This is a great middle game Policy to use if you have big cities whose Housing limit has been reached. Before the Neighborhood there are few opportunities to increase File:Housing6.png Housing beyond Tile Improvements, and this Policy is one of them (although 1 Housing isn't such a big deal, it's still something). You can use the Policy in one of your Economic slots on a more-or-less permanent basis, and swap it with something else as the strategic situation dictates. The File:Citizen6.png Population growth in the city will be 'boosted' while the Policy is active, and stunted while it's not.
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