[House Prints 108-D]
[From the U.S. Government Publishing Office]
108th Congress
2nd Session COMMITTEE PRINT Committee
Print 108-D
_______________________________________________________________________
A CHRONOLOGY OF HOUSING LEGISLATION AND SELECTED EXECUTIVE ACTIONS,
1892-2003
----------
A REPORT BY
THE CONGRESSIONAL RESEARCH SERVICE
----------
Printed for the use of the
COMMITTEE ON FINANCIAL SERVICES
U.S. HOUSE OF REPRESENTATIVES
one hundred eighth congress
second session
[GRAPHIC] [TIFF OMITTED] TONGRESS.#13
March 2004
----------
This report has not been officially adopted by the Committee on
Financial Services and may not necessarily reflect the views of its
Members.
----------
92-629 U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 2003
____________________________________________________________________________
For Sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800
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108th Congress
2nd Session COMMITTEE PRINT Committee
Print 108-D
_______________________________________________________________________
A CHRONOLOGY OF HOUSING LEGISLATION AND SELECTED EXECUTIVE ACTIONS,
1892-2003
__________
A REPORT BY
THE CONGRESSIONAL RESEARCH SERVICE
__________
Printed for the use of the
COMMITTEE ON FINANCIAL SERVICES
U.S. HOUSE OF REPRESENTATIVES
one hundred eighth congress
second session
[GRAPHIC] [TIFF OMITTED] TONGRESS.#13
March 2004
__________
This report has not been officially adopted by the Committee on
Financial Services and may not necessarily reflect the views of its
Members.
92-629 U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 2003
____________________________________________________________________________
For Sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800
Fax: (202) 512�092250 Mail: Stop SSOP, Washington, DC 20402�090001
HOUSE COMMITTEE ON FINANCIAL SERVICES
MICHAEL G. OXLEY, Ohio, Chairman
JAMES A. LEACH, Iowa BARNEY FRANK, Massachusetts
DOUG BEREUTER, Nebraska PAUL E. KANJORSKI, Pennsylvania
RICHARD H. BAKER, Louisiana MAXINE WATERS, California
SPENCER BACHUS, Alabama CAROLYN B. MALONEY, New York
MICHAEL N. CASTLE, Delaware LUIS V. GUTIERREZ, Illinois
PETER T. KING, New York NYDIA M. VELAZQUEZ, New York
EDWARD R. ROYCE, California MELVIN L. WATT, North Carolina
FRANK D. LUCAS, Oklahoma GARY L. ACKERMAN, New York
ROBERT W. NEY, Ohio DARLENE HOOLEY, Oregon
SUE W. KELLY, New York, Vice Chair JULIA CARSON, Indiana
RON PAUL, Texas BRAD SHERMAN, California
PAUL E. GILLMOR, Ohio GREGORY W. MEEKS, New York
JIM RYUN, Kansas BARBARA LEE, California
STEVEN C. LaTOURETTE, Ohio JAY INSLEE, Washington
DONALD A. MANZULLO, Illinois DENNIS MOORE, Kansas
WALTER B. JONES, Jr., North MICHAEL E. CAPUANO, Massachusetts
Carolina HAROLD E. FORD, Jr., Tennessee
DOUG OSE, California RUBEN HINOJOSA, Texas
JUDY BIGGERT, Illinois KEN LUCAS, Kentucky
MARK GREEN, Wisconsin JOSEPH CROWLEY, New York
PATRICK J. TOOMEY, Pennsylvania WM. LACY CLAY, Missiouri
CHRISTOPHER SHAYS, Connecticut STEVE ISRAEL, New York
JOHN B. SHADEGG, Arizona MIKE ROSS, Arkansas
VITO FOSSELLA, New York CAROLYN McCARTHY, New York
GARY G. MILLER, California JOE BACA, California
MELISSA A. HART, Pennsylvania JIM MATHESON, Utah
SHELLEY MOORE CAPITO, West Virginia STEPHEN F. LYNCH, Massachusetts
PATRICK J. TIBERI, Ohio BRAD MILLER, North Carolina
MARK R. KENNEDY, Minnesota RAHM EMANUEL, Illinois
TOM FEENEY, Florida DAVID SCOTT, Georgia
JEB HENSARLING, Texas ARTUR DAVIS, Alabama
SCOTT GARRETT, New Jersey CHRIS BELL, Texas
TIM MURPHY, Pennsylvania
GINNY BROWN-WAITE, Florida BERNARD SANDERS, Vermont
J. GRESHAM BARRETT, South Carolina
KATHERINE HARRIS, Florida
RICK RENZI, Arizona
Robert U. Foster, III, Staff Director
(ii)
C O N T E N T S
_________________________________________________________________
Page
Submittal Letters and Memoranda................................ v
Forward........................................................ viii
I. The Early Years............................................. 1
II. The 1930s--Responses to the Depression..................... 3
III. The 1940s--War, Emergency, and Postwar Housing............ 17
IV. The 1950s--Evolution of a Community Development Approach... 33
V. The 1960s--Economic and Population Growth................... 75
VI. The 1970s--Reappraisal and Redesign........................ 141
VII. The 1980s--Shifting Priorities............................ 211
VIII. The 1990s--Toward Decentralization....................... 251
IX. The 21st Century--New Challenges for a New Millenium....... 331
(iii)
SUBMITTAL MEMORANDA AND LETTER
Memoranda From Congressional Research Service Accompanying Updates
------
Congressional Research Service,
Library of Congress,
Washington, DC, January 24, 2003.
Subcommittee on Housing and Community Opportunity,
Committee on Financial Services
House of Representatives, Washington, DC.
SUBJECT: Chronology of Housing Legislation, Update with
103rd through 107th Congress
As you requested, we have prepared the following chronology
and summary of housing laws enacted during the 103rd through
107th Congress. This information is intended to update
Committee Print 103-2, prepared by CRS for the House Banking,
Finance and Urban Affairs Committee and published in December
1993. In general, we have used a similar format and provided
the same level of detail as the 1993 document. (See the forward
on page [vii of this] committee print for an explanation of
provisions that were selected to be included or excluded.) To
meet your deadline, we chose the most efficient method for
preparing this update, and relied primarily on the summaries of
laws prepared by CRS for the electronic Legislative Information
System (LIS). We then compared the summaries to the public laws
and made necessary additions, deletions, or edits. We made
every effort to be comprehensive; however, we cannot guarantee
absolute consistency or that every relevant provision is
included in this chronology.
We hope this update will meet your needs. If you have
questions about the methodology or need additional information,
please contact Karen Spar, Children and Families (including
housing) Section Head.
(v)
Congressional Research Service,
Library of Congress,
Washington, DC, February 27, 2004.
Subcommittee on Housing and Community Opportunity,
Committee on Financial Services
House of Representatives, Washington, DC.
SUBJECT: Housing Chronology
Attached please find the update to the Chronology of
housing laws.
Public Law 108-185 (H.J. Res. 82) is not included because
the chronology has historically omitted appropriations bills
unless they include significant changes in housing programs.
H.R. 1443 was not included in the version of S. 811 that became
law. Similarly, H.R. 2470 is not in the Agriculture
appropriations bill that became law.
(vi)
Original Transmittal Letter from Congressional Research Service
------
Congressional Research Service,
Library of Congress,
Washington, DC, July 15, 1993.
Hon. Henry B. Gonzales,
Chairman, Committee on Banking, Financial Services, and Urban Affairs
House of Representatives, Washington, DC.
Dear Mr. Chairman: It gives me pleasure to convey this
summary of legislation relating to housing and urban
development entitled ``A Chronology of Housing Legislation and
Selected Executive Actions, 1892-1992.'' It revises and
continues through 1992 the record presented in the Committee
print of October, 1975, ``Evolution of Role of the Federal
Government in Housing and Community Development.''
The principal author of this work has been Dr. Grace
Milgram. She has been assisted in summarizing some of the
legislation concerning the secondary mortgage market and
Resolution Trust Fund by Barbara Miles, and that concerning
community development by Eugene P. Boyd. Marietta L. Sharperson
has provided thoughtful clerical assistance.
We trust that this chronology will assist the Congress in
consideration of housing and community development issues and
policies.
Sincerely,
Joseph E. Ross, Director.
(vii)
FOREWORD
From the 1993 Edition
This Chronology summarizes the main provisions of Federal
legislation relating to housing and community development,
particularly that relating to programs administered by the
Department of Housing and Urban Development and the Farmers
Home Administration of the Department of Agriculture. It covers
the period 1892 through 1992, in chronological order. It
incorporates, in revised form, and continues the now out-of-
print Committee document, Evolution of Role of the Federal
Government in Housing and Community Development, issued
October, 1975. In addition to the legislation, it includes
summaries of Executive documents related in significant ways to
the development of such legislation and to the organization of
the administering agencies. It also includes legislation
affecting housing-related matters in the jurisdiction of the
Home Loan Bank Board and its successor agencies, but not
banking legislation per se.
