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               II  EXPERIMENTAL HOUSING ALLOWANCE PROGRAMS 
Introduction 
     The previous section attempted to outline the current state of 
theory related to housing subsidies at the general level. This sec- 
tion will examine some of the experimental demand side subsidies that 
have been implemented by the Department of Housing and Urban Develop- 
ment in an effort to begin to bring the application of this theory 
down to the individual city or site level. 
     The Experimental Housing Allowance Program (EHAP) consists of 
three related elements each addressing a set of research and policy 
issues: 
     1. The demand (consumer) experiment to analyze the use of 
         housing allowances by approximately 1,250 families in each 
         of two metropolitan areas of more than 500,000 population. 
     2.  The supply (market) experiment to analyze the housing 
         market effects of offering housing allowances to some 
         six to nine thousand families in each of two metropoli- 
         tan areas of less than 250,000 population. 
     3. The Administrative Agency (management) Experiment to 
         evaluate the different ways of administering an allowance 
         program. In this phase of the experiment eight different 
         public agencies serve up to 900 families each. 
     All three phases of the experiment are examined here, with the last
phase utilized in Section IV of this report which deals with implementation
of a housing allowance in Madison, Wisconsin. 
     The first two phases of the experiment have only recently been in- 
stituted and are to be of five and ten year durations respectively. 
Therefore, conclusions as to the results of these experiments are not 
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