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TestimonyofEllenLeeDirectorofCommunityandEconomicDevelopment

fortheCityofNewOrleanspresentedtothe

UnitedStatesHouseofRepresentativesCommitteeonOversightandReform

SubcommitteeonCivilRightsandCivilLiberties

February5,2020ChairmanRaskin,RankingMemberRoy,andmembersoftheCommittee,thankyoufortheopportunitytotestifybeforeyoutodayontheAffirmativelyFurtheringFairHousingregulation.MynameisEllenLee,andIamtheDirectorofEconomicandCommunityDevelopmentfortheCityofNewOrleans.OnbehalfoftheCityofNewOrleans,IcommendyourCommittee’sleadershipinundertakingthisimportantissue.TheissueofFairHousingisalongstandingandessentialpartofcreatingneighborhoodsofopportunityandeconomicmobilityforournation’sresidentsandthegenerationstocome.WeappreciateyourwillingnesstohearabouttheNewOrleansexperienceinthecontextofthecurrentregulatoryenvironment.TheU.S.DepartmentofHousingandUrbanDevelopment(HUD)2015regulationprovidednewandupdatedguidanceaswellasdatatoolsforjurisdictionstouseintheproductionofanAssessmentofFairHousing,orAFH.TheAFHisadocumentthatcomplementstheConsolidatedPlan,afederallyrequiredfiveyearplanthatallHUDentitlementjurisdictionssubmit,andwhichwehavealwaysbeenrequiredtosubmit.The2015regulationoperationalizesTitleVIIIofthe1968CivilRightsAct,otherwiseknownastheFairHousingAct.Throughthe1968provisionthatfocusedonAffirmativelyFurtheringFairHousing,CongressdirectedHUDtomakesurethatneithertheagencyitself,northecities,counties,statesandpublichousingagenciesitfunds,discriminateintheirprograms.Further,CongressintendedthatHUDprogramsbeusedtoexpandhousingchoicesandhelpmakeallneighborhoodsplacesofopportunity,providingtheirresidentswithaccesstothecommunityassetsandresourcestheyneedtoflourish.Inotherwords,whiletheFairHousingActdirectsjurisdictionslikeoursnotonlytorefrainfromoutrightdiscrimination,italsodirectsustospendourfundsinordertodecreasesegregationandimprovehousingaccessandopportunitiesforeveryone.InJuly2015,HUDissuedanewregulationtoimplementtheaffirmativelyfurtheringfairhousingrequirementsoftheFairHousingAct.Withthisnewrule,HUDprovideditsprogramparticipants(states,counties,municipalitiesandpublichousing

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agencies)withmoreeffectivemeans—thedataandwrittenguidance--tofurtherthepurposesandpoliciesoftheFairHousingAct.JurisdictionsthatreceivefederalHUDfundshavealwaysbeenrequiredtosubmitthisessentialplanningdocument,whichwascalledanAnalysisofImpedimentstoFairHousingChoiceunderthepreviousregulations.However,the2015regulationbroughtanissuanceofnewtools,newdata,andnewspecificguidanceofhowHUDwantedentitlementjurisdictionstoupholdthelaw.NewOrleanswasoneofthefirstjurisdictionsinthecountrytoimplementthe2015regulation.Allofthejurisdictionsonourfive-yearcyclewererequiredtosubmitatthesametime,withsomeexceptionsforsmallerjurisdictionsandthoserequiringadditionaltime.TheNewOrleansexperienceimplementingthisnewregulationwasoverwhelminglypositive.Whatwewereabletoachieveisformidableintermsofgreaterefficiencies,betterplanningandmappingcapabilities,andenhancedlocaldecision-makingforourlocalgovernment.NewOrleanswasabletoachievegreaterefficienciesbyworkingcloselywithlocalhousingrelatedagencies.Whilethesepartnershipsmayhavebeenperfunctoryundertheprevioussystemfromaplanningperspective,underthenewregulation,theCitydevelopedatruepartnershipintermsofinformationanddatasharingwithitshousingrelatedagencies,includingthehousingauthority,thefinanceauthorityandtheredevelopmentauthority.UsingtheAssessmentofFairHousing(AFH)toolandlocallyproduceddatacreatedgreaterefficiencies.Forexample,bypartneringwiththeHousingAuthority,wewereabletoincorporatereal-timedataforthetensofthousandoftenantsservedbythatagency.Additionally,thehousingauthorityisalsofederallyrequiredunderseparateregulationstosubmitanAnnualPlan,sowereducedredundanciestherebycollaboratingonasingledocumentthatcouldbeusedformultiplepurposes.Thedataprovidedthroughthenewtoolalsoimprovedlocalcontrolanddecision-makingcapabilities.Throughtheassessmentprocess,weactuallydiscoveredthatweweremore,notlesssegregated,thanyearsprevious.Throughthedataandmappingcapabilitiesprovided,andourabilitytoexaminenotjustourentitlementfundingbuttakealargerlookatallfederalhousingfunding—includingLowIncomeHousingTaxCredits,FHAfinancing,housingauthorityinvestments,ourownHUDfundingandevenprivatecapital—wecouldseethewaysinwhichwecouldbebetterleveragingHUDfundingtobeinvestingsmarterforgreateroutcomes.Theregulatorytoolsimprovedandsignificantlyinformedourlocaldecisionmakingcapacity.Asmentioned,theHousingAuthorityofNewOrleansjoinedtheCityintheAssessment.Oneoftheparticularlytroublingfindingswasthepost-KatrinaimpactonourHousingChoiceVoucherProgramparticipants,whichisapopulationofalmost20,000households,includingmanyofthoseservedwithtemporarydisasterhousingassistanceafterHurricaneKatrina.Voucherswereaprimarymeansto

