Overview of Federal Housing Assistance Programs and Policy (CRS Report for Congress)
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| Release Date |
Revised March 27, 2019 |
| Report Number |
RL34591 |
| Report Type |
Report |
| Authors |
Maggie McCarty and Libby Perl, Specialists in Housing Policy; Bruce E. Foote and Katie Jones, Analysts in Housing Policy; Meredith Peterson, Information Research Specialist |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The federal government has been involved in providing housing assistance to lower-income households since the 1930s. In the beginning, the federal government was involved in supporting the mortgage market (through establishment of the Federal Housing Administration (FHA) and the government-sponsored enterprises) and in promoting construction of low-rent public housing for lower-income families through local public housing authorities (PHAs). Over time, the role of the federal government has shifted away from providing construction-based subsidies to providing rental subsidies; private developers and property owners now play a larger role; and more federal funding has been provided to states and localities.
Today's federal housing assistance programs fall into three main categories: rental housing assistance, assistance to state and local governments, and assistance for homeowners. Most of these programs are administered by the Department of Housing and Urban Development (HUD). Current housing assistance programs include Section 8 vouchers and project-based rental assistance, public housing, housing for the elderly (Section 202), housing for persons with disabilities (Section 811), rural rental assistance (the United States Department of Agriculture's Section 521 program), Community Development Block Grants (CDBG), HOME Investment Partnerships Block Grants, Low-Income Housing Tax Credits (LIHTC), homeless assistance programs, FHA and Veterans' Administration mortgage insurance, and the mortgage interest deduction in the tax code.
Most of the federal housing assistance programs are aimed at making housing affordable for low-income families. Housing affordabilityâhousing that costs no more than 30% of family incomeâis considered the largest housing problem today. Rental assistance programs, which are the largest source of direct housing assistance for low-income families, all allow families to pay affordable, income-based rents; however, different forms of assistance target different types of households, including the elderly, persons with disabilities, and families with children. Several trends in federal housing policy have emerged in recent decades. As the focus of federal housing assistance has shifted away from construction-based subsidies to rental assistance, block grants, and LIHTC, state and local governments have had greater access to federal resources to fund local housing and community development priorities. This shift in federal funding has also led affordable housing developers to pursue mixed financing: the use of multiple streams of federal funding, state, and local funding, or private financing. In the past, lagging homeownership rates among low-income and minority households have prompted several Presidents to promote homeownership-based housing policies. However, given the severe downturn in U.S. housing markets in recent years and the resulting high foreclosure rate, it is unclear to what degree federal policy will continue to focus on increasing access to homeownership.
