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Public Housing’s Legacy: Destroying Communities Instead of Building Them

What is Public Housing, and How Did It Begin?

Public housing was established during the Great Depression in 1937. Its original purpose was not to house the poorest but to provide affordable housing for low- to middle-class families struggling due to the economic hardships of the era. Expansion under the 1949 Housing Act led to widespread construction, but segregation remained a persistent issue for decades. Federal support for public housing began to decline after the 1970s, with a shift in focus to housing vouchers. (More on that here: NLIHC Public Housing History).

HOPE VI: A Solution in Theory, a Challenge in Practice

To combat segregation and address the deterioration of public housing, the government introduced the HOPE VI program. HOPE VI provides HUD grants to demolish and rebuild distressed public housing as mixed-income complexes. Tenants receive relocation assistance and Section 8 vouchers to subsidize private market rent during reconstruction, aiming to reduce concentrated poverty.

While the program sounds promising in theory, its reality has been far more problematic. According to Reimagine RPE, HUD has destroyed more homes than it has created.

“As of 2006, 78,100 public housing units had been demolished and an additional 10,400 units were slated for redevelopment. However, a 2004 study by the Urban Institute found that only 21,000 units had been built to replace the 49,828 demolished units. In other words, roughly 42 percent of the demolished public housing had been replaced.”

The Lasting Impact of HOPE VI

Not only has the government failed to replace the housing it has destroyed, but the housing that has been built is often under-maintained and further segregates communities by wealth. This economic segregation exacerbates long-term disparities for low-income communities, which often suffer from underfunded schools, inadequate policing, and poor infrastructure. These conditions trap residents in low-income brackets, perpetuating cycles of poverty.

The social and community impact is equally significant. Children raised in impoverished communities are more likely to encounter crime and substance abuse due to their environment. The lack of stable, well-funded neighborhoods reduces opportunities for upward mobility and stifles the potential of entire generations.

A Path Forward

The solution lies in rethinking the role of public housing at the federal level. The federal government cannot effectively address the unique needs of individual communities. Instead, cities should prioritize building mixed-use developments that integrate:

  • Local businesses

  • Single-family homes

  • Multi-use buildings

  • Parks and green spaces

These developments should foster a sense of community by creating "third places" where people can socialize, build relationships, and thrive. By focusing on local needs and creating inclusive spaces, cities can better address housing issues and promote long-term community well-being.