Federal housing programs since the 1960's have provided subsidies for nearly two million privately-owned rental housing units to make them affordable for low-income people. Since taking office, the Reagan administration has focused the little attention it has given to low-income housing on person-based subsidies, and has reduced funding levels to nearly zero for programs that have provided the existing stock of affordable housing. Restrictions regarding the affordability and acceptable use of units, or "use controls," were imposed on owners who received federal subsidies. These use controls were attached to a time line, however, and many units are now approaching a point where the owners will have the option of terminating the restrictions on their properties. Because of this, Minnesota's entire stock of existing federally assisted privately owned low-income rental housing, a stock that exceeds 49,000 units, will be lost in the next 50 years. Under a best-case scenario, 52 percent of those units with Section 8 contracts will lose their assistance within 20 years. In addition, within 30 years use controls on 42 percent of those units receiving mortgage assistance will expire. Under a worst case scenario, 82 percent of the units covered by mortgage assistance contracts, and 99 percent of those units covered by Section 8 contracts will see their controls terminated within the next 20 years. Tables and figures illustrate the data. Appendices (the bulk of the document) provide the following: (1) owner motivations for prepaying mortgages or opting out of rental assistance agreements; (2) text of Title II, the Emergency Low Income Housing Preservation Act of 1987; (3) program descriptions; (4) data elements included in the Minnesota Housing Project database; (5) units lost per year: mortgage subsidies and rental assistance; (6) assisted units in Minnesota by county and agency; (7) Minnesota projects eligible for prepayment, 1988-98; and (8) complete listing of all federally assisted low-income housing in Minnesota. (BJV)