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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
____________________________________________________________________________
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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) 512ÿ091800  
Fax: (202) 512ÿ092250 Mail: Stop SSOP, Washington, DC 20402ÿ090001




                 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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.
    <bullet> Identified weaknesses and inadequacies of housing 
and home financing in the United States, but advanced no 
specific recommendations for Federal legislation.
    <bullet> Issued Proceedings & Reports of the President's 
Commission, December 19.

             Emergency Relief and Construction Act of 1932

                   (Public Law 72-302, July 21, 1932)

    <bullet> 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)

    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.)
    <bullet> Required the capital stock of each Federal Home 
Loan Bank to be not less than $5 million.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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
    <bullet> 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.
    <bullet> 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
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> Repealed the direct loan authority of Federal home 
loan banks.

                    National Industrial Recovery Act

                   (Public Law 73-67, June 16, 1933)

    <bullet> 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)

    <bullet> Authorized federal guarantee of the principal of 
the bonds issued by the Home Owners' Loan Corporation, in 
addition to previously authorized guarantee of interest.
    <bullet> 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)

    <bullet> Created the Federal Housing Administration, headed 
by a Federal Housing Administrator.
Title I--Housing Renovation and Modernization
    <bullet> 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.
    <bullet> 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
    <bullet> 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.
    <bullet> Authorized the Administrator to fix a premium 
charge for the insurance of mortgages.
    <bullet> No mortgage could be insured under Section 203 
unless the Administrator found that the project covered by the 
mortgage was economically sound.
    <bullet> 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.
    <bullet> 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.
    <bullet> Established the Mutual Mortgage Insurance Fund and 
funded it with $10 million made available by the Treasury.
    <bullet> 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
    <bullet> 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
    <bullet> 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
    <bullet> 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
    <bullet> 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
    <bullet> 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.)
    <bullet> 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.
    <bullet> 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.
    <bullet> 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
    <bullet> Authorized advances by Federal Home Loan Banks 
secured by mortgages insured by FHA under Title II of the 
National Housing Act.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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
    <bullet> 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
    <bullet> 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.
    <bullet> 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
    <bullet> 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.
    <bullet> Increased the limit on the amount of capital stock 
of HOLC from $200 million to $300 million.
Reduced Transportation Rates. Improvement of Housing Standards
    <bullet> 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)

    <bullet> 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)

    <bullet> 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
    <bullet> 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
    <bullet> 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
    <bullet> 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.
    <bullet> 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
    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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
    <bullet> Authorized public housing program and created the 
United States Housing Authority in the Department of Interior 
to carry it out.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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)

    <bullet> Made numerous changes in the FHA housing insurance 
programs. Major provisions were:
Title I Property Improvement Loan Insurance
    <bullet> 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
    <bullet> Limited the use of the Mutual Mortgage Insurance 
Fund to Section 203 one- to four-family housing mortgages.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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
    <bullet> 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
    <bullet> Changes were made in the provisions of Section 203 
program governing payment of insurance.
  New Section 207 Rental Housing Program
    <bullet> Changed the original Section 207 mortgage 
insurance program for low-cost housing to a new rental housing 
mortgage insurance program.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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
    <bullet> 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)
    <bullet> 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.
    <bullet> 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
    <bullet> 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
    <bullet> 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.
    <bullet> 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.)
    <bullet> 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.)
    <bullet> 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
    <bullet> 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.
    <bullet> 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).
    <bullet> Limited insurance under Title II, to mortgages 
covering new construction, or property which had been 
previously covered by an FHA-insured mortgage.
    <bullet> Reduced the maximum interest on an FHA-insured 
Section 207 rental housing mortgage from 5 percent to 4 \1/2\ 
percent.
    <bullet> 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
    <bullet> Repealed this section, except for applications 
already filed.
Labor Standards
    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> Authorized the use of its loan and subsidy 
provisions and the projects provided under the Act for defense 
and war workers.
    <bullet> Authorized the establishment of priorities in 
deliveries of materials for national defense.

                      Defense Housing Coordinator

    <bullet> 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)

    <bullet> Authorized provision by the Federal Government of 
public war housing accommodations.

                 Soliders & Sailors Relief Act of 1940

                 (Public Law 76-861, October 17, 1940)

    <bullet> Provided relief to servicemen with respect to 
mortgage and other obligations.

                 Executive Order 8632, January 11, 1941

    <bullet> 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)

    <bullet> 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.)
    <bullet> 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)

    <bullet> 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)

    <bullet> Raised the limit on the aggregate amount of loans 
that could be insured under Title I from $100 to $165 million.
    <bullet> 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.
    <bullet> 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)

    <bullet> 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)

    <bullet> Among other things, authorized Federal rent 
control.

              Establishment of the National Housing Agency

               (Executive Order 9070, February 24, 1942)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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)
    <bullet> Increased limits on the amounts and term of 
mortgages financing one-to four-family homes.
    <bullet> 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.
    <bullet> Named the Title VI programs War Housing Insurance.