The Chronology does not include the less closely related
housing programs of the Department of Veterans Affairs, the
Department of Defense, or other governmental agencies which are
not within the purview of the Subcommittee on Housing and
Community Development of the Committee on Banking, Finance and
Urban Affairs. It includes authorization levels of funding only
when a particular program is begun, to indicate its planned
dimensions. It does not include budget proposals nor
appropriations, but does include substantive matters contained
in appropriation Acts.
It should be understood that these summaries are simply
that summaries of the more important provisions of the Acts.
The Chronology is not meant to be all-inclusive, nor does it
attempt any interpretation of the legislation. Thus, it
provides a reference to assist in following important
developments in housing policies, and a guide to locating the
particular statute which might be of special interest to the
reader. For precise knowledge of the provisions of the law, the
summary in the Chronology should not be considered a substitute
for the actual text of the Acts.
Updates to this Edition
This edition updates the previous edition by adding
information regarding programs enacted or reauthorized from
1992 through the end of the first session of the 108th Congress
in 2003.
(viii)
I. THE EARLY YEARS
Investigation of City Slums
(Public Resolution 52-22, July 20, 1892)
Provided $20,000 for investigation of slums in
cities of 200,000 or more population. The report covered four
cities.
Reports of the President's Housing Commission
(60th Congress, 1909)
Recommended government loans to build habitable
dwellings, condemnation and purchase of slum properties by the
government and improvement or replacement of these so that
inexpensive and healthful habitations would be available to the
poor by rental or purchase at low interest rates.
Loans for Housing for Shipyard Employees
(Public Law 65-102, March 1, 1918)
Authorized Federal loans to realty companies
incorporated by shipbuilding companies for housing for shipyard
employees. (Housing was provided in 24 localities, including
9,000 houses, 1,100 apartments, 19 dormitories, and 8 hotels.)
Housing for War Workers
(Public Laws 65-149 and 65-164, May 16, and June 4, 1918)
Authorized the U.S. Housing Corporation to build
and manage community projects for war workers. (25 communities
comprising more than 5,000 single-family dwellings, and, in
addition, apartments, dormitories and hotels were built. Most
of the housing after the War was sold to private owners.)
II. THE 1930s RESPONSES TO THE DEPRESSION
The President's Conference on Home Building and Home Ownership
(December 2-4, 1931)
Convened by the President, who announced his
intention to recommend to the Congress ``* * * a system of Home
Loan Discount Banks'' to:
a. take pressure off sound home mortgage lending
institutions and permit them to recover;
b. stimulate home construction and increase
employment;
c. prevent repetition of the mortgage industry's
collapse in the face of economic difficulty; and
d. create a structure for the promotion of
homeownership.
Identified weaknesses and inadequacies of housing
and home financing in the United States, but advanced no
specific recommendations for Federal legislation.
Issued Proceedings & Reports of the President's
Commission, December 19.
Emergency Relief and Construction Act of 1932
(Public Law 72-302, July 21, 1932)
Authorized the Reconstruction Finance Corporation
to make loans to corporations established to provide housing
for low income families or to reconstruct slum areas. (Two
loans were made--one for $8,059,000 to finance Knickerbocker
Village in New York City, and the other for $155,000 to finance
rural homes in Kansas.)
Federal Home Loan Bank Act
(Public Law 72-304, July 22, 1932)
Established the Federal Home Loan Bank System by
creating the Federal Home Loan Bank Board, which was directed
to establish up to 12 Federal Home Loan Banks to operate in
districts designated by the Board.
Made building and loan associations, cooperative
banks, homestead associations, insurance companies and savings
banks eligible to become members of, or nonmember borrowers
from, the Federal Home Loan Banks.
Authorized the Bank to make advances to member and
nonmember borrowers upon the security of home mortgages which
met requirements of the Act. Aggregate outstanding advances
made to any member could not exceed 12 times the amount paid in
by the member for outstanding capital stock held by it in the
Bank. Advances to a nonmember borrower could not exceed 12
times the value of the security required. The Banks could sell
advances made under the Act to other Federal Home Loan Banks,
or allow participation in such advances.
Provided that any homeowner who came within the
limits of the Act and who was unable to obtain mortgage money
from any other source could obtain mortgage money from any Bank
organized under the Act. (This provision was repealed by P.L.
73-43, June 13, 1933.)
Required the capital stock of each Federal Home
Loan Bank to be not less than $5 million.
Required members to subscribe to stock in amounts
equal to 1 percent of the subscriber's home mortgage loans. The
U.S. Treasury subscribed to the amounts of stock required to
provide the minimum capital for each Bank, but not more than an
aggregate amount of $125 million. Authorized the Reconstruction
Finance Corporation to provide funds for the stock purchases by
the Treasury out of the capital of the RFC or the proceeds of
obligations issued by RFC.
When the amount of capital of a Bank paid in by
members equaled the amount paid in by the Treasury, required
the Bank to pay annually towards retirement of Treasury-held
stock 50 percent of all sums thereafter paid in as capital
until all the Treasury-held stock was retired at par. Also,
stock held by the U.S. could, at any time with the approval of
the Board, be paid off at par and retired in whole or in part.
Further, the Board could at any time require Treasury-held
stock to be paid off at par and retired in whole or in part, if
the Board was of the opinion that the Bank had available
resources for this purpose.
Empowered each Federal Home Loan Bank to issue
bonds and debentures secured by the transfer of eligible
obligations of borrowing institutions on advances made by the
Bank to borrowing institutions, and by the deposit of home
mortgages. The Banks were jointly and severally liable for the
bonds and debentures issued by any Federal Home Loan Bank. All
obligations were required to state plainly that they were not
obligations of the United States and not guaranteed by the
United States.
Home Owners' Loan Act of 1933
(Public Law 73-43, June 13, 1933)
Emergency Relief to Home Mortgagors
Directed the Federal Home Loan Bank Board to
create the Home Owners' Loan Corporation. Directed the
Secretary of the Treasury to subscribe to capital stock of the
Corporation in amounts aggregating not more than $200 million.
Funds for the stock subscription were provided by the
Reconstruction Finance Corporation, and RFC's authority to
issue obligations for borrowing was increased for this purpose
by $200 million. Authorized the HOLC to issue bonds in amounts
aggregating not more than $2 billion to provide funds for its
operations. Guaranteed payment of interest on the bonds.
Exempted the bonds from Federal, State and local taxation, both
as to principal and interest.
Authorized the HOLC, for a period of three years,
to refinance mortgages of distressed home-owners by offering
them long-term mortgage loans to be amortized by monthly
payments sufficient to retire the loans within 15 years. The
interest on the HOLC loans could not exceed 5 percent. The HOLC
could also make advances for the redemption of foreclosed home
mortgages. (More than a million home loans were refinanced. The
HLBB announced the termination of HOLC, following delivery of a
check for nearly $14 million surplus to the U.S. Treasury, May
29, 1951.)
Federal Savings and Loan Associations
Authorized the Federal Home Loan Bank Board to
provide for the organization, examination, operation, and
regulation of Federal savings and loan associations. The
associations could lend their funds only on the security of
their shares or on the security of home mortgages or
combinations of home and business property mortgages within 50
miles of their home offices. Limited the loans to $20,000,
except that not more than 15 percent of an Association's assets
could be loaned on other improved real estate without regard to
the $20,000 and 50 miles limit.
Made each Federal savings and loan association a
member of the Federal Home Loan Bank of the district in which
it was located and members of the Federal Home Loan Banks were
permitted to convert into Federal savings and loan
associations.
Authorized the Secretary of the Treasury to
subscribe for preferred shares in an association up to $100,000
if necessary to encourage local home financing in the
community. Authorized Federal appropriations aggregating up to
$100 million for this purpose.
Exempted the associations and their loans and
income, and all shares (both value and income) from Federal
taxes. Prohibited State and local authorities from imposing
taxes on the associations greater than those imposed on similar
thrift and home financing institutions.
Repealed the direct loan authority of Federal home
loan banks.
National Industrial Recovery Act
(Public Law 73-67, June 16, 1933)
Authorized the use of Federal funds to finance
low-cost and slum-clearance housing and subsistence homesteads,
as a means of providing employment. (Resulted in construction
of 50 low-rent public housing projects, containing 21,600
units, in 37 cities, and 15,000 units were provided in
resettlement projects and Greenbelt towns. In addition, loans
were made for seven limited-dividend projects with 3,065
dwelling units.)
Amendment to Home Owners Loan Act of 1933
(Public Law 73-178, April 27, 1934)
Authorized federal guarantee of the principal of
the bonds issued by the Home Owners' Loan Corporation, in
addition to previously authorized guarantee of interest.
Authorized HOLC to purchase shares in savings and
loan associations which were members of the Federal Home Loan
Banks. ($223 million was so invested.)
National Housing Act
(Public Law 73-479, June 27, 1934)
Created the Federal Housing Administration, headed
by a Federal Housing Administrator.
