Another Look at Housing Allowances: A Response to Chester Hartman

Abstract

Program experience with the Section 8 Existing Housing program and final research findings from the Experimental Housing Allowance Program have shown that, contrary lo Chester Hartman's conclusions in his recent Journal article, housing allowance programs similar to HUD's proposed Housing Payment Certificate program are an effective way to provide housing subsidies for families in need of assistance. Comparisons with public housing and unrestricted cash grants show that allowances produce the largest increase in housing consumption per subsidy dollar, and the design of the Housing Payment Certificate program will assure that those subsidies go to families most in need. Criticisms suggesting an inadequate supply of affordable, standard housing are refuted by the Section 8 Existing record of 750,000 families now renting units on the private market. Finally, discrimination has not prevented these families from finding standard housing or moving to different neighborhoods. The Housing Payment Certificate program is proposed not as a substitute for the Department's current commitment to a range of housing programs, but rather as the vehicle for new assistance.