U.S. Department of Housing and Urban Development - 1930-2010
As the Great Depression eased somewhat and the prospect of improved financial status for individual families increased, the National Housing Act of 1934 was passed to relieve unemployment and stimulate the release of private credit in the hands of banks and lending institutions.
Established the public housing program. In response, state governments pass enabling legislation to create a nationwide network of local public housing agencies. Later amended (in 1974) to add Section 8 - for both tenant-based (Housing Choice Vouchers and project-based assistance).
America's Great Depression is regarded as having begun in 1929 with the Stock Market crash and ending in 1941 with America's entry into World War II.
The increase in housing construction following World War II, led to the growth of suburban areas and to new housing programs for declining urban areas authorized by the Housing Act of 1949.
Following World War II, and continuing into the early 1970s, "urban renewal" referred primarily to public efforts to revitalize aging and decaying inner cities, although some suburban communities undertook such projects as well.
Federal involvement in housing rapidly expanded to include financing of new construction, preservation of existing housing resources, and urban renewal.
Expansion of Urban Renewal. The “workable program” - localities required to adopt comprehensive revitalization plans for receipt of federal economic development aid. Expansion of FHA insurance vehicles to incentivize private development of different types of multifamily housing.
The Housing and Urban Development Act of 1965 created HUD as a cabinet-level agency and initiated a leased housing program to make privately owned housing available to low-income families.
Section 3 - economic opportunities for low income persons. Section 235 and 236 subsidized mortgages for homeownership and affordable rental housing. New Towns program.
HUD's Office of Policy Development and Research (PD&R), created in 1973, was tasked with conducting research on priority housing and community development issues.
Established major rental assistance programs - public housing operating subsidies, Section 8 vouchers and project-based section 8 assistance. Created the CDBG block grant program, consolidating previous “categorical” programs.
The 1980s saw significant measures to ensure housing opportunities for all with new rental programs, Low-Income Housing Tax Credits, and changes in rules governing thrift institutions.
Landmark legislation for homelessness programs and housing opportunities.
Amended the Fair Housing Act to prohibit discrimination against persons with disabilities or based on family status.
Created the HOME block grant program. Stabilized the FHA insurance fund. Converted the Section 202 program (elderly housing) to capital grants and rental assistance; added the Section 811 (disabilities) and Shelter Plus Care (permanent supportive housing for the homeless) programs.
Major amendments and reforms to HUD programs (HOME, public housing). Created the Housing for Persons with AIDS (HOPWA) program.
The Native American Housing Assistance and Self Determination Act of 1996 (NAHASDA) created the Indian Housing Block Grant program.
The Multifamily Assisted Housing Reform and. Affordability Act of 1997, more commonly called “Mark To Market” initiated a series of reforms and cost savings measures to help maintain and preserve the stock of long-term affordable subsidized housing in the Project-based Section 8 program. The primary mechanism for cost savings was through restructuring of FHA-insured multifamily mortgages to reduce debt service costs and thereby achieve reductions in annual Section 8 discretionary spending. The Act also helped strengthen the role of the State Housing Finance Agencies as providers and facilitators of affordable housing across the country.
- retitled as Quality Housing and Work Responsibility Act of 1998. Public housing and Section 8 voucher reforms. Added PHA Plan requirement. Created the ROSS program.
HUD worked with public agencies, private partners, nonprofit, faith-based, and community organizations to expand the availability of affordable housing, to improve structural and living conditions in HUD-insured and assisted rental housing projects, to promote wider affordable rental housing opportunities, and to stabilize and sustain communities.
Consolidated HUD’s homeless programs
Economic stimulus bill in response to recession. Targeted spending on infrastructure, health, affordable housing, education, and energy. Also included tax incentives and expanded unemployment benefits.
Response to subprime mortgage and national financial crisis. Created the FHFA. Improvements in federal regulation of mortgage lending institutions.
Response to the mortgage market collapse and subsequent recession. Made numerous reforms to regulation of mortgage lending and financial institutions. Created the CFPB.