The existing housing crisis for Philadelphia's low income families has been exacerbated by a decrease in the real income of these families over the past 10 years, a shortage of affordable housing during the same period, and the deterioration of much of the existing housing stock. "Watching Out for Children in Changing Times," a joint effort between the United Way of Southeastern Pennsylvania and Philadelphia Citizens for Children and Youth, tracks how recently changing public policies are affecting children, families, and the agencies that serve them. This report examines the impact of the related housing factors on low income families through the stories of "Watching Out" families. Participating in interviews were 40 families who had received Temporary Assistance for Needy Families at some point in the preceding 4 years. Findings indicated that the majority of Watching Out families were spending more than 30 percent of their income on housing. Much of the available, affordable housing was inadequate and dangerous, with Section 8 and public housing the only options for many families. Securing permanent subsidized housing was often delayed for months or years due to long waiting lists. The report includes recommendations for city, state, and federal governments; for local housing policymakers; for city and local housing agencies; and for the Department of Human Services and the Philadelphia Housing Authority. A description of housing assistance programs, a list of local and national resource organizations, and a glossary of housing terms completes the report. (Contains 49 endnotes.) (KB)