NEWS FROM REGION V U.S. Department of Housing and Urban Development
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U.S. Department of Housing and Urban Development
NEWS FROM REGION V
April 2013
From the Regional Administrator
As we head into our chilly Midwest spring, there’s an extra cloud in the sky in the form of a word that now has
instant recognition – Sequestration. Sequestration, the American Taxpayer Relief Act of 2012 was delayed until
March 1, 2013, and it means across-the-board spending cuts for all Federal agencies. Although
this is unplowed ground in our nation’s history and we can’t be sure exactly how things will
play out, I would like to share with you a few of the highlights from Secretary Donovan’s
congressional testimony last month. The unsettling truth is that these indiscriminant cuts
would harm numerous families, individuals, and communities across the nation that rely on
HUD. It is obvious that Sequestration would have devastating effects on homelessness and
on other vulnerable groups that HUD works with on housing needs across the country, but
there would also be a broader harmful effect on middle class families, communities and on
the economy in general.
As we work through Sequestration, I want to reassure you that we, at the Department, are doing everything in
our power to minimize the effects and make our scarce resource dollars go as far as possible. So if I am unable
to travel to your area to make remarks at your conference or training session, or you find the office closed on a
work day due to a furlough, please understand that it is because we are working to make our budget dollars go
where the need is the greatest. If there is a way technology can be used, I am more than happy to join you in any
way I can.
In the meantime, please check our Sequestration website for updated information, a complete transcript of the
Secretary’s congressional testimony and copies of letters sent to our Midwestern Governors and grantees. I am
sure that together we will weather this storm.
On the good news front, HUD recently awarded Illinois and Minnesota grants under the Section 811 Project
Rental Assistance Demonstration Program (PRA Demo) which enables persons with disabilities who earn less
than 30 percent of median income to live in integrated mainstream settings. The state agencies are working
closely with their state Medicaid and health and human services counterparts to identify, refer, and conduct
outreach to persons with disabilities who need long-term services and support for independent living.
According to Secretary Donovan, we are helping states reduce health care costs and improving quality of life
for persons with disabilities. We are offering lasting solutions to people who might otherwise be
institutionalized or living on the street.
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On March 13th the Department announced the Continuum of Care homeless funding of renewal grants from
Fiscal Year 2012 budget. Region V received nearly $275 million to renew support for 1,285 local housing and
service projects. These grants are particularly important because as Secretary Donovan said, “The evidence is
clear that every dollar we spend on those programs that helps find a stable home for our homeless neighbors not
only saves money but quite literally saves lives. We know these programs work and we know these grants can
mean the difference between homeless persons and families finding stable housing or living on our streets.”
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NOFA NEWS: Go to Grants.Gov to find Notice of Funding Announcements and application information for all
Federal Grants. Current HUD NOFAs:
GRANT Open Date Close Date
FR-5700-N-18 Choice Neighborhoods Planning Grants 03/25/2013 05/28/2013
FR-5700-N-24 Fair Housing Organization Initiative Continuing Development Component 03/20/2013 04/22/2013
FR-5700-N-03 Fair Housing Initiative Program 03/13/2013 06/11/2013
FR-5700-N-22 Housing Counseling Training 03/04/2013 04/19/2013
FR-5700-N-11 Self-Help Homeownership Opportunity Program (SHOP) 01/23/2013 04/24/2013
FR-5700-N-07 Resident Opportunity and Self-Sufficiency - Service Coordinators Program 01/02/2013 04/30/2013
FR-5700-N-01 Fiscal Year (FY) 2013 Notice of Funding Availability (NOFA) Policy Requirements and General Section 08/08/2012 12/31/2013
Social Security Income and Supplemental Security Income verification just got easier for our
customers: When housing applicants need proof of their Social Security or Supplemental Security Income
benefits, let them know that they can get a benefit verification letter online instantly through a my Social
Security account. This eliminates travel to a Social Security office or the wait for a letter to be mailed to
them. They can get the up-to-date information they need online, perhaps even from a computer in your
office. With my Social Security those who receive benefits can easily view, print, or save an official letter
that includes proof of their: Benefit amount and type; Medicare start date and withholding amount; and Age.
Instead of going to a Social Security office for a benefit verification letter; they should now go to
www.socialsecurity.gov/myaccount. Take 15 minutes to sign yourself up to see how convenient it is
to check on your social security earnings and benefits.
Secretary’s Award: HUD in partnership with the Council on Foundations, announced the annual
Secretary's Award for Public-Philanthropic Partnerships – Housing and Community Development in Action
– as part of the Council's annual Fall Conference. The Secretary's Award for Public-Philanthropic
Partnerships recognizes excellence in partnerships that have transformed the relationship between the
sectors and led to measurable benefits in terms of increased economic employment, health, safety,
education, sustainability, inclusivity and cultural opportunities, and/or housing access for low- and
moderate-income families while emphasizing cross-sector partnerships between the philanthropic and
public sectors. Recognizing that foundations of all sizes partner with public agencies, the jury will take asset
and staff size into consideration to ensure that the award recipients reflect a diversity of foundations. Read
more and apply here. The deadline for completing submission is April 29, 2013.
