The Public Housing Program

The Public Housing Program

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December 11, 2023
The Public Housing Program
The low-rent public housing program—authorized by
Property Characteristics
Section 9 of the U.S. Housing Act of 1937—is the nation’s
The existing public housing stock comprises nearly 920,000
oldest federal rental assistance program. It offers low-cost
units in nearly 192,000 buildings. About 2% of all public
apartments for low-income households. While it is arguably
housing properties are large, elevator structures; however,
the most well-known federal housing program, it is not the
those structures contain the plurality of public housing units
largest. The number of units in the program has been
(38%). The remaining 98% of public housing properties are
declining as properties exit it through demolition, or
a mix of townhouse/rowhouse, semi-detached, single-
through conversion to other forms of assistance (primarily
family, and walk-up structures that, combined, house 62%
via the Rental Assistance Demonstration).
of public housing units.
Program Administration and Basics
PHAs are prohibited from increasing their number of public
Public housing properties are owned and operated by more
housing units above the total they had in 1992, under a
than 3,000 state-chartered local Public Housing Authorities
provision of law commonly referred to as the Faircloth limit
(PHAs). Under the terms of their contracts with the
(42 U.S.C. §1437g(g)). The number of public housing units
Department of Housing and Urban Development (HUD),
has been declining since that time, as properties age, fall
PHAs agree to manage their properties subject to federal
into disrepair, are demolished or sold, or are converted to
program rules (including periodic physical inspection), and
other forms of assistance. In 1993, there were
in return, HUD supplements the low rents paid to PHAs by
approximately 1.3 million units of public housing; in 2023,
tenants with federal funding to support the ongoing
there were just under 920,000 units (860,000 of which were
operation and maintenance of public housing properties.
occupied; some of the unoccupied units were slated for
conversion, rehabilitation, or demolition).
In order to be eligible to live in public housing, individuals
and families (hereinafter, households) must be low-income
Household Characteristics
(income at or below 80% of the local Area Median Income
While all household types are eligible for public housing—
[AMI]), and at least 40% of units made available each year
from single adults to families with children—the
must be occupied by households who are extremely low-
demographics of those served can be affected by factors
income (income at or below the greater of 30% of AMI or
including waiting list preferences set by PHAs, bedroom
the federal poverty guidelines). In addition to income
size configurations of properties, and the designation of
eligibility, PHAs may adopt additional screening criteria
properties for special populations. As shown in Figure 1, in
(e.g., criminal background, rental, or credit history).
2023 roughly 35% of public housing households include
children; 65% are households without children. Of the
Demand for public housing generally exceeds the supply,
latter, the majority are headed by persons age 62 or older.
so there are waiting lists for assistance in most
Over time, families with children have accounted for a
communities. PHAs may set preferences on their waiting
smaller share of assisted households; in 2012, according to
lists so that certain types of applicants outrank others and
HUD’s Congressional Budget Justifications, families with
are therefore served first. PHAs may use a lottery or first-
children accounted for 40% of all public housing
come, first-served system for adding names to the waiting
households.
lists, with or without preferences. Some PHAs maintain
centralized waiting lists; some have property-specific lists.
Figure 1. Head of Household Characteristics, 2023
While the public housing program serves all types of
households, PHAs may designate certain properties as
specifically for persons who are elderly or have disabilities.
Households who live in public housing pay the greater of
30% of their adjusted incomes or 10% of their gross
incomes towards their housing costs (rent and utilities),
although some may opt to pay market-based flat rents.
Households remain eligible for public housing unless or
until their income reaches an over-income limit for a period
of time (generally, 120% of AMI for 24 months), at which
point they must pay market rent or move. Public housing
tenants may be evicted for lease violations, but federal law

