Phase II price controls and the housing assistance supply experiment

Examines, at HUD's request, the government's Phase II (1971) price controls, concluding that they do not seriously threaten the Housing Assistance Supply Experiment. The results show that (1) only 10 to 15 percent of all housing units in the six sites under consideration would be subject to the controls; (2) only landlords with five or more units would be affected, and those only under certain conditions; (3) in the absence of the experiment, increases in housing services would be biased toward modest capital improvements; (4) with effective demand increased by the experiment, the controls would likely stimulate more moving than otherwise. The study recommends seeking an exception for the experiment from the Cost of Living Council, thereby eliminating a potential bias in the supply response of owners of 5+ unit structures. Appendix details the Phase II regulations.