About Federal Public Housing Policy
Federal public housing policy is the collection of laws, regulations and programs that constitute the federal government's commitment to housing assistance. Federal public housing policy is mostly targeted toward low-income individuals and families who, without some kind of public help, would likely be unable to afford their rent or mortgage. The federal government has been involved in public housing policy since 1918, though its public housing efforts expanded greatly after World War II.
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History
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Years ago, there was very little by way of public housing in the United States. Most all housing was built by private developers, and in cities, large percentages of this housing were rental units only. This began to change in the early 1900s, as the federal government took more of an interest in policies to alleviate "slum" conditions in large American cities. In 1918, Congress authorized direct loans to realty companies in order to spur the construction of new housing. By the 1930s, the federal government began to finance the construction of public housing itself. In the years following World War II, the federal government began building, financing and encouraging large housing projects all over the country.
Public Housing
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Among the oldest and best-known aspects of federal public housing policy are the public housing projects, government-owned and operated housing developments that are limited to low-income residents. According to the Department of Housing and Urban Development, about 1.2 million households live in some form of publicly owned housing. To this day, these programs are managed by local housing authorities who determine eligibility for residents and maintain housing units.
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Housing Choice Vouchers
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Housing choice vouchers are a program of the federal government that is newer than public housing projects. Today, they're considered the government's main form of public housing assistance. Like public housing projects, housing choice vouchers are administered locally by public housing authorities. Housing choice vouchers allow low-income families to rent from private landlords and live outside of public housing projects, while still receiving assistance with their rental payments. The amount of assistance as well as overall eligibility varies according to family income levels. Vouchers are sometimes referred to as the Section 8 Program.
Federal Housing Administration
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Other public housing programs are oriented toward increasing the affordability of homeownership. The Federal Housing Administration (FHA), a government agency, helps low-income families find access to home mortgages by insuring lenders against potential default. This lowers the risk to lenders of granting home loans, and makes them more likely to lend to low-income families and individuals. By lowering the risk, it also helps to lower the interest payments a family might have to pay on their home loans. Not all home loans qualify for FHA assistance.
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References
- City Politics--The Political Economy of Urban America; Dennis Judd and Todd Swanstrom; 2006
- US Department of Housing and Urban Development: HUD's Public Housing Program
- US Department of Housing and Urban Development: Housing Choice Vouchers Fact Sheet
- US Department of Housing and Urban Development: The Federal Housing Administration (FHA); 2006
Resources
- Photo Credit parc public image by Philippe Minisini from Fotolia.com
