Federal Housing Administration
- Under President Franklin Delano Roosevelt, the Federal Housing Administration was formed on June 27, 1934, as a part of the President's "New Deal." As a part of the National Housing Act, the FHA was implemented as a recovery, as well as a relief program. Under the leadership of James A. Moffett, the FHA was formed.
- The purpose of the FHA was to breathe life back into the depleting housing market after the great depression. The FHA did this by lending out small loans for the building of homes; both improving living spaces and the construction of new ones.
- The FHA reached out to many who were in need. This included the construction of nursing homes, houses for military workers, the elderly, and others. The FHA also worked to improve the living conditions of many as well. Those who lived in rural, outdated, or were in the wake of a natural disaster were aided as well by the FHA. In total, the FHA helped all who were in need of help in buying a home.
- Although the FHA was a godsend to many who were less fortunate and unable to afford a home on their own, there were many complaints during their first twenty five years of business. Many claimed that the FHA preferred white Americans who were looking to buy a home in the suburbs, rather than the more populated confinements such as urban or downtown areas. It is the speculation of many that the FHA has been the downfall of these areas. Also, the FHA was accused of redlining, or refusing to offer their services to people based on their race or ethnicity.
- Ultimately, the FHA was and has been very successful. It has insured over 35 million homes since 1934, and was one of the only "alphabetical agencies" to outlive the Presidency of FDR.
- In my opinion, the FHA is liberal based, for it uses a lot of government based participation to bring about more equal opportunity for all.
- In 1965, the FHA was integrated into the Department of Housing and Urban Development (HUD), through the Department of Housing and Urban Development Act on September 9, 1965.