Summary: The critical housing and community development issues facing the nation are identified. Of the 19 areas of concern, 8 are considered to be priority areas. The following housing-related priority areas are: evaluation of the nation's efforts to house lower-income families; minimizing subsidized housing operating costs and improving management; evaluation of federal efforts to encourage the production of nonsubsidized housing; evaluation of federal efforts to minimize foreclosures and improve the disposition of acquired properties; and assessment of the decisionmaking process for developing housing strategies. The main issues involving community development are: assisting urban communities to prevent and eliminate blight and deterioration; assisting community development through loans and grants to businesses; and assessment of efforts to assist economically distressed communities. Other areas to be considered include: effectiveness of federal efforts to provide and operate military housing; effectiveness of federal efforts to eliminate substandard housing; and evaluation of federal tax laws and their impact on the housing industry. Federal efforts to minimize the adverse effects on communities from natural catastrophes may also be considered.