State housing

Unlike Lindsay, I do not think that the situations like this are endemic to the provision of state housing - but they are to the current system:
http://lindsaymitchell.blogspot.com/2006/03/ripping-off-system.html

I think the main difference I have there is that I see the role of the Government as being a market facilitator; not dissimilar in many respects to the market makers on the NASDAQ. This means that I see that state housing is a good thing within their role - however they should not be providing it at a discount to the market rates. They are there to provide liquidity to that level of the housing market - however only in so far as it still pays for itself, they are not there to undercut the market or use other tax payers funds to subsidise tenancy.

http://www.rodneyhide.com/index.php/weblog/comments/state_house_on_72000_a_year/

http://stuff.co.nz/stuff/0,2106,3600103a11,00.html