Foreword

When Title I, Temporary Assistance for Needy Families (TANF), of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 placed time limits on the receipt of welfare assistance, the future income of public housing residents who were AFDC recipients was no longer assured, with many now required to find jobs. Because public housing rents are tied to tenant income, a portion of housing authority rent receipts will become equally uncertain. In turn, the effects on Federal budget outlays, through operating subsidies currently provided by the Performance Funding System, will also be uncertain. As directed by the House Appropriations Committee, this report provides a preliminary look at those effects of welfare reform.

The report focuses on a small number of housing authorities which are diverse with respect to welfare reform program rules, their rent and tenant selection policies, the demographic characteristics of the residents mandated under TANF to find jobs, and the economic conditions of their surrounding metropolitan areas. By focusing on a variety of housing authorities, it was possible to assess the role these variations play in forecasting potential future outcomes.

This report responds to a request from the House of Representatives Committee on Appropriations for the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies. We anticipate that it will be a useful tool for Congress, the Department, housing authorities and others in gaining a better understanding of the potential impacts of welfare on the public housing program.

Paul A. Leonard
Deputy Assistant Secretary for Policy Development