jun 27, 1934 - National Housing Act of 1934 & FHA

Description:

Intended to improve housing standards and conditions, facilitate sound home financing, and stabilize mortgage market
- Down payment from 30 to 10%
- Life of loan to 25-30 years
- Lowered interest rates through government backing of loans that reduced lender's risk
- Minimum standards for new home construction: setback, lot size, building width, design schemes, racial covenants

This and other federal housing policies helped to ensure construction of new, racially and socially segregated, single use residential neighborhoods.
Federal Housing Act established property / neighborhood value assessment protocols that down rated minority neighborhoods, older construction, racially diverse neighborhoods, and mixed use neighborhoods.
As a result, major of funds went from established urban centers to developing new suburban areas - 91% in St Louis
"Redlining"
As a result American communities became more dependent on cars, and the rampant suburban development also led to environmental implications

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