June 17, 1997
Paddling Up River
The President's New Urban Policy
The President unveiled a plan to provide federal assistance to American cities this week. The theoretical background provided in the first five articles (click MORE ARTICLES above) allow us to analyze the planks of the plan and determine how they will contribute to the attainment of the policy�s stated goals.
Ostensibly the new policy is designed to check the flight of the middle class and high incidence of violent crime within the nation�s urban centers. The major elements of the plan include a 50% subsidy for police officers willing to buy homes in the city, a $200 voucher to reduce the closing costs on residential purchases within the target areas, and a change in federal policy that allows the federal section 8 rent subsidy to be applied to house payments.
The demographic life cycle of the household discussed in previous articles creates demand for low density housing near quality primary and secondary education, and inexpensive high density housing near post-secondary educational institutions and cultural centers. The household free of children is more appropriately located in the high density urban core. The typical middle class family will seek the prototypical suburban homestead; a large yard, low traffic streets, good schools, and a sense of comfort about the neighbors.
Sadly, for many that sense of security comes from living in an economically and racially homogeneous community. People looking for a "good" neighborhood look for people like themselves as neighbors. The simple logic is "this neighborhood appears good enough for people like me, it must be good enough for me." If a middle class family looking for a new home looks around a neighborhood and sees people of a different race the question becomes "why aren�t people like me living here?" The social ramifications of this behavior are undesirable, yet retaining our fundamental freedoms makes this an educational issue rather than a matter of state coercion.
The effectiveness of the newly announced urban policy hinges on the ability of the federal incentives to counter the decision process of middle class home buyers. The $200 credit on closing costs is not likely to change anyone�s mind. The 50% subsidy for police officers has a bit more promise. One might imagine a scenario where single young officers take advantage of the program and buy homes in targeted high crime neighborhoods. The increased visibility of the police presence could reduce crime and induce married cops to accept the subsidy. Even without addressing the problem of decrepit schools, the city could turn a high crime neighborhood into one populated by single and childless police. If the schools improve, cops with kids might also be induced by the huge 50% subsidy.
At some point the policy makers will terminate the subsidy. If sufficient resources are devoted to the policy, a critical mass of law enforcement personnel could create a permanent enclave. Alternatively, a move to cut off the subsidy after one or two cops move into a high crime area will have little effect accept to give a couple of brave officers a large bonus. If the critical mass is not achieved, rational officers will vacate the high crime areas.
The redirection of the federal housing subsidy to include mortgage payments may also have some positive effects. Experiments with low income housing projects in New York and Chicago ghettos have demonstrated the power of personal property rights. When given a stake in the future of a piece of property, its tenants become conscientious stewards. But turning current occupants into owners is not changing the socio-economic profile of the inner city. Attempts to improve the oft brutal conditions must be applauded as good intentioned. Yet, success requires a full understanding of the demographic forces creating demand for particular types of residential accommodations in the higher density urban center. Policies which insist on fighting for social justice against the tide of macro-economic reality are destined to failure.
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US Census Bureau data on State and Local Government
A collection of data on the structure and budgets of America's sub-national governments
Government Technology Magazine
The homepage of Government Technology Magazine allows access to full text of articles and resources for urban policy makers. The site also maintains current listings for technology related RFPs and RFQs.
Together Foundation Best Practices Database
A searchable database of proven solutions to urban problems created through a partnership of the Together Foundation and the United Nations.
Urban Land Institute Research Topics
Summaries of policy research funded or conducted by the premiere urban policy institute
National Election Study
A guide to fifty years of data on the American electorate including Tables and a searchable index.
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Urban Politics
