This Note reports RAND's views on two housing allowance program standards that were proposed for homeowner assistance in the Housing Assistance Supply Experiment. One was a dollar ceiling on the amount of assets that may be held by a program participant; the other limited a participant's allowance payment to the amount of "actual housing expenses." The Note contends that the standards of eligibility and allowance entitlement that were accepted by HUD for renters in the Supply Experiment are equally fair and reasonable when applied to homeowners; but that neither the asset ceiling nor the payment ceiling were desirable for either group. These rules are horizontally inequitable and create perverse incentives for some participants. Fortunately, few participants are likely to be affected by these rules.
This report is part of the RAND Corporation Note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.
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