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Archive for: Paavo Monkkonen

Nearly Half of L.A. Tenants Owe Back Rent Lewis Center-USC survey shows many renters missing out on government assistance

July 29, 2021/0 Comments/in Development and Housing, Diversity, For Faculty, For Policymakers, For Students, Public Policy, Public Policy News, Research Projects, School of Public Affairs, Social Welfare, Social Welfare News, The Lewis Center, Urban Planning Michael Lens, Michael Manville, Paavo Monkkonen /by Les Dunseith
By Les Dunseith

In a new survey of Los Angeles County renters, 49% of households reported that they were unable to pay all of their rent during the pandemic.

The study, by researchers from UCLA and the University of Southern California, found the median amount renters owe their landlords is $2,800. That suggests that countywide, tenants owe landlords upwards of $3 billion.

The findings are from one of a pair of surveys of 1,000 renters each — one conducted in July 2020, which focused on renters’ ability to pay rent in the short term, and another in March 2021, asking about their ability to pay over the entirety of the pandemic.

The preliminary results show that in both surveys, about 7% of renters missed a full rent payment in at least one of the three months before the study was conducted. But by the time the second survey was conducted, the share of renters paying less than the full amount to a landlord at least once during the crisis had almost doubled to 31%, up from 17% in July 2020.

The study was co-authored by Michael Manville, Paavo Monkkonen and Michael Lens, associate professors at the UCLA Luskin School of Public Affairs; and Richard Green, director of the USC Lusk Center for Real Estate.

A slight majority of respondents reported paying their rent on time and in full, and many of those who owe rent said they were behind by less than a month. But other renters are emerging from the COVID-19 emergency in a financial hole they will struggle to climb out of on their own, the authors write in a research brief published today.

Of particular concern is evidence from the surveys that renters’ debt rose sharply as the COVID-19 crisis dragged on. Only about 6% of Los Angeles tenants reported using a credit card to pay their rent prior to the pandemic. That figure rose to 19% of respondents in the early days of the emergency, and to 44% in the latest survey. Also in the 2021 survey, 49% said they turned to friends and family to help them pay rent, 58% dipped into their savings and another 37% reported taking out an emergency or payday loan.

The overall share of renters taking on debt reached 45% in the second survey, up from 32% in the first.

Other findings include:

  • Just over 15% of tenants who were behind on their rent payments in 2020 had been threatened with eviction; that figure increased to 25% in the 2021 survey. Although an eviction moratorium is still in effect in Los Angeles County, tenants can still be threatened with evictions or have evictions initiated against them; a court won’t act until the moratorium ends.
  • Similarly, 6% reported in 2020 that an eviction had been initiated against them. In 2021, that percentage tripled to 18%.
  • In the 2021 survey, about 68% of all respondents said they had received federal aid during the pandemic, and about 15% reported getting local aid.
California’s eviction moratorium will remain in place through at least September, and the brief notes that the state has committed to helping renters pay the back rent they owe. Through existing rental assistance programs, which generally require that both landlords and tenants agree to participate, the state or city pays landlords on behalf of tenants who qualify for assistance.

The problem? The data show that many tenants owe money to people or institutions other than their landlords, and the researchers write that many may be in that position precisely because they were deeply concerned about their housing security.

The report suggests a solution often advocated by economists as the best way to help people facing financial trouble: Just give people money. Distributing cash to tenants who are financially distressed would allow them to pay back whomever is owed the money — a landlord, another creditor or a family member.

“Programs where the government pays a landlord are sometimes justified as ways to prevent fraud or misuse,” Manville said. “And we should certainly be concerned about fraud. But we need to weigh those concerns against the possibility that an overly cautious program will deny needed assistance to some people who are in real financial trouble.”

To allay concerns about fraudulent claims — which in most government redistribution programs are very rare — the authors suggest ways the state could ask for evidence of debt, lost work or income.

The 2021 survey was funded and produced by the UCLA Lewis Center for Regional Policy Studies in partnership with the USC Lusk Center for Real Estate, the UCLA Luskin School of Public Affairs and the Committee for Greater LA.

Monkkonen on Reversing the Legacy of Segregation

July 6, 2021/0 Comments/in Luskin in the News Paavo Monkkonen /by Zoe Day

Associate Professor of Urban Planning and Public Policy Paavo Monkkonen spoke to the Los Angeles Times about the persistence of racial segregation in Los Angeles and other major U.S. cities. New research has found that many regions of the U.S. were more segregated in 2019 than they were in 1990. Reversing the legacy of segregation is a slow process, said Monkkonen, director of the Latin American Cities Initiative at UCLA Luskin. “It’s a self-perpetuating process, where people are relegated to less attractive parts of the city, and then they’re associated with those parts of the city,” he said. There are also stark disparities in income, home values and life expectancy between residents in segregated communities and those in more integrated areas. Monkkonen said that, while some communities are working to develop proactive policies around fair housing and development, many researchers aren’t convinced that 2020’s reckoning with race will significantly move the needle when it comes to segregation.

