Summary: Americans want government that is more businesslike and better managed--a government that can cut costs without curtailing services. To meet this demand for economy and efficiency, governments at all levels are looking at ways to manage their assets as a business, including the use of private management to maximize their return on buildings and facilities. The nation's 1.3 million public housing units, which each year receive nearly $6 billion in federal funding, are a good candidate for such review. This report answers the following questions: What is the basis for the Office of Management and Budget's 1998 assertion that privatizing public housing management could save $200 million annually and for the belief of housing personnel and experts that adopting private management for public housing could lead to more cost-effective use of public housing resources? To what extent have housing authorities adopted private management strategies, what experiences have they had in implementing these strategies, and what primary obstacles have they met in adopting private management? Do opportunities exist for the Department of Housing and Urban Development to encourage housing authorities to make more cost-effective use of their resources by considering private management as an alternative to in-house management?