Discriminatory Effects Rule: HUD has issued the final Fair Housing Rule on Discriminatory
Effects. The regulation formalizes the standard and process for determining whether a practice had a
discriminatory effect, regardless of whether there was intent to discriminate. Read more here.
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The 2013 HOME income limits have been published and are effective March 15. You may access
these limits from the HOME Program Income Limits Page. HOME is the largest Federal block grant to
State and local governments designed exclusively to create affordable housing for low-income
households.
Obama Administration releases February Housing Scorecard: housing recovery shows continued
progress…
Read PD&R’s March e- newsletter, THE EDGE, to keep current on policy development and research
breaking news.
FHA NEWS: Continuing the effort to help strengthen FHA's Mutual Mortgage Insurance Fund, FHA
addresses the MIP amounts, manual underwriting on certain loans, down payments on jumbo loans,
and enforcement efforts with regard to lenders marketing to borrowers with previous foreclosures. Read the Press
Release issued January 30.
FHA will consolidate its Standard Fixed-Rate Home Equity Conversion Mortgage (HECM) and
Saver Fixed Rate HECM pricing options for FHA case numbers assigned on or after April 1, 2013.
Using the HECM Fixed Rate Saver for fixed rate mortgages will significantly lower the borrower’s
upfront closing costs while permitting a smaller pay out than the HECM Fixed Rate Standard
product, thereby reducing risks to the Mutual Mortgage Insurance Fund. Read FHA’s new HECM
Mortgagee Letter.
FHA’s Powersaver Home Energy Retrofit Pilot has been extended. FHA insurance will continue to
be available through May 4, 2015 for loans to homeowners to finance energy-saving alterations,
repairs, and improvements in existing structures or manufactured homes.
Visit the National Homeownership Center homepage at:
http://www.hud.gov/offices/hsg/sfh/hsgsingle.cfm. Servicing lenders can visit the National Servicing
Center at: http://www.hud.gov/offices/hsg/sfh/nsc/nschome.cfm.
For FHA Mortgagee Letters, click here.
The Federal Housing Finance Agency has announced that, beginning July 1st, Fannie Mae and
Freddie Mac will require their servicers to “to offer eligible borrowers who are at least 90 days
delinquent on their mortgage an easy way to lower their monthly payments and modify their
mortgage without requiring financial or hardship documentation.” Eligible homeowners – those
whose mortgages are owned or guaranteed by Fannie and Freddie – will need to demonstrate their
“willingness and ability” to make three consecutive on-time payments after which their mortgages
will be permanently modified. For more, click here.
Environmental Training: HUD has launched the Environmental Review Training Page to help
customers find webinars from HUD's Office of Environment and Energy (OEE) that cover a wide
variety of topics; from the basics of a Part 58 environmental review to more advanced topics
regarding historic preservation, tribal consultation and assessment tools.
Healthier Homes: The Department has taken significant steps towards eliminating radon exposure in renter-
occupied homes by issuing two new policies that will incorporate radon testing and mitigation into HUD
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programs to help prevent some of the estimated 21,000 lung cancer deaths radon causes in the United States
every year. Read release here.
Interagency plan for Healthy Homes: The Environmental Protection Agency, the Departments of
Energy and Health and Human Services, the White House Council on Environmental Quality and
HUD have unveiled Advancing Healthy Housing - A Strategy for Action, to reduce the number of
American homes with residential health and safety hazards.
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Follow us on Twitter @HUDMidwest
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HUD unveils the first housing discrimination mobile application (app) for iPhone and iPad. Developed by
HUD’s Office of Fair Housing and Equal Opportunity and Hewlett Packard, the app uses the latest technology to
provide the public with a quick and easy way to learn about their housing rights and to file housing
discrimination complaints, and inform the housing industry about its responsibilities under the Fair Housing Act.
The app also provides information about the fair housing complaint process, and allows the public to access
HUD’s toll-free discrimination hotline and link to HUD’s fair housing website: www.hud.gov/fairhousing. To
get this housing discrimination app please visit the Apple App store.
Section 184, Indian Home Loan Guarantee: On March 26th, President Obama signed into a law a
measure to continue funding the government through the end of fiscal year 2013 - September 30, 2013.
This budget compromise includes more than $12 million for HUD’s Section 184 Indian Home Loan
Guarantee Program that provides mortgages to American Indian and Alaska Native families, Alaska
Villages, Tribes, or Tribally Designated Housing Entities to construct a new home or purchase or refinance
an existing home on native lands. Starting March 27th, HUD resumed accepting new loan applications
under the Section 184 Program and will begin issuing loan approvals no later than April 15, 2013.
United States Interagency Council on Homelessness (USICH ) Blog: Opening Doors sets a national
goal of ending family homelessness by 2020. In one way, this goal is audacious and bold, and in another,
it’s too far off—we need to end family homelessness as soon as possible. Each day we do not, children’s
lives are torn off-course and their futures are threatened. Homelessness is life-disrupting and potentially
traumatizing for anyone, but it is particularly so for children; instability and lack of security can negatively
impact children's health, development, and academic achievement. Unfortunately, in the last Point-In-Time
count report, family homelessness was up slightly, 1.4 percent, from the previous year. Find HUD release
covering PIT here. Given that the 2012 PIT followed the deepest point of the recession this slight uptick
wasn’t surprising. In fact, family homelessness would almost certainly have been much worse had it not
been for the Homelessness Prevention and Rapid Rehousing program, funded through the American
Recovery and Reinvestment Act, which assisted more than 1.3 million individuals and families with
prevention and rapid rehousing assistance. Read complete Blog.
