This paper describes a series of design options for housing allowance programs and compares their advantages and disadvantages.

The five housing allowance design alternatives discussed here range from a housing rent supplement that helps with the cost of rent by providing modest extra funding for those with high rent, up to a housing allowance meant to pay as much as the full cost of affordable housing for those with little or no income. The alternatives are more expensive as they become more generous to recipients.

While Ontario is employed to illustrate the housing allowance options, the discussion applies across Canada, with adjustments for the peculiarities of each jurisdiction’s programs.