The conclusions drawn from a recent
study
of the Housing Voucher Choice program in Orleans Parish demonstrate that if you
don’t understand why the world works as it does, not only can you not craft
good policy, but also liberty becomes threatened.
The New Orleans Data Center published
a report about the federal benefit more commonly known as “Section 8”
housing. The program calculates a standard
payment value representing what a local housing authority would define as a
“moderately” priced home and offers eligible clients a chit worth that rate
minus 30 percent of the family’s monthly adjusted income or gross rent minus
monthly adjusted income. Landlords whose dwellings meet health and safety
standards may rent to voucher holders, who can supplement the payment standards
with any amount of their own money up to 40 percent of monthly adjusted income.
As a result, landlords get a guaranteed income stream (for a minimum of a year
at first) with a security deposit, and low-income renters get a break on
housing with the money they save potentially going to better their positions in
life. In New Orleans, the Housing Authority of New Orleans, for example, set
the fiscal
year 2015 standard payment for a two-bedroom home at $1,028.
The study in question looked at
whether the vast expansion in Orleans Parish of voucher supply and usage after
the hurricane disasters of 2005, when the public housing stock shrank over 90
percent, had the effect of diluting concentrations of poverty and, as race is
associated with poverty, of racial segregation in housing patterns. It
concluded that both had happened, but so moderately that program implementation
had only had a marginal impact.