Evicted

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Evicted Page 31

by Matthew Desmond


  Landlords like to describe themselves as a special breed. But they are neither alone in making a living off the poor nor are they so different from the rest of us. Large-scale historical and structural changes have given urban landlords the opportunity to make good money, sometimes spectacular money, by providing housing to struggling families at a cost the law has deemed fair and just. If given the same opportunity, would any of us price an apartment at half of what it could fetch or simply forgive and forget losing thousands of dollars when the rent checks didn’t arrive? Emphasizing the importance of exploitation does not mean haranguing landlords as greedy or heartless. It means uncovering the ironies and inefficiencies that arise when policymakers try to help poor families without addressing the root causes of their poverty. It means trying to understand landlords’ and tenants’ acceptance of extreme inequality—and our own.

  Regardless of how landlords came to own property—sweat, intelligence, or ingenuity for some; inheritance, luck, or fraud for others—rising rents mean more money for landlords and less for tenants. Their fates are bound and their interests opposed. If the profits of urban landlords were modest, that would be one thing. But often they are not. The annual income of the landlord of perhaps the worst trailer park in the fourth-poorest city in America is 30 times that of his tenants working full-time for minimum wage and 55 times the annual income of his tenants receiving welfare or SSI. There are two freedoms at odds with each other: the freedom to profit from rents and the freedom to live in a safe and affordable home.48

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  There is a way we can rebalance these two freedoms: by significantly expanding our housing voucher program so that all low-income families could benefit from it. What we need most is a housing program for the unlucky majority—the millions of poor families struggling unassisted in the private market—that promotes the values most of us support: security, fairness, and equal opportunity. A universal housing voucher program would carve a middle path between the landlord’s desire to make a living and the tenant’s desire, simply, to live.

  The idea is simple. Every family below a certain income level would be eligible for a housing voucher. They could use that voucher to live anywhere they wanted, just as families can use food stamps to buy groceries virtually anywhere, as long as their housing was neither too expensive, big, and luxurious nor too shabby and run-down. Their home would need to be decent, modest, and fairly priced. Program administrators could develop fine-grained analyses, borrowing from algorithms and other tools commonly used in the private market, to prevent landlords from charging too much and families from selecting more housing than they need. The family would dedicate 30 percent of their income to housing costs, with the voucher paying the rest.

  A universal voucher program would change the face of poverty in this country. Evictions would plummet and become rare occurrences. Homelessness would almost disappear. Families would immediately feel the income gains and be able to buy enough food, invest in themselves and their children through schooling or job training, and start modest savings. They would find stability and have a sense of ownership over their home and community.

  Universal housing programs have been successfully implemented all over the developed world. In countries that have such programs, every single family with an income below a certain level who meets basic program requirements has a right to housing assistance. Great Britain’s Housing Benefit is available to so many households that a journalist recently reporting on the program asked, “Perhaps it is easier to say who does not get it?” “Indeed,” came the answer. This benefit, transferred directly to landlords in most cases, ensures that paying rent does not plunge a family into poverty. The Netherlands’ Housing Allowance operates in a similar way and helps provide good homes to nearly one-third of all its tenants. It has been remarkably successful at housing the country’s poorest citizens.49

  There is a reason why these countries have come to rely on vouchers. Although vouchers are not everywhere the most efficient option—particularly in expensive cities—they are the best way to deliver a national program. In theory, you could solve the problem by expanding public housing, tax credits, homeownership initiatives, or developer incentives. But each of these options quickly confronts the problem of scale. Vouchers are far more cost-effective than new construction, whether in the form of public housing or subsidized private development. We can’t build our way out. Given mounting regulatory and construction costs, offering each low-income family the opportunity to live in public housing would be prohibitively expensive. Even if it weren’t, building that much public housing risks repeating the failures of the past, by drawing the nation’s poorest citizens under the same roof and contributing to racial segregation and concentrated poverty.50

  Would a universal housing program be a disincentive to work? It is a fair and important question. One study has shown that housing assistance leads to a modest reduction in work hours and earnings, but others have found no effect.51 In truth, the status quo is much more of a threat to self-sufficiency than any housing program could be. Families crushed by the high cost of housing cannot afford vocational training or extra schooling that would allow them to acquire new skills; and many cannot stay in one place long enough to hold down the same job. Affordable housing is a human-capital investment, just like job programs or education, one that would strengthen and steady the American workforce. By and large, the poor do not want some small life. They don’t want to game the system or eke out an existence; they want to thrive and contribute: to become nurses (that was Vanetta’s dream) or run their own charities (that was Arleen’s). A stable home would extend to them the opportunity to realize those dreams.