HUD-VASH: Check out the following resources listed in the “What’s New” menu on the right-hand side of
HUD’s webpage for HUD-VASH:
A letter from Assistant Secretary Henriquez to PHAs administering HUD-VASH, on HUD and VA strategies for the
program moving forward
The slides and video recording for the HUD-VASH webinar, Building Community Partnerships
The HUD-VASH Reference Guide, a two-page document providing an easy-to-read overview of the unique
requirements governing the voucher side of HUD-VASH
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HUD-VASH National Team
http://www.va.gov/HOMELESS/HUD-VASH.asp
http://www.hud.gov/offices/pih/programs/hcv/vash/
Rural News: Check out the Housing Assistance Council (HAC) website for current events and news.
According to the Housing Assistance Council, the fiscal year 2013 Continuing Resolution passed by the
Congress and signed by the President includes provisions maintaining the eligibility of areas currently
eligible for USDA Rural Development home mortgage programs through September 30th, the end of
the2013 fiscal year.
Rural Housing Program: The March 27th Federal Register seeks public comment by May 28, 2013 on a
proposed rule through which HUD will establish the Rural Housing Stability Assistance program which
replaces the previously-authorized but never implemented Rural Homelessness Grant program authorized
by the HEARTH Act. Under the new program, HUD can competitively award grants to rural counties in
lieu of awards under the traditional Continuum of Care program. The grants focused on “the homeless
issues unique to rural areas” and may be used to provide “rent, mortgage, utility assistance; relocation
assistance; short term emergency lodging; new construction; acquisition; rehabilitation; emergency food
and clothing; employment assistance and job training; health related services; housing search and
counseling services; referrals to legal services; mental health services; substance abuse treatment services;
and transportation.”. Applicants must be county governments or designees of county governments such as
units of local governments or non-profits. The notice also includes a proposed revision of the term
“chronically homeless” as well as “rural area” and “rural community” as earlier defined by the McKinney-
Vento Act for which HUD is also seeking comments.
The Silver Jacket teams of Ohio and Indiana with support of the Midwest Regional Climate Center have
launched a Silver Jackets Flood of 1913 website. This site is packed with historical information on the
storm as well as current day tips on flood preparedness, mitigation, and more.
The Silver Jackets - An Ongoing National Flood Response Public
outcry after the landmark Flood of 1913 event helped drive the creation of many of the federal,
state and local flood prevention and education efforts we rely on today. In the spirit of
collaboration, the Silver Jackets gathers teams of federal, state and local agencies to work on
state-initiated flood preparedness, warning, and response projects. The Silver Jackets
commemoration of the Flood of 1913 is being led by the Ohio and Indiana Silver Jacket teams
including the HUD Field Offices in Ohio. A full list can be found here:
USDA Rural Development will be holding a series of teleconferences in the months ahead about its
Section 538 Guaranteed Rural Rental Housing Program. Participation is limited and the times and dates of
the teleconferences will be sent to participants who register according to instructions in the March 21st
Federal Register.
The Building Michigan Communities Conference is April 29-May 1 at the Lansing Center in Lansing. In its
15th year, the conference has grown to become the largest event of its kind in the United States. National experts
and advocates on housing, community development, finance and public policy are featured. Highlights this year
include such exceptional speakers as U.S. Congressman Barney Frank of Massachusetts and HGTV star Carter
Oosterhouse. Registering online is fast and easy. Find out more and register at
www.buildingmicommunities.org.
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IN THE NEWS
New 2012 Rental Housing Finance Survey (Housingonline.com): The U.S. Census Bureau and HUD recently
released the new 2012 Rental Housing Finance Survey, which provides a more complete picture of the nation's
multifamily rental properties, including data on property values, how their mortgages are financed, and
characteristics of the structures. More specifically, this new survey builds on previously known information and
collects additional data. Read results here: HUD and Census Bureau release joint study on Multifamily
Housing properties
Home sales are set to keep marching upward (USA Today) this year after hitting their highest level in five
years in 2012, economists say. Existing-home sales for the full year rose 9.2% from 2011, according to
preliminary data, the National Association of Realtors reported…read full article.
Americans Seizing Second Chance Lifting Recovery: Mortgages (Washington Post) Jason Schmitt lost his
$90,000-a- year job at an oil rig in 2009. The bank repossessed his Tulsa, Oklahoma home and the former Army
combat engineer went bankrupt. Last month, after moving with his family to his Missouri hometown, he got a
Veterans Administration mortgage that lets borrowers buy property just two years after a foreclosure. Read full
article.
Home Loans Fest Announced by Loans.net (Yahoo!News) An online carnival of home loan companies will
cater to thousands of customers at Loans.net. If you have ever been to a job fair you know how it works.
