The Role of Private Agents in Affordable Housing Policy

This article analyzes the consequences of our increasing reliance on private agents in the formulation and implementation of affordable housing policy. We describe the policies and processes by which affordable housing decisions are made in the United States—including how many and what kind of these units are built and where. Then, we empirically explore the impacts of different governance arrangements in Massachusetts and New Jersey on public authority and responsibility, accountability, and on policy effectiveness. From this analysis, we find evidence that agents respond to housing policy incentives, and the response varies with the institutional framework established, thus mitigating concerns about a loss of public control in this policy arena.

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