MORE THAN HANDOUTS FOR THE HOMELESS

Former Rep. James Symington's letter {"Handouts for the Homeless," Oct. 17} after the Housing Now! march suggesting we should respond to the homeless problem by installing donation boxes at commuter locations is an indication of how much remains to be done before the public understands the low-income housing crisis. If this respected and compassionate former representative believes that organizing the collection of handouts is a solution, then the average citizen is probably equally ill-informed about the fundamental causes of our housing problem.

First, the crisis is about maldistribution of income. The poor have gotten poorer. The mean income of families with children declined 32 percent between 1973 and 1985. The poor have less real income to spend on housing or any basic human need.

Second, the crisis is about the law of supply and demand and the fact that, for the poor, housing prices have increased faster than income. Land and site development are major factors. Yet, local and state governments continue to drive up prices by creating unnecessary scarcity with overregulation, higher-than-needed standards, regressive impact fees and property transfer fees.

Third, the crisis is about housing subsidy policies. Effective housing policy would direct subsidies to those least able to help themselves. Four federal subsidy dollars go to the well-off via tax deductions for each housing dollar that goes to the poor. This leaves many of my foreign friends wondering about our mean-spiritedness, as we have cut housing subsidies for the poor from $31 billion in 1981 to $7.5 billion today.

Fourth, the crisis is about the design and implementation of housing programs. The best programs deliver housing assistance directly to those in need, to their nonprofit or cooperative organizations or to responsible direct-funded housing authorities. The best implementation taps the human resources of the poor and involves them in the process.

Administrators should aim to make our democratic, free-market system work for everyone, including the poor. It isn't necessary to deliver benefits to the poor with tax write-offs to the rich or to hire poorly motivated administrators who end their careers taking the Fifth before a congressional committee.

The roots of our low-income housing crisis go deep. Solutions will require more than handouts. What is needed is courageous, housing-literate political officials willing to ask the electorate to make critical choices. Only then can we move a growing number of Americans out of conditions more typically associated with developing countries.

JAMES UPCHURCH President, Cooperative Housing Foundation Washington

I applaud Mr. Symington for his suggestion of strongboxes in strategic locations.

The homeless are certainly an American problem, but strongboxes located at international airport departure lounges would relieve some foreigners of their small change and benefit those in need.

IZA G. WARNER Washington

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