Hundreds of employers gather at one place and conduct one-on-one interviews with applicants. The ambience
facilitates quick decision-making and helps both parties expedite the overall process. Loans.net decided to apply
the same concept to home loans, and has hosted an online fest where thousands of lenders gather and work
collectively to help applicants interested in applying for a home loan. The only difference is that this networking
will take place online at Loans.net. Since hundreds of lenders will work together, it is more than likely that
individuals with credit issues and previous rejections will find help as well. The fest is all about choices -- lots
of choices for both parties. Read full article here.
Short sales skyrocket in past year (philly.com) Over the past year, no two words have been heating up the
real estate world more than "short sales." As RealtyTrac reports, short sales accounted for almost a third of all
sales in 2012. That's not necessarily bad news for the housing market. With fewer foreclosures and more short
sales, more lenders and borrowers are walking away from homes without paying the huge financial (and often
emotional) price of a foreclosure. "A lot of short sales involve sellers who are having financial problems but
they're still willing to make something work," says Elizabeth Weintraub, a real estate agent in Sacramento,
Calif. In a short sale, a homeowner owes more on a loan than the property is worth. The property is put up for
sale, and the lender accepts the proceeds from the sale as repayment of the loan. While a short sale still
negatively affects a borrower's credit score, and it is certainly not a "short" process, both the borrower and
lender avoid the fees and costs of a foreclosure. Do your research: Before you set your sights on a short sale,
speak with a lender who can assess your situation, says Tracy Royce, an Arizona-based short sales and
foreclosure expert. "See if your lender can do a loan modification instead and then discuss whether or not a
short sale is the best way to go," she says. Typically, a short sale is not the only solution for financially
struggling homeowners. "It's just one tool in the tool box," Royce says. However, if it's determined that a short
sale is optimal, reach out to a local professional with extensive short sale experience. "There's no cookie cutter
process and all short sales are different, so it's important to find an agent who knows how to do them all,"
Weintraub explains. Read full article.
Page 6 of 9APRIL IS FAIR HOUSING MONTH
“Our Work Today Defines Our Tomorrow.”
Fair Housing Media Campaign: HUD and the National Fair Housing Alliance (NFHA) today launched a
national media campaign to educate the public and housing providers about their rights and responsibilities
under the Fair Housing Act. The campaign, titled “Fair Housing Is Your Right. Use It,” includes English,
Spanish, and Chinese radio and print public service advertisements (PSAs) that feature examples of actions
which violate the Fair Housing Act and let the public know what to do if they experience housing
discrimination. In addition to radio and print public service announcements, the campaign will use the latest
digital and social media to amplify the outreach effort. The launch of the campaign coincides with the beginning
of Fair Housing Month when the nation marks the passage of the 1968 Fair Housing Act following the
assassination of Dr. Martin Luther King, Jr. The Fair Housing Act makes it illegal to discriminate in the sale or
rental of housing based on race, color, sex, religion, national origin, familial status or disability. This year’s Fair
Housing Month theme is “Our Work Today Defines Our Tomorrow,” spotlighting HUD’s current enforcement
and education and outreach efforts and the work of its fair housing partners are helping to foster sustainable,
inclusive communities of opportunity for future generations. One of the campaign’s print ads features a woman
in a wheelchair and her service animal, drawing attention to persons with disabilities who often face housing
discrimination. Another print ad featuring a woman wearing traditional Muslim headdress highlights the
persistence of discrimination based on religion. Each PSA encourages anyone who experiences discrimination
to call HUD’s housing discrimination hotline (1-800-669-9777), contact a local fair housing agency, or visit
HUD’s fair housing Web site: www.HUD.gov/fairhousing. Read complete press release here.
Field Office Happenings
To read all press releases announcing grants and other HUD news in your area, check out
the state pages on the HUD Website here: Illinois; Indiana; Michigan; Minnesota; Ohio;
and Wisconsin.
Chicago
Midwest Regional Administrator, Antonio R. Riley joins HUD
Deputy Secretary Maurice Jones (at podium) and Governor Pat
Quinn (far right) in February to announce that HUD and HHS
awarded Illinois nearly $12 million in rental assistance to provide
permanent supportive housing to extremely low-income persons
with disabilities in Illinois to prevent homelessness or unnecessary
institutionalization. A grant was also made to Minnesota.
On March 12th,
Antonio R. Riley
participated in Chicago’s Federal Executive Board’s (FEB)
Interagency Sustainability Forum. The half-day session
started with the FEB presenting Mayor Rahm Emanuel a
Green Government Leadership award, crafted from recycled
metals and reused bicycle parts, for his efforts in creating a
sustainable Chicago. Mayor Emanuel’s efforts resulted in the
U.S. Chamber of Commerce naming Chicago as the most
sustainable large community in 2012. In his remarks the
mayor said his goal is to make Chicago the model green city
Antonio Riley joins Chicago’s FEB to present Mayor Emanuel
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(standing center) a Green Government Leadership Awardin America and in the process put more people to work. The mayor also focused on the importance of
Chicago’s partnerships with HUD, U.S. Environmental Protection Agency (EPA), U.S. Department of
Transportation (DOT) and U.S. Army Corps of Engineers (USACE). Following the award ceremony, Mr. Riley
participated on a sustainability panel with federal and city partners. The current successes in creating
sustainable communities in Region V have a lot to do with the Partnership for Sustainable Communities. Since
2009, this joint partnership between HUD, DOT, and EPA, has focused on “creating solutions to address
regional challenges and opportunities.”