  Landlords in most states are not obligated to accept families with housing vouchers, and many don’t because they shun extra building-code mandates or the administrative hassle. A universal voucher program would take their concerns seriously. Some building codes are critical to maintaining safe and decent housing; others are far less so. Enforcing a strict building code in apartments where voucher holders live can be an unnecessary burden on landlords and drive up costs.52 But even if code enforcement and program administration were made much more reasonable and landlord-friendly, some property owners—particularly those operating in prosperous areas—would still turn away voucher holders. They simply don’t want to house “those people.” If we continue to permit this kind of discrimination, we consign voucher holders to certain landlords who own property in certain neighborhoods. Doing so denies low-income families the opportunity to move into economically healthy and safe neighborhoods and hobbles our ability to promote integration through social policy. Accordingly, a universal voucher program would not only strive to make participation attractive to landlords, it would also mandate participation. Just as we have outlawed discrimination on the basis of race or religion, discrimination against voucher holders would be illegal under a universal voucher program.

  A well-designed program would ensure a reasonable rent that rose at the rate of inflation and include flexible provisions allowing landlords to receive a modest rate of return. It would also provide them with steadier rental income, less turnover, and fewer evictions. If we are going to house most low-income families in the private rental market, then that market must remain profitable. “The business of housing the poor,” Jacob Riis wrote 125 years ago, “if it is to amount to anything, must be a business, as it was business with our fathers to put them where they are. As charity, pastime, or fad, it will miserably fail, always and everywhere.”53 And yet, housing is too fundamental a human need, too central to children’s health and development, too important to expanding economic opportunities and stabilizing communities to be treated as simply a business, a crude investment vehicle, something that just “cashes out.”

  Making a universal housing program as efficient as possible would require regulating costs. Expanding housing vouchers without stabilizing rent would be asking taxpayers to subsidize landlords’ profits.54 Today, lan
dlords overcharge voucher holders simply because they can. In distressed neighborhoods, where voucher holders tend to live, market rent is lower than what landlords are allowed to charge voucher holders, according to metropolitan-wide rent ceilings set by program administrators. So the Housing Choice Voucher Program likely costs not millions but billions of dollars more than it should, resulting in the unnecessary denial of help to hundreds of thousands of families. In fact, economists have argued that the current housing voucher program could be expanded to serve all poor families in America without additional spending if we prevented overcharging and made the program more efficient.55

  Even if we did nothing to make the voucher program more cost-effective, we still could afford to offer this crucial benefit to all low-income families in America. In 2013, the Bipartisan Policy Center estimated that expanding housing vouchers to all renting families below the 30th percentile in median income for their area would require an additional $22.5 billion, increasing total spending on housing assistance to around $60 billion. The figure is likely much less, as the estimate does not account for potential savings the expanded program would bring in the form of preventing homelessness, reducing health-care costs, and curbing other costly consequences of the affordable-housing crisis.56 It is not a small figure, but it is well within our capacity.

  We have the money. We’ve just made choices about how to spend it. Over the years, lawmakers on both sides of the aisle have restricted housing aid to the poor but expanded it to the affluent in the form of tax benefits for homeowners.57 Today, housing-related tax expenditures far outpace those for housing assistance. In 2008, the year Arleen was evicted from Thirteenth Street, federal expenditures for direct housing assistance totaled less than $40.2 billion, but homeowner tax benefits exceeded $171 billion. That number, $171 billion, was equivalent to the 2008 budgets for the Department of Education, the Department of Veterans Affairs, the Department of Homeland Security, the Department of Justice, and the Department of Agriculture combined.58 Each year, we spend three times what a universal housing voucher program is estimated to cost (in total) on homeowner benefits, like the mortgage-interest deduction and the capital-gains exclusion.

  Most federal housing subsidies benefit families with six-figure incomes.59 If we are going to spend the bulk of our public dollars on the affluent—at least when it comes to housing—we should own up to that decision and stop repeating the politicians’ canard about one of the richest countries on the planet being unable to afford doing more. If poverty persists in America, it is not for lack of resources.

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  A universal voucher program is but one potential policy recommendation. Let others come. Establishing the basic right to housing in America could be realized in any number of ways—and probably should be. What works best in New York might fail in Los Angeles. The solution to housing problems in booming Houston or Atlanta or Seattle is not what is most needed in the deserted metropolises of the Rust Belt or Florida’s impoverished suburbs or small towns dotting the landscape. One city must build; another must destroy. If our cities and towns are rich in diversity—with unique textures and styles, gifts and problems—so too must be our solutions.

  Whatever our way out of this mess, one thing is certain. This degree of inequality, this withdrawal of opportunity, this cold denial of basic needs, this endorsement of pointless suffering—by no American value is this situation justified. No moral code or ethical principle, no piece of scripture or holy teaching, can be summoned to defend what we have allowed our country to become.

