The Cost of Cuts: The Impact of Reductions in Capital Investments to Public Housing Authorities

Date Published: 
October 5th, 2017

Executive Summary 

This study uses a cost benefit analysis to estimate the potential net impacts of proposed reductions by the US Department of Housing and Urban Development (HUD) in federal funding of capital investment in public housing authorities (PHAs).1     It examines the extent to which reductions in capital investment in PHAs impose costs on governments at all levels, as well as local communities, businesses, PHA residents, and society as a whole.  The report narrates and estimates the incidence, distribution, and scale of these impacts and compares them against the total amount cut from annual Capital Fund Program Grants, which fund maintenance and modernization of public housing properties.    The Public and Affordable Housing Research Corporation (PAHRC) partnered with Econsult Corporation in this effort to inform current discussions regarding future funding cuts by HUD to PHAs for capital expenditures, by identifying potential negative impacts resulting from these cuts, and attempting to quantify those impacts and compare them against the cut amounts.   

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