Serving a Broader Economic Range of Families in Public Housing Could Reduce Operating Subsidies

Gao ID: CED-80-2 November 7, 1979

The financial condition of some of the nation's public housing agencies has continued to deteriorate despite legislation to moderate this trend. The legislation, which required the housing of a broader range of low-income families, has not been widely carried out.

A review of six public housing agencies found that in only one had the local housing authority begun to select tenants from a broader economic range. Very low-income families continued to predominate public housing. The review showed that much time would be needed for the program to achieve the legislative requirement. Some agencies opposed housing higher-income eligible families in preference to very low-income families. Department of Housing and Urban Development (HUD) guidance and monitoring of housing agencies have been inadequate. Some applicants refused to move into projects because of their poor physical condition and/or location, making the implementation of a broad range-of-income approach for such projects difficult. Some families, such as those displaced by governmental action or fires, were placed in public housing in preference over others.

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