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assisthouseholdsdisplacedbythestorm,especiallyfollowingthedemolitionof5,000publichousingunitscitywide.Globally,thevoucherprogramisdesignedtoprovidethepotentialforgreaterhousingchoiceandsocioeconomicmobilityforlow-incomefamilies.Yet,whatwefoundisthatvoucherassistedfamilieswereconcentratedinraciallysegregatedcensustractswithhighpercentagesofpopulationsofpeoplebelowthepovertyline,whereonly8%ofhouseholdslivedwithinreasonableaccessoftransit.1

IhaveincludedasnapshotfromtheassessmentaswellastheMarketValueAnalysis2commissionedbytheCity.ItshowsjobdensityasanexampleoftherangeofindicatorsweareabletoconsiderwhenreviewingcurrentandprospectiveHUDandotherhousinginvestments.Fromthesetwomapstakentogether,wecanarriveatthetroublingconclusionthatafterHurricaneKatrinawehadrelocatedrentalassistedhouseholdsfurtherfromjobsandeconomicactivity.Thisleadsmetotwoveryimportantpoints.Thefirstisthataffordablehousingcannotbeconflatedwithfairhousing.Themapofhouseholdsinpovertystrickenandoverwhelminglyraciallysegregatedcensustractsisstillamapofaffordablehousing.Simplyaddingmoreaffordablehousing---astherecentlyreleaseddraftregulationproposestodo—doesnothingtoconnectHUDclientstotheladdersof

1ExpandingChoiceandOpportunityintheHousingChoiceVoucherProgram.Seicshnaydre,Stacy.2NewOrleansMarketValueAnalysis,June11,2018.CommissionedbytheCityofNewOrleans.