                   Amendments to National Housing Act

                   (Public Law 78-15, March 23, 1943)

    <bullet> 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)

    <bullet> Increased the aggregate amount of mortgages that 
could be insured under Title VI to $1.6 billion.
    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> Increased the aggregate amount of mortgages that 
could be insured under Title VI from $1.7 billion to $1.8 
billion.
    <bullet> 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)

    <bullet> 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.
    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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.
    <bullet> 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)

    <bullet> 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)

    <bullet> 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.
    <bullet> 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))
    <bullet> 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.
    <bullet> Authorized RFC to make premium payments to 
producers of building materials under prescribed conditions.
    <bullet> Authorized RFC to guarantee markets for new type 
building materials and prefabricated houses.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> Created the Farmers Home Administration in the 
Department of Agriculture.
    <bullet> 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.
    <bullet> Separation of Housing Expediter and National 
Housing Administrator Offices (Executive Order 9820, January 
1,, 1947)
    <bullet> 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)

    <bullet> Repealed the Veterans Emergency Housing Act except 
for certain provisions.
    <bullet> Authorized FHA Section 609 insurance of loans to 
finance the manufacture of prefabricated houses.
    <bullet> Required veterans' preference in the sale and 
rental of new housing.
    <bullet> Authorized the Housing Expediter to require 
permits for the construction of amusement and recreation 
facilities.
    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> Established a permanent Housing and Home Finance 
Agency to succeed the National Housing Agency.
    <bullet> 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.
    <bullet> 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)

    <bullet> Permitted local housing agencies to exceed 
statutory cost limits if they provided the difference between 
the limits and actual construction costs.
    <bullet> 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)

    <bullet> Authorized FHA to insure under Title VI mortgages 
financing the purchase of Federally-owned permanent war 
housing.
    <bullet> 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)

    <bullet> 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)

    <bullet> Extended rent control and veterans' preference in 
new housing to April 1, 1949.
    <bullet> 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)

    <bullet> 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)

    <bullet> 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.
    <bullet> Extended the date by which other temporary war and 
veterans' reuse Lanham Act housing was to be removed to January 
1, 1950.
    <bullet> 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)

    <bullet> 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)

    <bullet> Established the Federal National Mortgage 
Association (FNMA) by statute, using the name of the 
organization previously chartered by FHA.
    <bullet> 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).
    <bullet> 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)

    <bullet> 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)

    <bullet> 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)

    <bullet> 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
    <bullet> Terminated FHA's authority to insure mortgages on 
one- to four-family homes under Title VI.
    <bullet> 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.
    <bullet> 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.
    <bullet> Substituted a per-family unit cost limit for the 
per-room limit applicable to Section 608 rental housing.
    <bullet> ``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.
    <bullet> Made available FHA Section 610 mortgage insurance 
for the purchase of the so-called Greenbelt towns sold by the 
government.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> Made State-regulated redevelopment and other 
housing corporations eligible for FHA rental housing mortgage 
insurance.
    <bullet> 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.
    <bullet> 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.
    <bullet> Authorized RFC to make loans for the production of 
prefabricated houses or prefabricated housing components, or 
for large-scale modernized site construction.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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)
    <bullet> 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)
    <bullet> 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)
    <bullet> 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
    <bullet> 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.
    <bullet> 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
    <bullet> 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.
    <bullet> Authorized advances to finance planning of 
projects, and loans for the acquisition and clearance of land 
and its preparation for reuse.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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
    <bullet> 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
    <bullet> Authorized Federal contributions and loans for not 
to exceed 810,000 additional units of low-rent public housing.
    <bullet> 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
    <bullet> 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
    <bullet> 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
    <bullet> Directed the Director of the Census to take a 
census of housing in 1950 and decennially thereafter.
    <bullet> 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.
    <bullet> 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)

    <bullet> Increased FNMA authorization to purchase FHA Title 
II and Title VI insured mortgages and VA guaranteed mortgages 
(veterans' loans) to $1.5 billion.
    <bullet> 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)

    <bullet> 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.
    <bullet> 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.)
    <bullet> 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)

    <bullet> Increased the Title II mortgage insurance 
authority (homes and rental housing) to $6 billion.
    <bullet> Advances for Reserve of Planned Public Works 
(Public Law 81-352, October 13, 1949)
    <bullet> 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.
    <bullet> 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)

    <bullet> Increased FNMA's authorization for the purchase of 
mortgages, loans and investments from $1.5 billion to $2.5 
billion.
    <bullet> Liberalized FNMA's authority to purchase VA 
housing loans.
    <bullet> 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.
    <bullet> 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)

