Increasing Affordable Rental Housing in Suburban Communities

Author: Adrienne M. Holloway

Dissertation School: Northern Illinois University

Pages: 99

Publication Date: 09/2009

Availability:
Available from the HUD USER Helpdesk P.O. Box 23268 Washington, DC 20026-3268 Toll Free: 1-800-245-2691 Fax: 1-202-708-9981 Email: oup@oup.org

Access Number: 5034

Abstract:

Public choice theory, which frames this study, suggests that municipal policymakers, within fragmented regions, will bundle the most cost-effective combination of public goods and services in order to retain or attract residents. Moreover, Charles Tiebout, contributor to public choice theory via the Tiebout Hypothesis, suggested that when public services are too few and/or tax rate (costs) too high, current residents will move to and future residents will seek a location that has a preferable mix of services vis-a-vis cost; thereby, fostering a competitive spirit among municipalities within a particular region.

In the context of affordable housing, scholars contend that municipalities limit the provision of redistributive programs such as affordable housing in order to maintain an economic competitive edge among neighboring municipalities. This research investigates whether Illinois municipalities view affordable housing provision as an asset rather than an expensive redistributive program by virtue of the number of Housing Choice Voucher (HCV) recipients that currently reside in a municipality. In other words, are municipalities only interested in competing for affluent residents?

As a result of several HOPE VI grants (a HUD program that enables housing authorities to address poverty concentration through the demolition of housing units and the construction of mixed-income complexes) and federal approval of the Chicago Housing Authority (CHA) Plan for Transformation (a $1.5 billion commitment of HUD funds to demolish 35,000 housing units and rebuild 25,000 units), the CHA now manages more than 36,000 HCV, many of which were provided to tenants who had been displaced as a result of demolition activity. HCV holders are encouraged to locate to housing within the city as well as within suburban communities. Therefore, the research question for this study, based on the Tiebout Hypothesis is: With the increased use of HCV by housing authorities, to what extent do suburban policymakers view HCV holders as residents of choice, thereby providing an attractive mix of goods and services, inclusive of available affordable housing units, in orders to attract them to their respective municipalities?

This study examines the absorption of CHA HCV by municipalities within the collar county of DuPage, Illinois. This analysis used Census, HUD, and CHA HCV data to identify and described DuPage municipalities that have absorbed CHA HCV. It also examined the use of local tools such as zoning ordinances that have the potential of limiting affordable housing development. Finally, school performance and transportation data was gathered in an effort to explore the differences that exist, if any, between municipalities.

The sample size for this study was small, thereby making the content more exploratory in nature. Nevertheless, the findings of this study suggest the following as it relates to competitiveness between DuPage municipalities:

• Municipalities that absorbed HCVs do not have different area median incomes.
• School performance of municipalities that absorbed high numbers of HCV was not different compared to other DuPage municipalities.
Zoning ordinances of municipalities that absorbed varying numbers of HCV may have different maximum densities for multifamily housing development.

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