This report, the culmination of a 16-month examination of some of the key issues in housing, provides a blueprint for an entirely new system of housing finance for both the ownership and rental markets. Under this new system, the private sector will play a far greater role in bearing credit risk and providing mortgage funding, and taxpayer protection will be a central goal. We also propose a new, outcome-oriented approach to the distribution of federal rental subsidies that responds to the housing needs of our nation's most vulnerable households and rewards providers who demonstrate strong results at the state and local levels with increased flexibility in program administration. The report highlights how our nation's burgeoning senior population and dramatic demographic changes will present new challenges and opportunities for housing providers in communities throughout the country