History of Public Housing
Modern Day Housing Programs
During Nixon's administration the nation's economy was heading towards a recession. In an effort to improve the economy Nixon established the Section 8 rental assistance program, Housing and Community Development Act of 1974, in which part of a renter's payment is subsidized by the government. In the program only 30% of a renters income is paid to landlords and the government pays the landlord the difference between that amount and the fair market rate. Around the same time the Federal government initiated what is known as "project based Section 8". Project based Section 8 was aimed at increasing incentive to build low income units. The government insured and helped finance rental developments as long as the owner signed a twenty year use agreement. The Section 8 program initially had three sub programs: New Construction, Substantial Rehabilitation and Existing Housing Certificate programs. The Moderate Rehabilitation Program was added in 1978, the Voucher Program in 1983 and the Project based Certificate Program in 1991. The number of units a local housing authority can subsidize under its Section 8 program is determined by Congressional funding. Since its inception some Section 8 programs have been phased out and new ones created although Congress has always renewed subsidy for families participating in the program. Nixon's administration also established the Community Development Block Grant (CDBG) program. CDBG provides funding to states and municipalities for infrastructure and supportive services in low income areas.
In 1987 President Ronald Reagan and Congress established the Low Income Housing Tax Credit as a subsidy to private investors to spur production of low income housing developments. The program allows for tax credits to be awarded to investors by State housing agencies through a competitive process based on rules adopted by each state.
The Future
Currently the Federal government seems to be gradually moving out of the business of constructing housing for low income families and towards encouraging local governments and private entities to tackle the issue of affordable housing themselves. The 20 year agreements of Section 8 project based units have begun to run out with millions of low income units across the country a remedy has not been proposed. The relative number of Section 8 vouchers issued by HUD has also been on the decline even though the waiting list around the country are as long as they have ever been.
One major recent initiative proposed by the Federal government is a cooperative effort between Public Housing Authorities, HUD and local businesses known as Hope VI. Hope VI began in 1993 and is a grant program administered by HUD allowing local housing authorities to redevelop aging public housing developments and encourage a greater mix of incomes. Hope VI has been alternately hailed as a rejuvenator of public housing developments.
Keeping in line with longstanding Federal policy the Bush administration is actively promoting homeownership through various self-reliance programs. President Bush announce a few years ago, a goal of increasing minority homeownership to 5.5 million families by the end of this decade. Other recent programs include the Single Family Affordable Tax Credit, Self-Help homeownership Opportunity and the American Dream Downpayment Fund.
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