This report examines: (1) what welfare hotels are and what services they provide; (2) the extent to which these facilities are used as temporary or permanent housing for families; (3) the costs of living in a welfare hotel and how these costs compare with that of other types of housing; (4) which federal government programs reimburse localities for the cost of welfare hotels; and (5) what housing alternatives are available. The report also examines a December 1987 proposed Family Support Administration (FSA) federal rule change that would have restricted the use of Aid to Families With Dependent Children (AFDC) and Emergency Assistance (EA) funds for hotel and other emergency programs. This proposed rule to restrict federal funds to welfare hotels was passed by congress in 1987, only to be temporarily stayed until further study.
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