National Housing Act of 1934

From Wikipedia, the free encyclopedia

The National Housing Act of 1934 was passed during the Great Depression in order to make housing and home mortgages more affordable. It created the Federal Housing Administration (FHA) and the Federal Savings and Loan Insurance Corporation.

It was designed to stop the tide of bank foreclosures on family homes. Both the FHA and the Federal Savings and Loan Insurance Corporation worked to create the backbone of the mortgage and home-building industries. Some unintended consequences were that it did little to improve inner city housing, it intensified segregation of races, and further promoted the single family detached dwelling as the prevailing mode of housing, which furthered the phenomenon of suburban sprawl.

HUD Historical Background

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