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After amending current housing assistance programs during each of the past few years in ways expected to reduce their cost, this year the Congress is considering proposals that would comprehensively restructure federal housing aid. This paper, requested by the Senate Budget Committee, describes current housing assistance programs and analyzes several comprehensive housing policy options.

Martin D. Levine of CBO's Human Resources and Community Development Division prepared this paper under the general direction of Nancy M. Gordon. Ben Steffen provided the computer analyses necessary for the study. Richard Bartholomew, John L. Goodman, Jr., Ann C. Hadley, Ira S. Lowry, Larry J. Ozanne, Philip A. Sampson, Cynthia M. Simon, and Raymond J. Struyk reviewed earlier drafts of the report and provided helpful comments. Many members of the CBO staff, including Roberta Drews, Cynthia Gensheimer, Wilhelmina Leigh, Patricia Ruggles, and Brent Shipp also contributed useful comments and necessary information. Numerous persons at the U.S. Department of Housing and Urban Development and the Farmers Home Administration of the Department of Agriculture provided program and budget data used in the study. Frank Pierce edited the paper. Mary Braxton expertly and patiently typed the several drafts and, with Nancy Brooks, prepared the manuscript for publication.

In accordance with CBO's mandate to provide objective and impartial analysis, this paper contains no recommendations.
 

Alice M. Rivlin
Director
May 1982
 
 

SUMMARY

CHAPTER I. INTRODUCTION

• Recent Experience
• Choices for 1982 and Beyond

CHAPTER II. PROGRAM OBJECTIVES AND CURRENT HOUSING CONDITIONS

• Improving Housing Conditions and Reducing Housing Costs
• Other Policy Objectives

CHAPTER III. PRESENT FEDERAL EFFORTS

• Current Programs
• The Budget Treatment of Present Programs and Outstanding Assistance Commitments

CHAPTER IV. ALTERNATIVE APPROACHES

• Comprehensive Policy Alternatives
• Assessing Alternative Approaches

CHAPTER V. PROGRAM-DESIGN ISSUES AND OPTIONS

• Housing Voucher Issues and Options
• Block Grant Issues and Options
• Production Subsidy Issues and Options

APPENDIX. COMPARISON OF 1982 HOUSING AND COMMUNITY DEVELOPMENT ACTS REPORTED OUT OF SENATE AND HOUSE BANKING COMMITTEES
 

TABLES
1.	PERCENT OF ALL HOUSING UNITS WITH SELECTED CONDITIONS: 1940-1977
2.	NUMBER AND PERCENT OF HOUSEHOLDS LIVING IN UNITS REQUIRING REHABILITATION, BY TENURE AND INCOME: 1977
3.	PERCENT OF HOUSEHOLDS SPENDING SPECIFIED SHARES OF INCOME FOR HOUSING, BY TENURE AND INCOME: 1977
4.	CURRENT HOUSING ASSISTANCE PROGRAMS
5.	NUMBER OF ASSISTANCE COMMITMENTS MADE ANNUALLY AND PROGRAM MIXES, HUD AND FmHA HOUSING ASSISTANCE PROGRAMS: FISCAL YEARS 1976-1982
6.	NUMBER OF ASSISTANCE COMMITMENTS OUTSTANDING THROUGH FISCAL YEAR 1982 AND PROPORTION OF THE ELIGIBLE POPULATION SERVED UNDER CURRENT HOUSING ASSISTANCE PROGRAMS
7.	PRINCIPAL DIFFERENCES BETWEEN HOUSING VOUCHERS AND SECTION 8 EXISTING-HOUSING PROGRAM
8.	COMPARISON OF ALTERNATIVE HOUSING ASSISTANCE APPROACHES
9.	ALTERNATIVE RENTAL HOUSING FINANCE SUBSIDY DEVICES
10.	COSTS AND EFFECTS OF ALTERNATIVE RENTAL HOUSING MORTGAGE-INTEREST SUBSIDIES

 

For more than 40 years, the federal government has subsidized the shelter costs of low- and moderate-income persons through a series of frequently changing rental and homeownership assistance programs. In fiscal year 1982, nearly $10 billion will be spent under such programs to aid more than 4.5 million households--representing more than 10 times the level of spending at the beginning of the last decade and almost four times the number of persons served. This rapid expenditure growth has prompted an increasing interest in alternative housing assistance approaches. Several such alternatives are being considered by the present Congress, and they seem likely to arise during the next few years as well.

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