This testimony before the Senate Subcommittee on Housing and Urban Affairs focuses on the need for decent, affordable housing. It reviews the loss of monies for federally assisted housing units and projects the consequences in the deterioration of the quality of life for many Americans. Because of budget cuts enacted during the Reagan Administration, the number of federally funded units completed has dropped by 100,000, leaving the poor, homeless, and the middle class unable to afford their own homes. Testimony from realtors, developers, economists, community leaders, and lending agents is presented. Some of their suggestions were the following: (1) increase the budget for housing and housing programs; (2) establish a more comprehensive policy which considers the needs of low income people; (3) give incentives to private enterprises which put a priority on housing rather than on commercial buildings; (4) plan mechanisms to foster partnerships between the Federal Government and local groups involved with housing; (5) establish a national homeowners trust fund to help working people with down payments; (6) amend tax laws to create incentives for developers of low income housing and multiple unit rental housing; and (7) support the Homeless Persons Survival Act. (VM)