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opportunityoutofpoverty.Nordoesitmakeourcitiesmoredatadriven,equitable,integratedorjust.Thesecondpointisthattheassessmentrevealedwehadroomtoimprovefromanurbanplanningperspective:clearly,wehadnotbeenmeetingourgoalstoconnecthousingtotransit,economicactivity,andotheropportunity3.Iwanttobeclearthatwhilethecurrent2015regulationdidhelpustousethisdatatobetterunderstandtheconnectionbetweenneighborhoodassetssuchastransitorschoolchoiceandourportfolioofhousinginvestments,itisinnowayprescriptiveorrequirehousingagenciessuchasourstomaketransportationorotherrelatedagencydecisions.TheAFHprovideduswithdataandinformation,sothatwecanbebetterinformedaboutourowndecision-makingprocesses.Sincereceivingthesefindings,wehaveimplementedaspecialpilotprogramforvoucher-assistedfamiliestomovetoneighborhoodsofopportunity.Wehavestreamlinedourhousingauthority’sbusinesspractices,incollaborationwithandwithfeedbackfromourlandlordcommunity.WehaveexaminedCitypoliciesandprocedurestomakeprogramsmoreaccessibletoall—especiallyintermsoflanguageaccessandtheneedsofdifferentlyabledpeople,whichhelpedpavethewayfornewhousingforwoundedwarriors.Werevisedcriminalbackgroundcheckpoliciestoalignwithcitywidegoalstoreducerecidivismandpromotereintegration.WehavealsoprioritizedhighopportunityneighborhoodswithourHUDentitlementfunds,bringingnewrentalhousingopportunitiestosomeneighborhoodswhileincentivizinghomeownershipinothers.Theadjustmentswehavemadeareconsistentwithwhattheresearchtellsusabouthowplacematters.Asmanyofyouknow,economistssuchasHarvardUniversity’sRajChettyhavedonesignificantprimarysourcestatisticalanalysisoftheeffectofplaceoninterruptingintergenerationalpoverty4.Thatis,thattheinfrastructureandfabricofaneighborhoodcanhaveaprofoundandlastingimpactonmultiplegenerations.BytrackingthesocialsecuritynumbersofHUDtenantsthatwereable5toliveinresourcerichneighborhoods,Chetty’steamwereabletotrackthesefamiliesovertimetolookattaxreturns,maritalstatus,fertilityandotherdemographicmeasures.Itisthefirststudythathasbeenabletolookbackoverthecourseoftwentyyears,totakealongerlookathowplacematters.Whatthedataclearlydemonstratesisthatchildrenfromlowincomefamilieswhoareabletoliveinresourcerichneighborhoodstendtoearnmoreasadults,aremorelikelytobecollegeeducated,arelesslikelytobesingleparentsandmorelikelytoliveinahigherincomeneighborhoodsasadultsthemselves6.Inotherwords,accesstoa

4TheEffectsofExposuretoBetterNeighborhoodsonChildren.Chetty,RajwithNathanielHendrenandLawrenceKatz),AmericanEconomicReview106(4):855-902,20165CreatingMovestoOpportunity:ExperimentalEvidenceonBarrierstoNeighborhoodChoice(withPeterBergman,StefanieDeLuca,NathanielHendren,LawrenceF.Katz,andChristopherPalmer),NBERWorkingPaperNo.26164(August2019)6TheEffectsofNeighborhoodsonIntergenerationalMobilityI:ChildhoodExposureEffects(withNathanielHendren),QuarterlyJournalofEconomics,133(3):1107-1162,2018.

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resourcerichneighborhoodimpactsnotjustparentsandtheirchildren,butalsotheirchildren’schildren.Astoundingly,theresearchalsofoundthateverysingleextrayearofexposuretoalow-povertyenvironmentduringchildhoodisbeneficialintoadulthood7.Consistentwiththisresearch,thesecondfindingthatIwanttohighlightrelatestotheinfrastructureofourneighborhoodsthemselves.Inzipcode70124,where93%oftheresidentsarewhite,theaveragelifeexpectancyis80years8.Inazipcodedirectlynearby,where87%oftheresidentsareblack,thelifeexpectancydropsbyalmost30yearsto54.5yearsaveragelifeexpectancy.Whatwefoundisthatplacestillmatters,buttheAssessmentofFairHousingalsogaveusthedataandresourcestobegintodelveintowhatcomponentsofneighborhoodinfrastructureexistedinsomezipcodesbutnotinothers.WhileallofourNewOrleansneighborhoodsaregreat,theplaceswherepeoplereallythrivearealsothoseplacesthatareconnectedtoinfrastructure,highperformingschools,transportation,economicactivityandothermeansofaccesstosuccess.

Tothatend,wehavebeguntodoamuchbetterjobofholisticallymeasuringandexaminingwholeinfrastructure—tosynchronizeourHUDandotherhousinginvestmentswithCityinvestmentsmorebroadly.Itmaynotevenalwaysbethe7Ibid.8PlaceMatters:EnsuringOpportunitiesforGoodHealthforAll,JointCenterforPoliticalandEconomicStudies.September,2012.

