The Urban Development Act of 1970 is a pivotal piece of legislation facilitated by the U.S. Department of Housing and Urban Development (HUD). This act not only introduced significant initiatives like the Federal Experimental Housing Allowance Program and the Community Development Corporation but also encapsulated a vision for balanced and inclusive urban growth.
Key Objectives of the Act
- Establish a National Growth Policy: Aimed at fostering a structured growth approach across the United States.
- Promote Sensible Development: Supported development within states, metropolitan regions, counties, cities, and towns, with a focus on nurturing new communities and revitalizing inner-city areas.
- Amend Housing and Urban Laws: Facilitated necessary amendments to existing housing and urban development laws to support evolving community needs.
Highlights of the Urban Development Act
Expanded Federal Assistance
The Urban Development Act, also known as the Housing and Urban Development Act of 1970, immensely expanded federal support for housing subsidy programs, greatly benefiting low-income tenants.
Establishment of the Community Development Corporation
This act led to the creation of the Community Development Corporation, a non-profit organization committed to revitalizing impoverished communities through direct investment and business development initiatives.
Federal Experimental Housing Allowance Program
Initiated in 1973 and concluded in 1979, this program investigated the impact of housing subsidies on low-income families by giving them vouchers for market-rate housing. Although it revealed certain limitations in achieving HUD’s broader goals, it paved the way for future policy adjustments.
In-Depth Look at the Act\u2019s Innovations
The Role of HUD in Initiatives
Established as a Cabinet-level agency with the enactment of the Department of Housing and Urban Development Act of 1965, HUD received authorization to provide increased funding for housing subsidies and rent supplement programs targeted at low and moderate-income households.
Funding Sources:
Funding derived from local, state, and federal governments, along with private donations and loans from various financial institutions.
Community Development Corporation Focus:
Engaged in developing affordable housing, these non-profit organizations also work on economic development, street beautification, and neighborhood planning in under-served neighborhoods.
Lessons from the Federal Experimental Housing Allowance Program
This experimental program involved over 25,000 families and saw approximately $170 million in subsidies. Operated across 12 metropolitan regions, its main objective was evaluating market-based housing solutions for low-income occupants against the construction of new public housing.
Income Disparities in Housing Assistance
An analysis highlighted a skewed distribution of federal housing expenditure towards wealthier households through tax benefits like the mortgage interest deduction. Conversely, a smaller proportion of low-income families benefit from housing subsidies.
Addressing Housing Discrimination
Discrimination in mortgage lending based on race, religion, sex, marital status, public assistance, national origin, disability, or age is unlawful. Victims of such practices have reparative measures available through reports to relevant authorities, such as the Consumer Financial Protection Bureau or HUD.
Related Terms: Department of Housing and Urban Development, Affordable Housing, Housing Subsidies, Community Development, Section 8 Housing.