Title I--Housing Renovation and Modernization
Authorized the Administrator to insure banks,
trust companies, personal finance companies, mortgage
companies, building and loan associations, installments lending
companies, and other such financial institutions approved by
him against losses on loans and purchases of obligations
representing loans for financing alterations, repairs, and
improvements upon real property. The insurance could in no case
exceed 20 percent of the total amount of such loans and
purchases made by the financial institutions, and the total
liability incurred by the Administrator for such insurance
could not exceed in the aggregate $200 million. No insurance
could be entered into after the end of 1935. The face amount of
an obligation could not exceed $2,000 and had to meet terms,
conditions and restrictions prescribed by FHA.
Authorized FHA to make loans to insured
institutions upon the security of obligations which met the
requirements prescribed under the Title I loan insurance
program. (Repealed by P.L. 74-486, April 3, 1936)
Title II--Mutual Mortgage Insurance. Insurance of Mortgages on One- to
Four-Family Homes
Authorized FHA in Section 203 to insure, and to
make commitments to insure mortgages on one- to four-family
homes with obligations not exceeding $16,000 or 80 percent of
the appraised value of the property covered by the mortgage.
Maturity of a mortgage could not exceed 20 years, and the
interest rate could not exceed 5 percent, or 6 percent if the
Administrator found that in certain areas or under special
circumstances the mortgage demanded it.
Authorized the Administrator to fix a premium
charge for the insurance of mortgages.
No mortgage could be insured under Section 203
unless the Administrator found that the project covered by the
mortgage was economically sound.
Provided for payment of insurance by the issuance
of 3-year debentures by FHA, bearing interest at a rate
determined by FHA at the time the mortgage was offered for
insurance, but not more than 3 percent.
Fully guaranteed such debentures issued prior to
July 1, 1937 as to principal and interest, payable from the
Mutual Mortgage Insurance Fund created by the Act. Provided
that if the Fund could not pay the principal of, or interest
on, the debentures when due, the Secretary of the Treasury
would pay the amount demanded out of any money in the Treasury
not otherwise appropriated.
Established the Mutual Mortgage Insurance Fund and
funded it with $10 million made available by the Treasury.
The mortgages insured were to be classified by FHA
into groups involving similar risk characteristics and similar
maturity dates and premium charges and all earnings of the
assets of the group account were to be credited to the account
of the group to which the mortgage was assigned. Debentures and
other expenses of the mortgages in a group were to be charged
to the account of the group to which a mortgage was assigned.
Low-Cost Housing Insurance
Authorized in Section 207 insurance of mortgages
covering property held by Federal or State instrumentalities,
private limited dividend corporations, or municipal corporate
instrumentalities of one or more States, formed for the purpose
of providing housing for persons of low incomes. The housing
was required to be regulated by FHA as to rents, charges,
capital structure, rate of return, and methods of operation.
The mortgage could not exceed $10 million.
Statistical and Economic Surveys
Directed the Administrator to make such
statistical surveys and legal economic studies as he deemed
useful to guide the development of housing and the creation of
a sound mortgage market in U.S.
Provision of Funds
Directed the Reconstruction Finance Corporation to
make available to FHA such funds as deemed necessary, and
increased the amount of obligations RFC was empowered to have
outstanding by an amount sufficient to provide the funds.
Authorized the President to provide such funds or any portion
thereof by allotment to the FHA from any funds available to the
President for emergency purposes.
National Mortgage Association
Authorized the Federal Housing Administrator to
establish national mortgage associations to provide a secondary
market for home mortgages by the purchase and sale of first
mortgages. The mortgages could not exceed 80 percent of the
appraised value of the property covered by the mortgage as of
the date of purchase. An association could borrow money through
the issuance of notes, bonds, debentures or other obligations.
(Pursuant to this authority, the Federal National Mortgage
Association was chartered by the FHA on February 10, 1938, as a
subsidiary of the RFC.)
Federal Savings and Loan Insurance Corporation
Created the Federal Savings and Loan Insurance
Corporation to insure the accounts of building and loan,
savings and loan, and homestead associations and cooperative
banks, and the accounts of all Federal savings and loan
associations. No member or investor of any such institution
could be insured for an aggregate amount in excess of $5,000.
(The capital stock ($100 million) of the FSLIC was subscribed
for by the Home Owners' Loan Corporation. Payments for the
stock were made in bonds of HOLC. HOLC was to receive dividends
on the stock out of net earnings at a rate equal to the
interest rate on the bonds, and the dividends were to be
cumulative.)
Authorized FSLIC to issue notes, bonds, debentures
or other obligations and the obligations were exempt, both as
to principal and interest, from all taxation--Federal, State,
or local. Exempted the Corporation from all taxation, except
that any real property of the Corporation was subject to State
or local taxation to the same extent as other real property.
Required insured savings institutions to pay
premiums for the insurance equal to one-fourth of 1 percent of
the total amount of all accounts plus any creditor obligations
of the institution. Authorized FSLIC to assess insured
institutions additional premiums for insurance until the amount
of the premiums equaled the amount of all losses and expenses
of FSLIC, but the total amount so assessed in any one year
could not exceed one-fourth of 1 percent of the total amount of
an institution's accounts and creditor obligations.
Required institutions applying for insurance to
pay admission fees based upon the reserve fund of the
application, which in the judgment of FSLIC, were equitable
contributions.
Federal Home Loan Bank Act Amendments
Authorized advances by Federal Home Loan Banks
secured by mortgages insured by FHA under Title II of the
National Housing Act.
Authorized Federal Home Loan Banks to make
advances to finance home repairs, improvements, and alterations
secured by loans insured by FHA under Title I of the National
Housing Act.
Authorized the Federal Home Loan Bank Board to
issue consolidated Federal Home Loan Bank debentures which were
the joint and several obligations of all Federal Home Loan
Banks.
Authorized the Board, when no debentures were
outstanding, or in order to refund all outstanding consolidated
debentures, to issue consolidated Federal Home Loan Bank bonds
which were the joint and several obligations of all the Federal
Home Loan Banks.
Amendment of Farm Credit Act of 1933. Home Repair Loans
Authorized production credit associations, without
regard to stock ownership requirements, to make and sell home
alterations, repair and improvement loans and to avail
themselves of FHA insurance of such loans.
National Banks. FHA-Insured Loans
Amended the Federal Reserve Act to exempt FHA-
insured loans insured under Title II of the National Housing
Act from restrictions as to the amounts of the loans prescribed
in the Federal Reserve Act.
Classed loans made by national banks having
maturities of not more than six months made to finance
residential or farm building construction as ordinary
commercial loans and made them eligible for discount as
commercial paper within the terms of the Federal Reserve Act.
Home Owners' Loan Corporation
Increased the limit on HOLC's authority to issue
bonds by $1 billion and by the amount of any of its bonds
called in and retired.
Increased the limit on the amount of capital stock
of HOLC from $200 million to $300 million.
Reduced Transportation Rates. Improvement of Housing Standards
Amended the Interstate Commerce Commission Act to
provide that carriers could give reduced rates for the
transportation of commodities to be specified by the Commission
with the object of improving nationwide housing standards and
providing employment and stimulating industry.
Amendments to Reconstruction Finance Corporation Act
(Public Law 74-1, January 31, 1935)
Authorized RFC to subscribe for or make loans upon
the nonaccessable stock of any national mortgage association
organized under Title III of the National Housing Act (supra),
and of any mortgage loan company or other similar financial
institution whose principal business is that of making loans
upon real-estate mortgages. (Pursuant to this authority, RFC
organized the RFC Mortgage Company to make mortgage loans on
urban income-producing properties when credit was not otherwise
available at reasonable rates.)
Emergency Relief Appropriation Act of 1935--Housing Survey and
Inventory
(Public Law 74-11, April 8, 1935)
Included $450 million for housing in appropriation
for public works. (The Works Progress Administration and the
Bureau of Labor Statistics did a cooperative construction
pattern survey to aid public works planning, including housing.
The first extensive real property inventory of urban housing
was conducted in 203 urban areas by the WPA and the Department
of Commerce.)
Amendments to the National Housing Act
(Public Law 74-76, May 28, 1935)
FSLIC Premium Charge Reduced
Reduced the insurance premium charge paid by
lending institutions to the Federal Savings and Loan Insurance
Corporation from one-fourth to one-eighth of 1 percent of the
total amount of all accounts of the insured members of the
lending institution plus any creditor obligations of the
institution.
FSLIC Prevention of Defaults in Insured Institutions
In order to prevent a default in an insured
lending institution or to restore an insured institution in
default to normal operation, authorized the FSLIC to make loans
to, purchase the assets of, or make a contribution to, an
insured institution or an insured institution in default.
FHA-Insured Property Improvement Loans
Made property improvement loans made prior to
April 1, 1936 (previously January 1, 1936) eligible for FHA
insurance. Loans for property improvement, including the
installation of equipment and machinery, were made eligible for
FHA insurance under the Title I program.
Made Title I FHA insurance available for loans up
to $50,000 with respect to real property improved by or to be
converted into multiple family houses, hotels, office, business
or other commercial buildings, hospitals, orphanages, colleges,
schools, or manufacturing or industrial plants.
