The federal government has played a major role in supporting housing since the 1930s. It administers programs that assist homebuyers, renters, and state and local governments. The goals of these efforts include encouraging homeownership and providing affordable rental housing for low-income families. Millions of Americans have benefited, whether by taking out a federally guaranteed mortgage, deducting mortgage interest or real estate taxes on federal tax returns, or receiving a rental subsidy. In fiscal year 2010, the federal government incurred about $170 billion in obligations for housing-related programs and estimated revenue forgone through tax expenditures. Tax expenditures may be viewed as spending programs channeled through the tax system, because they are federal revenue forgone due to exclusions, exemptions, deductions, credits, deferrals, and preferential rates. They represented $132 billion (about 78 percent) of the federal government’s fiscal year 2010 support for housing assistance. Obligations for spending and loan programs that support homeownership and rental housing accounted for the other $38 billion (about 22 percent). n the current housing crisis, support for homeownership has expanded dramatically, and nearly all mortgage originations have had direct or indirect federal support through guarantee programs, support for the housing enterprises Fannie Mae and Freddie Mac, or direct loans and grants. In addition, the federal role now includes a range of programs designed to help homeowners avoid foreclosure or to lower mortgage payments by such means as modifying and refinancing loans.

The housing services to similar beneficiaries as well as Treasury’s largest tax expenditures in terms of overall funding. We collected and analyzed data on the goals, terms, eligibility, product delivery structures, geographic locations, and populations benefiting from selected agency housing programs. We analyzed the locations of properties or units assisted using USDA-developed characterizations of rural and urban areas. We identified those housing programs that could have similar or overlapping objectives or provide similar services or that were fragmented across missions. To address the third objective, we collected and analyzed available information on efforts that USDA, HUD, Treasury, and VA had undertaken to increase coordination of or collaboration on selected housing programs. We also reviewed prior GAO and other reports and collected and analyzed information from the housing industry and officials at USDA, HUD, and the Office of Management and Budget (OMB) on the implications of options for further coordination or consolidation.