Issues in the Design of Locally Sponsored Home Ownership Programs

In response to the elimination of federally assisted housing production and sharp rises in relative housing costs, local governments throughout the United States have taken a more active role in providing low- and moderate-income housing, particularly home ownership assistance. Designing efficient home ownership programs poses significant challenges to localities because of the layered subsidies and complicated financing, and the often conflicting objectives they are intended to achieve. This article shows how the use of an analytic model helped Chapel Hill, North Carolina, restructure its home ownership program to meet specific goals.