Capital Stock of National Mortgage Associations
Reduced the minimum amount of capital stock
required for a national mortgage association from $5,000,000 to
$2,000,000.
Amendments to the National Housing Act
(Public Law 74-486, April 3, 1936)
Repealed Section 3 of the National Housing Act
(Section 3 authorized the FHA to make loans to institutions it
insured under Title I upon the security of obligations which
met the requirements prescribed under Title I for property
improvement loan insurance.) (See P.L. 73-479, June 27, 1934.)
FHA Insured Disaster Loans
(Public Law 74-525, April 17, 1936)
Added Section 6 to the National Housing Act to
authorize FHA to insure loans for the restoration,
rehabilitation, rebuilding and replacement of improvements on
real property and equipment and machinery on the property which
were damaged or destroyed by earthquake, conflagration,
tornado, cyclone, hurricane, flood, or other catastrophe.
(Repealed by P.L. 76-111, June 3, 1939)
Payments in Lieu of Taxes
((a) Public Law 74-837, June 29, 1936; (b) Public Law 74-845, June 29,
1936)
Authorized payments in lieu of taxes to States and
political subdivisions with respect to projects later
transferred to PHA: (a) Public Works Administration low-cost
housing projects and (b) resettlement or rural rehabilitation
projects of the Resettlement Administration.
U.S. Guarantee of FHA Debentures
(Public Res. 6, 75th Congress, February 19, 1937)
Debentures issued by FHA in exchange for mortgages
insured prior to July, 1939 (previously July 1, 1937) were
fully guaranteed by the United States as to principal and
interest.
Bankhead-Jones Farm Tenant Act
(Public Law 75-210, July 22, 1937)
Authorized the Secretary of Agriculture to make
40-year, 3 percent loans to farm tenants, laborers, and
sharecroppers, to finance the purchase of farms and repairs and
improvements (including housing), and five-year, 3 percent
loans for minor improvements and repairs and for the
refinancing of existing indebtedness.
United States Housing Act of 1937
(Public Law 75-412, September 1, 1937)
Public Housing Program
Authorized public housing program and created the
United States Housing Authority in the Department of Interior
to carry it out.
Authorized the Authority to make loans to local
public housing agencies to assist the development, acquisition,
or administration of low-rent housing or slum clearance
projects by those agencies. Also to make annual contributions
to the agencies to assist in achieving and maintaining the low-
rent character of the housing projects.
As an alternative method of assistance, authorized
the Authority to make capital grants to the local public
housing agencies, limited to the amounts necessary to assure
the low-rent character of the housing. A capital grant could
not exceed 25 percent of development or acquisition cost and
there were dollar limits on the aggregate amounts of capital
grants that could be made.
A loan could not exceed 90 percent of the
development or acquisition cost of a project. Where capital
grants were to be made, the total amount of loans on a project
was reduced by the amount of such grants. The loans were to
bear interest at a rate not less than the applicable going
Federal rate plus \1/2\ of 1 percent, and the terms of the
loans were limited to 60 years.
The annual contributions could be for periods up
to 60 years and for any project were required to be fixed in
uniform amounts and to be paid in such amounts over a fixed
period of years. The provisions for annual contributions were
to be embodied in a contract guaranteeing the payment over the
fixed periods. The fixed contribution could, in no case, exceed
a sum equal to the annual yield at the applicable going Federal
rate plus 1 percent upon the development or acquisition cost of
the housing. Required the annual contribution contract to
provide that whenever in any year the receipts of the public
housing agency exceeded its expenditures an amount equal to the
excess was to be applied to a reduction in subsequent annual
contributions.
Authorized contracts for annual contributions
aggregating not more than $5 million per annum on and after
September 1, 1937, an additional $7.5 million on or after July
1, 1938, and an additional $7.5 million on or after July 1,
1939.
Pledged the faith of the United States to the
payment of all annual contributions contracted for and
authorized to be appropriated in each fiscal year the amounts
necessary to provide for the payments. Payments under annual
contributions contracts were to be pledged, if the Authority so
required, as security for any loans obtained by a public
housing agency for a project.
Required the annual contributions contracts to
make provisions with respect to maximum income limits of the
tenants of the housing and tenant admission policies.
National Housing Act Amendments of 1938
(Public Law 75-424, February 3, 1938)
Made numerous changes in the FHA housing insurance
programs. Major provisions were:
Title I Property Improvement Loan Insurance
Changed the loans eligible for insurance to those
made for alteration, repairs and improvements upon urban,
suburban, or rural real property. Amended the limit on the
amount of a loan to $10,000 for financing of repairs,
alterations or improvements of existing structures and $2,500
for building new structures. (Prior to these amendments, loans
for certain purposes could be up to $50,000 and could finance
conversions to multifamily structures, manufacturing plants,
schools, hospitals, and other nonhousing purposes.)
Title II Mortgage Insurance
Section 203 Home Mortgage Insurance Program
Limited the use of the Mutual Mortgage Insurance
Fund to Section 203 one- to four-family housing mortgages.
Increased the aggregate amount of mortgages that
could be insured under the Section 203 program from $1 billion
to $2 billion and gave the President authority to increase the
limit up to not more than $3 billion.
Set new limits on the amounts of individual
mortgages that could be insured under the Section 203 program.
They were based on dollar amounts and 80 or 90 percent of
appraised value, varying in accordance with whether the
mortgage covered a one-to four-family structure, was an owner-
occupied family home, and new or existing structure.
The term of a mortgage could not exceed 20 years
except it could be up to 25 years if on a new owner-occupied
home.
The interest rate could be up to 5 percent, or not
to exceed 6 percent in certain areas or where the mortgage
market demanded it.
The insurance premium for a mortgage on an owner-
occupied new home was \1/4\ of 1 percent rather than \1/2\ of 1
percent as required for other Section 203 mortgages.
New Program for Farm Houses or Buildings
Authorized FHA to insure under the Section 203
program mortgages covering a farm upon which a farm house or
other farm buildings were to be constructed or repaired. The
construction and repair were required to involve expenditures
not less than 15 percent of the total principal obligation of
the mortgage. (Repealed by Housing Act of 1957, P.L. 55-104,
July 12, 1957)
Payment of Insurance
Changes were made in the provisions of Section 203
program governing payment of insurance.
New Section 207 Rental Housing Program
Changed the original Section 207 mortgage
insurance program for low-cost housing to a new rental housing
mortgage insurance program.
Under the new program, mortgagors could be
Federal, State or local instrumentalities, limited dividend
corporations, private corporations, associations, cooperative
societies, or trusts formed or created for the purpose of
rehabilitating slum or blighted areas, or providing housing for
rent or sale. The private mortgagors were regulated by FHA as
to rents or sales, charges, capital structure, rate of return,
and methods of operation in such manner as to provide
reasonable rentals and a reasonable return on the investment.
FHA could acquire up to $100 worth of stock or interest in a
private mortgagor.
Limited the amount of mortgage to $5 million and
not to exceed 80 percent of the value of the property when
completed. The part of a mortgage attributable to dwelling use
could not exceed $1,350 per room. The interest rate could not
exceed 5 percent and the mortgage was required to provide for
amortization by periodic payments within terms prescribed by
FHA. The project covered by the mortgage had to be found
economically sound.
Created the Housing Insurance Fund for the new
Section 207 program and made provisions for payment of
insurance in cases of default.
Section 210 Mortgage Insurance Program
Under a new Section 210 program, authorized FHA to
insure mortgages and advances on mortgages covering property
upon which there was located or to be constructed one or more
multifamily dwellings or a group of not less than 10 single-
family dwellings. (Repealed by P.L. 76-111, June 3, 1939)
Limited the amount of an insured mortgage to
$16,000 per unit, but not more than $200,000 and 80 percent of
the value of the property when improvements were completed. The
part attributable to dwelling use could not exceed $1,150 per
room.
The mortgage could have a term of not more than 21
years and could bear interest at not higher than 5 percent.
National Mortgage Associations
Title III of the National Housing Act was amended
to:
(i) Authorize national mortgage associations to:
1. make FHA Sections 207 and 210 insured
mortgage loans;
2. purchase, service or sell any mortgages,
or partial interests in mortgages insured by
FHA under its title II programs;
3. purchase, service, or sell uninsured
mortgages the amounts of which did not exceed
60 percent of the appraised value of the
property at the time of purchase; and
4. issue obligations in an aggregate amount
not to exceed 20 times the amount of its paid-
up capital and surplus (previously the limit
was 10 times).
5. increased the minimum amount of capital
stock from $2 million (required by the 1935
amendments) to $5 million.
(ii) Exempt obligations of national mortgage
associations, both as to principal and interest, and
the associations, including their loans and stock, from
all taxation. Real property of the associations
continued to be taxable by State and local governments.
Tax Exemption of FHA Debentures
Exempted all FHA debentures issued after February 3, 1938,
from Federal, State, and local taxation, both as to principal
and interest.
