Challenging the Third Sector Housing Approach: The Impact of Federal Policies (1980–1996)

Abstract

ABSTRACT:Recent third sector housing research contends that community-based housing organizations can successfully balance social and financial objectives by simultaneously involving and building communities while developing and managing long-term affordable housing. This article analyzes the impact of the federal housing policies of the 1980s and 1990s on the ability of community-based housing organizations to meet this “double bottom line” (Bratt et al, 1994). It builds upon Salomon’s (1989; 1993) thesis that an increased commercialization and marketization of the nonprofit sector occurred in response to the post-1980 federal social policies by arguing further that such a commercialization threatens the nonprofits’ ability to prioritize standards of participation, neighborhood control, community building, and long-term affordability. I argue that federal housing policies need to be more closely allied with these standards in order to ensure their long-term viability.