National Housing Act

The National Housing Act of 1934 (Public Law No 479-73D) created the Federal Housing Administration, allowed for Federal mortgage insurance, and set up measures to regulation housing conditions, including standards of construction. The purpose of the legislation reads "To encourage improvement in housing standards and conditions, to provide a system of mutual mortgage insurance, and for other purposes." The other purposes were to spur home construction as a means of creating jobs that did not have to be funded by the Federal Government.

The National Housing Act allowed mortgages to be paid at steady monthly rates over extended periods of time. Prior to the passage of this legislation, mortgages were short term loans, spread out over three to five years.

Impact of the National Housing Act on the Build Environment
The increased security of home mortgages created an increase in people's ability to purchase homes, creating increased construction and the development of the suburbs. Eventually the growth of the suburbs turned into suburban sprawl. Ths piece of legislation also was the beginning of the Federal Housing Administrations role in housing in American, and would eventually lead to Urban Renewal