ABSTRACT
This chapter focuses on federal programs that subsidize low-income housing built by private and nonprofit organizations. Combined, these programs currently provide more than 900,000 housing units. However, with the exception of the Section 515 program for rural housing, they have funded virtually no housing since the 1980s. Unlike public housing, which is owned by governmental authorities and has no limit imposed on the duration of the subsidy, housing developed under these programs receives subsidies for a limited period, after which it can convert to market rate occupancy. The challenge now is to preserve this housing for continued low-income occupancy. This chapter distinguishes between mortgage subsidy programs created in the 1960s (Section 221(d)3, Section 236, Section 515), and programs that provide operating subsidies (Section 8, Section 521). The chapter examines the extent to which housing produced under these programs continues to provide affordable housing, and the various programs that have been developed to preserve this housing.
