Post on 15-Feb-2016
description
Problems that Consist
Original Plan of the CHA
to provide decent housing for poor and low-income households.
National Housing Act of 1934 Passed to make houses and home mortgages
more affordable Created the Federal Housing Administration
(FHA) and the Federal Savings and Loans Insurance Corporation Used as base for the mortgage and home building
industries Did little to improve inner city housing, it
intensified segregation of races, and further promoted the single family detached dwelling as the prevailing mode of housing, which furthered the phenomenon of suburban sprawl
National Housing Act of 1937
Provided for subsidies to be paid from the U.S. government to local public housing agencies (PHA's) to improve living conditions for low-income families.
Founding
CHA was founded in 1937 in response to the Housing Act of 1937
Responsible for all public housing in Chicago
The Beginnings
Four low rise projects prior to WWII 1938- built three new projects for
whites Jane Addams Houses (32 buildings, 1027
families) Julia C. Lathrop Homes (925 families) Trumbull Park Homes (426 families)
Only one built for blacks Ida B. Wells Homes (1662 families)
FEDERAL HOUSING ACT 1949
Provided funds for 800,00 new units of public housing across the U.S.First time responsibility of slum clearing was viewed as more than a local issue.CHA’s map of proposed sites originally shut down by white aldermen.Resulted in concentration of public housing in Chicago’s South and West sides.
GANG VIOLENCE
Why was this a problem?•Adults lost control•Neighborhood quickly deteriorated•Less tenant checking•Cyclical
Drugs
Their effect on public housing Crack brought from Los Angles, CA Way to “quick cash” http://www.youtube.com/watch?v=o80wKK
JI6uc No need to leave home to “work” Public housing has come full circle
Maintenance
Industry died down after World War II City had less revenue; made budgets cuts
Began withdrawing from maintaining the housing projects
Grass paved over Fire-stricken units were boarded up Broken elevators
Maintain Maintenance
Provide funds through tax equity Place slightly higher taxes on rich
State income tax is at 3% $250,000-$500,000: increase rate to 3.5% $500,000+: Increase to 4%
Equity will create efficiency in community
Tax Policy Chart for $250,000+
Pre-Tax Income
Original State Income Tax
(3%)
New, Proposed Income Tax
(3.5%-4%)
Revenue Increase per Person
Total Income Tax paid Under Obama(42.5-43%)
Total Income Tax paid Under McCain(38.5-39%)
$250,000 $7,500 $8,750 $1, 250 $106,250 $96,250$500,000 $15,000 $20,000 $5,000 $215,000 $195,000
Creating Jobs
Create businesses that serve people’s needs
Grocery stores, clothing, etc. Provide proper funding for aspiring
business owners Many would not have the resources
otherwise Treat payment as a loan; paid back to the
city Mutually beneficial
Circular flow to guide local economy Eventual source of revenue for the city
Mentoring ProgramProvide a mentoring program whereby individuals and families successful in relocating out of public housing advise and counsel individuals and families trying to move up and outThe mentoring program should emphasis the individuals success and comfort in living in their new community to reduce fears that the tenants may have such as the sense of loosing their of community and face prejudices in their new housing
Incentive ProgramIn order to encourage market rate tenants to purchase properties in mixed income developments builders can: 1. Provide incentives through gifting
equity at closing; for example, the builder or owner of a mix income development will offer to pay $20,000 at closing. This allows the home prices to stay high, while giving the market rate purchaser instant equity in their property
2. The builder can also offer a program to pay a percentage, say 3% of the purchases property taxes over a five year period. This is will encourage the purchaser to stay in the mixed income housing development over time
Market Rate Buyers
Builders of mixed income development should also introduce potential purchasers to attractive mixed income development that have already been established and have a proven track record and allow them to talk to market rate tenants in the existing developments to overcome any hesitations they may have about purchasing
Issue: Chicago Public Schools Unqualified TeachersAccording to Chicago Tribune, 5,000
school teachers will need to go back to school.
In 2006 the average ISAT reading scores for 3rd graders in CPS was 190.67, while students in the rest of the state was 208.33.
Solution: Better Teachers
TEACH Grant: Federal money to education majors in exchange for working in low income school districts.
Leads to better educated teachers in CPS
Results in better test scores for students
Higher test scores earns school more money from federal government for better education resources.
Education
Problems Inadequate funding No incentives Broken buildings Overcrowding; shifts of students What’s the point? Crux of the problem
Education
Solutions Cycle needs to be broken Room 405 http://www.projectcitizen405.com/Action
Plan.htm
Trade schools