Public Housing Transformation

Why does public housing need to be transformed?

Residents of severely distressed public housing neighborhoods face a multitude of challenges, from concentrated poverty, crime, and violence to a scarcity of jobs, ineffective schools, and few opportunities for young people. These often isolated neighborhoods undermine the chances of success for thousands of families and children.

Who are the people living in distressed public housing?

In the early 1990's, public housing provided low-cost shelter to 1.3 million low-income households. More than 80 percent of public housing residents lived below the poverty threshold in 1992, when HOPE VI was created. Also, 88 percent of those living in neighborhoods surrounding severely distressed developments were minorities.

How are the challenges created by public housing addressed?

In 1990, roughly 86,000 of the 1.3 million public housing units nationwide qualified as "severely distressed." In 1992, Congress created a $5 billion program, HOPE VI, a program administered by the Department of Housing and Urban Development, under which some of these developments are being demolished and replaced with mixed-income housing and others are rehabilitated. During redevelopment, residents are offered the choice of moving to a voucher-subsidized apartment in the private market (Section 8 vouchers) or to another public housing unit.

Overall accomplishments of HOPE VI, through 2003

• 51,600 households have been relocated (82 percent of the 62,800 planned total).
• 63,100 old housing units have been demolished (76 percent of the 83,300 planned total).
• 6,700 units have been rehabilitated (60 percent of the 11,200 planned total).
• 22,900 new units have been built (27 percent of the 83,900 planned total).
• 27,300 new or rehabilitated units have been occupied (29 percent of the 95,100 planned total).
• Urban Institute is now analyzing 2005 HOPE VI data, which will be published in the spring of 2007.

Positive effects of HOPE VI

Urban Institute research shows that most people who relocate receive vouchers. Voucher holders live in better housing and in substantially safer neighborhoods with lower poverty concentration. Relocatees' perception of neighborhood safety improved by 76 percent in 2003 from 2001, according to a survey.

Obstacles families face when relocating

• Finding voucher-subsidized housing is difficult in tight rental markets, where landlords can more easily find other tenants. Relocating families frequently face racial discrimination and discrimination against families with children. The stigma attached to being a former public housing resident is also a problem.
• Poor health will affect many public housing residents' ability to relocate and achieve economic self-sufficiency. The need to be close to transportation, social supports, and medical services may limit their relocation options. Forty-one percent of HOPE VI relocatees surveyed in 2003reported their overall health as fair or poor, a rate over three times greater than national self-reports for all adults in the United States.

Overview research

"Saying Good-Bye: Relocating Senior Citizens in the HOPE VI Panel Study"

"Public Housing Transformation and the 'Hard to House'"

"Moving to Better Neighborhoods with Mobility Counseling"

"Resilient Children in Distressed Neighborhoods: Evidence from the HOPE VI Panel Study"

"How Are HOPE VI Families Faring? Health"

"How Are HOPE VI Families Faring? Income and Employment"

In-depth research (PDF files)

"A Decade of HOPE VI: Research Findings and Policy Challenges"

"Overcoming Concentrated Poverty and Isolation"