Amendments to FHA Programs
(Public Law 76-111, June 3, 1939)
Title I Program
Made the property improvement loan insurance
program available for the building of new structures and the
rehabilitation of improvements damaged by disasters, such as
earthquakes and floods. Repealed the Section 6 program for
disaster loans adopted in P.L. 74-525.
Limited the amount of an FHA-insured Title I loan
to $2,500. (Previously, a loan could be up to $10,000, except
the limit was $2,500 if the loan was for new construction.)
Limited the term of the Title I loan to three
years, except where the loans financed the construction of
structures for residential or agricultural purposes.
(Previously, FHA set the maturity.)
Added provisions to Title I authorizing FHA to fix
a premium charge for insurance of the Title I loans. The charge
could not exceed 3/4 of 1 percent of the net proceeds of the
loans of the insured institution.
FHA Title II Mortgage Insurance Authority
Extended the FHA home mortgage insurance and
rental housing programs by increasing the limit on the
aggregate amount of mortgages which could be insured from $2
billion to $3 billion, with authority in the President to raise
the limit up to $4 billion.
Limited insurance of mortgages on existing housing
under FHA's Title II program to 25 percent of the total amount
of mortgages insured after the effective date of the amendment
(June 3, 1939).
Limited insurance under Title II, to mortgages
covering new construction, or property which had been
previously covered by an FHA-insured mortgage.
Reduced the maximum interest on an FHA-insured
Section 207 rental housing mortgage from 5 percent to 4 \1/2\
percent.
Imposed a further limit on the amount of a
mortgage to not to exceed the FHA estimate of the cost of
completed improvements on the property exclusive of utilities
and streets; taxes, interest, and insurance during
construction; organization and legal expenses; and
miscellaneous charges during or incidental to construction.
Section 210
Repealed this section, except for applications
already filed.
Labor Standards
Prohibited insurance of mortgages on multifamily
housing insured under Sections 207 or 210 unless certification
was provided by the construction contractor that not less than
prevailing wages in the locality had been paid to the laborers
and mechanics working on the project.
Reorganization of Housing Agencies
(President's Reorganization Plan No. 1, and Pub. Res. 76-20, June 7,
1939)
Effective July 1, 1939, established the Federal
Loan Agency and Federal Works Agency to coordinate and
supervise various agencies, including those with housing
functions. Placed the RFC Mortgage Company, the Federal
National Mortgage Association, the Federal Home Loan Bank
Board, the Home Owners' Loan Corporation, and the Federal
Housing Administration in the Federal Loan Agency. Transferred
the U.S. Housing Authority to the Federal Works Agency.
HOLC Terms Amended
(Public Law 76-381, August 11, 1939)
Permitted HOLC loans made to refinance home
mortgages to be amortized over a period of 25 years rather than
the previous limit of 15 years.
First Census on Housing
(Public Law 70-385, August 11, 1939)
Authorized the Bureau of the Census, in connection
with the 1940 Census, to obtain data on the characteristics of
the Nation's housing supply and occupancy. (This became the
first census on housing.)
III. THE 1940s--WAR, EMERGENCY AND POSTWAR HOUSING
Defense Homes Corporation
(Public Laws 76-588 and 76-611, June 11, and June 13, 1940)
Established the Defense Homes Corporation by the
purchase of capital stock with funds appropriated by the Navy
Department and Military Appropriations Acts for 1941. DHC was
incorporated pursuant to a letter from the President to the
Secretary of the Treasury on October 18, 1940. DHC was to
provide defense housing in the Washington area and other areas
of extensive defense activities.
Amendments to United States Housing Act of 1937
(Public Law 76-671, June 28, 1940)
Authorized the use of its loan and subsidy
provisions and the projects provided under the Act for defense
and war workers.
Authorized the establishment of priorities in
deliveries of materials for national defense.
Defense Housing Coordinator
The Office of Defense Housing Coordinator was
established July 21, 1940, by the Advisory Commission to the
Council of National Defense. The Office had responsibility for
planning the defense housing program and its administration
through private industry and appropriate Federal agencies.
Lanham Act
(Public Law 76-849, October 14, 1940)
Authorized provision by the Federal Government of
public war housing accommodations.
Soliders & Sailors Relief Act of 1940
(Public Law 76-861, October 17, 1940)
Provided relief to servicemen with respect to
mortgage and other obligations.
Executive Order 8632, January 11, 1941
Created the Division of Defense Housing
Coordination within the Office for Emergency Management to take
over activities and personnel of the Defense Housing
Coordinator.
Amendments to National Housing Act
(Public Law 77-24, March 28, 1941)
Added Title VI, which authorized FHA to insure
mortgages (up to $100 million, aggregate) under more liberal
terms in order to provide one- to four-family homes in critical
defense areas. (Authority to insure mortgages on one- to four-
family homes under Title VI was terminated by the Housing Act
of 1948, P.L. 80-901, August 10, 1948.)
Authorized FNMA to purchase and sell Title VI
mortgages, and national banks and Federal Home Loan Banks to
include them in their operations.
Report of the Temporary National Economic Committee
(S. Doc. 77-35, March 31, 1941)
The final report and recommendations of the
Temporary National Economic Committee unanimously commended
efforts such as slum clearance and low-cost housing, among
other things, on behalf of the less privileged people ``to the
end that they may become as speedily as possible fully
participating, responsible members of the community.''
Amendments to National Housing Act
(Public Law 77-138, June 28, 1941)
Raised the limit on the aggregate amount of loans
that could be insured under Title I from $100 to $165 million.
Permitted insurance of loans up to $5,000 for the
alteration, repair or improvement of a dwelling designed for
more than one family, and up to $3,000 (previously $2,500) for
financing the construction of new structures.
Continued the FHA Title II home mortgage and
rental housing programs by increasing the limit on the
aggregate amount of the mortgages that could be insured from $3
billion to $4 billion, with authority in the President to raise
the limit to $5 billion. Increased the limit on the amount of
the Title II mortgages that could be insured for existing
housing from 25 percent to 35 percent of the mortgages insured
after June 3, 1939.
Amendment of FHA Title VI Program
(Public Law 77-248, September 2, 1941)
Raised the aggregate amount of FHA Title VI
mortgages on defense housing that could be insured from $100
million to $300 million.
Emergency Price Control Act of 1942
(Public Law 77-421, January 30, 1942)
Among other things, authorized Federal rent
control.
Establishment of the National Housing Agency
(Executive Order 9070, February 24, 1942)
Established the National Housing Agency and
transferred to that Agency responsibility for substantially all
the nonfarm housing programs of the Federal Government (except
housing located on military or naval reservations or bases).
The Federal Home Loan Bank Administration, the Federal Housing
Administration, and the Federal Public Housing Authority were
created as constituent agencies of the National Housing Agency,
which was to be headed by an Administrator.
Federal Tax Exemption of Income from FHA Debentures and Federal Savings
and Loan Associations
(Public Law 77-510, March 28, 1942)
Terminated Federal tax exemption of income from
FHA debentures (except those issued under insurance contracts
entered into prior to March 1, 1941), and income from Federal
savings and loan associations.
Amendments to National Housing Act
(Public Law 77-559, May 26, 1942)
Added Section 608 to provide FHA mortgage
insurance for rental housing for war workers. Limits on the
amounts of the mortgages were based on replacement cost.
Increased the limit on aggregate amount of mortgages that could
be insured under the Title VI program from $300 million to $800
million. (Authority to insure mortgages under Title VI was
terminated by the Housing Act of 1954, P.L. 83-560, August 2,
1954)
Increased limits on the amounts and term of
mortgages financing one-to four-family homes.
Permitted mortgages to be insured under Title VI
if FHA found the property to be an ``acceptable risk,'' rather
than economically sound, as generally required under other
programs and previously required for the Section 603 one- to
four-family home mortgages.
Named the Title VI programs War Housing Insurance.
Amendments to National Housing Act
(Public Law 78-15, March 23, 1943)
Increased the limit on the aggregate amount of
mortgages that could be insured under Title VI to $1.2 billion.
Amendments to National Housing Act
(Public Law 78-159, October 15, 1943)
Increased the aggregate amount of mortgages that
could be insured under Title VI to $1.6 billion.
The prohibition against insurance of mortgages
covering existing housing under the Title II program was made
applicable to mortgages insured after July 1, 1946, rather than
July 1, 1944, as previously provided.
Servicemen's Readjustment Act
(Public Law 78-346, June 22, 1944)
Authorized the guaranty by the Veterans'
Administration of loans with liberal terms made to veterans to
purchase, build, or improve homes.
Amendment to Title VI War Housing Program
(Public Law 78-392, June 30, 1944)
Increased the aggregate amount of mortgages that
could be insured under Title VI to $1.7 billion from $300
million.