    <bullet> 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
    <bullet> Increased the limit on the amount of loans that 
could be insured under the FHA Title I programs by $5 million.
    <bullet> Increased the authorization for the Title II 
mortgage insurance programs by $2.25 billion.
    <bullet> Increased the authorization for the Section 608 
rental housing program by $500 million.
    <bullet> 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.)
    <bullet> 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.'')
    <bullet> 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.'')
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> Liberalized FHA requirements for insurance of 
loans for manufactured houses and large-scale site construction 
of housing.
Secondary Market
    <bullet> Made the new Section 8 FHA insured mortgages on 
low-cost homes eligible for purchase by FNMA.
    <bullet> Made the 50 percent limitation on the amount of 
certain mortgages which could be sold to FNMA inapplicable to 
VA-guaranteed farm home mortgages (previously done for VA 
nonfarm home mortgages).
    <bullet> Authorized RFC to provide an additional $250 
million to FNMA for its secondary market operations and 
directed FNMA to exert every effort to sell its present and 
future mortgage holdings in an orderly manner.
    <bullet> Permitted FNMA to purchase mortgages only if 
guaranteed or insured at time of contract.
Disposition of War and Veterans' Housing
    <bullet> Added provisions to the Lanham Act for the 
disposition of all war and veterans' housing under the 
jurisdiction of the Housing and Home Finance Administrator.
    <bullet> Required farm labor camps under the jurisdiction 
of the Secretary of Agriculture to be transferred to the Public 
Housing Administration for management and disposal.
College Housing Loans
    <bullet> Authorized the Housing and Home Finance 
Administrator to make loans to public or private nonprofit 
institutions of higher learning for housing for their students 
and faculties, where the institution showed that it was unable 
to secure the necessary funds from other sources upon terms and 
conditions generally comparable to the terms provided in the 
Act for loans (40 years and going Federal rate of interest plus 
\1/4\ of 1 percent per annum).
    <bullet> Authorized the Housing Administrator to issue 
obligations in an amount up to $300 million outstanding at any 
one time to obtain funds for the loans.
Loan Charges and Fees
    <bullet> Directed FHA to issue regulations limiting the 
charges and fees imposed upon builders, veterans, or purchasers 
in connection with the financing of the construction or sale of 
housing built or sold with the assistance of an FHA-insured or 
loan. Required the mortgagees to certify compliance with the 
regulations. (Repealed in the Housing Act of 1954, P.L. 83-560, 
August 2, 1954.)

                   Amendments to National Housing Act

                    (Public Law 81-498, May 2, 1950)

    <bullet> Amended Title VIII (FHA mortgage insurance for 
military housing) to permit the military services to employ 
architects to draft plans for housing projects, thus obviating 
the necessity of each prospective sponsor preparing separate 
plans and specifications.

                      Agencies Transferred to HHFA

               (Reorganization Plan No. 17, May 24, 1950)

    <bullet> The President transferred from the General 
Services Administration to the Housing and Home Finance Agency 
the administration of:
          a. the program of advances to State and local 
        governments for planning public works, and
          b. the management and disposal of sewers, schools, 
        hospitals, and other community facilities constructed 
        under the Lanham Act (war housing law).

                      Housing and Rent Act of 1950

                   (Public Law 81-574, June 24, 1950)

    <bullet> Extended rent control until December 31, 1950, 
except in localities which declared the continuation was 
required and in such cases to June 30, 1951.
    <bullet> Continued until June 30, 1951, veterans' 
preference in new housing completed after June 30, 1947.

  Amendments to Federal Home Loan Bank Act and National Housing Act, 
                                Title IV

                   (Public Law 81-576, June 27, 1950)

    In order to strengthen the savings and loan industry and 
the provision of housing credit:
    <bullet> Increased the insurance by FSLIC of savings 
accounts from $5,000 to $10,000 for each account.
    <bullet> Required members of Federal Home Loan Banks to 
maintain a minimum liquidity as a condition of membership. 
Effective six months after enactment, no member could make any 
loan at any time when it did not hold cash and obligations of 
the U.S. in such minimum amount as prescribed in regulations to 
be promulgated by the Home Loan Bank Board.
    <bullet> Required the amount of stockholdings by members of 
Federal Home Loan Banks in their respective Banks to equal at 
least 2 percent of the unpaid principal of the members' home 
mortgage loans within one year. Each Federal Home Loan Bank was 
required to retire an amount of its Government-owned stock 
equal to the amount by which the stock held by members exceeded 
the amount required under the existing law. Annually thereafter 
each Federal Home Loan Bank was required to retire Government 
stock equal to 50 percent of the net increase in members' stock 
since the last previous retirement.
    <bullet> To assure Government support of the Federal Home 
Loan Banks in supplying the credit needs of their members in 
any possible future emergency in which the Banks could not 
obtain sufficient funds in the private money market, authorized 
the Secretary of the Treasury to purchase Federal Home Loan 
Bank obligations up to a total of $1 billion.
    <bullet> Directed the Federal Savings and Loan Insurance 
Corporation to retire annually at par an amount of its capital 
stock equal to 50 percent of its net income for each fiscal 
year. (The Corporation's capital stock of $100 million was then 
held by the Secretary of the Treasury.)
    <bullet> Required FSLIC to pay the Secretary of the 
Treasury a return on the average amount of its capital stock 
outstanding during each fiscal year. This return would be in 
lieu of any and all unpaid dividends whether for any past, 
present, or future period. In addition, required FSLIC to pay 
to the Secretary of the Treasury an amount equal to 2 percent 
simple interest per annum on its capital stock from the time of 
organization of FSLIC to June 30, 1950, less any amount 
previously paid by FSLIC as dividends on the capital stock.
    <bullet> Authorized FSLIC to borrow from the U.S. Treasury 
such funds as in the judgment of the Home Loan Bank Board were 
required for insurance purposes, not exceeding in the aggregate 
$750 million outstanding at any one time. Repealed other 
borrowing authority of FSLIC.
    <bullet> Reduced the premium rate paid by insured savings 
and loan associations to the FSLIC from 1/8 of 1 percent of the 
insured accounts and creditor obligations of each insured 
institution of 1/12 of 1 percent.

