Today's FOCUS at HUD

Tom Boland (
Mon, 13 Apr 1998 04:50:07 -0700 (PDT)

FWD via "H. C. Covington" <>

                      Today's FOCUS at HUD
                     Friday, April 10, 1998

A recent study from HUD's Office of Policy Development and
Research projects the financial impact of welfare reform on
several public housing authorities.

     About a quarter of public housing residents nationally
     will be affected by 1996 changes in welfare legislation
     that puts time limits on welfare receipt.  In the next
     few years, many of these welfare recipients will have
     to replace the benefits they now receive with wages
     from jobs.  In "Welfare Reform Impacts on the Public
     Housing Program: A Preliminary Forecast," researchers
     estimated the impact the reform will have on rents
     received by eight public housing authorities in four

     The study concluded that welfare reform will have
     varying impacts on housing authorities, primarily
     because welfare reform and housing policies differ
     widely from state to state and even city to city.
     Additionally, some housing authorities have fewer
     residents who will need to find jobs as a result of the
     reform and thus have less rental income at risk.

     The strength of the local job market was a decisive
     factor in estimating gains or losses.  The three cities
     where researchers estimated positive impacts on rent
     receipts as a result of welfare reform -- Richmond, VA;
     Columbus, OH; and Dallas, TX -- had the lowest
     unemployment rates among the cities studied.  The three
     cities expected to incur drops in rent revenues --
     Norfolk, VA; Toledo, OH; and Los Angeles -- had higher
     jobless rates.

     Welfare recipients' chances of finding jobs also are
     influenced by factors such as the number of entry-level
     jobs within reasonable commuting distance and
     competition from nearby entry-level job applicants who
     are not on welfare.  In neighborhoods where residents
     seeking to leave welfare are estimated to have
     virtually no job prospects, the loss of income to
     housing authorities could be considerable, researchers

     Copies of the study can be obtained by calling HUD User
     at (800) 245-2691 from anywhere in the U.S., or (301)
     519-5154 from inside the Washington, D.C., metropolitan
     area.  The TTY number is (800) 483-2209.  The report
     also can be found on the Web at

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