- National Housing Act of 1934
The National Housing Act of 1934, Pub.L. 84-345, 48 Stat. 847, enacted June 28, 1934, also called the Capehart Act, was part of the New Deal 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 homebuilding industries.
The Housing Act of 1937 builds on this legislation.
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