                    Territorial Enabling Act of 1950

                   (Public Law 81-615, July 18, 1950)

    <bullet> Permitted the governments of Puerto Rico, Alaska, 
Hawaii, and the Virgin Islands to authorize public bodies or 
agencies to undertake slum clearance and urban redevelopment 
activities, and revised the low-rent public housing enabling 
statutes of Puerto Rico, Alaska and Hawaii to assist the 
program.

              Independent Offices Appropriation Act, 1951

                 (Public Law 81-759, September 6, 1950)

    <bullet> Extended the deadline established in the 1950 
Appropriation Act (P.L. 81-266, August 24, 1949) to December 
31, 1950, for transferring reuse housing to States and local 
public bodies. Provided that educational institutions and 
nonprofit organizations were eligible to accept transfer of 
such housing.

         Reorganization Plan No. 22 of 1950, September 7, 1950

    <bullet> Transferred the Federal National Mortgage 
Association from the Reconstruction Finance Corporation to the 
Housing and Home Finance Agency.

         Reorganization Plan No. 23 of 1950, September 7, 1950

    <bullet> Transferred the lending functions of the 
Reconstruction Finance Corporation with respect to the 
production and distribution of prefabricated houses and 
components to the Housing and Home Finance Agency.

                     Defense Production Act of 1950

                 (Pubic Law 81-744, September 8, 1950)

    <bullet> Authorized the President to:
          a. control real estate credit;
          b. use priority and allocation powers;
          c. requisition defense departments to guarantee loans 
        made by financial institutions for production and 
        delivery of defense materials.
          Authorized price and wage stabilization and 
        prohibited the hoarding of scarce materials.

                Executive Order 10161, September 9, 1950

    <bullet> Delegated the function of imposing credit controls 
on Government-aided housing to the Housing and Home Finance 
Administrator.
    <bullet> Delegated to the Federal Reserve Board the 
function of imposing credit controls on new construction the 
financing of which was not aided by Government agencies. 
(Superseded by Executive Order 10480, August 14, 1953)

               Amendments to Housing and Rent Act of 1947

       (Public Laws 82-8 and 82-69, March 23, and June 30, 1951)

    <bullet> Extended the provisions of the Act for rent 
control and veterans' preference in housing to June 30, 1951, 
and then for an additional month from June 30.

                   Termination of HOLC (May 29, 1951)

    <bullet> Announcement was made by the Home Loan Bank Board 
that the Home Owners Loan Corporation had closed its doors 
following delivery of a check for nearly $14 million of surplus 
to the U.S. Treasury.

               Amendments to Housing and Rent Act of 1947

                   (Public Law 82-96, July 31, 1951)

    <bullet> Provided that the President should administer rent 
control through the Economic Stabilization Agency.
    <bullet> Terminated the Office of the Housing Expediter.

              Independent Offices Appropriation Act, 1952

                  (Public Law 82-137, August 31, 1951)

    <bullet> With respect to public housing projects initiated 
after March 1, 1949, prohibited construction starts during 
fiscal 1952 of more than 50,000 units, or construction 
authorization where projects have been rejected by the 
governing body of the locality or by public vote. (The 
provision prohibiting construction in localities rejecting 
public housing was repeated in each fiscal year through 1954.)
    <bullet> Prohibited additional prefabricated housing loans 
by the Housing Administrator unless for the furtherance or 
refinancing of an existing loan determined to be in the best 
interest of the Government.
    <bullet> Rescinded contract authority for Public Works 
Planning Advances. (This program, initiated under P.L. 81-352, 
was terminated October 13, 1951.)

   Defense Housing and Community Facilities and Services Act of 1951

                 (Public Law 82-139, September 1, 1951)

    <bullet> Authorized $50 million for the provision of public 
defense housing in critical defense areas where housing could 
not be provided in any other manner.
    <bullet> Authorized $60 million for loans and grants for 
assistance to or the provision of community facilities and 
services in critical defense areas.
    <bullet> Added Title IX to the National Housing Act to 
provide a new liberal FHA mortgage insurance program for 
certain defense housing.
    <bullet> Increased the total FHA insurance authorization by 
$1.5 billion.
    <bullet> Permitted FHA limits on the maximum amounts of 
mortgages on housing in Alaska to be increased up to one-half 
instead of one-third.
    <bullet> Authorized the Housing Administrator to provide 
sites for necessary development in connection with isolated 
defense installations.
    <bullet> Authorized loans to assure the maintenance of 
industrial capacity for the production of prefabricated houses 
and housing components for defense purposes. (Authority was 
terminated by Housing Amendments of 1953, P.L. 83-94, as of 
June 30, 1954.)
    <bullet> Authorized FNMA until December 31, 1951 to make 
commitments to purchase mortgages on defense housing or housing 
for families who were victims of disaster.
    <bullet> Authorized the President to extend time limits 
beyond which vacancies in Lanham Act war housing were not to be 
filled.

