Abstract: The financial austerity caused by economic crises in welfare states after World War II gave rise to welfare governance. However, the system that relied too much on the government to provide generous welfare proved to be hardly sustainable. Studies have shown that in the process of rebuilding the welfare supply, each participating subject has the right and responsibility to promote its own risk-resisting ability and improve welfare supply through welfare governance. Against such backgrounds, however, welfare dilemmas arose when local governments purchased public services in government-subsidized housing areas, caused by specific community type requirements for both subsidy and governance and other complex objective factors. Taking the H government-subsidized housing area in N city as a typical case, we made an investigation through data collection and screening of interviewees, finding that other problems followed the government’s purchase of public services. For instances, community organizations were confronted with the supply-demand gap; public service projects proved to be hardly sustainable. In view of this, we conducted further in-depth discussions and analysis in the hope of providing useful reference to China’s current welfare governance.

Key words: governmental purchase of public services, welfare governance, government-subsidized housing area