AFDC was abolished in 1996 and replaced by a state block grant called Temporary Assistance to Needy Families (TANF). 104-193 ) as a replacement for the former welfare program, Aid to Families with Dependent Children (AFDC), TANF provides fixed grants to states for time-limited and work-conditioned aid for low-income families. Many low-income families pay much more than 30% of their incomes towards housing costs. Many argue that "affordable" housing is simply unavailable for low-income families. These programs are administered by the Department of Housing and Urban Development (HUD) and authorized under the Housing Act of 1937 ( P.L. The three major forms of direct housing assistance currently administered by HUD are: the low-rent Public Housing program, the Housing Choice Voucher program and project-based assistance programs. The conflict in these rules has been discussed both by housing and welfare advocates. The Interaction of Program Rules

For families who receive benefits from both TANF and HUD housing assistance programs, the different features of the two programs can create unintended consequences. In order to be eligible for a WtW voucher, a family must be both eligible for housing assistance and for TANF cash assistance. Research Findings

Several studies have been conducted to test whether and how the receipt of housing assistance impacts low-income families, including families who have or are receiving cash assistance. As a result, some have proposed to make changes to the administration of housing programs in order to enhance compatibility with welfare programs. The second is difficult because of the competing needs of the elderly and disabled. While several changes have been made in recent years to improve this coordination, the differences inherent in the two sets of programs, such as the high proportion of elderly and disabled households served by housing programs, the different levels of government that administer housing and welfare programs, and the costs associated with providing additional services, may make further changes difficult to enact.
The 1995-1996 debate over creation of a block grant to states for cash aid to needy families with children (Temporary Assistance for Needy FamiliesâTANF) focused on reducing welfare rolls by promoting work. Except for child care costs, it gave scant attention to other living expenses of low-income parents. The issues of housing cost and affordability were essentially absent from the debate, although rent is the largest expense for many low-income families.
The important role housing plays in families' lives has been recognized through a system of programs, administered by the Department of Housing and Urban Development (HUD), that subsidize the housing costs of low-income families. The three major direct housing assistance programs are the low-rent public housing program, the Housing Choice Voucher program (also known as Section 8 vouchers) and project-based rental assistance.
Both housing programs and TANF are designed to serve the needs of low-income households. As a result, many low-income families who receive TANF cash assistance or services, or have in the past, also qualify for housing assistance. It is estimated by CRS that possibly half a million households were receiving both cash welfare assistance and housing assistance in 2001. Although the two programs, in many cases, serve the same populations, the structures and rules of the two programs are often in conflict. This inconsistency in program rules can lead to inefficiencies for dual program participants. Some changes have been made to enhance the compatibility of housing and welfare programs. Further changes to one or both of the programs to enhance coordination have been considered as a part of the debate surrounding both welfare reauthorization and proposed housing reform measures.
This paper will introduce the reader to federal housing assistance and welfare programs, the people they serve, how the programs interact and current issues. It will be updated to track relevant legislation.