                       Amendments to Housing Acts

                 (Public Law 82-214, October 26, 1951)

    <bullet> Amended the low-rent public housing law, the 
Lanham Act war housing law, and the FHA cooperative mortgage 
insurance law to grant veterans' preferences to veterans of the 
Korean conflict.

                        FNMA Advance Commitments

                 (Public Law 82-243, October 30, 1951)

    <bullet> Authorized FNMA to make advance commitments 
aggregating up to $30 million at any one time to purchase FHA 
cooperative housing mortgages.

                      Investigation of VA and FHA

                    (H. Res. 82-436, February 1952)

    <bullet> Authorized a special Subcommittee on House Banking 
and Currency Committee to be established to investigate the 
guaranteeing and insuring of housing loans by VA and FHA.

                 Additional Advance Commitments by FNMA

                   (Public Law 82-309, April 9, 1952)

    <bullet> Authorized FNMA to make additional advance 
commitments up to $252 million to purchase defense or disaster 
housing mortgages.

               Defense Production Act Amendments of 1952

                   (Public Law 82-429, June 30, 1952)

    <bullet> Extended the authority to control real estate 
credit to June 30, 1953.
    <bullet> Required relaxation of real estate credit control 
whenever for any consecutive three months the annual rate of 
starts of houses fell below 1,200,000 units.
    <bullet> Continued priorities and allocation powers to June 
30, 1953.
    <bullet> Continued rent control until September 30, 1952, 
except that under certain conditions in certain localities rent 
control might be continued to April 30, 1953.

              Substantive Provisions in Appropriation Act

                   (Public Law 82-455, July 5, 1952)

    <bullet> Limited new units which could be authorized for 
construction during FY 1953 to 35,000 and during subsequent 
years to 35,000 unless more were authorized in appropriation 
acts.
    <bullet> Prohibited occupancy by subversives, as designated 
by the Attorney General. (This prohibition was repeated in the 
1954 Appropriation Act, P.L. 83-176, July 31, 1953.)

                          Housing Act of 1952

                   (Public Law 82-531, July 14, 1952)

    <bullet> Authorized an additional $400 million of FHA 
mortgage insurance for defense, military and disaster housing.
    <bullet> Increased the limit on the amount of commitments 
by FNMA which could be outstanding for the purchase of defense 
and disaster housing mortgages by $900 million.
    <bullet> Changed the law governing the purchase of 
mortgages by FNMA to assure adequate purchase authority for 
defense and disaster housing.
    <bullet> Increased the authorization for appropriations for 
defense housing from $50 million to $100 million and for 
defense community facilities and services from $60 million to 
$100 million.
    <bullet> Increased the authorization for appropriations for 
the purchase by the Housing and Home Finance Administrator of 
bonds of the Alaska Housing Authority from $15 million to $20 
million. (The proceeds of the bonds were used for housing loans 
to public agencies or private nonprofit or limited dividend 
housing in Alaska or for housing provided by direct 
construction by the Authority.)
    <bullet> Amended the laws governing the FHA mortgage 
insurance program, the Federal Savings and Loan Insurance 
Corporation, the Federal Home Loan Bank System, the 
prefabricated housing loan program and Federal assistance in 
the provision of sites for isolated defense installations to 
permit these programs to operate in Guam.
    <bullet> Authorized Federal savings and loan associations 
to purchase loans secured by first liens on improved real 
estate which were insured by the FHA without regard to the 50 
mile area restriction previously applicable.
    <bullet> Authorized FHA to insure mortgages made to finance 
the sale of multi-unit housing projects by States or 
municipalities or their public agencies where the housing is 
permanent and was constructed by the State or other public body 
primarily for veterans of World War II.
    <bullet> Amended the Lanham Act to permit the President to 
extend the December 31, 1952, date prescribed for the removal 
of temporary war and veterans housing.
    <bullet> Directed the Secretary of the Treasury to cancel 
notes of the HHFA Administrator to the extent of net losses 
sustained by the HHFA in the liquidation of defaulted loans on 
prefabricated housing.

               Relaxation of Residential Credit Controls

                 (Executive Order 10373, July 14, 1952)

    <bullet> Delegated to the Federal Reserve Board the 
authority to announce (subject to HHFA concurrence) the 
beginning or termination of a period of relaxed residential 
credit controls.

                            Disaster Relief

               (Executive Order 10427, January 16, 1953)

    <bullet> Transferred the directing and coordinating 
functions delegated to the HHFA Administrator under Executive 
Order 10221 (supra) to the Office of Emergency Planning.

