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OCR Page 1 of 112through random selection, HUD should inquire about and if necessary conduct
an audit of that authority's admissions procedures.
1 B. The income range in public housing is so low as to render this policy
ineffective.
The average income for family public housing is somewhere in the range of
$8,000 per year. This average is well below 30 percent of median, which is
described as extremely low-income. Since this average is so low, it means that
the vast majority of public housing residents fall below 30 percent of median
income and are classified as extremely low-income.
Since the vast majority of residents are extremely low-income, a policy which
simply mixes extremely low-income people up amongst themselves cannot be
effective in creating mixed income communities. No matter what reshuffling
scheme is developed, the vast majority of residents in each development and
each building are going to be extremely low-income. Since there is no potential
for creating mixed income communities with the current universe of people living
in public housing, it is not sensible to adopt a policy which mandates
burdensome and restrictive practices.
1 C. Fair Housing Requirements should not be included in this proposed rule.
The statute does not call for any fair housing language in regard to
deconcentration. The rule itself states that the "requirements for poverty
deconcentration in paragraph (a) and for fair housing, in paragraph (b) of this
section, arise under separate statutory authorities and are independent."
Therefore, the fair housing requirements should not be part of this proposed rule.
This rule conflicts with the statute.
2 A. There could be civil rights violations as a result of this proposed rule.
There will be certain situations in which the above average and below average
groups on the waiting list will be admitted at different rates. For instance, a
PHA's turnover may not be entirely random, and there may be a higher turnover
rate in lower-income buildings than higher-income buildings. This higher
turnover rate may be for a variety of reasons including a higher rate of defaulting
on rent, unhappiness with the living conditions or a higher rate of evictions for
cause.
If the lower-income buildings have a higher turnover rate than higher income
buildings, then more vacant units will be available in these buildings, meaning
that the higher income applicants will have more opportunities for admission than
lower income applicants. If there is a correlation between income and race or
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