Evicted: Poverty and Profit in the American City

29. More technically, the voucher covers the remaining costs up to the “payment standard,” a limit set by the local Housing Authority administering the benefit. The program reserves 3 in 4 available vouchers for households with incomes below 30 percent of the area median income or the poverty line (whichever is higher); the remaining quarter may be distributed to households with incomes up to 80 percent of the area median.

30. Joint Center for Housing Studies of Harvard University, America’s Rental Housing: Evolving Markets and Needs (Cambridge: Harvard University, 2013); Abt Associates Inc. et al., Effects of Housing Vouchers on Welfare Families (Washington, DC: US Department of Housing and Urban Development, 2006); Michelle Wood, Jennifer Turnham, and Gregory Mills, “Housing Affordability and Family Well-Being: Results from the Housing Voucher Evaluation,” Housing Policy Debate 19 (2008): 367–412.

31. Abt Associates Inc. et al., Effects of Housing Vouchers; Alan Meyers et al., “Public Housing Subsidies May Improve Poor Children’s Nutrition,” American Journal of Public Health 83 (1993): 115. See also Sandra Newman and Scott Holupka, “Housing Affordability and Investments in Children,” Journal of Housing Economics 24 (2014): 89–100.

32. American Housing Survey, 2013, Table C-17-RO. These estimates excluded households classified as “other income verification” (3 percent of renter households below the poverty level) and “subsidy not reported” (1 percent of renter households below the poverty level) because it was unclear whether these households received assistance. Matthew Desmond, “Unaffordable America: Poverty, Housing, and Eviction,” Fast Focus: Institute for Research on Poverty 22 (2015): 1–6.

33. On public housing capital needs, see Meryl Finkel et al., Capital Needs in the Public Housing Program, Contract # C-DEN-O2277-TO001, Revised Financial Report, prepared for the US Department of Housing and Urban Development (Cambridge: Abt Associates Inc., 2010).

34. This estimate is consistent across multiple national data sets, including the American Housing Survey, the American Community Survey, the Survey of Income and Program Participation, and the Consumer Expenditure Survey. Frederick Eggers and Fouad Moumen, Investigating Very High Rent Burdens Among Renters in the American Housing Survey (Washington, DC: US Department of Housing and Urban Development, 2010).

The problem of unaffordable housing is not America’s alone. Over the last several decades, millions of people around the world have migrated from rural villages and towns. In 1960, roughly one-third of the planet lived in urban areas; today, more than half does. Cities have experienced real income gains that have brought about global poverty reductions. But therein lies the rub, for the growth of cities also has been accompanied by an astonishing surge in land values and housing costs. Urban housing costs have risen around the globe, especially in “superstar cities” whose real-estate markets have experienced an influx of global capital, driving housing prices upward and crowding out low-income residents. In Lagos, Africa’s largest city, an estimated 60 percent of all residents dedicate the majority of their monthly income to rent, even as the majority of the city’s residents live in one-room dwellings. Rents in Delhi’s business district now rival those in midtown Manhattan. A recent report estimated that the global housing affordability gap amounts to $650 billion or 1 percent of the global GDP. Roughly 330 million urban households worldwide live in substandard or unaffordable housing demanding more than 30 percent of their income. By 2025, based on migration trends and global income projections, that number is expected to climb to 440 million households, representing 1.6 billion people. The world is becoming urbanized, and the city is becoming unaffordable to millions everywhere. See Joseph Gyourko, Christopher Mayer, and Todd Sinai, “Superstar Cities,” American Economic Journal: Economic Policy 5 (2013): 167–99; McKinsey Global Institute, A Blueprint for Addressing the Global Affordable Housing Challenge (New York: McKinsey, 2014); Pedro Olinto and Hiroki Uematsu, The State of the Poor: Where Are the Poor and Where Are They Poorest? (Washington, DC: World Bank, Poverty Reduction and Equity, 2013).

35. Russell Engler, “Pursuing Access to Justice and Civil Right to Counsel in a Time of Economic Crisis,” Roger Williams University Law Review 15 (2010): 472–98; Russell Engler, “Connecting Self-Representation to Civil Gideon,” Fordham Urban Law Review 37 (2010): 36–92.

36. D. James Greiner, Cassandra Wolos Pattanayak, and Jonathan Hennessy, “The Limits of Unbundled Legal Assistance: A Randomized Study in a Massachusetts District Court and Prospects for the Future,” Harvard Law Review 126 (2013): 901–89; Carroll Seron et al., “The Impact of Legal Counsel on Outcomes for Poor Tenants in New York City’s Housing Court: Results of a Randomized Experiment,” Law and Society Review 35 (2001): 419–34.

37. Seedco, Housing Help Program, South Bronx, NYC (New York: Seedco Policy Center, 2009).

38. Nearly half of all forced moves that take place among Milwaukee renters are informal evictions: off-the-books displacements not processed through the court. Since informal eviction is already landlords’ favored means to displace tenants, they might be more likely to resort to this strategy if poor families had access to counsel. Tenants could insist on a court hearing, but many prefer informal evictions because an official record does not accompany them. This is why any legal-aid initiative needs to consider current court recordkeeping practices.

The legal system has been drastically changed by the recording and publication of its business: so much so that the threat of an eviction record is daily leveraged, both inside and outside the courtroom, by landlords and judges alike, to incentivize tenants to forfeit their right to be heard. Something has gone very wrong with our justice system when it makes more sense for tenants to skip court and quietly move out when their landlord says go than it does for them to plead their case themselves, which often leads to an order to move and an eviction on their record.

Consider the case of Myesha and Chester, a poor black couple whose landlord had moved to evict them from a house riddled with dangerous and degrading problems. According to the tenants, the landlord had agreed to let them live in the house for free until she was able to fix it up. According to the landlord, no such bargain had been struck. What was not in dispute was the terrible condition of the house—there were exposed wires; in some rooms the floor was caving in; water flowed into the house when it rained—photographs of which had led a commissioner to kick the case up to a judge. When the court date in front of the judge came, the landlord and her lawyer offered the tenants a stipulation agreement, which required that they move. But Myesha and Chester had two teenage girls in school and wanted to stay put and see the house repaired; so they were considering arguing their case in front of a jury. The judge explained their options like this: If they signed a stipulation and agreed to leave, “the eviction part [of the case the landlord] would dismiss. So on your record, which anyone can see, it wouldn’t say you were evicted….If you think you really have paid the rent or have some other reason that is a legal defense here, then you can tell me all about that. That’s your one choice. Your other choice would be to go ahead with some agreement that you’ll leave and save [the landlord] and ultimately yourself some headache. Because…if you fail to vacate after the lease no longer exists and if [the landlord] has to pay for the sheriff to come and actually move your things out to the street, then that’ll cost her money and she’ll just add that on to the balance that you owe. So, it’s a really tough, unfriendly, sorry, uncomfortable, terribly disruptive situation, when you’re put out like that.”

“Just a question,” Chester said. “What if we had an agreement that we weren’t suppose to pay rent until she fixed stuff up?”

“Then, well, have a trial and we’ll find out the truth and make that determination,” the judge responded.

Myesha and Chester asked for a few minutes to talk things through. “We still gonna lose,” Myesha whispered. “It’s just how much we gonna lose.”

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