FTS- Politics of Housing and Homelessness FINAL EXAM

What are Politics?

People attempting to get their way in conflict with others.

Because of politics, we have _________

government

What is Political Capital ?

The authority to realize values that people who are not in the government do not have

What are some resources that the government has the authority to allocate?

Money, physical resources, people, time, attention

What are some values that the government has the authority to allocate?

Security, jobs, private property, education, social services, housing

Overall, what are the top 3 things that Americans consider to be the "American Dream"

Family- 36%
Opportunity- 35% (top first choice of Americans)
Freedom- 33%

What is mortgage interest?

How much money in interest will be paid towards a mortgage (Total paid- Principle Amount = Interest)

What is made by the government and lists eligible and ineligible deductions for taxes?

Tax Code

What is a standard deduction?

An amount that is subtracted from a person's/ couple's total income

How much is the standard deduction as of 2019?

Single People or couples filling separately: $12,000
Couples filling jointly: $24,000

What types of things are included in an itemized deduction?

- Real Estate Taxes
- Home mortgage interest
-Medical Expenses
- Charitable Contributions

If a person's/couple's eligible deductions are BELOW the standard deduction, they should use ________________ deduction

Standard

If a person's/couple's eligible deductions are ABOVE the standard deduction, they should use __________________ deduction

Itemized

What is a mortgage?

A loan to purchase a house

What is Mortgage Interest Deduction?

Allows taxpayers who own their homes to reduce their taxable income by the amount of interest paid on the loan

What percent of homeowners claim Mortgage Interest Deduction?

54%

What percent of all taxpayers claim Mortgage Interest Deduction?

24%

What percent of Mortgage Interest Deduction benefits taxpayers with an income of $100,000 or more?

74%

What percent of Mortgage Interest Deduction benefits taxpayers with an income of $200,000 or more?

32%

What can Mortgage Interest Deduction cause for homeowners?

Causes people to over-invest in single family homes

Overall, do people in the upper class or lower class benefit more from Mortgage Interest Deduction?

Upper Class

What is foreclosure?

When a borrower is unable or unwilling to pay the monthly mortgage payment, the lender can begin legal proceedings to take possession of the property

In many cities, governments decided the best way to house masses of people was to build what were called _________

Housing Projects

What is urban decay?

When a neighborhood or community is experiencing decline. (high crime rate, low property values, lost business, abandoned building)

What is gentrification?

the process of renovating and improving a house or district. The reverse process of urban decay. Gentrification can be encouraged by the government.

What is a negative effect of gentrification?

Non-gentrified parts of the neighborhood or community can loose value and get a negative image. Taxes also may increase and long time residents may be forced out.

What are teardowns?

an act of demolishing a building, usually to build a new one on the same site.

What is Philanthropy?

the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes.

What is the Deductibility of property taxes?

refers to state and local property taxes that are generally deductible from federal income taxes. (real estate taxes)

What is a variance?

a request to deviate from current zoning requirements. If granted, it permits the owner to use his land in a way that is ordinarily not permitted by the zoning ordinance.

What is a reverse mortgage and who can use it?

a financial agreement in which a homeowner relinquishes equity in their home in exchange for regular payments, typically to supplement retirement income. Only allowed for people age 62 or older.

What is does moral hazard mean?

lack of incentive to guard against risk where one is protected from its consequences

Give an example of moral hazard from the book "Without A Net".

When Michelle can no longer afford college and she finds out that if she gets married or has children that she will get discounted schooling. She does a risky thing to be able to afford school.

What is personal homelessness?

Becoming homeless because of a poor choice that a person made.

What is an example of personal homelessness?

A person choosing to be unemployed, use drugs, and not manage their money.

What is systemic homelessness?

System failures occur when other systems of care and support fail, requiring vulnerable people to turn to the homelessness sector, when other mainstream services could have prevented this need.

What is an example of systemic homelessness?

When the government does not provide someone with the assistance that they need, inadequate transition after a hospital discharge, difficult transitions from child welfare.

What is an example of housing discrimination that was seen in "Without a Net"?

When Michelle was told she could not rent the apartment because she had children.

What is a bureaucracy?

a system of government in which most of the important decisions are made by state officials rather than by elected representatives.

What is the difference between cultural and co-cultural values?

Cultural values: A group of people who share the same values or beliefs.
Co-cultural values: Part of a culture, but the values distinguish from the larger cultures values, so they are broken into a smaller group from the culture that they already share beliefs with.

Paying ____ % or less of a person's income towards housing is considered affordable housing.

30%