                   Amendments to National Housing Act

                   (Public Law 83-5, March 10, 1953)

    <bullet> Increased the FHA Title I home moderation and 
repair loan insurance authorization by $500 million.
    <bullet> Made provision for repayment to the Treasury 
before June 30, 1954, of the $8.3 million Government investment 
in the FHA Title I insurance fund.

                    Housing Credit Controls Removed

                   (Federal Register, April 18, 1953)

    <bullet> Remaining controls on housing were removed by the 
Housing Administrator.

                      Housing and Rent Act of 1953

                   (Public Law 83-23, April 30, 1953)

    <bullet> Allowed Federal rent controls to expire July 31, 
1953, except that the expiration date was extended to April 30, 
1954, in critical defense housing areas.

                         Disposition Functions

                 (Executive Order 10462, June 19, 1953)

    <bullet> Delegated functions of the President relating to 
the timing of the disposition of Lanham Act Housing (World War 
II and Veterans' Emergency Housing, Section 611) to the HHFA 
Administrator.

                       Housing Amendments of 1953

                   (Public Law 83-94, June 30, 1953)

FHA Mortgage Insurance Authorization
    <bullet> Increased the FHA mortgage insurance authorization 
by $1.5 billion.
    <bullet> Allowed the President to make allocations from 
that amount to the various FHA mortgage insurance programs as 
needed.
FHA Low-Cost Homes
    <bullet> Authorized the President to allow more liberal 
loan-to-value ratios and longer maturities for FHA-insured 
mortgages under the Section 203 program on new owner-occupant 
homes.
    <bullet> Permitted increases in mortgage amounts of FHA 
Section 8 low-cost homes in outlying and suburban areas.
Section 207 Rental Housing
    <bullet> Increased the maximum mortgage amounts of 
mortgages insured by FHA under its Section 207 rental housing 
program.
Higher FHA Mortgage Maximums in Hawaii
    <bullet> Authorized the Federal Housing Commissioner to 
permit the maximum amounts of mortgages financing homes in 
Hawaii to be increased up to, but not exceeding 50 percent, if 
he finds that, by reason of higher costs prevailing in the 
Territory, it is not feasible to construct sound and livable 
dwellings.
Increases in FHA Statutory Maximums on Interest Rates
    <bullet> Increased the statutory maximums on FHA interest 
rates on cooperative housing mortgages from 4 percent to 4 \1/
2\ percent (5 percent when covering individual housing in a 
cooperative project), and on Sections 803 and 908 military and 
defense housing mortgages from 4 percent to 4 \1/2\ percent, 
consistent with other FHA programs.
FHA Military and Defense Housing Authorization
    <bullet> Added provisions to the Title VIII military 
housing mortgage insurance law designed to assure that the 
mortgagor-sponsors or builders of military rental housing have 
an actual investment in the housing over and above funds 
borrowed on the mortgage security, to prevent ``mortgaging 
out.''
    <bullet> Continued this program and Title IX (for defense 
housing programmed as needed for military or defense workers in 
critical defense housing) until June 30, 1954.
FHA Insurance Funds
    <bullet> Directed the FHA to repay the Treasury about $57 
million (exclusive of interest) which had been furnished by the 
Treasury for the establishment of some of the FHA insurance 
funds. The repayments were to be made as rapidly as possible 
without impairing the solvency of the insurance funds involved.
    <bullet> Authorized the Federal Housing Commissioner to 
transfer moneys among the various insurance funds (except the 
Title I repair and improvement loan insurance program). (This 
was to expedite repayment to the Treasury and to assure 
available funds for payments of debentures.)
    <bullet> Made other changes in the management of the Title 
II mortgage insurance funds.
Regulation of Fees and Charges Relating to VA and FHA Mortgages
    <bullet> Added a provision to Section 504 of the Housing 
Act of 1950 (P.L. 81-475), which required FHA and VA to limit 
charges and fees imposed upon the mortgagors. The new provision 
was to the effect that the regulations limiting charges and 
fees should not be construed to include any loss suffered by an 
originating lender in the bona fida sale or pledge of or an 
agreement to sell the mortgage. (All of Section 504 was 
repealed by Section 813 of the Housing Act of 1954, P.L. 83-
560, August 2, 1954.)
FNMA
    <bullet> Extended FNMA's authority to make advance 
commitments to purchase military, defense and disaster housing 
mortgages to July 1, 1954.
    <bullet> Made additional FHA Section 213 cooperative 
housing mortgages eligible for advance commitments to purchase 
by FNMA.
    <bullet> Exempted them from the $10,000 per family dwelling 
unit limit which applied to other mortgages purchased by FNMA.
    <bullet> Authorized FNMA to enter into contracts, in 
connection with the sale of its mortgages, to purchase 
mortgages in amounts not exceeding the amounts being sold. 
(This was designed to encourage the purchase of mortgages from 
FNMA by lenders.) Authority was to expire July 1, 1954, and the 
amount of the contracts was limited to a total of $500 million.
Extension of Defense Housing
    <bullet> Extended for one year the authority in the Defense 
Housing and Community Facilities and Services Act of 1951 to 
provide Government-constructed temporary defense housing in 
critical defense areas to June 30, 1954.
    <bullet> The authority for permanent housing was not 
extended.
Termination of Prefabricated Housing Loans
    <bullet> After June 30, 1954, no prefabricated housing loan 
could be made by the Housing and Home Finance Administrator 
except pursuant to commitments to make loans issued on or 
before June 30, 1953, or where an existing loan held by the 
Administrator on June 30, 1953 was being refinanced.
Extension of Aid to Defense Community Facilities and Services
    <bullet> Continued the Federal aid for community services 
and facilities in critical defense housing areas to June 30, 
1954.
Capital Grants for Slum Clearance and Urban Redevelopment
    <bullet> Authorized $35 million in contracts for capital 
grants for slum clearance and urban redevelopment without 
regard to the statutory provision that not more than 10 percent 
of the Federal grants for this purpose could be expended in any 
one State.
Interest Rate on Federal Loans
    <bullet> Provided a new formula for determining the 
interest rates on Federal loans for slum clearance and urban 
redevelopment, college housing and low-rent public housing.

