Abstract: The large-scale use of affordable housing over recent years has highlighted the importance of affordable housing community governance. This paper makes an analysis into the community governance mechanism of public rental housing. Firstly, a two-level principal-agent model is constructed and a theoretical analysis of the impact of moral hazard and residents' participation on the governance mechanism is made by employing the constructed model. Then, the case of Beijing is discussed and some suggestions on how to improve the effect of the community governance are provided. This research is useful for the government to better manage public rental housing community.

Key words: public rental housing, community governance, public service, principal-agent theory