From the Texas Tribune: Rural housing programs serve Texas’ elderly and disabled. This federal bill could make the process easier.

Fiscal Federalism
Social Goods
- etc. . . . 

- Click here for the article.  

As Texans spend more of their income on paying their rent than essentials like health care, food, and transportation, several bills filed this congressional session aim to make it easier for people in rural communities to continue living there.

Last week, Texas Congresswoman Jasmine Crockett, a Dallas Democrat, introduced House Bill 7412. It would address administrative issues in the Rural Housing Voucher program that prevent people in rural communities from using critical benefits like housing vouchers.

The bill would clean up some of the hurdles, such as making official notices about housing assistance more readable and informing landlords of the program so they are more likely to accept vouchers from tenants. It would also direct the Rural Housing Service office to develop a plan identifying at-risk tenants and ensure they have a fast approval process for vouchers.

Crockett’s bill, along with a package of bills under the Rural Housing Service Reform Act, stand to update the housing landscape for people in far-flung areas around the country.

The federal bills address Section 515, a program through the U.S. Department of Agriculture’s Office of Rural Development. It provides loans to individuals, nonprofit organizations or corporations to build, improve or purchase rural multifamily housing. People who live in rural communities can also receive a housing voucher through the 515 program that can be used toward rent where it is accepted.

Texas, the second most populous state, has 646 Section 515 properties — the largest number of any state — which serve more than 20,000 families.

How far the rural housing bills go depends on action from Congress. Aside from narrowly dodging government shutdowns, political strife has so far caused legislation to be done at a snail’s pace. This includes the new Farm Bill, which continues to be kicked down the road through extensions.

Advocates say the program is vital to keep rural housing affordable for those living paycheck to paycheck — they cater to families with low and moderate incomes, the elderly, and people with disabilities. According to a national report, 92% of Section 515 tenants have incomes that are less than half of the area median income. More than half of households are elderly people or people with disabilities.

From the Houston Chronicle: Mayor Whitmire overhauls Houston Housing Authority board, blames agency for housing voucher pause

More on the powers of a strong mayor as well as housing policy.

- Click here for the article. 

Terminology: 

- Houston Housing Authority
- board of commissioners
- "Section 8” Housing Choice Vouchers
- public housing
- low-income housing assistance
- affordable housing development.
- federal regulations
- Department of Housing and Urban Development
- property taxes
- tax break deals

In later material we will note that affordable housing is considered to be a social good. 

From OffCite: Hazardous: The Redlining of Houston Neighborhoods

For our look at civil rights - and equal protection - in 2305, as well as municipal governments in 2306.

- Redlining "is the practice of denying services, either directly or through selectively raising prices, to residents of certain areas based on the racial or ethnic makeups of those areas."

The process has been argued to be the central reason racially segregated housing patterns persist in the United States - which also maintains de facto racial segregation in public schools despite Brown v Board.

- Click here for the article.

Why are we so compelled to define neighborhoods as “good” or “bad”? Is there one definition of a “good” neighborhood — is it universal? Can a low-income neighborhood be a “good” neighborhood? I often wonder, and frequently challenge, whether these labels accurately depict a place and its people or whether they are self-fulfilling prophecy that makes it easy to invest or divest. The question comes more clearly into focus by understanding the history of neighborhood classification, of “good” and “bad” labels, and why they are too often directly associated with income and ethnicity.

A great deal has been written about “redlining,” which was the practice of denying loans to certain areas of cities based, in part, on race. Not surprisingly, areas that were redlined declined, property values slumped, and for many, the only option was to move. The practice of redlining was institutionalized with the Home Owners’ Loan Corporation (HOLC) Residential Security Maps, though many scholars argue that the maps simply reflected the predominant lending practices of the time — and projected them into the future. Regardless, it is very clear that the maps tell us one part of the story of what went wrong, and how.

More on the Fair Housing Act and discrimination based on physical ability

The previous post includes a story that mentions the Fair Housing Act and discrimination based on physical disabilities, so here's background since it's related to civil rights policy. We don't much time - if any really - on housing discrimination since this is a survey class, but here's an opportunity to learn a bit about it since its topical. This is a bit of a loose timeline - but hopefully its instructive.

- Title VIII of the Civil Rights Act of 1968 is the Fair Housing Act which was the law that made discrimination in the sale, rental and financing of housing based on a variety of factors including race and gender. It is intended to protect buyers and renters from discriminatory practices by landlords, sellers and financiers. As with previous civil rights legislation, it was driven into law by the Johnson Administration and was passed soon after Martin Luther King's assassination.

- The law is implemented primarily by allowing people to sue those they allege are discriminating against them. Which allows the Supreme Court to weigh in on the merit of these suits. An unsympathetic court can throw them out.

- These lawsuits are assisted by the Department of Housing and Urban Development and specifically the Office of Fair Housing and Equal Opportunity. Click here for how to file a housing discrimination complaint. And click here for a statement of your rights to fair housing.

- This was expanded in 1988 to include discrimination against people with disabilities as well as families with children.

- The law was weakened in the late 1980s by making it more difficult to prove discrimination. The Supreme Court has also narrowed the definition of disability in several key Supreme Court cases. Click here for a review of these cases.

- Discrimination against the disabled was expanded substantively in the Americans with Disabilities Act of 1990.

- This lead to a question: What is the legal definition of a disability? "...A physical or mental impairment that substantially limits a major life activity." What does "substantially limits" mean?

- In Sutton v. United Airlines, the court ruled that it was acceptable for the airline to not hire pilots with poor eyesight even if glasses made their vision acceptable. Since the vision could be corrected, it did not "substantially limit" their life activity. They could be discriminated against. One does not a have a disability if there can be a corrective device - like a prosthesis - that allows for some degree of compensation.

