A Clinton era law has prevented the expansion of public housing beyond the number of units in 1999. The US population has grown significantly since then.

The act effectively capped the number of public housing units by creating the Faircloth Limit. This limited funding for the construction or operation of all units to the total number of units as of October 1, 1999. This requires public housing agencies to remove or consolidate existing units in order to receive funding for construction of any new units.

The Faircloth Amendment states that the Department cannot fund the construction or operation of new public housing units with Capital or Operating Funds if the construction of those units would result in a net increase in the number of units the PHA owned, assisted or operated as of October 1, 1999.