Cover: A Methodology for Evaluating Housing Programs

A Methodology for Evaluating Housing Programs

Published 1970

by Joseph S. DeSalvo


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Proposes a methodology for evaluating housing programs, based on benefit-cost analysis with a mathematical model. Housing programs benefit participants by providing them with adequate housing at less-than-market costs, and benefit nonparticipants, e.g., by neighborhood upgrading. Both types of benefits, as well as resource costs, should be considered in program evaluation. Therefore, a model of consumer choice in the rental housing market is developed for theoretically determining and empirically measuring costs and benefits. It considers, basically, (1) net tenant benefits — the additional income the participant needs to be as well off without the program as with it; (2) gross tenant benefits — the previous amount plus that actually paid for the dwelling; (3) total benefits — nontenant benefits plus gross tenant benefits; and (4) total resource cost. These benefits and costs are estimated from the actual rent of the program unit, tenant income, the market rent of the unit, and the tenant's nonprogram rent-income ratio.

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