MN House District 62A: The Housing Crisis "Throughout our district, one of the main concerns among our residents continues to be finding affordable housing. I believe housing is a human right… I promise I will work specifically to improve the quality of life for our youth, as some estimate that as much as 25-30% of our youth lack permanent housing"—Omar Fateh, a Candidate for MN House District 62A

The Minneapolis Mayor-elect, Jacob Frey, held a community session recently at Horn Towers on Dec. 30, 2017 to address the issue of inadequate housing and the need for creating pathways to homeownership. He specifically spoke of the importance of affordable housing and expressed empathy with members of the working-class community who said they felt displaced by landlords in favor of rich tenants. It is indeed a welcome development from the new mayor. The Start Tribune run an article that revealed the existence of deeds with restrictive clauses that specifically exclude blacks from renting or buying a home in certain neighborhoods in Minneapolis. An insider interviewed by the local newspaper described the practice a “hidden system of American apartheid.” Although the practice is illegal under federal and state laws, deeds with hidden racial covenants are prevalent across Minneapolis. A new project, The Mapping Prejudice, was launched to investigate such cases and up to 5,000 deeds with discriminatory clauses have been discovered1. I have given my speech on housing problems in the district at Omar Fateh's official campaign kickoff event on Dec. 17, 2017 in Minneapolis. The campaign attracted tremendous turnout from residents from all walks of life. Maleta Kimmons, a Commissioner with the

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Furst, R. (2017, August 26). Massive project works to uncover racist restrictions in Minneapolis housing deeds. Star Tribune .

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City of Minneapolis and founder of Neighborhoods Organizing for Change, was one of the key note speakers; she reiterated in a passionate speech the importance of unity for effecting a change to overcome common economic challenges and problems such as jobs, housing, and healthcare disparities that had previously decimated the social fabric of African American families. I briefly touched on one of the themes upon which Omar Fateh’s platform is centered in my brief address to the audience. That the issue of inadequate housing around areas concentrated by the East African Community in Minneapolis is linked to the lack of safe and healthy environment. As a senior policy analyst and researcher, I have come to appreciate how policies made at the halls of power affect us collectively as a minority community irrespective of our social and economic background whether one is a newly arrived refugee, a college student, or wellestablished member of the business class. However, I must admit that I am profoundly inspired by the Somali community in the State of Minnesota and its celebrated stories. The Somali Community in Minneapolis is a thriving community, a model for other African communities across North America and Europe. On Dec. 8, MN House Representative for District 62A, Karen Clark, announced her decision not to seek re-election in 2018. Faiza Filsan, a staff writer for the Star Tribune, tweeted out the breaking news, briefly underscoring her new challenger and the incumbent’s 37+ years in office, “[Clark]was first elected to the state legislature post in 1980. Somali-American Omar Fateh plans to run for her seat.” In 2010, Sadik Warfa, currently a lawmaker in Somalia, challenged initially to unseat Ms. Clark, but fall behind a few hundred votes in the general election. Clark sponsored and helped pass several legislations during her many terms in office. Disturbed by reports of the presence of lead hazards linked to residential properties that had been built prior to 1978, Clark introduced this bill H.F. No. 491 to conform with federal requirements. As described in this legislation, the presence of lead hazards in old residential towers in the district and in high-poverty areas causes in children "permanent neurological damage, including learning disabilities, reduced intelligence quotient, and behavioral problems" (40 CFR 745.223). Another disturbing fact is one in four (4) children in District 62A attend schools of low quality, and more than 70% of the households who are low-income families experience barriers to obtaining assistance with affordable housing and mortgage, according to a survey by the Bureau 2 January 3, 2018

of Labor Statistics. A study at Yale Law & Policy Review found that many poor and low-income families spend a disproportionate size of their income on housing. In addition, homeownership rates are low and fall below the state and national average. The disparity in homeownership is attributed to policies that create work disincentives as average household income increases. Housing policies exist to penalize recipients through adverse actions on program eligibility as household members increase their earnings. For instance, owner-occupied housing units in the district constitute only 16% of the total housing units occupied (ACS, 2017). The glaring disparities in wealth, housing, and access to decent employment is a function of historic, institutional, and racial discrimination. Disadvantaged communities face systematic inequities in the system that often result in their assignment to relatively low position in a very hierarchical society. Elyssa, a political economist, observed that those on the margins of society have found themselves on the periphery and away from the center where, “organized rules, structures, and resources” are determined by the powerful group. Gidden’s Theory of Structuration postulates how the powerful group use existing social structures that work against minority communities and deprive them of the opportunity to have meaningful participation in the political process. The reason is that members of minority community are, by design, absent from public forums in which members of the dominant group interact and collaborate to pass policies and shift power dynamics in their favor. With the rise of Somali participation in local politics, however, issues important to the community such as inadequate housing and schools with substandard quality are now being acknowledged and addressed in the state Legislature. The median household income in District 62A of Minneapolis is 52.5k per year, less than national and state average. Within the District, household income distribution varies significantly. Table

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lists

household

income

distribution by race. Black households 3 January 3, 2018

constitute roughly 51 percent of 4,025 households that make less than $10k a year and 42 percent of the households for the income distribution below $20k a year (ACS, 2017; Statistical Atlas, 2017).

