CY PLAN 113B Lecture Notes - Lecture 11: Concentrated Poverty, Hope Vi, Mark Granovetter
22 May 2018
School
Department
Course
Professor
Mied Ioe Housig March 5, 8
• LIHTC: we have been good at building beautiful housing complexes
o Developed more affordable housing under LIHTC than any other subsidized housing program
in the country
• Public housing failures
o Problems with public housing: segregated and isolated communities
▪ Example: Discriminatory zoning created islands of concentrated poverty
o Poorly managed – due to lack of federal funding (every year, there is less money to do more)
▪ Lack of investment in maintaining buildings and investing in upkeep – less operating
and financial funds to upkeep buildings
o Concentration of non-working poor
▪ Crime
▪ Stigma
o Concerns leads to the rise in community development
o Stopped building public housing because of the lack of political and popular support around it
▪ Under Nixon, he believed that the government operating and owning housing would
be inefficient – vouchers would be better
• 1990 policy context – watershed moment in community development
o Neoliberal paradigm: letting the market and private/public partnerships do its own thing is a
better way to achieving goals rather than big bureaucracy (government)
▪ Political and ideological shift
▪ Inspired by Thatcher – began a program to privatize social housing in England
o President Clinton: concerned about the growth of concentrated poverty right when the
problem just exploded (almost doubled) in 1993; became the forefront of the political
agenda
▪ Strong correlation between concentrated poverty neighborhoods and where public
housing is located
o Funding continues to decline because of the concentrations of poverty – there is no public
support for an institution that is perceived to be a failure
o LIHTC is starting to take off, and the model leveraging private finance for affordable housing
is orkig
o Granovetter (sociology): writes about the strength of social cohesion and social capital
▪ The problem of concentrated poverty is that the communities are so isolated that the
social ties do’t eist ie: o oe has ties to jo opportuities)
▪ The importance of social networks, social cohesion starts to emerge in academic
literature
• HOPE VI
o Aitious effort to redeelop puli housig
o 6 grats i 9 ities to sere as leerage for priate fudig
o Moved public housing out of government ownership, transferring land lease/rights to
nonprofit and private developers
▪ Land is pulled out of government ownership to private ownership – the land now has
value where you can buy and sell in the private market
▪ In public housing, you cannot take out debt out of the property or take out a
mortgage
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