FHCE 3300 1st Edition Lecture 24Outline of Last Lecture I. Public HousingII. Great Depression and Public HousingA. For the Worthy PoorB. For the PoorIII. Bowen and Techwood HomesIV. Housing Act of 1937V. Housing Act of 1949VI. Legislation ProvisionsVII. Lack of Adequate FundingVIII. Local Control Over Low-Income HousingIX. Demolition and Redevelopment of Public HousingA. Pruitt-IgoeB. Discourse of DisasterC. HOPE VID. Achieving Modern Housing VisionE. Emphasis on Public-Private PartnershipsF. Displacement of PoorG. HOPE VI-Inspired RedevelopmentThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Outline of Current Lecture I. Rental AssistanceII. Funding Amount by Program TypeIII. Public HousingIV. Housing Choice VouchersA. How They WorkB. Case Example and Policy Implications V. Rental Assistance ImpactVI. Rental Assistance Problems VII. Rental Assistance GapCurrent LectureI. Rental Assistance- Vast majority of program funding comes from U.S. Department of Housing and Urban Development (HUD)- Programs keep rental housing affordable for low-and moderate-income households- Households pay rent based on income- 2 types: Project-based, tenant-basedII. Funding Amount by Program Type- Additional homeownership-related spending: FHA, Fannie Mae, Freddie MacIII. Public Housing- Major rental assistance program in U.S.- 14,000 public housing developments worldwide- 1 in 5 developments are in rural communities- Owned and operated by local public housing authorities - Serves 2.3 million people- 73% have incomes at or below 30% AMI- Demand far exceeds the supply, long waiting lists IV. Housing Choice Vouchers- Largest federal rental assistance program- Assists more than 2 million households- Reflects policy shift towards market-based subsidies- Flexibility in program allows voucher holders to keep rents at affordable levels if income increases or decreasesA. How They Work- Families use vouchers to rent housing in private market- Amount a voucher covers is based on 3 things1. Payment standard – Rent cap set by housing authority that must be within 90% -110% of Fair Market Rent2. Actual rent and utility costs of unit3. Adjusted household incomeV. Case Example and Policy Implications- Clarke County Extremely low income: Up to 30% AMI = $440 max affordable monthly cost  Very low income: Up to 50% AMI = $733 Low income: Up to 80% AMI = $1172 Fair market rent for 3 bedroom unit = $1012  What is the subsidy required to make rent affordable for each income group? (Assume max. cost) o Extremely low = $572o Very low = $279o Low = None Have $120,000/year in Housing Choice Voucher funding. How many households can you serve at each level? (Assume you could use whole amount for each level) o Extremely low = 17o Very low = 35o Low = Unlimited VI. Rental Assistance Impact- Reduces housing cost burden for low and extremely low-income households- Housing assistance associated with longer duration stays in rental units- Subsidized housing reduces residential mobility- Factor in predicting if those who exited homelessness would become homeless again VII. Rental Assistance Problems- May not help families escape high poverty neighborhoods- Maintenance and management problems (lack of funding, poor property management) can lead to unsuitable living environmentsVIII. Rental Assistance Gap- Only about 1 in 4 households that are eligible for vouchers receive any form of federal housing assistance- Long waiting lists- Families use informal strategies to keep roof over