The State of New Jersey: A Study of Fair Housing, Housing Affordability, and Metropolitan Equity
Shantè Palmer and Sparkle Myrie
May 2014
In order to understand affordable housing and the issues surrounding public housing, we must know the background of how it evolved. The following section will provide landmark history of affordable housing and its development in the United States. This section will also discuss the evolution of affordable housing and the impact it has had on American families.
History reveals a longstanding struggle for affordable and available housing in the United States. History begins in 1892 when Congress allocates $20,000 for an investigative report of city slums. In 1908, President Roosevelt instructed the Housing Commission to investigate the need for decent housing for low-income Americans, but no federal aid was allocated towards the effort. In 1918, Congress authorized funding to the United States Housing Corporation to build and manage housing for war workers. The Housing Corporation built more than 5,000 dwellings in 25 communities, making it the first federal entity to provide affordable housing. (Jacobs, Harney, Edson, & Lane, 1982)
The Great Depression brought upon an economic crisis that threatened financial ruin toAmerica’s economy. The idea of federal public housing began as an action by Congress to create a mechanism to encourage banks to lend money for home purchases by taking pressure off sound home mortgage lending, stimulating home construction, and promoting homeownership. The Emergency Relief and Construction Act of 1932 authorized the Reconstruction Finance Corporation to make loans to corporations established to provide housing for low-income families or to reconstruct slum areas. Congress went on to enact the Federal Home Loan Bank Act of 1932, Home Owners’ Loan Act of 1933, and the National Industrial Recovery Act of1933 to mitigate the housing crisis in the United States. (The Congressional Research Service, 2003)
It was not until June 27, 1934 that the first influential piece of housing legislation, the National Housing Act, created the Federal Housing Administration (FHA). Headed by a Federal Housing Administrator, the FHA serves as the main mortgage and finance insurance agency to administer housing renovation and modernization, and to provide insurance for mortgages on one- to four-family homes. Although government implemented changes to aid in creating affordable housing for low- to moderate-income families, these federal housing programs did not benefit the families who needed this type of housing the most. With the continued efforts for the government to address the housing needs of lower income families, Congress enacted the United States Housing Act in 1937, which created the statutory structure for public housing. The Housing Act of 1937 created the United States Housing Authority (USHA) in the Department of Interior and authorized it to make loans through a capital financing long-term Annual Contribution Contract (ACCs) to local public housing authorities. States and localities built and locally governed the public housing authorities and states had the right to choose whether or not to participate in the program. Soon after, USHA established the United States Public Housing Administration to spell out the federal requirements of its programs. (The Congressional Research Service, 2003)
Continue reading this report in its entirety below:
The State of New Jersey: A Study of Fair Housing, Housing Affordability, and Metropolitan Equity