Over the past decade, public housing has become the nation’s “housing of last resort.” This article examines the emergence of this social role and describes the conditions of resident economic and social distress that have accompanied it. In this context, the article also evaluates the problem assessment and recommendations of the National Commission on Severely Distressed Public Housing, which released its final report in August 1992. This evaluation is used as the basis for proposing a new social role for public housing defined around the concept of social capital.