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Monkkonen Analyzes San Diego Housing Plans

June 9, 2021/0 Comments/in Luskin in the News Paavo Monkkonen /by Zoe Day

Associate Professor of Urban Planning and Public Policy Paavo Monkkonen was mentioned in a San Diego Union-Tribune opinion piece about the need to enforce housing regulations in San Diego. Every eight years, California cities are required to adopt a state-approved plan that includes rules about regional housing targets, sanctions and zoning restrictions. San Diego is currently out of compliance, but it is unclear how California’s Department of Housing and Community Development will enforce the rules. State law says that cities that lack a compliant housing plan forfeit authority to deny or downsize affordable housing projects. Monkkonen and his students studied San Diego’s housing plan and identified grave shortcomings. For example, they found that 65% of the sites San Diego identified for low-income and multifamily housing are located in the poorest third of the city’s neighborhoods, and the plan fails to open up neighborhoods reserved for single-family homes to multifamily housing.

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Researchers Analyze Incidents Involving UCLA Police

May 12, 2021/0 Comments/in Luskin's Latest Blog Paavo Monkkonen /by Les Dunseith

Property-related incidents are the most frequent type of police-related event at UCLA, followed closely by incidents involving people whose presence or behavior is deemed disruptive or out of place, without any indication of violence, according to a new report from the UCLA Lewis Center for Regional Policy Studies and the UCLA Luskin Institute on Inequality and Democracy. The study examines police activity at UCLA based on data compiled in compliance with the Clery Act, which requires public disclosure by the Police Department at UCLA regarding the nature, date, time and location of incidents, as well as their disposition status or outcome. The researchers use maps and charts to visualize Clery Act data relating to events involving police, plus some fire department responses, in 2014 and 2019, with supplemental information focusing on arrests by the UCPD in 2018, the most-recent information available. Less than 10% of events involve force or threat of violence, they found, and data maps reveal that a substantial amount of UCPD activity and arrests occur off-campus, mostly in the greater Westwood area but also farther afield. Paavo Monkkonen, associate professor of public policy and urban planning at UCLA Luskin, helped oversee the study, working with Noah D. Zatz and Jennifer M. Chacón, professors of law at the UCLA School of Law, and Alejandra A Martinez, an undergraduate research assistant at the Lewis Center who studies economics and was the lead author. Their report also found that more than 80% of reported police activity during the study periods did not result in follow-ups for any asserted or possible crime.

Luskin Summit Brainstorms Solutions for Housing Justice

April 12, 2021/0 Comments/in Luskin's Latest Blog Paavo Monkkonen /by Zoe Day

Experts, scholars and activists convened to discuss successful housing strategies — and their potential application in the L.A. region — at the Luskin Summit webinar “Homes for All: Building Coalitions for Equitable Planning in Los Angeles County.” Culver City Vice Mayor Daniel Lee delivered the keynote address at the April 9 event, co-sponsored by UCLA’s Lewis Center for Regional Policy Studies and Ziman Center for Real Estate. Lee suggested that social housing is the key to addressing homelessness and the affordable housing crisis. Paavo Monkkonen, associate professor of urban planning and public policy, moderated a panel on the successes and challenges of housing initiatives in other areas. Berkeley City Council member Terry Taplin shared his personal experiences with homelessness and discussed efforts to end exclusionary zoning practices. Laura Loe, founder of Share the Cities, spoke about her work building housing coalitions in Seattle and the importance of building trust within communities. Alison McIntosh of the Oregon nonprofit Neighborhood Partnerships explained that, “while these problems are complex and thorny, they are solvable.” A second panel, moderated by Tommy Newman of the United Way of Greater Los Angeles, focused on how Los Angeles might apply these strategies. Andy Cohen of the architecture and design firm Gensler pointed to COVID-19 as an “opportunity to reimagine the future of cities and prioritize the human experience,” while Joss Tillard-Gates of Enterprise Community Partners spoke about preserving supportive housing for homeless populations. Mahdi Manji of the Inner City Law Center discussed serving the lowest-income clients, and Leonora Camner of Abundant Housing LA stressed the importance of “moving at the speed of trust.” — Zoe Day

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Monkkonen on Allocating Affordable Housing Units