Columbus
Columbus Field Office Leverages Smart Phone Technology to Promote Fair Housing: Other than texting, taking
photos, using apps, and occasionally making calls, a unique capability of smart phone technology is accessing
videos on demand. The challenge is how to connect people directly to the information they need. To promote
access to free videos on HUD’s Fair Housing Playlist on YouTube, the Innovation Time Team at the Columbus
Field Office developed a simple, full-color business card-sized handout that features the Fair Housing message,
contact numbers and a QRC (Quick Response Code) that provides a direct link to the playlist via a free smart
phone app. On the reverse of the card is contact information for the Columbus Field Office and a second QRC
which provides directions to the office via Google Maps. The Innovation Team has also developed a second
card on homeownership and avoiding foreclosure.
Grand Rapids
On Monday, February 18, 2013, Field Office Director, Louis M. Berra,
Sr. Management Analyst, Terri Sanchez and Single Family Appraiser,
Kathy Coon volunteered to participate in a Bingo event for at the
Grand Rapids Home for Veterans as part of the Federal Day of
Caring. Employees brought in a variety of items to distribute to
Veterans. This event is one that our Veterans look forward to each
year. Their enthusiasm is heartwarming to all of us volunteers who
take pleasure in seeing their smiling faces.
Throughout the year employees from the Grand Rapids HUD office, as
well as Department of Labor staff bring in donations based on a list of
Veteran’s needs. These additional items help defer costs to Veterans
who are often limited in financial resources. Items such as toiletries,
books, games, movies and clothing are delivered in boxes at least three times a year.
If this Region V Newsletter was forwarded to you by a colleague or you know someone who would like to
sign up to receive it, please select your State to register for automatic e-mail delivery: Illinois, Indiana,
Michigan, Minnesota, Ohio or Wisconsin. For other HUD newsletters, go here.
Page 8 of 9Minneapolis
HURRICANE SANDY RELIEF EFFORTS
Anthony Landecker, Mary Burbank, and Thomas Koon spent several
weeks working in New York and New Jersey in the aftermath of
Hurricane Sandy. Mr. Koon is a Program Manager with the HUD
Minneapolis Field Office of Community
Planning and Development. He explained
that most of his time was spent at the Toms
River Disaster Recovery Center which is the
busiest center in New Jersey. Tom worked
in coordination with FEMA, local social
service agencies, and the Small Business Secretary Donovan meets with leaders
Administration (SBA). Each day, Tom
Thomas Koon assisted individuals with housing related issues including referrals to HUD housing
counseling agencies regarding mortgages or credit counseling, housing authorities,
affordable housing developments, conducting searches for rental housing, suggesting tactics for obtaining
housing, and addressing other barriers to obtaining housing. Often there were very stressful moments as many
survivors were dealing with emotional issues about major decisions moving forward in their lives. Tom worked
closely with social workers, SBA and FEMA officials whose clients had multiple issues that were exacerbated
by the storm or individuals who needed additional assistance and could not be served by one agency. Tom
explained that it was a very rewarding experience to provide more direct information to clients and to see the
importance of effective government involvement in the lives of people during the aftermath of a disaster. He
thanks those coworkers who stepped in to help with his regular duties in Minnesota and commends his
supervisor for allowing him to have the opportunity to serve on disaster duty.
Sincerely,
Antonio R. Riley
If this Region V Newsletter was forwarded to you by a colleague or you know someone who would like to sign up to receive it,
please select a State from Illinois, Indiana, Michigan, Minnesota, Ohio or Wisconsin. For other HUD newsletters, go here.
Follow us on Twitter @HUDMidwest
Page 9 of 9FEBRUARY 2013
POLICY BRIEF
Investigating the
Relationship Between
Housing Voucher Use
and Crime
A 2008 feature in The Atlantic (“American Mur- debunk, the presumption that an influx of
der Mystery”1 by Hanna Rosin) highlighted the families with vouchers into a neighborhood
correlation between the presence of house- increases crime.
holds using housing vouchers in a community
and crime levels. The article, which drew from A recent Furman Center study fills this gap
interviews and maps in the Memphis area, by examining whether, in fact, households
amplified common fears that families with with vouchers bring higher crime with them
vouchers bring crime with them when they into neighborhoods. Using neighborhood-
move to a new neighborhood. Community level data on crime and voucher use in 10
resistance to households assisted by the Hous- cities, our study finds no evidence that an
ing Choice Voucher (HCV) program is noth-
2
increase in households using vouchers results
ing new. The media has long stoked specula- in increased crime in a neighborhood. Instead,
tion that increased crime follows households we find that households with vouchers tend
with vouchers, and fear of increased crime has to settle in areas where crime is already high.