               Defense Production Act Amendments of 1953

                   (Public Law 83-95, June 30, 1953)

    <bullet> Extended for two years (until June 30, 1955) the 
priorities and allocations powers.
    <bullet> Allowed authority for real estate credit controls 
to expire as of June 30, 1953.

                          RFC Liquidation Act

                   (Public Law 83-163, July 30, 1953)

    <bullet> Provided for liquidation of the RFC.
    <bullet> Authorized the President up until June 30, 1955, 
through such agency as he might designate, to make loans to 
State and local agencies, and public corporations, boards and 
commissions to aid in financing public projects.

            Independent Offices Appropriation Act of FY 1954

                   (Public Law 83-176, July 31, 1953)

Public Housing
    <bullet> Prohibited authorization of the commencement of 
construction during FY 1954 of more than 20,000 low-rent public 
housing units, or entering into any new agreements with respect 
to loans or annual contributions for any additional dwelling 
units unless thereafter authorized by Congress.
    <bullet> Provided, in addition to other prohibitions and 
limitations (not affecting the number of new units) contained 
in the 1950, 1952 and 1953 appropriation acts and continued 
through 1954, that locally unwanted public housing under 
construction could be stopped by the locality, if expenses 
already incurred were repaid to the Government. (None of these 
provisions were continued after FY 1954.)
    <bullet> Directed the Commissioner of Public Housing to 
make every effort to refund all local bonds on low-rent housing 
converted to war housing, held by PHA under the U.S. Housing 
Act of 1937, as amended. (This proviso was applicable to FY 
1954, and was repeated in the FY 1955 appropriation act, but 
dropped thereafter.)
Urban Renewal
    <bullet> Directed the Administrator, before approving any 
local program, to give consideration to the efforts of the 
locality to enforce local codes and regulations relating to 
adequate standards of health, sanitation and safety, and to the 
feasibility of achieving slum clearance objectives through 
rehabilitation of existing dwelling units and areas.
    <bullet> Directed that authority under Title I of the 
National Housing Act (home improvement loans) be used to the 
utmost in connection with slum rehabilitation needs. (This 
proviso was continued in the FY 1955 appropriation act (P.L. 
83-428, June 24, 1954), but dropped thereafter.)
Research
    <bullet> Closed out the Housing Research Program authorized 
by the Housing Act of 1948 (P.L. 80-901, August 10, 1948) by 
the following proviso: ``* * * that not to exceed $125,000 
shall be available for liquidation of the Housing Research 
Program not later than April 30, 1954.''

               Executive Order 10486, September 12, 1953

    <bullet> Established the Advisory Committee on Government 
Housing Policies and Programs.

  Report of the President's Advisory Committee on Government Housing 
                         Policies and Programs

                          (December 14, 1953)

Recommended Actions
    <bullet> Federal assistance to communities to help them 
attack the problem of the spread of slums.
    <bullet> Long-term FHA mortgage insurance for designated 
older areas to assist building and rehabilitating housing for 
sale or rent.
    <bullet> Establishment of an advisory service in HHFA to 
help cities keep posted on new techniques for urban renewal.
    <bullet> Formation outside of Government of a 
representative national organization to help promote renewal of 
towns and cities.
    <bullet> Making one-third of Federal grants available to 
communities with outstanding performance records in attacking 
urban decay.
    <bullet> Adapting FHA-insured mortgage lending on new and 
existing homes to the special housing needs of low-income 
families.
    <bullet> Continuation of low-rent public housing program.
    <bullet> Preference in admission to low-rent public housing 
be given to low-income families displaced by slum clearance, 
rehabilitation, or other public works, and mortgage insurance 
for displaced families.
    <bullet> Vigorous activities by public and private 
officials to provide housing for minority families.
    <bullet> Establishment of privately financed secondary 
market facility to level out peaks and valleys in flow of 
mortgage funds, particularly in the smaller communities and 
areas of chronically short investment capital.
    <bullet> Grouping of housing activities within a single 
agency, headed by an administrator with supervisory authority.

