Abstract

The goals served by U.S. subsidized rental housing programs have expanded and evolved over time. These programs initially followed a single strategy of attaching subsidy to units for low-income occupancy, but the federal government shifted to a twin strategy of sponsoring both supply-side programs and demand-side programs simultaneously. Changes in the form of the housing affordability problem brought about the shift in strategy; housing needs have evolved from filling a shortage of units to resolving housing cost affordability problems. With the change in strategy came changes in the expectations for these programs, which are now expected to go beyond the provision of affordable shelter to providing access to high-opportunity neighborhoods, helping to break the cycle of poverty. If the programs are to achieve their potential, reforms are needed to the two active programs. The Low-Income Housing Tax Credit program needs to adopt more rigor in its site selection, adding units only where units are needed and placed well. The Housing Choice Voucher program needs to adopt procedures that can facilitate the dispersal of households out of concentrated poverty and into high-opportunity neighborhoods.