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Since 1937, the federal government has been providing direct housing subsidies to low-income families intended to upgrade their housing quality and to reduce their housing costs.¹ Each year, a number of new commitments is made--through programs administered by the Department of Housing and Urban Development (HUD) and the Farmers Home Administration (FmHA)--to assist low-income renters and homeowners, augmenting those already receiving aid.

Much of the growth in available housing assistance has occurred over the past decade. During this period, the number of commitments has greatly expanded, but at a declining rate. Between 1977 and 1986, more than 2.7 million new commitments will have been funded--about three-fourth aiding renters and one-quarter providing mortgage assistance to low-income homebuyers. Over this period, the number of additional commitments funded each year declined from a high of 487,000 in 1977 to a low of 132,000 in 1983. Nevertheless, the total number of outstanding commitments will have almost doubled, growing from 2.9 million at the beginning of fiscal year 1977 to 5.6 million by the end of fiscal year 1986.

This analysis provides background information that may be useful to the Congress in considering the size of any future assistance increments and the nature of the aid to be provided. The analysis consists of two parts. The first section briefly describes the characteristics of income-eligible households and their housing problems. The second section presents an overview of the types and levels of housing assistance currently provided.

This document is available in its entirety in PDF.

1. In addition to providing aid through direct subsidies, the federal government addresses housing needs through various indirect mechanisms, including housing-related provisions of the tax code, mortgage credit and insurance activities, and community development programs. Housing-related tax provisions provide the largest source of aid, but benefit primarily middle- and upper-income households. These approaches are not considered here. For a detailed discussion of the various federal housing assistance programs, see Congressional Budget Office, Federal Housing Assistance: Alternative Approaches, May 1982.