           President's Special Message to Congress on Housing

               (House Document 83-306, January 25, 1954)

Recommendations
    <bullet> Broadening existing programs to assist prevention 
of blight and rehabilitation of salvable areas.
    <bullet> A new program of FHA mortgage insurance for 
housing for low-income families displaced by slum clearance and 
similar activities.
    <bullet> Additional FHA loan insurance assistance for 
existing housing and rehabilitation of housing.
    <bullet> Broader authority to the President to adjust from 
time to time, in the light of economic conditions, permissible 
terms on Government guaranteed and insured mortgages.
    <bullet> Reorganization of FNMA with purchase of initial 
stock by the Federal Government, but with private capital funds 
to be supplied by the users of FNMA.

               Independent Office Appropriation Act, 1955

                   (Public Law 83-428, June 24, 1954)

Included Substantive Legislation
    <bullet> Ended authority to purchase additional notes or 
obligations after June 24, 1954, from funds appropriated 
pursuant to the Alaska Housing Act (P.L. 81-52, April 23, 1949) 
as amended, except for the furtherance or refinancing of an 
existing loan.
    <bullet> Established the Revolving Fund, Liquidating 
Programs, to include and account for all assets and liabilities 
of:
          (1) Defense Community Facilities, Title II of Lanham 
        Act (P.L. 76-849, October 10, 1940) or Title III of 
        Defense Housing and Community Facilities and Services 
        Act of 1951 (P.L. 82-139, September 1, 1951);
          (2) Loans and advances pursuant to Title V (First 
        Advance Planning Program) of the War Mobilization and 
        Reconversion Act of 1944 (P.L. 78-458, October 13, 
        1944) or the Act of October 13, 1949 (Second Advance 
        Planning Program, P.L. 81-352);
          (3) Functions transferred under Reorganization Plan 
        23 of 1950 or authorized under Sections 102, 102a, b, 
        and c of the Housing Act of 1948 (P.L. 80-901, August 
        10, 1948) as amended (Prefabricated Housing Loans);
          (4) Notes or other obligations pursuant to the Alaska 
        Housing Act (P.L. 81-52, April 23, 1949);
          (5) Subsistence Homesteads and Greentowns (June 29, 
        1936 and May 19, 1949);
          (6) Public War Housing under Title I of Lanham Act 
        and Defense Housing under Title III of Defense Housing 
        and Community Facilities and Services Act of 1951 
        (Public Law references in (1) above);
          (7) Veterans' Reuse Housing under Title V of the 
        Lanham Act (Public Law reference in (1) above). Amounts 
        determined to be in excess of requirements were to be 
        returned to the Treasury at least annually.
    <bullet> Provided funds for an agency-wide Compliance staff 
in the Office of the Administrator; and also provided, ``* * * 
and the Administrator's general supervision and coordination 
responsibilities under Reorganization Plan 3 of 1947 shall 
hereafter carry full authority to assign and reassign 
functions, to reorganize and to make whatever changes, 
including the reallocation and transfer of administrative 
expense funds and authority where applicable, necessary to 
promote economy, efficiency and fidelity in the operations of 
HHFA.''

               Amendments to Farmers Home Administration

                   (Public Law 83-438, June 29, 1954)

    <bullet> Increased the loan authority for farm housing and 
buildings by $8.5 million on and after July 1, 1954.

            Reorganization Plan No. 2 of 1954, July 1, 1954

    <bullet> Assigned to different agencies the liquidation of 
certain affairs of the Reconstruction Finance Corporation, 
including assignments to the Federal National Mortgage 
Association of the functions relating to mortgages made or 
acquired under the authority of the RFC Mortgage Company or the 
Defense Homes Corporation.

                          Housing Act of 1954

                  (Public Law 83-560, August 2, 1954)

Liberalization of FHA Regular Sales Housing Program
    <bullet> Amended the FHA Section 203 regular sales housing 
mortgage insurance program to simplify the statutory limits on 
the amounts of mortgages which could be insured and to increase 
the limits on the amounts and terms of the mortgages. Statutory 
distinctions relating to existing housing were simplified and 
liberalized.

New Program for Low-Cost Homes in Disaster Areas (Section 203h)
    <bullet> Discontinued the Section 8 insurance program for 
low-cost homes and disaster housing.
    <bullet> Authorized a new program of FHA mortgage insurance 
to take the place of the previous Section 8 program, for 
single-family dwellings in suburban and outlying areas where it 
was found the project is an acceptable risk giving 
consideration to the need for low- and moderate- income 
housing. Mortgages covering construction of farm homes could 
also be insured under the new program where the farm home was 
on a plot of land five or more acres in size adjacent to a 
public highway. The total outstanding insurance on farm 
mortgages could not exceed $100 million. The amount of a 
mortgage was limited to $6,650 and 95 percent of value if the 
mortgagor was the owner-occupant of the property, or $5,950 and 
85 percent of value if the mortgagor was the builder.

Regular FHA Rental Housing Program
    <bullet> Amended Section 207 of the National Housing Act, 
which authorized the regular FHA mortgage insurance program for 
rental housing, to make it clear it applied to existing 
multifamily structures locat