War Mobilization and Reconversion Act of 1944, Section 501
(Public Law 78-458, October 3, 1944)
Authorized the Federal Works Administration to
make loans or advances (from funds authorized to be
appropriated and until June 30, 1947) to States and their
agencies and subdivisions (Public Agencies) for advance
planning of public works which would be in conformance with
overall plans approved by competent State, local or regional
authority. Advances needed to be repaid only when and if
construction was undertaken, but the making of advances did not
commit Congress to appropriate funds for construction of
projects as planned. (Program transferred to HHFA under
Reorganization Plan 17 of 1950.)
Amendments to FHA Title VI War Housing Program
(Public Law 79-27, March 31, 1945)
Increased the aggregate amount of mortgages that
could be insured under Title VI from $1.7 billion to $1.8
billion.
Authorized insurance under Title VI of mortgages
covering the purchase of housing from FHA that it had acquired
as a result of foreclosure or otherwise.
Amendments to Lanham Act
(Public Law 97-87, June 24, 1945)
Added Title V to authorize the use of public war
housing (provided under the Act for defense and war workers)
for distressed families of servicemen and veterans and their
families.
Made funds available for Lanham Act housing
available for the construction of temporary housing for
families of servicemen and veterans.
House Special Committee on Postwar Economic Policy and Planning
(House Report 852, 79th Congress, July 3, 1945)
Recommended as part of a long-range program of
public works and construction:
a. FHA insurance programs for housing mortgages
should be further liberalized to include additional
housing provision incentives, such as yield insurance
for rental housing.
b. Further Federal assistance to local communities to
assist in the provision of low-rent public housing.
c. Federal assistance in the technical development
and financing of housing, utilizing improvements in
materials and construction methods.
Recommendations of Subcommittee on Housing and Urban Redevelopment of
the Senate Committee on Postwar Economic Policy and Planning
(Committee Print, August 1, 1945)
Recommended:
a. Legislation designed to achieve an adequate supply
of housing. (Needs were estimated at 1,200,000 new
dwellings per year for the next 10 years.)
b. A statement of national policy should be made that
the predominance of private enterprise should be
maintained, and Government participation should be
limited to supplementing private enterprise.
c. A permanent National Housing Agency should be
established operating through three constituent
agencies.
d. A comprehensive attack on the farm housing problem
should be developed.
e. Aids to private enterprise through the Federal
Home Loan Bank Administration and the Federal Housing
Administration should be continued with revisions and
additions to encourage lower-priced housing and
investment in rental housing.
f. There should be amplification of Government
research into construction methods and techniques,
markets, and needs.
g. The program of urban low-rent public housing
should be extended.
h. Federal assistance should be provided to local
communities for slum clearance and urban redevelopment.
Amendments to Title V of the Lanham Act
(Public law 79-292, December 31, 1945)
Authorized funds for disassembling, transporting,
re-erecting, and converting surplus war structures on land
supplied by educational institutions, State and local bodies,
and nonprofit organizations, to provide housing for veterans
and their families, and distressed families of servicemen.
Authorized Federal agencies to transfer to the
National Housing Administrator surplus structures, equipment,
and materials for conveyance to educational institutions and
local bodies for housing for veterans and distressed families
of veterans.
Organization for Veterans' Housing
(Executive Order 9686, January 26, 1946)
Established the Housing Expediter to formulate
plans and programs and to recommend legislation for the
provision of housing, particularly at moderate prices and
rentals, for veterans, and directed executive agencies to
exercise emergency and other powers to this end.
Veteran's Emergency Housing Act of 1946
(Public Law 79-388, May 22, 1946)
Designed to speed the availability of housing for
veterans by expediting the production and allocation of
materials, by curbing excessive prices of new housing, and
utilizing FHA Title VI war housing program for veteran's
housing. The authorities expired December 31, 1947.
Confirmed the Office of the Housing Expediter and
the powers granted to the Expediter by Executive Order 9686,
supra. (The office was terminated by the Housing and Rent Act
of 1947 (P.L. 82-96, July 31, 1951))
Strengthened the powers of the Expediter to
establish ceiling prices and rents for new housing, and to
allocate or establish priorities for the delivery of materials
or facilities for housing.
Authorized RFC to make premium payments to
producers of building materials under prescribed conditions.
Authorized RFC to guarantee markets for new type
building materials and prefabricated houses.
Raised the limit on the aggregate amount of
mortgages that could be insured under Title VI of the National
Housing Act to $2.8 billion with authority in the President to
increase the limit to $3.8 billion.
Required the FHA to prescribe procedures for
giving World War II veterans and hardship cases priorities in
the purchase or rental of Title VI housing, thus changing the
program from a war housing to a veterans' housing program.
Made ``necessary current cost'' the basis for
determining the maximum amount of a mortgage that could be
insured under Title VI, and provided higher dollar mortgage
limits for one- to four-family home mortgages in high-cost
areas.
Lowered the maximum interest rate on Title VI
mortgages to 4 percent (from 5 percent, or 6 percent where the
mortgage market demanded a higher rate).
Amendments to National Housing Act
(Public Law 79-480, July 1, 1946)
Repealed provisions in Title II which prohibited
insurance of mortgages on existing housing after July 1, 1946,
and limited the aggregate amount of such mortgages insured
after June 3, 1939 to 35 percent of the mortgages insured under
Title II.
Secondary Market for Servicemen's and Veteran's Housing Loans
(Public Law 79-656, August 7, 1946)
Authorized RFC to provide a secondary market for
loans guaranteed or insured under the Servicemen's Readjustment
Act of 1944. (This authority was terminated by the
Reconstruction Finance Corporation Extension Act, P.L. 80-132,
June 30, 1947)
Farmers Home Administration Act of 1946
(Public Law 79-731, August 14, 1946)
Created the Farmers Home Administration in the
Department of Agriculture.
Amended the Bankhead Jones Farm Tenant Act to
include veterans' preference in direct loans to finance the
purchase, enlargement or improvement of farms, and the
insurance of loans made by private lending institutions for the
same purposes.
Separation of Housing Expediter and National
Housing Administrator Offices (Executive Order 9820, January
1,, 1947)
Segregated the functions and offices of the
Housing Expediter and National Housing Administrator in line
with the contemplated phasing out of most features of the
veterans' emergency housing program and powers.
Housing and Rent Act of 1947
(Public Law 80-129, June 30, 1947)
Repealed the Veterans Emergency Housing Act except
for certain provisions.
Authorized FHA Section 609 insurance of loans to
finance the manufacture of prefabricated houses.
Required veterans' preference in the sale and
rental of new housing.
Authorized the Housing Expediter to require
permits for the construction of amusement and recreation
facilities.
Continued rent control and placed its
administration in the Office of Housing Expediter.
Reconstruction Finance Corporation Extension Act
(Public Law 80-132, June 30, 1947)
Eliminated authority of the RFC to provide a
secondary market for mortgages guaranteed or insured under the
Servicemen's Readjustment Act of 1944 and provided for the
transfer of all assets and liabilities of the RFC Mortgage
Company to RFC. (The RFC Mortgage Company was dissolved on
April 8, 1948.)
Termination of Certain War Powers
(Public Law 80-239, July 25, 1947)
Started the two-year period provided under the
Lanham Act for removal of temporary war and veterans' housing,
and also the 10-year period during which applications for
guarantees and insurance of home loans under the Servicemens'
Readjustment Act of 1944 could be made.
Joint Committee on Housing
(H. Con. Resolution 104, 80th Congress, July 26, 1947)
Established and authorized to study all phases of
housing. (The Committee conducted hearings in Washington and 32
other cities.)
The President's Reorganization Plan No. 3
(Effective July 27, 1947)
Established a permanent Housing and Home Finance
Agency to succeed the National Housing Agency.
Directed the Housing and Home Finance
Administrator to coordinate the supervisory functions of three
constituent agencies--the Home Loan Bank Board, the Federal
Housing Administration, and the Public Housing Administration.
Established the National Housing Council with
representation from several other agencies concerned with
housing to promote the most effective use of Federal housing
functions and activities.
Amendments to U.S. Housing Act of 1937
(Public Law 80-301, July 31, 1947)
Permitted local housing agencies to exceed
statutory cost limits if they provided the difference between
the limits and actual construction costs.
Prohibited eviction of over-income tenants from
low-rent public housing if the eviction would result in undue
hardship.
Amendments to National Housing Act
(Public Law 80-366, August 5, 1947)
Authorized FHA to insure under Title VI mortgages
financing the purchase of Federally-owned permanent war
housing.
Increased the amount of mortgages that could be
insured under the Title VI veterans' housing program.
Joint Committee on Housing
(House Report 1564, 80th Congress, March 15, 1948)
The final majority report of the Joint Committee
on Housing recommended comprehensive housing legislation
designed to achieve production of 1,250,000 to 1,500,000
dwellings per year. Specific recommendations included:
a. A statement of firm national housing policy;
b. Authorization of a research program aimed at
reduction of housing costs;
c. Placing FHA mortgage insurance on a permanent
basis;
d. Authorization of Federal insurance of yield on
equity investment to encourage lower-cost homes and
moderate rental housing;
e. Broadening of secondary market in Government for
both FHA-insured and VA-guaranteed and insured housing
loans;
f. Insurance of credit and direct RFC loans to
prefabricators and other mass producers of housing;
g. Federal aid for slum clearance;
h. Provision of additional low-rent public housing;
i. Improvement of farm housing.
