Transcript HOUSING POLICY

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Presentation for
the Introduction to
Housing textbook
HOUSING POLICY
Occurs at Three Levels
Local level
 set
standards for housing
 zoning regulations
 building codes
 growth plans
 can access & use federal monies
State level
 legislation
to use available federal
monies for state assistance housing
programs
 state certification agencies
 state housing finance agencies
Colorado Housing Finance Agency
(CHFA)
Federal level
 influence
the availability & cost of
housing
 most consistent theme:
To advance single-family home
ownership as the American
dream
How?
 amortized,
long-term mortgages
 tax deductions on interest &
property taxes
 capital gains tax exclusions
More important than housing
production or providing lowincome housing
How Should Government be Involved?
 Helping
moderate income families
buy homes?
 Helping low-income families to live in
decent rental homes?
 Helping the homeless?
 Supporting sustainable housing?
 Supporting universal design?
OVERVIEW OF POLICY
1930s—Response to the Great
Depression
 First large-scale federal government
involvement in housing
 Built a new mortgage finance system:
Federal Home Loan Bank Board
Federal Savings and Loan
Insurance Corporation
Federal Housing Administration
(FHA)
 These
mortgages were:
government-insured
long-term
low downpayment
 Created a secondary mortgage
market
Federal National Mortgage
Association (Fannie Mae)
 Public Housing
1940s—World War II
 Veterans
Administration Program
(VA)—
critical housing shortage after war
 Housing Act of 1949:
“a decent home and a suitable
living environment for every
American family” (National Policy)
 Farmers Home Administration
(FmHA)—U.S. Department of
Agriculture (USDA)
1950s—Renewal of the Cities
 Programs
curtailed due to budget
shortfalls
 Intense urban renewal activity that
fostered unassisted construction
 Slum clearance (destroyed more
housing than produced)
 Legislation tried to perfect existing
policy
1960s—Evolution of Subsidies
Urban unrest
 Rent Supplement (family pays 25% of
income towards rent)
 Section 23
 U.S. Department of Housing and Urban
Development (HUD)
 Section 235 that subsidizes interest rates
 Government National Mortgage
Association (Ginne Mae)
 Focused on specific programs

1970s—Period of Reassessment
 Moratorium
under Nixon
equity impact efficiency
 Community Development Block
Grant (CDBG) program—shifted
focus to general programs
determined at the local level
 Section 8—certificate of family
participation
 Urban Homesteading
1980s—Trying to Take the
H out of HUD
 Under
Reagan there were drastic
cuts in housing funding
 Focus shifted away from federal
government to private businesses
& even more to local governments
 McKinney Act (homeless)—1987
 Joint Venture for Affordable Housing
 Fair Housing Amendments—1988
Fair Housing Law
1990s—Homelessness & Affordability
 National
Affordable Housing Act
 Expansion of McKinney Act:
Persons at risk
Shelters
Supportive services
 HOME & HOPE programs to help with
homeownership
 HUD given a higher profile
2000+: Expanding Homeownership
Rural Housing and Development Program
 Expansion of CDBG
 HOME Investment Partnerships—housing
needs of lower-income persons
 Self Help Homeownership Opportunity
Program (SHOP)
 Special Needs Assistance Programs
 Native American Housing Block Grants
 Partnership for Advancing Technology in
Housing (PATH)

Goals
 Reduce
housing discrimination
 Reduce homelessness
 Create more affordable housing units
 Increase CDBG funding
 Increase homeownership