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Affordable Housing







peak years, between 1968 and 1973, subsidized housing production accounted for over 16 percent of all housing starts nationwide. Clearly, federal housing subsidies have been an important contributor to overall housing production. In addition, experts now suspect that rehabilitation efforts, most of them privately sponsored, helped avert the "rental housing crisis" expected in the 1970s.

The largest federal housing program covers public housing projects, with a total of 1.4 million units. The second largest is the Section 8 subsidy (similar to the voucher program), with a total of 1.2 million units. (See Appendix E for a list of all hud and fm ha programs and the units they provided as of April 1986.) As shown in Table 6, federal support for housing has diminished over the past nine years. From a high of $31.7 billion in 1979, hud budget authority dropped to $7.5 billion in 1989.

TABLE 6
hud Net New Budget Authority and Net New Units, 1975-1989
Fiscal Year Net New Budget Authority (Billions) Net New Units
1975 $13.2 131,444
1976 28.8 516,721
1977 28.0 388,413
1978 31.5 326,026
1979 31.7 325,075
1980 27.2 251,021
1981 30.2 217,185
1982 17.4 35,864
1983 8.7 5,223
1984 9.9 75,353
1985 10.8 88,980
1986 9.5 33,000
1987 7.5 81,500
1988 7.7 82,314
1989 (estimated) 7.5 86,501
1990 (requested) 7.6 109,000
Source: hud Budget as reported by the National Low Income Housing Coalition. FY89 figures are estimates; those for 1990 are proposed in the President's budget and include funds to modernize public housing.


Private foundations have also been important in supporting innovative programs and in stimulating large-scale public intervention in the housing field. Since 1980 more than $100 million in housing-related