- This was based on the courts interpretation of the original language of the ADA, so the language was altered in amendments passed in 2008:

In 2008, effective January 1, 2009, the ADAAA broadened the interpretations and added to the ADA examples of "major life activities" including, but not limited to, "caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, and working" as well as the operation of several specified major bodily functions. The Act overturns a 1999 U.S. Supreme Court case that held that an employee was not disabled if the impairment could be corrected by mitigating measures; it specifically provides that such impairment must be determined without considering such ameliorative measures. Another court restriction overturned is the interpretation that an impairment that substantially limits one major life activity must also limit others to be considered a disability

- The Fair Housing Act has not been expanded to ban discrimination based on sexual orientation or gender identity.

If you are interested:
- The Disability Rights Movement.
- Timeline of disability rights in the United States.

Rodeo Palms residents do not want rental homes nearby

The story about the police chief below included this bit about the further development of Rodeo Palms - which was once intended to be filed with nothing but multi-million dollar homes surrounding a golf course.

Things have changed:

During the Citizen Comment portion of the meeting, several Manvel residents spoke against the building of 200 rental homes in Rodeo Palms. Legend Homes will be the builder and the developer is Skymark Development. Legend Homes and Skymark were both contacted for comments about these homes. By press time, neither had returned phone calls.

Resident Lisa Lexis has lived in the subdivision for six years. “While I am excited about the growth Manvel is experiencing, I am concerned about these rental homes. The density of the homes will invite the criminal element into our community. The renters of these homes will have no vested interest in the homes they are renting or the Manvel community,” she said.

Mayor Delores Martin and Council Members informed the audience that the owner of the property is free to build what he wants. They also informed audience members that the city’s attorney is looking into this situation.

Residents were also informed the city would hear the second and final reading of an ordinance during the meeting that evening. The ordinance amendment deals with buildings and building regulations of the Code of Ordinances of the City of Manvel by adding a new article entitled “Rental Registration and Inspection”. This amendment will establish regulations pertaining to the licensing and inspection of rental residential properties within the city.

Is rental property bad news for a city?

Week Three Written Assignment - GOVT 2302 / 2306

Last week I asked you to look at the relationship between the national government and Texas, specifically the conflict over the Voting Rights Act and its impact on recent changes in Texas' election laws.

This week I want you to look at an interesting conflict between the national government - specifically the Department of Housing and Urban Development (HUD) -  and a nearby local government: the one in Galveston.

Among the things destroyed by Hurricane Ike was public housing on the island. None of it has been rebuilt because of conflicts over how it was to be rebuilt. HUD wants the 569 units destroyed by Ike rebuilt, but a majority in city government want vouchers to be issued which eligible residents can use to get apartments.

The controversy has engulfed the island, and led to a mayor being voted out of office, so its quite the big deal. It also tells us something about the nature of conflict between the national and local governments. I want you to do some research and detail the nature of the conflict. What relevant laws are driving it? What political disputes fuel it? Feel free to take your won approach to the question.

Here are some recent links that might help get you going:

- Galveston Housing Authority.
- Galveston moves toward compliance with HUD ultimatum.
- GHA chairman resigns but decides to stay on.

- Isle voucher advocates may have had their last win.

There's much more.

"A regulator versus regulator dispute" SEC v FHFA

For discussion this week in 2302, some recent federal executive activity. From the Washington Post:

The Securities and Exchange Commission is moving toward charging former and current Fannie Mae and Freddie Mac executives with violations related to the financial crisis, setting up a clash with the housing regulator that oversees the companies, according to sources familiar with the matter.

The SEC, responsible for enforcing securities laws, is alleging that at least four senior executives failed to provide necessary information to investors about the companies’ mortgage holdings as the U.S. housing market collapsed.

But the agency that most closely regulates Fannie and Freddie, the Federal Housing Finance Agency, disagrees with that assessment, according to sources familiar with the matter.

FHFA officials think Fannie and Freddie’s financial disclosures, which agency staff members had reviewed before the documents were released to the public, were sufficient, the sources said. One source added that FHFA has sent a letter to the SEC opposing the filing of charges.

An FHFA spokesman declined to comment.
This is mighty complex. Essentially, one federal regulatory agency charged with investigating securities fraud wants to charge two government sponsored enterprises for activities related to the recent financial crisis, while a fourth agency that oversees those enterprises, wants to protect them from those charges. This is the latest in the housing crisis saga.

More on the story:

- David Indiviglio I.
- David Indiviglio II.
- Life after Fannie and Freddie


Here are the players:

- Securities and Exchange Commission.
- Federal Housing Finance Agency.
- Fannie Mae.
- Freddie Mac.

Fannie and Freddie

In 2302 we glossed through many aspect of the budget, and the institutions budgetary money is allocated to. I'll fill in details over the rest of the semester when relevant stories appear.

Here is one from the NYT. Obama is proposing a gradual abolishment of Fannie Mae and Freddie Mac, two government sponsored enterprises that backup the mortgage industry.

The Obama administration released a broad outline on Friday for the future of housing finance in the United States, calling for a substantial reduction in government support for the mortgage market but providing few concrete details about how it should be accomplished.

In a 31-page report, the administration proposed that the two mortgage lending giants, Fannie Mae and Freddie Mac, should be gradually abolished within 10 years at most, and it gave Congress three options for reducing the government’s role in supporting homeownership. It did not recommend an option; instead, the document was intended to set parameters for what is certain to be a heated and protracted debate.

The story is also covered in Politico.

Here is the administration's report to Congress with the proposal.

CBO Budgetary Treatment of Fannie Mae and Freddie Mac.