Problems that Consist
Original Plan of the CHA
 to provide decent housing for poor and low-
income households.
National Housing Act of 1934
 Passed to make houses and home mortgages
more affordable
 Created the Federal Housing Administration
(FHA) and the Federal Savings and Loans
Insurance Corporation
 Used as base for the mortgage and home building
industries
 Did little to improve inner city housing, it
intensified segregation of races, and further
promoted the single family detached dwelling as
the prevailing mode of housing, which furthered
the phenomenon of suburban sprawl
National Housing Act of 1937
 Provided for subsidies to
be paid from the U.S.
government to local
public housing agencies
(PHA's) to improve living
conditions for low-income
families.
Founding
 CHA was founded in 1937 in response to the
Housing Act of 1937
 Responsible for all public housing in Chicago
The Beginnings
 Four low rise projects prior to WWII
 1938- built three new projects for whites
 Jane Addams Houses (32 buildings, 1027 families)
 Julia C. Lathrop Homes (925 families)
 Trumbull Park Homes (426 families)
 Only one built for blacks
 Ida B. Wells Homes (1662 families)
FEDERAL HOUSING ACT 1949
Provided funds for 800,00 new units of public housing
across the U.S.
First time responsibility of slum clearing was viewed as
more than a local issue.
CHA’s map of proposed sites originally shut down by
white aldermen.
Resulted in concentration of public housing in Chicago’s
South and West sides.
GANG VIOLENCE
Why was this a problem?
•Adults lost control
•Neighborhood quickly deteriorated
•Less tenant checking
•Cyclical
Drugs
 Their effect on public housing
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Crack brought from Los Angles, CA
Way to “quick cash”
http://www.youtube.com/watch?v=o80wKKJI6uc
No need to leave home to “work”
Public housing has come full circle
Maintenance
 Industry died down after World War II
 City had less revenue; made budgets cuts
 Began withdrawing from maintaining the
housing projects
 Grass paved over
 Fire-stricken units were boarded up
 Broken elevators
Maintain Maintenance
 Provide funds through tax equity
 Place slightly higher taxes on rich
 State income tax is at 3%
 $250,000-$500,000: increase rate to 3.5%
 $500,000+: Increase to 4%
 Equity will create efficiency in community
Tax Policy Chart for $250,000+
Pre-Tax
Income
Original
State
Income
Tax
New,
Proposed
Income
Tax
(3.5%-4%)
Revenue
Total
Increase
Income
per Person Tax paid
Under
Obama
(42.5-43%)
Total
Income
Tax paid
Under
McCain
(38.5-39%)
(3%)
$250,000
$7,500
$8,750
$1, 250
$106,250
$96,250
$500,000
$15,000
$20,000
$5,000
$215,000
$195,000
Creating Jobs
 Create businesses that serve people’s needs
 Grocery stores, clothing, etc.
 Provide proper funding for aspiring business
owners
 Many would not have the resources otherwise
 Treat payment as a loan; paid back to the city
 Mutually beneficial
 Circular flow to guide local economy
 Eventual source of revenue for the city
Mentoring Program
Provide a mentoring program whereby individuals and families successful
in relocating out of public housing advise and counsel individuals and
families trying to move up and out
The mentoring program should emphasis the individuals success and
comfort in living in their new community to reduce fears that the tenants
may have such as the sense of loosing their of community and face
prejudices in their new housing
Incentive Program
In order to encourage market rate tenants to
purchase properties in mixed income
developments builders can:
1. Provide incentives through gifting equity
at closing; for example, the builder or
owner of a mix income development will
offer to pay $20,000 at closing. This
allows the home prices to stay high, while
giving the market rate purchaser instant
equity in their property
2. The builder can also offer a program to
pay a percentage, say 3% of the
purchases property taxes over a five year
period. This is will encourage the
purchaser to stay in the mixed income
housing development over time
Market Rate Buyers
Builders of mixed income
development should also
introduce potential purchasers
to attractive mixed income
development that have already
been established and have a
proven track record and allow
them to talk to market rate
tenants in the existing
developments to overcome
any hesitations they may have
about purchasing
Issue: Chicago Public Schools
 Unqualified Teachers
 According to Chicago Tribune, 5,000 school
teachers will need to go back to school.
 In 2006 the average ISAT reading scores for
3rd graders in CPS was 190.67, while students
in the rest of the state was 208.33.
Solution: Better Teachers
 TEACH Grant: Federal money to education
majors in exchange for working in low income
school districts.
 Leads to better educated teachers in CPS
 Results in better test scores for students
 Higher test scores earns school more money
from federal government for better
education resources.
Education
 Problems
 Inadequate funding
 No incentives
 Broken buildings
 Overcrowding; shifts of students
 What’s the point?
 Crux of the problem
Education
 Solutions
 Cycle needs to be broken
 Room 405
 http://www.projectcitizen405.com/ActionPlan.ht
m
 Trade schools