provides them with enhanced procedural rights.
Source: Prepared by CRS based on HUD Resident Characteristics
Report data, accessed June 2023.
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The Public Housing Program
Funding
although some funding is made available to revitalize other
The public housing program receives federal funding
HUD-assisted multifamily housing.) The program awards
through two primary formula grants, both within the Public
both planning grants—which PHAs can use to develop
Housing Fund account: operating fund grants, designed to
revitalization plans with community stakeholders—and
make up the difference between what tenants pay in rent
implementation grants that can be used for redevelopment
and the costs of maintaining and operating properties; and
costs, as well as supportive services and community
capital fund grants, meant to help fund major modernization
infrastructure to benefit residents.
needs. The largest share of federal funding provided in
First authorized in 1996, the Moving to Work (MTW)
annual appropriations acts for public housing is for
demonstration allows a limited number of participating
operating grants; for example, in FY2023 operating grants
PHAs to receive waivers of federal rules and regulations
were funded at $5.1 billion, while capital grants were
governing the HCV and public housing programs. In 2016,
funded at $3.2 billion. Smaller amounts of additional
the program was expanded by up to 100 PHAs. The 38
funding may also be provided via the Public Housing Fund
original participating PHAs can receive waivers of most
account for add-on grants, such as for safety and security
federal rules and regulations; the PHAs added under the
needs, for addressing lead-based paint or other health
2016 expansion may receive waivers of a more limited set
hazards, or to respond to disasters.
of program rules and regulations, designed to test
Table 1. Public Housing Fund, FY2019-FY2023
improvements of specific program aspects, such as landlord
participation, flexibility for small PHAs, and alternative
(nominal dol ars in bil ions)
rent models.
FY2019 FY2020 FY2021 FY2022
FY2023
Change
Recent Developments
$7.29
$7.81
$7.81
$8.45
$8.51
+17%
RAD: Recent President’s budget requests to Congress have
Source: Table prepared by CRS. Figures do not include COVID-19
requested that the cap on RAD conversions be lifted, the
emergency supplemental appropriations.
program be made permanent, and several additional
changes be made to facilitate an increase in the number of
Special Initiatives
public housing properties undergoing RAD conversions.
There is a significant backlog of unmet capital needs in the
Inspection Changes: In response to concerns raised by
public housing stock; estimates range from $30 billion-$70
some in Congress, the HUD Office of Inspector General,
billion in needed repairs. At the same time, annual funding
and the Government Accountability Office, HUD
for public housing capital fund grants is generally in the
undertook a multiyear process to revise its inspection
range of $2 billion-$3 billion. The Rental Assistance
protocols across its rental housing programs to increase
Demonstration (RAD), created in 2012, is designed to
their focus on health and safety and create more consistency
allow PHAs to raise private capital to repair and renovate
across programs. The new National Standards for the
their public housing properties. Public housing undergoing
Physical Inspection of Real Estate (NSPIRE) protocols
a RAD conversion is removed from the stock of public
went into effect for public housing in July 2023.
housing, and instead becomes privately owned by the PHA
and/or a partner entity. Instead of receiving federal capital
P.L. 117-169 Funding: While P.L. 117-169, commonly
and operating grants, the property receives federal rental
known as the Inflation Reduction Act, included no funding
subsidies through the Section 8 project-based rental
specifically for public housing, the law did fund a number
assistance or Housing Choice Voucher (project-based
of tax credit and grant programs designed to support
voucher) program. Current law authorizes the conversion of
residential energy efficiency modernization. Some of these
up to 455,000 public housing units under RAD; as of
funding sources may be available to PHAs for public
November 2023, approximately 200,000 units had been
housing, depending on the program, the circumstances of
converted.
the properties, and decisions made by states and localities.
The Jobs-Plus Initiative began as an experiment in the
mid-1990s to test whether supportive services and rent
HOTMA Implementation: In 2016, Congress passed the
incentives provided at scale in a public housing
Housing Opportunity Through Modernization Act
development could improve the economic well-being of
(HOTMA; P.L. 114-201), which made a number of changes
residents. Some positive findings from that experiment led
to the way income and rents are calculated in the public
Congress to fund the Jobs-Plus Initiative annually
housing and other rental assistance programs. In February
beginning in FY2014. PHAs that receive Jobs-Plus grants
2023, HUD published a final rule to implement the
use those funds to offer employment-related services,
outstanding HOTMA changes. Most of the final rule’s
financial incentives, and community support for work at
changes affecting income and rent were to take effect
specific public housing developments. HUD has awarded
January 1, 2024. However, HUD has since informed PHAs
56 Jobs-Plus grants to PHAs since FY2014.
that, given the system upgrades they will need to make to
implement the new HOTMA requirements, they will have
Choice Neighborhoods, first funded in 2010 as the
extra time (until no later than January 1, 2025), to come
successor to the HOPE VI Revitalization of Distressed
into full compliance.
Public Housing program, provides competitive grants to
PHAs to fund the revitalization of distressed public housing
developments and their surrounding communities. (The
Maggie McCarty, Specialist in Housing Policy
program primarily provides grants for public housing,
IF12547
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The Public Housing Program

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