Washington DC – February 2007 – A first-ever study measuring the economic
impact of public housing demonstrates that in addition to its role as an
essential part of the housing market, it can make significant contributions to
the local economy.
“We’ve always known how important public housing is to
people on fixed incomes and low-wage families,” said CLPHA executive director
Sunia Zaterman. “But this is the
first time that its role as an economic engine has been studied, and it’s an
excellent reminder that when we fund public housing, we’re making a measurable investment
in our communities as well.”
The study was conducted by Econsult Corporation and sponsored
by the Housing Authority Insurance (HAI) Group. It was supported by the Council of Large
Public Housing Authorities (CLPHA) and the Public Housing Authorities Directors
Association (PHADA).
“It
is particularly apt that we have the results of this study on the 70th
anniversary of the U.S. Housing Act,” said Dan Labrie, Chief Executive Officer
of the HAI Group. “This longstanding program is a good example of how the
federal government can work in successful partnership with local communities.”
The major findings of the study show that:
Public housing is a
critical resource for low wage workers:
• Average wages in some industries, such as accommodation
and food service, are too low for workers to afford market rate housing costs.
Public housing plays
an essential role in the nation’s efforts to preserve affordable housing:
• The total replacement cost for the 1.2 million units of
existing public housing would approach $145 billion, excluding land.
• The government role in subsidizing this
housing is critical because the private sector is not likely to provide
equivalent housing at affordable rents.
Public housing
expenditures contribute significantly to local economies:
• Direct spending by public housing authorities on capital improvements,
maintenance and operations is approximately $8.1 billion a year.
• This direct spending generates an additional $8.2 billion
in indirect economic activity in these communities.
Public housing has
been significantly underfunded
- Public
housing was underfunded by $6.7
billion between 2000 -2006 compared to actual need.
“In recent years, we’ve witnessed a sharp decrease in
support from the federal government for this valuable asset; we wanted to make
sure everyone knows the full story of how public housing benefits the wider
community,” said Labrie “We sponsored this study because of our commitment to seeing
public and affordable housing thrive.”
HUD announced in January that public housing authorities
would be receiving only 76% of what they actually need to operate in 2007. As a
result, PHAs across the nation are being forced to sell off stock, cut back on
maintenance and security, and close down programs designed to assist residents.
“This study demonstrates that public housing is a smart investment
in families and communities,” said Tim Kaiser, Executive Director of PHADA. “It is an excellent example of how the federal
government can be a partner in addressing the shortage of affordable housing.”
The study examined public housing costs and contributions in
10 cities: Akron; Boston;
Charlotte, NC; Dallas; Kansas City; Miami, New Bedford; Oakland; San Diego; Seattle.
