1. Housing and Urban Development Policies in the War on Poverty Jens Ludwig University of Chicago and NBER Ed Olsen University of Virginia

2. Trends and Initial Conditions Housing conditions had improved greatly over past two decades In 1960, 8.5 million families lived in substandard housing Blacks were increasingly concentrated in central cities

3. Inherited Housing Programs Public housing Privately-owned subsidized projects Section 202 (elderly) Section 221(d)(3) BMIR

4. LBJ’s Housing Programs Public housing reforms Leased public housing Turnkey public housing Rent supplements Section 236 rental Section 235 homeowner

5. Direct Descendants (1974) Section 8 Existing Section 8 New Construction

6. Estimated Ratio of Total Cost to Market Rent ProgramPittsburghPhoenix Public Housing2.201.79 Section 2362.011.47 Section 23 Leased Existing1.671.11 Housing Allowances1.151.09

7. Percentage of Families in Low-Income Housing Programs by Income Bracket Income Bracket (dollars) Public Housing (1970) Section 221(d)(3) BMIR (1968) Rent Supplements (1969) Section 235 (1971) Section 236 (1970) All Households (1970) Under 2,99961.37.576.11.110.717.8 3,000-5,99930.349.723.945.162.617.9 6,000 and over8.442.80.053.826.764.2

8. Household Characteristics in Housing Programs (1977) Public Housing Rent Supplements Section 236 Section 8 New Section 8 Existing Mean Income$4,029$3,264$5,896$4,375$3,895 Mean Number of Persons2.832.482.572.062.4 Per-capita Income$1,424$1,316$2,294$2,124$1,623 Percent Elderly3348185148 Percent Black4342212220 Percent Other Minority13 11710

9. Household Characteristics in Housing Programs (2009) Public Housing Section 236 Section 8 New Section 8 Existing Mean Income$13,300$13,400$12,000$12,800 Mean Number of Persons2.21.91.52.5 Per-capita Income$6,200$7,200$8,000$5,100 Percent Elderly30395619 Percent Black44352445 Percent Other Minority26191720 Percent Minority70544165

10. Evidence on Program Performance Reduced the cost of providing housing Increased the number of assisted families Programs differed greatly in their focus on poorest households Housing assistance has had a significant effect on poverty correctly measured Housing programs haven’t increased earnings Reduced economic and racial segregation

11. Policy Implications Offer housing vouchers to all public housing tenants in high poverty neighborhoods Shift budget from project-based to tenant-based assistance Transition to program that offers assistance to all of the poorest households