  ABOUT THIS PROJECT

  When I was growing up, my father was a preacher, and my industrious mother worked everywhere. Money was always tight. Sometimes the gas got shut off, and Mom cooked dinner on top of our wood-burning stove. She knew how to make do, having grown up across from a junkyard in Columbus, Georgia, and, later, in San Francisco’s infamous Ford Hotel. She had done better for herself and expected us kids to do the same, to go off to college even if she and my father weren’t able to help pay for it. My father drilled this point home in his own way. Whenever we drove past a line of bent-over people, sweating in the sun for some lousy job, my father would turn to us and ask, “Do you want to do that for the rest of your life?”

  “No.”

  “Then go to college.”

  Thanks to some loans and scholarships, I was able to attend Arizona State University, a four-hour drive from my hometown of Winslow. I thought I might want to be a lawyer, so I enrolled in courses on communication, history, and justice. In those classes, I began learning things that did not square with the image of America passed down to me from my parents, Sunday-school teachers, and Boy Scout troop leaders. Was the depth and expanse of poverty in this country truly unmatched in the developed world? Was the American Dream widely attainable or reserved for a privileged few? When I wasn’t working or studying, I was thumbing through books in the library, seeking answers about the character of my country.

  It was around that time that the bank took my childhood home. A friend and I made the four-hour drive and helped my parents move. I remember being deeply sad and embarrassed. I didn’t know how to make sense of it, but maybe something worked its way inside because, once back on campus, I found myself spending weekends helping my girlfriend build houses with Habitat for Humanity. Then I began hanging out with homeless people around Tempe’s Mill Avenue several nights a week. The people I met living on the street were young and old, funny, genuine, and troubled. When I graduated, I felt a need to understand poverty in America, which I saw as the wellspring of so many miseries. I figured sociology would be the best place to do that. So I enrolled in a PhD program at the University of Wisconsin at Madison, a town that grizzled Milwaukeeans refer to as “thirty square miles surrounded by reality.”

  When I began studying poverty as a graduate student, I learned that most accounts explained inequality in one of two ways. The first referenced “structural forces” seemingly beyond our control: historical legacies of discrimination, say, or massive transformations of the economy. The second emphasized individual deficiencies, from “cultural” practices, like starting a family outside of wedlock, to “human capital” shortfalls, like low levels of education. Liberals preferred the first explanation and conservatives the second. To me, both seemed off. Each treated low-income families as if they lived in quarantine. With books about single mothers, gang members, or the homeless, social scientists and journalists were writing about poor people as if they were cut off from the rest of society. The poor were said to be “invisible” or part of “the other America.” The ghetto was treated like “a city within a city.” The poor were being left out of the inequality debate, as if we believed the livelihoods of the rich and the middle class were intertwined but those of the poor and everyone else were not. Where were the rich people who wielded enormous influence over the lives of low-income families and their communities—who were rich precisely because they did so? Why, I wondered, have we documented how the poor make ends meet without asking why their bills are so high or where their money is flowing?

  I wanted to try to write a book about poverty that didn’t focus exclusively on poor people or poor places. Poverty was a relationship, I thought, involving poor and rich people alike. To understand poverty, I needed to understand that relationship. This sent me searching for a process that bound poor and rich people together in mutual dependence and struggle. Eviction was such a process.1

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  I moved into Tobin’s trailer park in May 2008, after reading in the newspaper that its residents could face mass eviction. That didn’t happen. (Tobin eventually did sell the trailer park, and Lenny and Office Susie moved elsewhere.) But I stayed anyway because the park proved a fine place to meet people getting the pink papers. It also allowed me to spend time with Tobin and Lenny.

  My trailer was considered to be one of the nicest in the park. It was clean with wood paneling and thick, rust-orange carpet. But for most of the four months I lived in
it, I did not have hot water because, despite multiple requests, Tobin and Lenny neglected to fix the chimney to my water heater. They just didn’t get around to it, even though I told them I was a writer working on a book about them and their trailer park. If used, the water heater would have emitted carbon monoxide straight into the trailer. Office Susie tried to fix it once. She jammed a wooden board underneath and, with two inches still separating the water heater from the chimney, pronounced it safe.

  To me, ethnography is what you do when you try to understand people by allowing their lives to mold your own as fully and genuinely as possible. You do this by building rapport with the people you want to know better and following them over a long stretch of time, observing and experiencing what they do, working and playing alongside them, and recording as much action and interaction as you can until you begin to move like they move, talk like they talk, think like they think, and feel something like they feel. In this line of work, living “in the field” helps quite a lot. It’s the only way to have an immersive experience; and practically speaking, you never know when important things are going to happen. Renting a trailer allowed me to meet dozens of people, pick up on rumors, absorb tenants’ concerns and perspectives, and observe everyday life all hours of the day.

 

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