An Overview of the Housing Program In 1965, Congress passed the Housing and Urban Development Act in response to concentration of very low-income and low-income families around geographic areas marked by high rates of poverty. The Wagner Steagall Housing Act (U.S. Senate 1937) first created the legal framework for the public housing program (Varady & Walker, 2003, p. 17). The primary goal was to provide federally funded public housing programs with the aim of constructing new units or leasing from private homeowners on behalf of the tenant through a local public housing authority (PHA). Units leased must meet certain minimum safety standards. At the urging of President Richard Nixon, Congress added to the National Housing Act several housing subsidies, including the widely known Section 8 program. While the Section 8 program borrows its name from the revised Section 8 of the U.S. Housing Act of 1937, the current program was established by the Housing and Community Development Act of 1974. Initially, three major key components made up the program logic: (a) the existing housing, (b) the new construction and (c) the substantial rehabilitation. The new construction and the substantial rehabilitation components of the program were repealed in the Housing and Urban Rural Act of 1983. Under these two components, the Housing and Urban Development (HUD) would sign long-term (roughly 40 years) contracts with private, for-profit organizations. The agency found that appropriate and reliable funding had been systematically cut and it was difficult to obtain enough appropriations (Congressional Digest, 1997). In addition to reported allegations of program abuse, many legislators favored the existing housing certificates over the other two components of the program, which Congress deemed inefficient. Under the existing housing certificates, program beneficiaries receive direct assistance. This component of the Section 8 program avoids the shortcomings and complexities associated with the two other parts of the program. The HUD’s field office determines the allocation of units on a need-based assessment in the geographic service area. The agency then enters into a contract 4 January 3, 2018

with a local PHA to administer the program such as Minneapolis Housing Authority, which is mandated to provide decent, safe, and affordable housing to Minneapolis residents. Eligible families or individuals receive the certificates and they have two (2) months to locate desirable homes or apartments for which the administering agency (i.e., agencies as Minneapolis Public Housing Authority) could sub-lease on their behalf. Thirty percent of the tenant’s adjustable household income covers the contract rent whereas the federal agency, the U.S. Department of Housing and Urban Development (HUD), pays the remainder based on a set Fair Market Rent (FMR). Two other elements of the existing housing certificates are project-based assistance and vouchers. The housing voucher program is similar to the certificate. The only difference is the portion of the rent to be paid by the tenant (Congressional Digest, 1997, p. 231). A family assisted by a voucher has the flexibility to rent in an area where the average rent is higher than the fair market rate as set by HUD. The subsidized housing program was originally conceived on one overriding priority: to enable very low-income and low-income families meet their housing needs and to help them achieve self-sufficiency. The new construction and substantial rehabilitation components of the program failed to accomplish their objectives as many Members of Congress questioned the justification of the large expenditure used to subsidize the housing program with little positive impact in return. In addition, allegation of program abuse and tainted selection process became contributing factors. By contrast, the housing certificate’s portability has allowed families to move to safe areas with better employment opportunities and lower crime rates (Don Tomlin, 2004). There is, however, insufficient evidence that supports that the social integration objective of the certificate program is linked to a direct positive impact on lowincome families and their children (Walker & Varady, 2003).

Conclusion and Recommendation 5 January 3, 2018

The concentration of immigrant families and refugees in poor areas of the city engenders societal and economic problems, including education failure and limited access to employment opportunities. Though homeownership is a critical driver of social mobility, current and existing policies have disadvantaged large families who are less likely to pursue their dream of home ownership or to obtain assistance with mortgage. Active participation in local affairs is a duty every citizen should exercise, and it ensures that the community does not simply remain on the margins but join forces with similarly situated groups that appreciate the significance of power dynamics. I believe we should strive for creating a future in which we are not only tolerated but celebrated, not only represented by out-of-touch politicians but given the chance to have our own representatives in the Senate and the House of Representatives. Omar Fateh has promised to fight for "funding to increase subsidized housing programs", a promise which ensures the senior members of our community are more likely to live with dignity and economic security. And our children will grow up in a healthy environment. Such demandside policies empower the community if championed in the state Legislature by a candidate who reflects the needs of the community with a goal to increasing subsidized home ownership and vertical equity for safe, clean, and healthy environment.

Towfik Elmi

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References Tomlin, D. (2004). The Evolution and Future of the Section 8 Program. Journal of Housing and Community Development, 6-8.

Overview of the Section 8 program. (1997). Congressional Digest, 76(10), 229. Veradie, C. W. (2003). Housing Vouchers and Residential Mobility Format. Journal of Planning Literature, 17-30. American Community Survey. (2017). Census Data on District 62A.

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