WWW.FURMANCENTER.ORG
fueled community resistance that threatens
to undermine the effectiveness of the voucher Our results show that community resistance
program. However, until recently, virtually to households with vouchers based on fears
no empirical research existed to fortify, or about crime is unwarranted. Moreover, our
finding that voucher holders tend to use
1 Rosin, H. (2008, July/August). American Murder Mystery. their vouchers in communities with elevated
The Atlantic. Retrieved from http://www.theatlantic.
com/magazine/archive/2008/07/american-murder-mys- crime rates raises important questions about
tery/306872/
whether the voucher program is achieving
2 The Housing Choice Voucher (HCV) program provides
federally funded but locally administered housing subsi- its objective of allowing low-income house-
dies that permit the recipient to select and change housing
holds to choose from a wider range of neigh-
units as long as those units meet certain minimum health
and safety criteria. borhoods. After describing our research andresults, this policy brief considers the rele- Our Findings: Housing
vance of these two findings to recent policy Voucher Recipients Don’t
debates and initiatives involving the voucher Cause Crime; They Tend to
program. Follow in its Wake
While crime is higher in census tracts in which
Separating Causation higher numbers of households use vouch-
from Correlation ers, our study finds that the statistically sig-
We tested the validity of the claim that an nificant association between the number of
influx of households using vouchers leads households with vouchers in a neighborhood
to an increase in crime in a neighborhood in one year and crime levels in the follow-
by using annual neighborhood-level data on ing year disappears after controlling for pre-
vouchers and crime from 10 large American existing differences between neighborhoods
cities: Austin, Chicago, Cleveland, Denver, where voucher holders settle and other neigh-
Indianapolis, New York, Philadelphia, Port- borhoods, and crime trends in the broader
land, Seattle, and Washington, DC. We used sub-city area.
census tracts as a proxy for neighborhoods. 3
We find similar results when we separately test
We used multiple regression analysis to test the relationship between voucher holders and
whether the number of voucher holders in a property crime (including burglary, larceny,
neighborhood is associated with crime levels motor vehicle theft, and arson) and the rela-
in the subsequent year, after controlling for tionship between voucher holders and vio-
pre-existing differences between the neigh- lent crime (including homicide, rape, aggra-
borhoods where voucher holders tend to set- vated assault, and robbery). In neither case
tle and other neighborhoods, crime trends in do we find that increased numbers of house-
the broader area, and selected neighborhood holds using vouchers in a neighborhood lead
characteristics that vary over time. The pur- to increased crime.
pose of these control variables was to weed
out differences across neighborhoods that Finally, we examine whether the results vary
Investigating the Relationship between Housing Voucher Use and Crime
might contribute to crime rates, allowing us according to the level of poverty in a neigh-
to isolate the effect of voucher use on crime. 4
borhood. Even in low-poverty neighborhoods,
the research provides no evidence that the
addition of households using vouchers has
an effect on crime.
In short, our research shows that crime is
not following households with vouchers into
neighborhoods. However, we do find a relation-
ship between current crime in a neighborhood
and future voucher use in that neighborhood,
3 We gathered crime data for those cities from municipal
suggesting that households with vouchers are
police departments, other researchers, and the National locating in neighborhoods where crime levels
Neighborhood Indicators Partnership (a collaborative part-
nership led by the Urban Institute). The U.S. Department are already high.
of Housing and Urban Development (HUD) provided data
about the number of housing choice voucher holders and
public housing tenants in each census tract each year.
4 In “American Murder Mystery,” Rosin concluded that
voucher holders caused increased crime because she found
a simple correlation between crime and the number of
voucher holders in a neighborhood. The article did not
report any further analysis to determine the nature of this
relationship.
2Urban Institute Study Also Challenges
Crime and Voucher Perceptions
An April 2012 study by the Urban Institute Notably, an influx of public housing resi-
examined a related popular perception: dents using vouchers to move to neighbor-
households using vouchers to relocate from hoods had the greatest impact on crime in
public housing lead to increased crime in the census tracts that already had high rates of
neighborhoods to which they move. Look- poverty and crime. As a result, the authors
ing at the relocation of public housing ten- concluded, “Our story is not the popular ver-
ants in Atlanta and Chicago, the study found sion of previously stable communities spi-
that demolishing public housing and relo- raling into decline because of public hous-
cating residents by giving them vouchers to ing residents moving in, but rather a story
rent housing on the private market was fol- of poor families moving into areas that were
lowed by a reduction in crime citywide and already struggling.”
a drastic reduction in crime in the former
public-housing neighborhoods. It also found For traditional voucher holders (those not
some negative impacts (crime declined less relocated from public housing), the study
than it would have otherwise) in the neigh- found no impact on crime at any level of
borhoods to which the tenants relocated, concentration in Atlanta. In Chicago, the
but only when the percentage of relocated authors found an impact on violent crime
households in the neighborhood’s popula- but only when the share of voucher hold-
tion reached a particular threshold. In Chi- ers in the neighborhood reached a very high
cago, crime was affected once there were level (64 households per 1,000).
two to six voucher households per 1,000
households; in Atlanta, the effect on crime Popkin, S. J., Rich, M. J., Hendey, L., Hayes,
was not seen until there were six to fourteen C., & Parilla, J. (2012, April). Public Housing
Investigating the Relationship between Housing Voucher Use and Crime
relocated voucher households per 1,000. In Transformation and Crime: Making the Case
most census tracts in Chicago and Atlanta, for Responsible Relocation. Retrieved from
the share of residents using vouchers was http://www.urban.org/UploadedPDF/412523-
below these thresholds. public-housing-transformation.pdf
Lessons from the Study such as through public education campaigns
Contrary to the stigma the media and pop- and targeted outreach to landlords that dis-
ular opinion often attach to families who tinguishes between facts and myths about
use vouchers, an increase in the number of voucher recipients.
