Breaking the Cycle: Philadelphia’s Innovative Approach to Housing Stability

Angie Atkins, a 37-year-old single mom living in northwest Philadelphia, has been waiting for a federal housing voucher for almost ten years. As the years passed, her rent kept going up, and eventually, she found herself spending most of her income on keeping a roof over her head and her two kids.

Angie shared, “When I did my monthly budget, I had to live off $156 a month. It’s crazy, and no public assistance or anything.” Despite working hard managing an accountant’s office, making ends meet was a constant struggle. Angie even sold her car to cut costs, but in 2022, she almost lost her home.

Then, something unbelievable happened. Angie was in court, fearing eviction, when she got an email. She thought it was a scam at first, but it turned out to be a life-changer. The Philadelphia Housing Development Corp. (PHDC) offered to help pay her rent for the next 2 and a half years through a program called PHLHousing⁺.

PHLHousing⁺ is special because it doesn’t just help with rent; it gives people the freedom to use the money as they need. The program picks families randomly from a long list of people waiting for housing help, focusing on those who make 50% or less of the area’s median income and have a child under 15 at home.

Thanks to this program, Angie and her kids could enjoy holidays like Thanksgiving and Christmas without worry. Her son could even join the Cub Scouts, and Angie could finally have a good night’s sleep, knowing her housing was secure.

In the United States, the problem of affordable housing is huge. Half of all renters spend more than 30% of their income on housing. The idea of giving people cash directly to help with rent got really popular after the COVID-19 pandemic showed that this kind of help could reduce child poverty and keep families in their homes.

Philadelphia was ahead of the curve, planning a cash assistance program even before the pandemic. Rachel Mulbry from the PHDC explained that in Philadelphia, the gap between what people earn and the cost of housing is massive, leading to financial struggles and many evictions.

One big issue is that even when people finally get a housing voucher, finding a landlord who will accept it is hard. The vouchers come with rules and inspections that many landlords don’t like. There’s also discrimination, with some landlords refusing to rent to voucher holders, who are often Black and Hispanic. Despite laws against this, it’s tough to stop.

Madison Gray from The Public Interest Law Center mentioned that some landlords will only accept vouchers in certain neighborhoods, limiting options for families wanting to move to better areas.

The PHDC’s approach with PHLHousing⁺ is inspired by experiments from the 1970s when the government tried giving renters cash directly. Vincent Reina from the University of Pennsylvania noted that with today’s low housing availability, finding a rental can be even harder for those using vouchers. Direct cash assistance, or a “silent subsidy,” could help avoid these issues.

The U.S. Department of Housing and Urban Development (HUD) is very interested in Philadelphia’s program, seeing it as a potential new way to help renters. They’re encouraging other cities to try similar approaches, though any large-scale changes would need Congress’s approval.

Researchers, including Sara Jaffee from the University of Pennsylvania, are studying the effects of this cash assistance. They want to see if it makes finding and keeping housing easier compared to traditional vouchers.

While no one is suggesting getting rid of housing vouchers, the success of programs like PHLHousing⁺ could lead to more options for helping families afford their homes.

For Angie, the help from PHLHousing⁺ has been crucial. She dreads the day the assistance ends but is grateful for the stability it has provided her family. “It gave me a cushion. It gave me a sense of relief. But it is only 30 months,” she reflects on the impact of the program on her life.

This article is based on the following article:

https://www.npr.org/2024/03/19/1238053555/rent-cash-philadelphia-hud-housing-vouchers

Background Information

By understanding these concepts, readers can better appreciate the challenges and solutions related to housing affordability and stability in the United States, as illustrated by Angie Atkins’ story and the PHLHousing⁺ program.

What is a Housing Voucher?

• Definition: A housing voucher is a type of financial assistance provided by the government to help low-income families, the elderly, and disabled individuals afford safe and decent housing. The most common program in the United States is Section 8.
• How It Works: Eligible participants receive a voucher that pays a portion of their rent. The amount is usually based on their income, the rent amount, and local housing market prices. Recipients are expected to pay the difference between the voucher amount and the actual rent.

The Housing Crisis in America

• Affordability: Many Americans struggle with high housing costs. A home is considered affordable if it costs no more than 30% of a family’s income. However, in many parts of the U.S., housing prices have risen much faster than incomes, making it hard for people to find affordable homes.
• Impact of High Housing Costs: Spending too much on housing can lead to financial stress, making it difficult to afford other essentials like food, healthcare, and education. It can also lead to housing instability and homelessness.

The Concept of Direct Cash Assistance

• Direct Cash Assistance: This is when the government or another organization gives money directly to people instead of through services or vouchers. The idea is that individuals know best what they need, so giving them cash allows them to spend it on their most pressing needs.
• Benefits and Challenges: Advocates argue that direct cash assistance is flexible, reduces administrative costs, and respects individuals’ autonomy. Critics worry about potential misuse of funds or that it might not be targeted enough to specific needs like housing.

The Role of Discrimination in Housing

• Discrimination Against Voucher Holders: Landlords may refuse to rent to voucher holders for various reasons, including stereotypes, racism, or not wanting to deal with government regulations. This can make it even harder for low-income families to find good housing.
• Laws Against Discrimination: Many places have laws against this kind of discrimination, but enforcement is challenging. The article mentions how difficult it can be for voucher holders to find landlords who will accept them.

The Importance of Stable Housing for Families

• Effects on Children: Stable housing is crucial for children’s health, education, and overall well-being. Moving frequently or living in poor conditions can lead to long-term problems in these areas.
• Community Impact: Housing stability also benefits communities. It can lead to better employment rates, lower crime rates, and stronger economic growth.

Philadelphia’s PHLHousing⁺ Program

• Innovation in Assistance: The PHLHousing⁺ program represents an innovative approach to addressing housing affordability by providing direct cash assistance. It’s a pilot program, meaning it’s a test to see how well this method works compared to traditional vouchers.
• Goals and Observations: The program aims to make it easier for families to secure housing without the stigma or limitations often associated with vouchers. Observers and researchers are keen to see how this model might improve housing stability, reduce evictions, and allow people more freedom in choosing where to live.

Debate/Essay Questions

1. What role do discrimination and inequality play in the challenges faced by housing voucher recipients, and how can these issues be addressed?

2. Does direct cash assistance to low-income families lead to better social outcomes than in-kind assistance?