The Poverty & Race Research Action Council (PRRAC) issued a review of HUD’s affirmatively furthering fair housing (AFFH) obligation to promote fair housing choice during the first term of the Obama Administration. Affirmatively Furthering Fair Housing at HUD: A First Term Report Card gives the Administration an incomplete. The report card looks at nine program areas at HUD, plus the Low Income Housing Tax Credit (LIHTC) program, which is administered by the Treasury Department. The report opens noting that, “While fair housing enforcement at the agency has increased noticeably, the task of reforming HUD’s own programs has been painstakingly slow. A flurry of positive activity inside the agency during the first term has not yet been reflected in final program regulations or guidance, even though some of this work has been underway for years.”
Regarding affirmatively furthering fair housing regulation, there is disappointment that despite a thorough public engagement process, HUD did not publish a proposed AFFH rule. PRRAC writes it is crucial that an AFFH proposed rule be issued soon in order to have a final rule early in the second term so that at least one round of local fair housing plans can be submitted and reviewed by HUD while the current Administration is still in office.
HUD has hinted that the AFFH rule will mirror the Fair Housing Equity Assessment (FHEA) process set out in the Sustainable Communities Initiative. While PRRAC is encouraged by this, it is concerned that FHEA is too focused on data and planning, and will not have robust enforcement mechanisms necessary to force AFFH compliance by recalcitrant jurisdictions. The report offers features an effective AFFH rule should have.
The authors are also disappointed that changes to the Section Eight Management Assessment Program (SEMAP) regulations were not proposed. The current system gives public housing agencies little or no credit or incentive to help households move to less racially isolated areas, and their evaluations do not suffer if they have highly segregated voucher programs.
Turning to the LIHTC, PRRAC urges HUD to press the Treasury Department to issue AFFH regulations for the LIHTC program. Treasury rules should ensure that LIHTC-assisted residents and applicants have, at a minimum, the same protections that HUD-assisted residents and applicants have, particularly regarding site selection, affirmative marketing, tenant selection, design and accessibility standards. Because current Treasury standards fail to incorporate fair housing considerations, the report suggests that Treasury develop standards requiring that a significant portion of any LIHTC basis boosts awarded by housing finance agencies be for properties in high-opportunity or revitalizing neighborhoods. For instance, a 30% basis boost is possible in a Qualified Census Tract, a tract that has a poverty rate of at least 25%, a big financial incentive to develop LIHTC units in low-opportunity neighborhoods.
Correcting some of the problems with the HOPE VI program, the Administration’s Choice Neighborhood Initiative (CNI) program requires one-for-one replacement of units demolished or sold. However, PRRAC is concerned that the first five implementation sites will not build the required replacement housing outside of the neighborhood being improved with the CNI grant. The authors are also concerned about the program’s heavy emphasis on facilitating residents’ ability to return to the federally revitalized neighborhood. Requiring some level of mobility counseling for all interested CNI residents and providing incentives for providing services for those who choose to relocate is recommended.
The authors express disappointment that HUD’s annual budget requests have not sought general housing mobility counseling funds, even though such programs return substantial benefits for families at relatively little cost. PRRAC also urges HUD and Treasury to develop methods to enforce the federal law prohibiting HOME and LIHTC owners from refusing to rent to voucher holders.
Other program areas addressed in the report card include: Small Area FMRs, voucher portability, the Sustainable Communities Initiative, the Rental Assistance Demonstration (RAD), the Moving to Work Demonstration, HUD’s Strategic Plan, and the new focus on fair housing in HUD’s competitive grants.
Click here to read Affirmatively Furthering Fair Housing at HUD: A First Term Report Card.