voucher holders in a neighborhood did not
drive a subsequent increase in crime in the The tendency of households to use vouchers
10 cities we studied. Yet opposition persists, in neighborhoods with high crime rates also
at least in some communities. Policymakers has public policy implications. One of the
should be careful not to let this mispercep- voucher program’s central purposes is to help
tion motivate public policy. Policymakers and households reach “better” neighborhoods; our
advocates who support the voucher program findings suggest that, at least where better is
may want to consider ways to combat neg- equated with low crime rates, this objective
ative stereotypes associated with vouchers, is not being achieved. Of course households
3with vouchers face limited options because of There are also two HUD initiatives currently
the program’s rent limits; but our results raise underway that take aim at program-admin-
the question of whether there are additional istration barriers to housing choice faced by
barriers limiting the ability of households voucher holders.
to reach lower crime areas (such as discrim-
ination by landlords against voucher house- First, HUD’s Small Area Fair Market Rent Project
holds, administrative burdens that discourage is an attempt to mitigate the barriers to mobil-
landlords from accepting vouchers or tenants ity that may be caused by setting Fair Market
from moving to new jurisdictions, or voucher Rents at the metropolitan area level. The “Fair
recipients’ limited information or resources Market Rent” (FMR) is traditionally set at the
for relocation). At minimum, further inves- 40th percentile of rents (adjusted for apart-
tigation into what might be driving voucher ment size) within a metropolitan area.6 Vouch-
recipients to move to higher crime neighbor- ers provide a subsidy that covers up to the dif-
hoods should be a priority for policymakers ference between 30% of a household’s adjusted
interested in ensuring that the voucher pro- income and the HUD-set FMR for its housing
gram is achieving its intended goals. market.7 Because the FMR is set at the level of
the metropolitan area, it often falls below what
Currently, there are a number of policy initia- is needed to rent an apartment in many neigh-
tives that aim to remove some of these pos- borhoods in a region. Thus households with
sible barriers. One response that directly tar- vouchers may be constrained to live in lower
gets landlord discrimination against voucher cost areas, which also have higher crime rates.
use is already underway in many jurisdic- With its Small Area FMR Project, HUD is exper-
tions. Attempting to limit the ability of land- imenting with defining FMRs at the zip-code
lords to reject an applicant solely because level.8 By setting FMRs for smaller geographi-
of voucher status, some jurisdictions have cal areas, households should have more options
passed laws prohibiting discrimination on about where within a region they can locate.
the basis of source of income. In addition to
provisions of federal law and regulations that Second, HUD is considering a number of
Investigating the Relationship between Housing Voucher Use and Crime
prohibit source of income discrimination by reforms to improve the process by which
owners of certain types of federally subsidized households with vouchers move from one
housing, 12 states and 42 cities and counties public housing authority (PHA) to another.
have adopted prohibitions on discrimination The voucher program is administered by local
against voucher use.5 But, as these numbers PHAs; within a single metropolitan area, there
reveal, in the vast majority of jurisdictions may be one PHA or there may be many. Moving
voucher holders in the private housing mar- between PHAs with a voucher can be accompa-
ket do not enjoy this kind of protection. nied by red tape and, at times, resistance from
PHAs that do not want to bear the expense and
administrative burden of a new household.
6 Schwartz, A.F. (2010). Housing Policy in the United States
(2nd ed., pp.178-179). New York, NY: Routledge.
5 Tegeler, P., Cunningham, M., & Austin Turner, B. (Eds.).
(2011, March). Keeping the Promise: Preserving and Enhanc- 7 Schwartz, A.F. (2010). Housing Policy in the United States
ing Housing Mobility in the Section 8 Housing Choice Voucher (2nd ed., pp.178-179). New York, NY: Routledge.
Program, Appendix B: State, Local, and Federal Laws 8 Docket No. FR-5413-N-01, “Section 8 Housing Choice
Barring Source-of-Income Discrimination. Washington, DC: Voucher Program—Demonstration Project of Small Area
Poverty & Race Research Action Council. Retrieved from Fair Market Rents in Certain Metropolitan Areas for Fiscal
http://prrac.org/pdf/AppendixB-Feb2010.pdf Year 2011,” 75 Fed. Reg. 27,808, 27,810 (May 18, 2010).