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visiblework:inNewOrleans,agreatportionofourinfrastructureinvestmentisn’tthevertical,it’ssubsurfacefocusondrainageandotherpiecesthatarevitalbutmaynotbevisibletoresidents.However,wearealsofocusingonbeingmoreintentionalaboutclusteringandleveragingtopreventdisplacementintransitioningneighborhoods,improveaccesstoneighborhoodsofopportunity,andtobringinvestmentstoneighborhoodsthatstillhaven’tfullyrecoveredfromHurricaneKatrina.The2015regulationhasn’tthereforepresentedadramaticshiftinwhathasbeenrequiredofusasajurisdiction,butithasprovideduswiththedataandtoolstomakebetteruseofourpublicresourcesviaenhancedplanningcapacityandimprovedlocaldecision-making.ThelastthingIwanttohighlightasitrelatestothecurrentregulationandourAssessmentofFairHousingispeoplewithdisabilitiesandhowwe’vebeenabletomodifyCitypoliciestoensurewemeetpeoplewheretheyare.Forexample,somelocalbusinessownersrecentlydevelopedhousingforwoundedveterans,whichlaterproposedawellnesscenterwithaneurologicalrehabilitationclinicandan“adaptablegym,"oragymthatcanbeusedbydisabledpeople.PertheCity’sComprehensiveZoningOrdinance,theprojectrequiresazoningmodification.BecauseofthecitywideFairHousinganalysiswe’vedone,wehaverobustpoliciesinplacetoensurethereisazoningprocessforprojectslikethis,whichcanserveourwoundedveterans.Similarly,wefindthathomesthattreatopioidaddictionandothersubstanceabuseissuesfacechallengesfromazoningperspective,andourAssessmentforFairHousingisabletoprovideuswitharobustanalysisoftheCitypoliciesandproceduresthatmadeitmoredifficultforthebusinesscommunitytoservepeoplewithdisabilitiesandhelpusresolvesomeofthoseissues.Again,theregulationitselfisnotprescriptiveinwhatweoughttodo,butitgivesusthetoolstobeabletoapproachourlocalruleswithrigor,anddeveloplocalsolutionstolocalproblems.IalsowantedtosayalittleaboutanotherprimaryfocusofMayorCantrell’sAdministration,andthatisournextgenerationandthewaysinwhichthedecisionswemaketodayimpacttoday’schildrenandwhotheywillbecomeastomorrow’sadults.Roughlyone-quarterofNewOrleansrenterhouseholdsincludechildren,accountingformorethan40,000childrenlivinginrentalhousingcitywide9.Studiesclearlydemonstratethatthequalityofthathousingcansignificantlyimpactchildren’s’healthandschoolperformance.Substandardhousingconditionslikeleaks,mold,andinsectorrodentinfestationsareoftencorrelatedwithrespiratoryconditionsinchildren.AmericanHousingSurvey(AHS)dataindicatestherearenearly2,000NewOrleansrentalunitswithmoldandmorethan7,000unitswithsignsof

9AmericanCommunitiesSurveyData,1yearestimates

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rodents.Allofthesekidsareathigherriskofasthma10,whichisthethirdleadingcauseofhospitalizationforchildreninourhomestateofLouisiana11.TheAHSreportsdatadirectlyrelatedtoasthma.One-quarterofallNewOrleansrenterfamilieswithchildrenhaveanasthmaticchildinthehome:atotalof5,500families.Childrenwithasthmainthesefamiliesaccountedfor1,107emergencyroomvisitsinthepastyearand5,533asthmamedicineprescriptionsinthepastthreemonths12.Especiallyinlower-incomeneighborhoods,housingqualityremainsaconcern.Thousandsoffamiliesmaybelivinginunsafeandunhealthyhomes,withyoungchildrenmostatrisk.AccordingtotheAHS,alittleover7%ofallrentalhouseholdsintheNewOrleans-Metairie-Kennermetroareareportedmajorproblemswiththeplumbing,heating,electricity,orupkeepoftheirapartment,whilepotentiallythousandsofothersreportingmorespecificissues13.It’sverylikelythatNewOrleanshasadisproportionateshareoftheregion’shousingproblems,butaconservativeestimatebasedonpercentageofthecity’sroughly84,000renter-occupiedunitssuggeststhatatleast6,020oftheseunitsreportedmajorproblems.Studieshaveshownthatlowerhousingqualityisassociatedwithpoorerpsychologicalhealthandlowerkindergartenreadinessscores.However,housingproblemsalsoplayaroleinthehighlevelofresidentialinstability:thesehousingqualitycrisesleadtofrequentemergencymoves,ratherthanfamiliesmakingstrategicchoicestorelocatetobetterneighborhoodsoremploymentopportunities14.Besidesthephysiologicaleffectofhazardsonhealththatleaddirectlytolowerliteracyrates,increasedrespiratoryandotherhealthproblems,learningoutcomesforchildrenarealsonegativelyimpactedbydisruptionsassociatedwithfrequentmoves.Theseeffectsarealsocumulative.15ThisisagainwheretheAffirmativelyFurtheringFairHousingregulationcanhelpustoimproveoutcomesforchildren,bothintermsoftheirphysicalhealthandreducingthenumberofhospitalstaysordoctorvisits,aswellasimprovingliteracy