The Housing and Rent Act of 1948
(Public Law 80-464, March 30, 1948)
Extended rent control and veterans' preference in
new housing to April 1, 1949.
Extended the prohibition against eviction of over-
income tenants from low-rent public housing.
Purchase Price of Permanent War Housing Sold to Veterans
(Public Law 80-689, June 19, 1948)
Directed that the purchase price of permanent war
housing sold to veterans be at apportioned cost or appraised
value, whichever is less.
Amendments to Lanham Act
(Public Law 80-796, June 28, 1948)
Authorized the Federal interest in veterans'
temporary reuse housing located at education institutions to be
transferred to the educational institutions. Housing so
transferred, when approved by local governing body, was
exempted from Lanham Act removal requirements applicable to
temporary housing.
Extended the date by which other temporary war and
veterans' reuse Lanham Act housing was to be removed to January
1, 1950.
Made war housing constructed under Public Law 76-
781 and the Temporary Shelter Act subject to the disposition
provisions of the Lanham Act.
Government Corporations Appropriation Act, FY 1949
(Public Law 80-860, June 30, 1948)
Transferred the capital stock and all assets and
liabilities of the Defense Homes Corporation to the RFC for
liquidation.
Amendments to National Housing Act and Servicemens' Readjustment Act
(Public Law 80-864, July 1, 1948)
Established the Federal National Mortgage
Association (FNMA) by statute, using the name of the
organization previously chartered by FHA.
Extended FNMA secondary market authorization to
include GI-guaranteed or insured home and farm loans, but
limited all purchases to certain GI and FHA loans executed
after April 30, 1948 (restricted to sales housing).
Authorized FHA insurance of 95 percent mortgages
on veterans' cooperative housing under Title II of the National
Housing Act.
Amendment to Homeowners' Loan Act
(Public Law 80-895, July 3, 1948)
Authorized conversion of Federal savings and loan
associations to State-chartered associations.
Special Subcommittee of the Senate Banking and Currency Committee
(Senate Document 80-202, August 7, 1948)
Appointed to develop acceptable housing
legislation for the Special Session of the 80th Congress,
recommended that, in view of the controversial nature of the
proposals for additional public housing, the subject-matter be
dropped from the current bill and submitted for consideration
on its merits in the subsequent Congress.
Housing Act of 1948
(Public Law 80-901, August 10, 1948)
Passed by the Special Session of the 80th Congress
called by the President for the enactment of housing
legislation. Said to have three principal objectives:
(i) to make credit more easily available to veterans
and others for lower-cost homes, and to tighten up to
some extent credit on more expensive homes, thus
channeling scarce materials into lower-cost homes;
(ii) to liberalize loans on the lower-cost rural and
semirural homes which did not qualify for FHA loans;
(iii) to accomplish the standardization of building
codes and measurements in the building industry.
Major Provisions
Terminated FHA's authority to insure mortgages on
one- to four-family homes under Title VI.
Extended FHA's authority under Title VI to insure
mortgages financing rental housing and raised amount of
mortgages that could be insured to $6,150 million, including
$400 million available only after release by the President.
Continued the ``necessary current cost'' basis for
the amount of an FHA-insured mortgage under Section 608 rental
housing, but with the additional limitation that the amount of
the mortgage could not exceed 90 percent of the estimated
replacement cost of the project on the basis of December, 1947,
prevailing costs.
Substituted a per-family unit cost limit for the
per-room limit applicable to Section 608 rental housing.
``Perfected'' the FHA Section 609 mortgage
insurance program for assistance to manufacturers of
prefabricated housing, and made available insurance of short-
term credit to dealers.
Made available FHA Section 610 mortgage insurance
for the purchase of the so-called Greenbelt towns sold by the
government.
Authorized FHA to insure construction advances
under insured mortgages which covered property on which there
was to be constructed 25 or more family units consisting of a
group of one-family dwellings. Provisions were applicable to
cases where the builder had located on the property a plant for
the fabrication of the dwellings or parts of the dwellings, and
the advances could cover the cost of materials delivered to the
property and labor performed in construction, fabrication, or
erection.
Liberalized the Section 203 home mortgage
insurance program to encourage the production of houses in the
lower-priced range and to facilitate the transition from the
emergency Title VI program. Among other things, made mortgages
on new single-family dwellings up to $6,000 covering up to 95
percent of value eligible for insurance, and increased the
maximum amortization period of all mortgages financing new
homes to 25 years, and in the case of the 95 percent mortgage
up to $6,000, to 30 years.
To stimulate building activity in the low-cost
field, authorized FHA to make firm mortgage insurance
commitments to builders of such housing in amounts up to 85
percent of appraised value.
Made State-regulated redevelopment and other
housing corporations eligible for FHA rental housing mortgage
insurance.
Amended the FHA Section 207 rental housing
mortgage insurance program by:
(i) including in the statutory definition of project
``value'' and ``costs'' certain previously excluded
costs, such as taxes, utilities, financing charges, and
other expenses;
(ii) authorizing insurance of mortgages up to $50
million in amount (general limitation $5 million) where
the housing project was undertaken by a Federal, State
or municipal instrumentality, or a limited-dividend,
redevelopment, or housing corporation restricted by
Federal or State laws or regulations of State banking
or insurance departments;
(iii) substituting per-family unit limits for per-
room limits on the amount of the mortgage;
(iv) authorizing a special supplemental program of
mortgage financing of rental projects for families of
lower income involving a combination of a 90 percent
loan, 40-year maturity, and a maximum interest rate of
4 percent;
(v) making this liberalized program (iv above),
available for cooperative-ownership housing undertaken
by nonprofit cooperative housing corporations;
(vi) providing increased insurance benefits to
mortgage lending institutions; and
(vii) permitting mortgage limits to be based on
replacement costs and per-room limits where the needs
of veterans' housing cooperatives could be more
adequately met by such limits.
Increased the FHA Title I authorization for home
improvement and modernization (and to a limited extent,
construction) loan insurance by $35 million, and authorized
insurance of multifamily house loans of up to (i) $10,000 in
amount (general limit was $2,500) and (ii) seven years
maturity.
Authorized RFC to make loans for the production of
prefabricated houses or prefabricated housing components, or
for large-scale modernized site construction.
Made new rental housing loans insured by the FHA
eligible for purchase by FNMA, and raised the limit on the
amount of FHA and VA mortgages in the portfolio of a single
mortgagee which could be purchased by FNMA from 25 percent to
50 percent.
Directed the Housing and Home Finance
Administrator to undertake technical research and studies for
the development and promotion of standardized building codes
and regulations, and standardized dimensions and methods for
the assembly of home-building materials and equipment.
Authorized a special FHA yield insurance program
designed to encourage equity investment in rental housing at
rents within the capacity of families of moderate incomes by
guaranteeing, to those making such an investment to the extent
of 100 percent of project cost, a minimum return (exclusive of
amortization) of not exceeding 2 \3/4\ percent per annum on
outstanding investment until such time as only 10 percent of
the original capital investment remained unamortized.
Authorized an appropriation of $10 million to be made to the
Secretary of the Treasury for use in this program by the FHA
Commissioner.
Title V of the Act contained basic administrative
provisions including the power of the Administrator and heads
of constituent agencies to delegate and authorize successive
redelegations of powers and functions; general authority for
appropriations to carry out functions, powers and duties for
administrative expenses; and other significant provisions
relating to contracts, expenditures, and the handling of and
accounting for funds.
Eliminated the restriction on removal of over-
income tenants from low-rent public housing projects. Housing
and Rent Act of 1949 (Public Law 81-31, March 30, 1949)
Extended: a. Rent control through June 30, 1950;
and b. Veterans' preference in new housing through June 30,
1950. Alaska Housing Act (Public Law 81-52, April 23, 1949)
Provided special Federal assistance to housing in
Alaska, including: a. More liberal FHA mortgage insurance; b.
Federal loans: c. FNMA to provide a more liberal secondary
mortgage market; d. Construction of sale or rental housing by
the Alaska Housing Authority; e. Housing construction and
repair loans to be made by the Alaska Authority; f. $15 million
in Federal loans to the Alaska Housing Authority (through the
purchase of the Authority obligations) by theHousing and Home
Finance Administrator. Sale of Suburban Resettlement Projects
(Public Law 81-65, May 19, 1949)
Authorized sale of the suburban resettlement
projects known as Greenbelt, Md., Greendale, Wisconsin, and
Greenhills, Ohio, by means of negotiated sale and without
competitive bidding or public advertising. A sales preference
was to be given to nonprofit organizations of veterans and
tenants.
Housing Act of 1949
(Public Law 81-171, July 15, 1949)
National Housing Policy and Goal
Declared the national housing policy to be that
the general welfare and security of the Nation required the
realization as soon as feasible of the goal of a decent home
and suitable living environment for every American family.
