Proposed Reforms to Federal Housing Assistance

This proposal outlines a gradual transition away from traditional federally subsidized housing
programs as Universal Basic Income (UBI) is implemented. The objective is to reduce government
costs, simplify housing assistance, and shift financial support directly to individuals.

Refinancing Existing Subsidized Housing

To reduce long-term costs, the federal government would refinance certain subsidized housing
properties.

• Purchase or prepay first mortgages on Section 8 housing when mortgage interest exceeds the federal borrowing rate.
• Eliminate unnecessary debt service expenses.
• Reduce Housing Assistance Payments (HAPs) by the amount saved through lower financing costs.

Gradual Elimination of Housing Subsidies

As UBI increases over time, existing housing assistance programs would be phased out.

• Housing Choice Vouchers would be phased out over a relatively short period.
• Utility allowances for tenants who pay their own utilities would gradually be eliminated.
• For properties where utilities are included, rent would be adjusted to reflect the reasonable cost of those utilities.

Transition to Self-Sustaining Rents

Rent levels would gradually increase alongside UBI payments to create financially sustainable
housing operations.

• As UBI is phased in, rents would increase proportionally.
• Once an individual’s UBI reaches the federal poverty level benchmark, rents would increase to cover at least the property’s operating expenses.
• Operating expenses would exclude financing costs, which would have already been reduced or eliminated.

Future Subsidized Housing Construction

This proposal recommends limiting the construction of new federally subsidized housing.

• No new subsidized housing should be constructed under normal circumstances.
• Existing housing stock that naturally becomes more affordable over time should be used to meet housing needs whenever possible.
• If the federal government chooses to build new subsidized housing, the full cost should be paid through direct congressional appropriations.
• The proposal discourages using tax credits or other tax-based financing mechanisms to offset or obscure the true cost of construction.

Policy Goals

• Lower long-term federal housing costs.
• Reduce reliance on housing subsidies as UBI expands.
• Create financially sustainable subsidized housing.
• Simplify federal housing assistance programs.
• Increase transparency in the funding of any future subsidized housing projects.