10TheRelationshipbetweenHousingandAsthmaamongSchool-AgeChildren,Analysisofthe2015AmericanHousingSurvey.Ganesh,Bhargavi;PaytonScally,Corianna;Skopec,Laura;andZhu,Jun.UrbanInstituteResearchReport.October,2017.11Estimatesbasedonthe2011AmericanHousingSurvey;“StudentswithAsthmainOrleansParishSchoolDistrictCanNowBreatheEasier,”LouisianaOfficeofPublicHealth,10/8/2012,availableat:http://new.dhh.louisiana.gov/index.cfm/newsroom/detail/265912Ibid.1312011AHSdatashowsthat124,800rentalunitsintheareawereinneedofmajorrepairsatsomepoint,outofatotalof159,100rentalunitsintheNewOrleans-Metairie-Kennerarea.Inotherwords,about78%oftherentalunitsneededmajorrepairs.Assumingthispercentageisequalacrossthearea,78%oftheprivaterentalunitsinNewOrleansin2011(62,500)yieldsanestimateofapproximately49,000rentalunitsinneedofmajorrepairs.Thesamemethodologyisusedforsubsequentestimates.BecauseNewOrleanslikelyhasadisproportionateshareofhousingproblems,theseestimatesarelikelylowerthantheactualfigures. 14Temporaleffectsofdistressedhousingonearlychildhoodriskfactorsandkindergartenreadiness.ChildrenandYouthServicesReview.Coulton,ClaudiaJ.;Richter,Francisca;Kim,Seok-Joo,Fischer,Robert.June,2016.15Ibid.

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andkindergartenorschoolreadiness.BecausetheregulationhelpsustomaptheCityandseetheplaceswhereweneedtoimprove.ItprovidesuswiththedatatobeabletocorrelateHUDoccupiedhousingwithratesofillness,orblightandneighborhooddisinvestmentwithearlychildhoodoutcomes.Bylookingholisticallyatarangeofneighborhoodlevelindicators,weareabletoseethewaysinwhichtheinfrastructureoftheneighborhooditselfisabletohelpchildrenthriveandsucceed.Thisiswhatthedatatellsus,andwhattheregulationcurrentlyinplacehasbeenablehelpusreckonwith:thatweshouldbeinvestingsmartertoensurelowerincomefamilieshaveequalaccesstohighopportunityneighborhoods,whilealsoimprovingchronicallypoorneighborhoodstobringopportunitytothem.Itallowsustoapproachcityinvestmentswithascalpelratherthanamachete,understandingthatnotallsolutionsworkfortheentirecity,becauseeachofourneighborhoodsaredifferentwithdifferentneeds.IwanttoshareonemoreLouisianadatapointthatisqualitativeratherthanquantitative.Andthatisofanowyoung-ishwomanwhooweshersuccesstoaccesstoaneighborhoodofopportunity.GrowingupinasmallerLouisianatown,hermomhadreceivedahousingvoucherforrentalassistancetokeeptheirfamilygoing.Themomhadlookedreallyhard,andmanagedtofindarentaltheycouldaffordinahighquality,residentialneighborhood.Thathousewasclosetothehomesoftheteachersandschooladministrators,whothentooknoticeofthisyoungneighborhoodchildandofferedherafterschoolhelp.Withthisassistance,shewasabletoacademicallythriveandgotocollegeandbeyond.SheisnowCEOofaleadingcitywidecommunityorganization,andifyouaskhersheattributesitalltoherearlychancetomovetoaneighborhoodofopportunity.IthinkI’vesharedafairamountabouthowthe2015regulationhascreatedamoreeffectiveprocess.Fromourperspective,theseregulationsareessentialtoholdingjurisdictionsaccountableintheiruseoftaxpayerdollars,aswellasensuringfundsservetheintendedpopulation.Thereisakeenunderstandingthatthedecisionswemaketodayarethetomorrowwebuildforourchildren.Welookforwardtoworkingwithourstateandfederalpartnerstobuildtowardsasharedvisionofourfuture.