January 6, 2021/0 Comments/in Luskin in the News Paavo Monkkonen /by Zoe Day

Paavo Monkkonen, associate professor of public policy and urban planning, was featured in a CalMatters article about the lack of affordable housing construction in wealthy cities like Newport Beach and Beverly Hills. In the statewide planning process, affluent communities often lobby for fewer affordable housing units than smaller, less wealthy cities located inland. Monkkonen co-authored a paper arguing for a wholesale reorganization of the process, removing the focus on vacant and underutilized land in favor of rezoning in places where people can easily get to jobs and transit. “The cynical interpretation is that they frame local input as a ‘technical process’ that happens to end up with a result that satisfies the preferences of rich NIMBY cities as a way to distract from criticism,” Monkkonen wrote. “Whatever term you use, the result goes against the goals of state housing law, all the lofty rhetoric of SCAG itself about sustainability, and basic social equity.”

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Monkkonen on the Legacy of a Racist System

September 21, 2020/0 Comments/in Luskin in the News Paavo Monkkonen /by Zoe Day

Paavo Monkkonen, associate professor of urban planning and public policy, was featured in a Time article on ways to end racial segregation in neighborhoods. Even though the formal practice of redlining has ended, the national homeownership rate for Black Americans is the same as it was in 1968. National zoning reform is needed to bring affordable housing into mostly white neighborhoods, the article argued. Noting opposition at the local level, it called on the federal government to drive the change by tying federal grants for cities and suburbs to zoning for multi-family housing. “There are very few single-family neighborhoods that have suddenly allowed apartment buildings. We don’t really have a model for that kind of zoning change,” Monkkonen said. “People sometimes get upset when we talk about that because they don’t want to feel like they are part of a racist system, but they definitely are part of the legacy of a racist system,” he said.

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Few Trying to Skip Out on Rent During Pandemic, Study Finds

September 3, 2020/0 Comments/in Luskin in the News Michael Lens, Michael Manville, Paavo Monkkonen /by Mary Braswell

A new UCLA-USC study that took a deep dive into how Los Angeles County tenants are handling rent and finances during the COVID-19 health crisis was covered by media outlets including the Orange County Register. Since the start of the pandemic, landlords have argued that tenants who were shielded from possible eviction would refuse to pay rent, the article noted. In fact, while the study showed that many have struggled to make rent, most tenants have not used the pandemic as an excuse to take a rent holiday, according to the study conducted by scholars from UCLA Luskin’s Lewis Center for Regional Studies and USC’s Lusk Center for Real Estate. One factor measured in the study was the impact of direct assistance to renters who need it. The findings showed that tenants collecting unemployment insurance were 39% less likely to miss rent payments. The report’s findings were also highlighted in Courthouse News, Commercial Observer and Pasadena Now. 

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Monkkonen Illustrates Downsides of Single-Family Zoning

September 1, 2020/0 Comments/in Luskin in the News Paavo Monkkonen /by Zoe Day

Paavo Monkkonen, associate professor of urban planning and public policy, spoke to the Voice of San Diego about some of the issues associated with single-family zoning. In San Diego, Mayor Kevin Faulconer is pushing housing reforms that would make it easier for developers to build rent-controlled apartments near transit but would not change the single-family zoning that applies to most of the city. Excluding single-family areas near transit from the program might be politically wise, Monkonnen said, but the collective benefit of allowing more people to live near transit should outweigh the concerns of people who don’t want their neighborhoods to change. “A big problem for California is we have never allowed single-family neighborhoods to change, and so people are overly concerned about what would happen if we did,” he said. Allowing California residents to build four homes on any single-family lot would be a big step toward addressing the state’s housing crisis, he said.

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1 in 5 Tenants in L.A. Has Struggled to Pay Rent During Pandemic, Study Finds Thousands of renters are at risk of eviction with moratorium set to expire; tens of thousands more are in a deep financial hole

August 31, 2020/0 Comments/in Development and Housing, Diversity, For Faculty, For Policymakers, For Students, For Undergraduates, Latinos, Public Policy, Public Policy News, Research Projects, School of Public Affairs, Social Welfare, Social Welfare News, Urban Planning Michael Lens, Michael Manville, Paavo Monkkonen /by Les Dunseith

By Claudia Bustamante

Twenty-two percent of Los Angeles County tenants paid rent late at least once from April to July, while between May and July, about 7% did not pay any rent at least once, according to a joint UCLA–USC report released today as a statewide eviction moratorium is set to expire.

The report documents the hardships faced by tenants during the COVID-19 pandemic, and it traces those hardships overwhelmingly to lost work and wages as a result of the economic shutdown.

