Public Housing Waitlist Project
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Overview:
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This project is a study of waitlists used to allocate vouchers and public housing by United States Public Housing Authorities (PHAs). This will be part of a broader research project, which aims to use linked datasets for several cities to study the consequences of these wait times for the selection of households into housing assistance. The research question is: “When PHAs run multi-year waitlists, are the most needy households more or less likely to receive assistance?” Economics provides theories that predict opposite outcomes. According to neoclassical theories, households with the highest ``valuation'' of vouchers or public housing will be the most willing to wait a long time to receive it, and so they will make sure to update their contact details and stay in touch with the housing authority over such a long time. On the other hand, a behavioral economics view would suggest that the most vulnerable households are less likely to receive assistance, because they will experience more “missed connections” due to the general instability that these households face. The project will try to use data in order to determine which view is more accurate, and to provide recommendations to housing authorities on how to improve their allocation of different forms of housing assistance.
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I worked on this project under the wonderful guidance of Professor Winnie van Dijk (Harvard University), Rob Collinson (University of Notre Dame) and Dan Waldinger (New York University).
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I started by going through the Code of Federal Regulations to identify the relevant laws that outline what PHAs are / aren’t allowed on allocation of the three main forms of assistance (HCV, PBV, public housing):
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However, beyond that, PHAs have the authority to set any local policies they want to observe, over selection preferences or the opening and closing of waiting lists (in whole or part) [2] for example, so long as they publicly announce such decisions. These local policies are overseen by a locally appointed board of commissioners and written into an Admission and Continued Occupancy Plan (ACOP). The PHA then consults with a Resident Advisory Board (RAB) to develop Five-Year and Annual Plans, making sure local rules are in conjunction with their assistance and mobility objectives.
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Next, I validated that waitlists are the most used PHA tool to manage the overwhelming demand and limited supply due to limited federal funding. According to the Department of Housing and Urban Development 2020 Picture of Subsidized Households, at least 3543 of the 3754 (94.38%) PHAs were using waitlists to allocate at least one form of assistance. These waitlists are incredibly long. Averages by state range from nine months in Nebraska and West Virginia to five years in Alabama. The average wait time from the date an applicant enters the waiting list to being admitted is 34.25 months or 2.85 years nationally! These average wait times are a massive ordeal to the most needy households who may drop off waitlists because of the general instability they face.
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To support the statement that on average, applicants to public housing or vouchers wait multiple years before
receiving assistance, we used data from the Picture of Subsidized Households to create histograms like such:
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*x axis in months
*excluding values <0, which means the Department of Housing and Urban Development has no waiting list data on these PHAs
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Then, we found that there is also some evidence that take-up rates are low, even for HCVs. HCVs are the most prevalent form of rental assistance provided, currently serving roughly 5 million individuals in 2.3 million low income households and covering rent and utilities that exceed 30% of a household’s income, up to a “Fair Market Rent” cap that HUD calculates. As of July 2021, only 1 in 4 low-income renters eligible for a housing choice voucher (and not receiving other rental assistance) was provided one, “Low income renter” meaning the household makes 80 percent or less of local median income and “needing rental assistance” meaning the household pays more than 30 percent of this monthly income for housing or lives in overcrowded or substandard housing.
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This means over 16 million people in need never get a voucher. This can be attributed to a few reasons. PHAs often close or limit waitlists for allocation efficiency. One 2016 survey by the National Low Income Housing Coalition found that 53% of the waiting lists for vouchers were closed. This means that the applicant numbers on PHA websites do not encapsulate all the need in a community. Even if a waitlist is open, long waiting times discourage people from applying as families face the reality that at many agencies, there are less families with vouchers than those on the waitlist for one. This is due to insufficient voucher funding.
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*Sources: PHA websites and 2020 Picture of Subsidized Households
In the meantime, households on the waitlist continue to face homelessness and eviction, stressors that have long lasting effects on mental and physical health. Other common hardships faced include overcrowding, and moving often between family and friends. It is also important to note here that there are 5.3 million unassisted renter households with children under 18, which has been linked to worse school performance.
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Sources:
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“FY 2022 Fair Market Rent Documentation System.” Fair Market Rents (40th PERCENTILE RENTS) | HUD USER, www.huduser.gov/portal/datasets/fmr.html.
HOUSING SPOTLIGHT: The Long Wait for a Home - Nlihc.org. nlihc.org/sites/default/files/HousingSpotlight_6-1_int.pdf.
“Picture of Subsidized Households.” Assisted Housing: National and Local | HUD USER, www.huduser.gov/portal/datasets/assthsg.html.
“Public Housing Authority Local Policies.” NHLP, 21 Nov. 2017, www.nhlp.org/resources/public-housing-authority-local-policies/.
| By Sonya Acosta and Erik Gartland, et al. “Families Wait Years for Housing Vouchers Due to Inadequate Funding.” Center on Budget and Policy Priorities, 22 July 2021, www.cbpp.org/research/housing/families-wait-years-for-housing-vouchers-due-to-inadequate-funding.
| By Sonya Acosta, et al. “Extend Cares Act Eviction Moratorium, Combine with Rental Assistance to Promote Housing Stability.” Center on Budget and Policy Priorities, www.cbpp.org/research/housing/extend-cares-act-eviction-moratorium-combine-with-rental-assistance-to-promote.
| By Sonya Acosta and Brianna Guerrero[1], et al. “Long Waitlists for Housing Vouchers Show Pressing Unmet Need for Assistance.” Center on Budget and Policy Priorities, 6 Oct. 2021, www.cbpp.org/research/housing/long-waitlists-for-housing-vouchers-show-pressing-unmet-need-for-assistance.
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