From the Center for the Study of Social Policy, this Financing Community Change Brief discusses the role of housing in fostering well-being for children and families, given the collapse of the housing market from the current economic recession. Research shows that living in a distressed neighborhood increases the effects of family poverty on individual educational achievement, economic prospects, and individual health because such areas often lack the supports, services, and opportunities to help provide a safety net for residents. Authors discuss how Federal housing policy has helped such families in the past and how it can support families in the future by fostering community development.