4Reforms aimed at making moving between Conclusion
PHAs easier would include requiring a receiv- With this study, we took a rigorous look at a
ing PHA to obtain HUD approval before refus- common belief about housing voucher recipi-
ing an incoming household, adding additional ents—that they cause crime in their neighbor-
time to the voucher apartment search time hoods to increase. Not only does this percep-
limit to accommodate the moving process, and tion result in a broad, negative stereotyping of
requiring PHAs to absorb incoming households this population, but it also may result in the
in certain circumstances. 9
creation of barriers that limit housing choice
and thereby undermine the effectiveness of
These HUD reforms, which aim to make the voucher program. Through a detailed
voucher use more flexible, and the source- examination of data from 10 large American
of-income protections described above, which cities, our study shows that this assumption is
aim to combat landlord reluctance, attempt wrong. Instead, we find that voucher holders
to solve some of the problems that may be tend to settle in neighborhoods where crime
impeding the ability of households to reach is already high.
different neighborhoods. Policymakers and
researchers should continue to think cre- While our study did not explore what factors
atively about how to better understand why determine where households using vouchers
it is that households with vouchers end up locate, investigation of that question is critical.
living where they do. Source-of-income protections and the HUD
reforms discussed above take aim at the pro-
grammatic barriers and landlord resistance
that might be fueling our findings. Studying
the effects of these new policies, in addition
to testing other factors that might be limit-
ing household mobility, should be a priority
for policymakers interested in ensuring that
vouchers are as effective as possible at broad-
Investigating the Relationship between Housing Voucher Use and Crime
9 Docket No. FR-5453-P-01, “Public Housing and Section 8
ening residential choices and improving the
Programs: Housing Choice Voucher Program: Streamlining
the Portability Process,” 77 Fed. Reg. 18,731 (March 28, 2012). lives of the people they seek to help.
About the Furman Center and Moelis Institute for Affordable Housing Policy
The Furman Center for Real Estate and Urban Policy is a joint center of the New York University
School of Law and the Robert F. Wagner Graduate School of Public Service at NYU. Since its founding
in 1995, the Furman Center has become a leading academic research center devoted to the public
policy aspects of land use, real estate development, and housing. The Furman Center launched the
Moelis Institute for Affordable Housing Policy to improve the effectiveness of affordable housing
policies and programs by providing housing practitioners and policymakers with information
about what is and is not working, and about promising new ideas and innovative practices.
furmancenter.org
5FURMAN CENTER FOR REAL ESTATE & URBAN POLICY
NEW YORK UNIVERSITY S C H O O L O F L A W • W A G N E R S C H O O L OF P U B L I C S E R V I C E
139 MacDougal Street, 2nd Floor, New York, NY 10012 ∙ T (212) 998 6713 ∙ F (212) 995 4313 ∙ www.furmancenter.org
For Immediate Release Contact: Shannon Moriarty
March 15, 2013 sm4901@nyu.edu
212-998-6492
New Report Finds that Housing Voucher
Recipients Don’t Cause Crime, but Tend
to Follow in its Wake
NYU’s Furman Center for Real Estate & Urban Policy debunks the myth that households with
vouchers lead to increase in neighborhood crime; finds that recipients tend to settle in
neighborhoods with existing high crime rates.
Report findings raise questions about if the housing voucher program is meeting
its stated goal of helping recipients reach “better” neighborhoods.
NEW YORK, NY – A new report debunks the myth that housing voucher recipients cause a rise in
neighborhood crime. The study, released today by NYU’s Furman Center for Real Estate and Urban
Policy and Moelis Institute for Affordable Housing Policy, found that housing voucher recipients do not
cause crime, but tend to move into neighborhoods where crime levels are already high. These findings
raise questions about whether the voucher program is meeting its objective of helping recipients reach
“better” neighborhoods.
The report, “Investigating the Relationship between Housing Voucher Use and Crime,” (PDF) includes
the results of a Furman Center study that tested the commonly held belief that an increase in
households using vouchers in a neighborhood leads to a rise in crime. Using housing voucher and crime
data from 10 large American cities, including Austin, Chicago, Cleveland, Denver, Indianapolis, New York,
Philadelphia, Portland, Seattle, and Washington, DC., researchers examined how neighborhood crime
levels changed after an increase or decrease in the number of households using vouchers.
The study found that while crime is higher in areas in which more households use vouchers, these
elevated crime levels existed prior to the influx of households using vouchers, discrediting speculation
that households with vouchers cause crime in a neighborhood to increase.“Despite the lack of rigorous research to support the claim that housing voucher recipients cause crime
to increase, this misconception has fueled fear and community resistance,” said Ingrid Gould Ellen,
faculty co-director of the Furman Center and co-author of the study.
The trend of housing voucher recipients locating in areas with high crime rates, however, has significant
implications for the Housing Choice Voucher Program, which aims to assist households reach a broader
set of neighborhoods. The report raises questions about what might be limiting the ability of voucher
recipients to reach lower crime areas.
“These findings raise questions about the degree to which the Housing Choice Voucher program is
opening up new neighborhood opportunities for households,” said Ellen. “This could be due to the
shortage of units renting at levels subsidized by the voucher program, limited information,
administrative burdens, or discrimination by landlords.”
“At a minimum, determining what is driving households with vouchers to move to higher crime
neighborhoods should be a priority for policymakers to ensure that the Housing Choice Voucher
program is meeting its goals,” said Ellen.
Policy brief now available: Investigating the Relationship Between Housing Voucher Use and
Crime (PDF)
***
The Furman Center for Real Estate and Urban Policy is a joint center of the New York University School
of Law and the Robert F. Wagner Graduate School of Public Service. The Furman Center is the leading
academic research center in New York City devoted to the public policy aspects of land use, real estate,
and housing development, and is dedicated to providing objective academic and empirical research.
More information on the Furman Center can be found at www.furmancenter.org.You can also read
