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Housing Programs for Low-Income Households

In: Means-Tested Transfer Programs in the United States

  • Edgar O. Olsen

The primary purposes of this paper are to (1) consider the justifications that have been offered for housing subsidies to low-income households and the implications of these justifications for the evaluation and design of housing programs, (2) describe the most important features of the largest rental housing programs for low-income households in the United States, (3) summarize the empirical evidence on the major effects of these programs, and (4) analyze the major options for reform of the system of housing subsidies. The largest rental programs are HUD's Public Housing, Section 236, Section 8 New Construction/Substantial Rehab, Section 8 Existing, USDA's Section 515, and the IRS's Low Income Housing Tax Credit. The effects of these programs that will be considered include effects on the housing occupied by recipients of the subsidy and their consumption of other goods, effects on labor supply of assisted households, the distribution of benefits among recipients, participation rates among different types of households, effects on the types of neighborhoods in which subsidized households live and the effect of subsidized housing and households on their neighbors, the effect on prices of unsubsidized housing, and the cost-effectiveness of alternative methods for delivering housing assistance.

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This chapter was published in:
  • Robert A. Moffitt, 2003. "Means-Tested Transfer Programs in the United States," NBER Books, National Bureau of Economic Research, Inc, number moff03-1, December.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 10259.
    Handle: RePEc:nbr:nberch:10259
    Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Web page: http://www.nber.org
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    1. Edgar O. Olsen, 2000. "The Cost-Effectiveness of Alternative Methods of Delivering Housing Subsidies," Virginia Economics Online Papers 351, University of Virginia, Department of Economics.
    2. John Kraft & Edgar O. Olsen, 1977. "The Distribution of Benefits from Public Housing," NBER Chapters, in: The Distribution of Economic Well-Being, pages 51-70 National Bureau of Economic Research, Inc.
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