Regional Housing Assistance Allocations and Regional Housing Needs

摘要

This report addresses three questions related to HUD's Fair Share Formula for determining the geographic allocation of most Section 8 and Public Housing funds: (1) whether Section 8 and Public Housing assistance funds are being distributed in accordance with the Fair Share system, (2) how the spatial distribution of housing need derived from the Fair Share Formula compares with distributions derived from alternative measures of need, and (3) how the Fair Share Formula can be improved. In the four area offices examined in detail, the allocation of fiscal 1977 and fiscal 1978 Section 8 funds between metropolitan and nonmetropolitan segments of the area office alined well with the metropolitan / nonmetropolitan distribution of formula - based need. Comparisons at the regional level of formula - based need with alternative measures yield similar regional distributions of housing need. However, five of the six components of the Fair Share Formula are based on data from the 1970 Census, leading to error in measurement of current county housing needs. Not until 1980 Census results are available in 1982 or 1983 will more current county - level data become available on four of the six formula components. It might be possible, however, to update the poverty component by using the county - level per capita income estimates published by the Census Bureau for post - Census years. The national Annual Housing Survey could be used to update all six components at the Census region level. In addition, the current practice of Fair Sharing of contract authority results in neither a distribution of assisted units nor a distribution of real subsidy dollars that is necessarily consistent with formula - based need. It is preferable in theory to use either units assisted or budget authority rather than contract authority as the measure of housing assistance to be Fair Shared. Tabular and graphic data are provided. (Author abstract modified).