Public Housing

Historical Background

Public housing in the United States was initially authorized by the (Wagner-Steagall) Housing Act of 1937. It was created in reaction to the economic crises of the Depression with the goals of creating employment opportunities and stimulating the economy while providing short-term housing for families who were temporarily poor as a result of the economy.

The Housing Act of 1949 declared the goal of “a decent home and suitable living environment for every American family”—a goal that remains unrealized today. It also established the urban renewal slum clearance program, which disproportionately displaced Black households and concentrated them in public housing projects accompanied by extreme poverty and social isolation.

During the following decades, the U.S. commitment to public housing declined steadily. During the Reagan and (George H.) Bush administrations, Congress appropriated funds for fewer than 5,000 new public housing units per year. Beginning in 1993, the Clinton administration significantly changed public housing with the HOPE VI program. To date, Congress has appropriated nearly $5 billion to this program to demolish large distressed projects and replace them with mixed-income, mixed-finance developments that, in keeping with the tenets of welfare reform, often require tenants to be employed. The majority of the low-income households displaced by this redevelopment are moved to other projects or given rent vouchers to use in the private market.

Characteristics of Units and Residents

There are approximately 1.3 million public housing units in the United States, with these units housing approximately 3.3 million people. More than three-quarters of these households are headed by single adults, typically elderly persons living alone, or single [Page 1078]parents with children. Welfare is the largest source of income for half of all public housing tenants, with another 25% depending on social security or disability payments. For decades, public housing has largely been a “last resort” for the very poorest households. As of 2003, 76% of public housing residents earned less than 30% of the area median income. During recent years, average incomes of public housing residents have risen somewhat because of welfare reform and federal efforts to expand the range of incomes in public housing.

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