ABSTRACT
There are two general ways of subsidizing housing: the producer sub sidy system and the consumer subsidy system.3 In the producer subsidy system the national government finances and builds houses directly and sets rents within workers' ability to pay, or it extends subsidies to another body which produces the house-e.g., a provincial or local government, a non-profit enterprise such as a housing cooperative, or a private firm. These subsidies are generally either direct capital grants, tax concessions, or mortgage loans at subsidized interest rates and are conditional on rents being set at levels that workers can afford. The essential feature of the
producer housing subsidy is that public financial assistance goes to the actual producer of the new dwelling unit.
