Urban Renewal Administration

In 1961, the Housing Act was amended to address the displacement that was caused as a result of urban development. In its guidelines, $200 was provided for families who were displaced due to these renewal projects (Groth, 282). The new Housing Act gave no mention towards single individuals, who experienced the greatest amount of displacement and had the highest amount of financial burden to relocating. To create guidelines for individuals, the Urban Renewal Administration (under the federal Housing and Home Finance agency created in 1947) "authorized local authorities to pay each single SRO person a relocation fee of $5, approximately cab fare out of the neighborhood" (Groth, 282). Residents who previously thrived in their community suddenly

had no place to go. With such minuscule relocation payments, many had no other options but to live on the streets (Coalition for the Homeless). Not surprisingly, the increase of homelessness and rates of individuals living in unaffordable housing coincides with policies that eliminated and hindered the development of SROs.
By the 1970's the importance of SROs was becoming more and more apparent.
Unfortunately, the timing of the realization looks mirrors the problems we are seeing in today' administration.

During the eight years of the conservative Reagan Administration, "total funding committed to providing housing assistance to new households was slashed by 82% in 1989 dollar terms" (Zigas, 9). In 1989, SRO activist Richard Livingston concisely summarized the situation. He said, "For each hundred hotel units that we fight to save, a thousand are torn down or converted. We are moving rapidly backwards" (Groth, 293). Interestingly enough, if Trumps proposed HUD budget cuts are approved, it would be the most severe cut since President Reagan cut funding in the 1980's (Ramirez, 2017). The Reagan administration contributed to rising homelessness, and it appears Trump is eager to make the same

mistakes.
Before the 1930s, many low-income individuals were better off than they would be today, pertaining to their housing situation. Residential hotels work "better than shelter and better than the streets" (Groth, 294) in both urban and rural communities. While some current federal policies provide subsidies for low-income individuals, such as Section 8 housing, they cost substantially more to build and provide housing to fewer people. For the cost of "one new HUD Section studio apartment, multiple hotel rooms can be rehabilitated" (Groth, 294). I would propose renovating hotels that are currently abandoned in order to provide cheap housing for as many individuals as possible. In addition, with HUDs reduced budget, SRO buildings should be built instead of apartment complexes for low-income individuals because SROs will benefit a greater number of people than any market rate or low-income unit could.
The affordable housing crisis is a complex issue that is occurring across the nation, in both urban and rural areas.

In addition to individuals lacking adequate housing, the crisis also has indirect effects on the nation's health. It is critical that the problem is recognized and immediate action is taken to mitigate the housing crisis. The causes of the crisis stem back to the 1930's when government intervention in the housing market resulted in red-lining and emphasized wealthy white neighborhoods. In urban areas, many cheap residential hotels and apartment complexes were torn down in order to make room for city centers and improve the aesthetics of communities. In rural areas, the economic downturn following the Great Depression and later WWII has greatly impacted the prevailing poverty rates that contribute to unaffordable and insufficient housing. Currently, some federal departments and policies exist that work to provide housing for low-income groups. Unfortunately, none of these programs will be able to alleviate the problem without increases in their budgets. Some supply and demand side solutions have been theoretically proposed, but I argue that the cheapest and most effective way to mitigate the effects of the affordable housing crisis is to renovate and create residential hotels, which thrived in the early 1900's. This form of housing in preferable for those without steady incomes as they are able to rent for a day, week or monthly basis without the need for a

security deposit. In addition, more units would be provided within one building, making it the most cost-effective to build. Regardless of the ways in which policymakers go about solving the crisis, federal funding will be vital. With the current administration, it is likely that the housing crisis will worsen before legitimate attempts at reform are actively pursued at the federal level.