The authors first review the origins and birth of the U.S. Department of Housing and Urban Development (HUD). Second, they analyze four recurrent types of problems: (1) lack of consistent presidential and congressional support for low-income housing and urban aid, (2) primary reliance upon the private sector to meet housing needs, (3) HUD's structure, internal conflicts, and shortcomings, and (4) the complexity of housing and urban problems. Third, they recommend three major changes: (1) splitting HUD into two agencies to deal separately with housing and urban development, (2) merging all federal housing programs into the new housing agency, and (3) creating a national housing bank. Finally, they advocate the adoption of progressive housing policies to better benefit poorer housing consumers.