ABSTRACT
A range of federal housing programs currently exist designed to permit lower income families to occupy decent housing, as well as to provide stability and incentive to the housing industry. More expensive housing requires larger federal subsidies. Because the major variation in housing costs is between new and existing housing, the subsidy per family for any current new construction program is considerably higher than the subsidy required for existing housing. Federal budget decisions regarding low- and moderate-income housing assistance involve choices in two areas: the level of funding relative to funding for other priorities, and the housing goals to pursue through a mix of housing assistance programs. Little is known, however, about the net impact of housing assistance programs on the stability or total level of housing construction activity. The chapter focuses on current housing assistance programs because fiscal year 1978 budget decisions will probably involve modifications to or choices among current programs.
