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DOCUNBNT RESURS
04607 - [B0125025]
Section 236 Rental Mousing: An Evaluation with Lessons for the
Future. PAD-78-13; 3-171630. January 10, 1978. 151 pp. * 2
appendices (4 pp.).
Report to the Congress; by Elmer B. Staats, Comptroller General.
Issue Area: Domestic Housing and Consunity Development: Housing
for Low and moderate Income Families (2101); Domestic
Housing and Community Development: Federal Credit Incentives
to Stimulate Housing (2104);1-rogras Ivaluation Systems
(2600).
Contacts Program Analysis Div.
Budget Function: Community and Regional Development: Community
Development (451); Income Securitys Vublic Assistance and
Other Income Supplements (604); Commerce and Transportation:
mortgage Credit and Thrift Insurance (401).
Organization Concerned: Department of Housing and Urban
Development; Office cf management and Budget.
Congressional Relevance: House Committee on Banking, Currency
and Boubing; Senate Committee on Banking, Housing and Urban
lizairs; Congress.
Auahority: National Housing Act, soc. 236 (12 U.S.C. 1715z-1).
Housing and Urban Development Act of 1968.
The section 236 rental assistance program provided new
and rehabilitated rental housing to lou, and moderate income
tenants. This program, along witA other hoasing initiatives, was
created in 1968 to boost the Nation's existing housing supply.
It joined Federal Housing Administration mortgage insurance with
a direct mortgage intorest subsidy, the usual tax incentives for
residential development, and special tax incentives for low and
moderate income housing. This combination of subsidies and a
40-year mortgage term resulted in lower rents than would have
been possible in conventionally financ~ed projects.
Findings/Conclusions: Section 236 has been effective in
prov-ding housing for moderate income families during a period
when the supply of modGrately-priced rentals has been shrinking.
However* section 236 ccnstruction is complete, and the
Department of Housing and Urban Development (BUD) has refused to
make new comsitments under the program. At the saae time,
current public policy provides housing assistance to low income
households, and middle and upper iniome household benfit from
tax expend-itures for mortgage interest deductions and tax
incpntiwes for rental housing. Housirg subsidy costs have been
analyzed unsatisfactorily because little consideration has been
given to indirect subsidies or long-term costs. Alternatives to
construction continue to be stressed primarily because of
short-term cost savings. Recommendations: The Secretary of BUD
should design positive measures to assure that moderate income
househclds receive some equitable share of futare housing
assistance. BUD should revive section 2.36 tc provide moderate](ViewImageLocal?handle=hein.gao/gaobaawlm0001&div=1&collection=&method=preview&ext=.png&size=3)