The implementation of housing allowances is an integral part of Russia
's programme of systematic rent increases on state and municipal renta
l units which began in 1994, Because housing allowances constitute the
country's first income-tested programme, its performance transcends t
he housing sector, Rents are being increased in steps to cover full op
erating costs by the beginning of the next century, The first increase
s were modest in real terms, and a housing allowance programme was to
be operational in each city when rents rose, This paper reports the re
sults of an initial assessment of the programme in two cities, The ass
essment focuses on the extent to which income-eligible households know
about the programme, their participation rates and their experience i
n becoming recipients, Survey results show quite low but increasing pa
rticipation rates and knowledge about the programme, While both are in
part explainable by the low average benefit levels at this stage in t
he programme of rent increases, they also clearly call for greater eff
ort by local and national administrations to inform the population.