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U.S. housing advocates have called for a fundamental rethinking of the nation’s federal housing policies. In this study, I examined the geographic and household-level consequences of a plan that redistributes federal income tax expenditures from homeowners to very-low-income households. I propose, defend, and illustrate the effects of the SHELTER plan, a redistributive policy that a) is revenue neutral, b) is tenure neutral, c) is progressive, d) prioritizes local redistribution, and e) targets excess revenues to affordable housing production subsidies in communities where an increase in cash-based housing assistance is most likely to inflate housing rents. I demonstrate that the savings from the elimination of four homeownership tax expenditures would provide more than enough revenue to fund a universal housing allowance for all very-low-income households. Ignoring housing market adjustments, the plan would reduce housing cost burdens for the nation’s very-low-income renters by 36% and reduce very-low-income homeowners’ cost burdens by 28%. The SHELTER plan would provide a new foundation for local affordable housing and community development practice. Very-low-income households would receive a guaranteed housing allowance with no strings attached and local planners would have new roles in the design and implementation of localized solutions to the affordable housing crisis.

Placing U.S. Federal Housing Policy on a Secure Foundation: The SHELTER Plan