Among households in the county that did not pay rent, either in full or partially, about 98,000 tenants have been threatened with an eviction, while an additional 40,000 report that their landlord has already begun eviction proceedings against them. California’s moratorium on evictions was scheduled to end Sept. 1, but at the last minute, lawmakers extended protections through Jan. 31, 2021. Federal action to protect renters from eviction at the national level through December 2020 has also been enacted.

The report by researchers at the UCLA Lewis Center for Regional Policy Studies and the USC Lusk Center for Real Estate analyzed data from the U.S. Census, as well as data from an original survey conducted in July 2020 of 1,000 Los Angeles County renter households. The survey, in particular, gave the researchers new insights into the circumstances facing renters. The study was authored by Michael Manville, Paavo Monkkonen and Michael Lens, all with the UCLA Luskin School of Public Affairs, and Richard Green, director of the USC Lusk Center.

“I think everyone understood, early on, that renters might be in trouble as a result of COVID-19 and its economic fallout, but conventional sources of data don’t give us a good window into whether renters are paying or not, and into how they are paying if they do pay,” said lead author Manville, an associate professor of urban planning. “We were able, by using data from a special census survey, and especially our own original survey of renters, to get a direct sense of these questions.”

The researchers first analyzed the U.S. Census Bureau’s Household Pulse Survey, a weekly survey that asked if renters have paid rent on time and if they think they will be able to pay the next month’s rent on time. This data was augmented by the UCLA Luskin–USC Lusk survey, which asked not only if renters paid on time but if they paid in full and if they were threatened with an eviction or had eviction proceedings initiated against them.

The study found that tenants have been facing unprecedented hardships during the COVID-19 crisis, substantially more so than homeowners. Overall, the study also found that most tenants are still paying their rent during the pandemic but are often doing so by relying on unconventional funding sources. The majority who pay late or not at all have either lost their work, gotten sick with COVID-19 or both.

Among the findings:

  •  About 16% of tenants report paying rent late each month from April through July.
  •  About 10% did not pay rent in full for at least one month between May and July.
  •  About 2% of renters are three full months behind on rent. This translates to almost 40,000 households in a deep financial hole.
  •  Late payment and nonpayment are strongly associated with very low incomes (households earning less than $25,000 annually) and being Black or Hispanic.
  •  Nonpayment is more common among tenants who rent from friends and family.

This crisis is particularly acute in the Los Angeles region and other high-cost cities, where an existing affordable housing crisis and an economic slowdown resulting from mitigation efforts to curb the pandemic intersect to threaten the stability of many households.

“Even before the pandemic, L.A. renters, especially low-income renters, were struggling,” said Lens, associate faculty director of the UCLA Lewis Center. And while most renters who miss rent have entered into some type of repayment plan, they’re not out of the woods yet.

“Nonpayment occurs disproportionately among the lowest-income renter households, so repaying back rent could be a tremendous burden for them,” Lens said.

The study also found that renters were suffering disproportionately from anxiety, depression and food scarcity, and they are relying much more than in the past on credit cards, family and friends, and payday loans to cover their expenses. One-third of households with problems paying rent relied on credit card debt and about 40% used emergency payday loans.

The prevalence of these nonconventional forms of payment, along with the incidence of job loss among tenants, suggests the importance of direct income assistance to renter households.

Tenants collecting unemployment insurance were 39% less likely to miss rent payments. Just 5% of households that hadn’t lost a job or fallen sick reported not paying the rent.

Co-author Green, director of the USC Lusk Center for Real Estate, said that although data show that most renters have been paying their rent, government policies can help strengthen the ability to do so.

“One of the main concerns among landlords at the beginning of the pandemic was that tenants weren’t going to pay their rent if they knew they weren’t going to be evicted,” Green said. “Not only have we not seen any evidence of this, but getting money in renters’ hands through unemployment insurance or rental assistance helps a lot.”

Co-author Monkkonen, an associate professor of urban planning and public policy, agreed.

Helping renters now will not only stave off looming evictions next month but “also prevent cumulative money problems that are no less serious, such as renters struggling to pay back credit card debt, struggling to manage a repayment plan or emerging from the pandemic with little savings left,” he said.

Across the state, most evictions were halted in April by the California Judicial Council, the state’s court policymaking body. The eviction moratorium was set to expire in June, but it had been postponed to Sept. 1 to allow local and state lawmakers more time to develop further protections, including the bill currently under consideration. Given the unconventional means renters reported using to pay rent, the new study says that policies that provide funds to renters could help mitigate a raft of evictions and homelessness that had been predicted by previous reports by researchers at UCLA and elsewhere.

The study was funded by the Luskin School, the UCLA Luskin Institute on Inequality and Democracy, the UCLA Ziman Center for Real Estate, the USC Lusk Center for Real Estate, and the California Community Foundation.

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