FederalPrograms - Federal Programs 2008 Page 1 FEDERAL...

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Federal Programs 2008 Page 1 FEDERAL GOVERNMENT HOUSING POLICY In the 1930s the federal government first became involved in the housing market to restore stability in the financial system and to generate construction jobs . Creation of the Federal Home Loan Bank System and the Federal Housing Administration (FHA) were not specifically intended to help the poor, but rather to aid lending institutions and to help lift the US economy out of the Depression. In 1937 the US Housing Act created the public housing program that authorized local housing authorities to build housing units financed through long-term bonds to serve poor families. After WWII ended and service men and women began returning home, there was an urgent shortage of housing. This situation led to the creation of the Veterans Administration guarantees on mortgage loans and increased FHA activity in insuring home mortgages. The 1949 Housing Act established the policy goal of “a decent home in a suitable living environment for every American family.” The act also established the Urban Renewal (aka, Urban Redevelopment) program that was designed to eliminate slums and blight. It also authorized over 800,000 units of public housing. The act also took the first step toward addressing the needs of rural Americans by authorizing the US Department of Agriculture to make loans and extend related assistance to low-income farmers. During the 1950s, cities used Urban Renewal to fund demolition and redevelopment. The Housing Act of 1954 instituted a requirement for the submission of a “plan” for redevelopment – this was the first example of comprehensive planning being required for federal funds. A special program for non-profit owners was developed to provide housing for elderly or handicapped tenants. In the 1960s, FHA introduced a wave of new housing finance programs to subsidize production of multifamily housing for low- and moderate-income people. Loans, subsidies, and tax write-offs were used to spur production. In return, owners’ returns
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This note was uploaded on 08/27/2011 for the course BCN 4023 taught by Professor Stroh during the Spring '11 term at University of Florida.

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FederalPrograms - Federal Programs 2008 Page 1 FEDERAL...

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