Provided that private enterprise should be
encouraged to serve as large a part of the total need as it
could and that governmental assistance should be given to the
elimination of standard and inadequate housing through
clearance of slums and blight and to the provision of adequate
housing for families of low incomes where the need was not
being met by private enterprise.
Title I--Slum Clearance and Urban Redevelopment
Authorized $1 billion in loans and $500 million in
capital grants over a five-year period to localities to assist
slum clearance and community development and redevelopment
programs. To be eligible for grants, project areas were to be
predominantly residential in character either before of after
redevelopment, or both.
Authorized advances to finance planning of
projects, and loans for the acquisition and clearance of land
and its preparation for reuse.
Authorized capital grants to help meet the loss
involved in slum clearance. The loss was to be shared on a two
to one basis the Federal Government making up two- thirds of
the loss and the local government one-third. The local share
could be provided in cash or through the provision of parks,
schools, or other public facilities necessary to serve the new
uses of the land in the project areas, or the use of municipal
labor and equipment to clear a project area.
Federal advances were made payable from the first
proceeds of temporary loans made to finance the projects.
Temporary loans were repayable from the proceeds of the sale of
the land, Federal grants, local cash grant-in-aid and
definitive loans. The interest rate on all loans could not be
less than the going Federal rate, as determined by most
recently issued Federal bonds of 10 years or more maturity.
Local government agencies could pledge their contracts for
Federal loans as security for funds obtained from other sources
at lower rates of interest. To obtain funds for loans, the
Housing Administrator could issue notes and other obligations
for purchase by the Secretary of the Treasury.
Authorized the Administrator to contract to make
capital grants, and to make advance or progress payments on a
grant contract. The faith of the United States was pledged to
the payment of the grants and appropriations were authorized to
the extent necessary to provide for payments of the grants.
Required as a condition to Federal aid that there
be a feasible method for the temporary relocation of families
displaced from the project area and the permanent provision of
decent dwellings at prices and rents within the financial means
of such families.
Not more than 10 percent of the funds provided for
loans or grants could be expended in any one State.
(New contracts under Title I were prohibited after January
1, 1975, by the Housing and Community Development Act of 1974,
P.L. 93-383, August 22, 1974.)
Title II--Amendments to National Housing Act
Authorized a $500 million increase in FHA Title II
mortgage insurance, covering homes, rental housing, and
cooperative housing.
Title III--Amendments to United States Housing Act of 1937
Authorized Federal contributions and loans for not
to exceed 810,000 additional units of low-rent public housing.
Amended the program to facilitate 100 percent
private-capital financing by the local housing authorities,
reduce the maximum period of annual contributions from 60 to 40
years, increase statutory construction cost limits to reflect
postwar price levels, and provide additional assurance that
public housing would not compete with decent private housing.
Title IV--Housing Research
Authorized the Housing and Home Finance
Administrator to conduct technical research and studies which
would promote reduction in housing construction and maintenance
costs and stimulate the increased production in housing.
Title V--Farm Housing
Authorized the Secretary of Agriculture to provide
a new program of technical services, loans and grants, and an
expanded farm housing research program for the improvement of
farm housing and other farm buildings.
Title VI--Miscellaneous
Directed the Director of the Census to take a
census of housing in 1950 and decennially thereafter.
Amended the National Bank Act to authorize
national banks and State member banks of the Federal Reserve
System to purchase or underwrite certain obligations of local
public housing and slum-clearance agencies.
Authorized the District of Columbia to participate
in the slum clearance and urban redevelopment benefits
authorized under Title I of the Act.
Increase in FNMA Authorization
(Public Law 81-176, July 19, 1949)
Increased FNMA authorization to purchase FHA Title
II and Title VI insured mortgages and VA guaranteed mortgages
(veterans' loans) to $1.5 billion.
Added a new Title VIII (Wherry Act Housing) to the
National Housing Act to provide special FHA mortgage insurance
for rental housing for military and civilian personnel in areas
adjacent to military installations, and made these mortgages
eligible for purchase by FNMA.
Substantive Legislation in Independent Offices Appropriations Act of
1950
(Public Law 81-266, August 24, 1949)
Authorized the HHFA Administrator to transfer
temporary Veterans' Reuse Housing to a State, county, city, or
other public body in accordance with the terms of Public Law
80-796 upon application filed within 120 days after August 24,
1949.
Limited occupancy in public housing, for contracts
after April 17, 1940, to U.S. citizens except for families of
servicemen or veterans. (This provision was continued in each
annual appropriation act through FY 1954.)
Annual contributions not to be available for
payments in lieu of taxes above amounts in original contracts.
(Found unworkable, this provision was repealed retroactively to
August 24, 1949, by P.L. 81-358, October 14, 1949.)
Amendments to National Housing Act
(Public Law 81-278, August 30, 1949)
Increased the Title II mortgage insurance
authority (homes and rental housing) to $6 billion.
Advances for Reserve of Planned Public Works
(Public Law 81-352, October 13, 1949)
Authorized the General Services Administration (to
whom the Federal Works Agency's Advance Planning Program had
been transferred on July 1, 1949 by P.L. 81-152, June 30, 1949)
to make loans and advances (for studies, designs, plans,
working drawings, specifications and other actions preliminary
to construction of needed public works) to States, subdivisions
and public agencies. Loans and advances were contingent upon
conformance of the proposed project to an overall State, local
or regional plan approved by competent authority therein, and
were repayable without interest when and if construction began.
Authorized $100 million to be appropriated and to
remain available until expended. (Program transferred to HHFA
under Reorganization Plan No. 17 of 1950, May 24, 1950).
Amendments to the National Housing Act
(Public Law 81-387, October 25, 1949)
Increased FNMA's authorization for the purchase of
mortgages, loans and investments from $1.5 billion to $2.5
billion.
Liberalized FNMA's authority to purchase VA
housing loans.
Extended the time limit by which temporary war and
veterans' housing provided under the Lanham Act should be
removed from January 1, 1950 to January 1, 1951.
Amended the Federal Reserve Act to permit national
banks to make FHA Title VIII military housing loans.
IV. THE 1950s--EVOLUTION OF A COMMUNITY DEVELOPMENT APPROACH
Report, Subcommittee No. 2 of House Committee on Banking and Currency
(Committee Print, 81st Congress, January 31, 1950)
Recommended that the Congress should enact
legislation as soon as possible to provide for the orderly and
expeditious disposition of Government-owned and controlled war
veterans' housing.
Housing Act of 1950 (Public Law 81-475, April 20, 1950)
Amendments to FHA Insurance Programs
Increased the limit on the amount of loans that
could be insured under the FHA Title I programs by $5 million.
Increased the authorization for the Title II
mortgage insurance programs by $2.25 billion.
Increased the authorization for the Section 608
rental housing program by $500 million.
Authorized a new Section 8 FHA mortgage insurance
program for very low-cost homes in suburban and outlying areas
where it was not practical to obtain conformity with FHA
property location and other requirements essential for housing
in built-up urban areas. (This program was terminated by the
Housing Act of 1954, P.L. 83-560, August 2, 1954.)
Provided that the loan under Section 8 could be
insured if found to be an ``acceptable risk'' giving
consideration to the need of families of low or moderate
incomes in outlying areas. (Under other programs the loans were
required to be ``economically sound.'')
Amended the Title II programs to provide
incentives for the production of lower-cost homes, especially
those with three and four bedrooms. FHA could under certain
circumstances increase the dollar limits on mortgages insured.
(It was stated in a committee report that the ``several
escalator clauses are intended to help meet the higher
construction costs which generally prevail within the larger
metropolitan areas and under no circumstances shall be
administered in such a manner as will tend to permit the
allowable higher mortgage ceilings to become general.'')
Amended FHA Section 207 rental housing mortgage
limits to stimulate rental housing construction formerly
provided by the temporary Section 608 war and veterans' rental
housing program.
Added a provision to Section 207 requiring
certification by the mortgagor that there would be no
discrimination in the selection of tenants by reason of the
fact that there were children in the families.
Authorized a new Section 213 cooperative housing
mortgage insurance program which liberalized the previous FHA
cooperative housing mortgage insurance requirements. Mortgage
limits were made more liberal for veterans' cooperatives.
Authorized a new Assistant Commissioner of FHA to
administer cooperative housing programs and furnish technical
advice and assistance in the organization of cooperatives and
in the planning, development, construction, and operation of
their housing projects.
Increased mortgage insurance authority under the
Section 608 war and veterans' rental housing program in order
that applications received prior to March 1, 1950 could be
processed.
Made the FHA Section 610 mortgage insurance
program available for the sale of Government-owned war housing
in connection with the sale by the Government or any public
housing agency of war housing constructed under Public Law 76-
671.
Liberalized FHA requirements for insurance of
loans for manufactured houses and large-scale site construction
of housing.
Secondary Market
Made the new Section 8 FHA insured mortgages on
low-cost homes eligible for purchase by FNMA.