Summary

Under its Section 8 project-based assisted housing programs, the Department of Housing and Urban Development (HUD) pays part of the rent for low-income families living in privately owned rental housing. HUD provides this assistance for more than 20,000 privately owned properties nationwide at an estimated annual cost of $5.8 billion. The mortgages for about half of these properties are also insured or held by HUD. This testimony (1) compares the costs of rehabilitating two properties in poor physical condition--Edgewood Terrace Apartments in Washington, D.C., and 6000 South Indiana Apartments in Chicago--with the costs of other alternatives for housing the tenants, (2) discusses the views of tenants and community leaders on these options, and (3) identifies legislative and administrative factors limiting HUD's discretion in dealing with physically distressed properties.