage their public housing developments themselves, but some contract with private management companies. DCHA does not manage Potomac Gardens itself; management of the property has been contracted out to CT Management.

All of this information, still leaves unanswered the question, where do the funds for the replacement of playgrounds in public housing developments like Potomac Gardens come from? The federal government funds public housing through two main streams: (1) the Public Housing Operating Fund, which is intended to cover the gap between the rents that public housing tenants pay and the developments’ operating costs (such as maintenance and security); and (2) the Public Housing Capital Fund, which funds renovation of developments and replacement of items such as appliances and heating and cooling equipment.

The purchase and installation of a new playground can easily cost more than $100,000. According to the US Department of Housing Operating Fund Budget for 2016 the D.C. Housing Authority will receive about $6,164 per unit to cover the gap between the rents that public housing tenants pay and the development’s actual operating cost. HUD’s Annual Budget does not explicitly state that District gets $6,164 per unit from the Operating Fund. The total budget for the Public Housing Operating Fund in 2015 was $4.44 billion. The share that goes to the District of Columbia Housing Authority is 1.1 percent or $48.84 million. The District of Columbia Housing Authority manages 7,924 units. Divide the $48.84 million by 7,924 units and you get $6,164 per unit. Of course, DCHA doesn’t spend $6,164 on each unit. Most of the money goes to salaries and other overhead costs. But this figure gives us an idea what kind of money DCHA has to work with to meet the maintenance and operating needs of the District’s public housing. In any case, we can’t expect DCHA to allocate $100,000 from the Operating Fund to pay for a single playground in one housing complex.

It might be more logical for the money to come from the Public Housing Capital Fund. In fact, DCHA received $27 million from the Capital Fund in 2014 and an additional $34.4 million from the American Recovery and Reinvestment Act. However, the Captial Fund grants were probably used for renovations and replacements needed in a single, housing complex or for specific projects like lead abatement, renovations needed to bring DCHA properties up to accessibility standards or environmental sustainability initiatives. Most of the Recovery Act funding will go to enhance housing projects that have or will become mixed-income developments like the townhouses at Cappers Carrollsburg. Getting money from the Capital Fund or the American Recovery and Reinvestment Act to replace a single playground in a 100 percent low-income housing development is highly unlikely.

So, what then? Clearly, the playground in the images above needs to be replaced or torn down all together. If the community within the Potomac Gardens Public Housing Complex can’t expect help for a project like this from the District of Columbia Housing Authority, what do they do? . . . → Read More: A Place to Play: Potomac Gardens, Public Housing and Our Kids

This Just In: Tenant Town Hall

If you rent in DC, and are unhappy about just how much rent you have to pay. If you rent and have concerns about health and safety issues in your apartment or apartment complex, you should go. The Tenant Town Hall is organized by the Latino Economic Development Center and the Housing for All Campaign but any DC resident who rents is encouraged to attend. It’s your opportunity to make your housing concerns known to those with the power to do something about it.

Tenants Demand Safe, Affordable Housing

Join the tenant movement for affordable housing and safe, healthy conditions! Hundreds of DC tenants will gather to raise their concerns to Councilmembers and agency directors just days before the DC Council votes on the budget and decides how to fund key housing programs. Wins made by tenants at the Tenant Town Hall have improved the lives of all DC renters. Stand for Housing For All at the Tenant Town Hall!

Saturday, May 18 All Souls Unitarian Church 1500 Harvard St NW (16th and Columbia Rd NW, 3 blocks from Columbia Heights Metro)

Free lunch, 1-2 PM Free childcare with RSVP by May 10. Interpretation in Spanish, Amharic and Chinese.

1 – 2 PM: Speak with DC housing agencies – DC Housing Authority, Department of Consumer and Regulatory Affairs, Department of Housing and Community Development, legal service providers and non-profit organizations. Lunch

2 – 4 PM: Town Hall presentations by residents focusing on DC’s affordable housing budget and Safe and Healthy Housing (no mold, asbestos or lead!) and responses from elected officials and Housing Agencies.

For more information contact Elizabeth efalcon@cnhed.org.

An Increase in Rent for DC’s Poorest Residents

This post has two features. The first is the latest edition of We Act Radio’s Live Wire program, The Empower DC Community Hour, which airs on Monday evenings from 7:00 – 8:00 PM. This week’s show was hosted by Empower DC Afforadable Housing Organizer Linda Leaks and focused on recent proposals by Congress and the Obama Administration to raise the minimum rent that section-8 housing voucher holders are required to pay. This weeks guests were Venus Little from the Task Force to Oppose the Minimum Rent Increase and Diane Hunter from the Perry School Community Service Center, Inc. Please listen and support the show.

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Empower DC Community Education Event

This second is a cross-post from Kathy Baer’s really informative blog Poverty & Policy, from which I took the title of this post:

What Would HUD’s Proposed Minimum Rent Mandate Mean for Extremely Poor DC Residents? Researching the impacts of the mandatory minimum rent proposal in the President’s Fiscal Year 2013 budget, I asked myself what it would mean for extremely low-income District residents who benefit from the Department of Housing and Urban Development’s rental housing programs.

The answer, I think, is maybe less than for the poorest beneficiaries in most of the country. But it’s hard to be sure because we don’t know how broadly HUD would apply the new policy.

Here’s what we do know.

DCHA (the District’s public housing authority) doesn’t impose a minimum rent, as it could under the current law. It’s chosen — wisely I think — to let the lowest of low-income households conserve their cash for other needs.

These, recall, are households whose adjusted incomes are so low that the usual 30% they’d owe for rent is negligible, except to them.

In one scenario, they’d have to pay $75 a month, as would more than half a million of the poorest households nationwide, though DCHA could grant hardship exemptions for some of them.

But DCHA is one of the 34 public housing authorities that participate in HUD’s Moving to Work demonstration project. As such, it’s exempt from many of the rules most PHAs must comply with.

So it’s possible that DCHA could preserve its current rent policy for most residents who’d otherwise be affected.

According to DCHA’s latest annual report, 12,752 individuals and families had Housing Choice vouchers in its MTW program. It plans to increase the number to 12,784 by the end of this fiscal year.

DCHA says that close to 20,000 additional residents live in public housing units.

If the proposed policy change is like the one in a bill the House is considering — and it does seem that way — then the minimum mandatory rent wouldn’t automatically apply to either the voucher holders or the public housing residents.

Or so I gather from a bill analysis by the Center on Budget and Policy Priorities.

But the minimum mandatory would apply to residents of project-based Section 8 housing, i.e., units that have federally-funded vouchers attached to them.

That, says CBPP, would put 1,273 extremely low-income District households at risk of “serious hardship and even homelessness.”

Do we really need anything more to push up our homelessness rates?