ABSTRACT
Before the Great Depression, there was no formal housing policy in America. Workers and immigrants crowded into unsanitary tenements, and home loans were short-term and expensive. The New Deal created financial institutions to help stabilize banks and increase homeownership. However, this fell short in addressing the needs for most working families. A labor-community coalition led by “houser” Catherine Bauer, established the role of government in financing and construction of housing. During the post-World War II era of suburban sprawl, cities struggled with issues of urban decay and there was variable federal investment in public and private housing to address urban poverty. During the past half century of neoliberalism, the role of the federal government in low-income housing has declined and devolved to states and cities. However, the bank bailouts during the Great Recession demonstrated an outsized federal role in housing finance. The 2017 tax reforms further established a shadow housing policy whose benefits extended far beyond the intrinsic value for housing to function as physical shelters for people, and more as tax shelters for corporations.
