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Housing Assistance and Welfare: Background and Issues (CRS Report for Congress)

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Release Date Jan. 19, 2005
Report Number RL32104
Report Type Report
Authors Maggie McCarty, Domestic Social Policy Division
Source Agency Congressional Research Service
Summary:

The 1995-1996 debate over creation of a block grant to states for cash aid to needy families with children (Temporary Assistance for Needy Families—TANF) focused on reducing welfare rolls by promoting work. Except for child care costs, it gave scant attention to other living expenses of low-income parents. The issues of housing cost and affordability were essentially absent from the debate, although rent is the largest expense for many low-income families. The important role housing plays in families' lives has been recognized through a system of programs, administered by the Department of Housing and Urban Development (HUD), that subsidize the housing costs of low-income families. The three major direct housing assistance programs are the low-rent public housing program, the Housing Choice Voucher program (also known as Section 8 vouchers) and project-based rental assistance. Both housing programs and TANF are designed to serve the needs of low-income households. As a result, many low-income families who receive TANF cash assistance or services, or have in the past, also qualify for housing assistance. It is estimated by CRS that possibly half a million households were receiving both cash welfare assistance and housing assistance in 2001. Although the two programs, in many cases, serve the same populations, the structures and rules of the two programs are often in conflict. This inconsistency in program rules can lead to inefficiencies for dual program participants. Some changes have been made to enhance the compatibility of housing and welfare programs. Further changes to one or both of the programs to enhance coordination have been considered as a part of the debate surrounding both welfare reauthorization and proposed housing reform measures. This paper will introduce the reader to federal housing assistance and welfare programs, the people they serve, how the programs interact and current issues. It will be updated to track relevant legislation.