A Brief History of HUD
The U.S. Department of Housing and Urban Development was created on September 9, 1965, to allow the federal government to tackle urban problems including substandard and deteriorating housing in a coordinated manner.
As part of an initiative begun under President John F. Kennedy that was completed by President Lyndon B. Johnson, HUD consolidated five existing independent federal housing and community development agencies.
Those five agencies were:
- The Federal Housing Administration:: Launched in 1934 to make homeownership possible for first time homebuyers;
- The Public Housing Administration: Established in 1937 to oversee the nation’s public housing;
- The Federal National Mortgage Association (Fannie Mae): Established in 1934 to create a secondary market in home mortgages;
- The Urban Renewal Administration: Created in 1949 to direct slum clearance projects in almost 800 communities; and
- The Community Facilities Administration: Established to oversee a variety of community development programs, such as city planning grants, student and employee housing aid for hospitals and colleges, and mass transit grants.
Millions of Americans have seen their lives improved by HUD’s achievements. Many families have become homeowners thanks to mortgages insured by HUD and a substantial number of low-income families have been delivered from substandard living conditions thanks to the public and assisted rental housing programs. Many others have found justice under HUD’s commitment to fair housing and anti-discrimination tenets.
The results are impressive:
- Homeownership: Since 1934, the Federal Housing Administration and HUD have insured over 44 million home mortgages and approximately 50,000 multifamily project mortgages.
- Public and Assisted Housing: In the last 20 years alone, HUD has provided housing assistance to more than 35 million individuals through our Public Housing, Housing Choice Voucher (Section 8), Project Based Rental Assistance, Section 202 (Supportive Housing for the Elderly), and Section 811 (Supportive Housing for Persons with Disabilities) programs.
- Affordable Housing Creation: HUD’s HOME Investment Partnerships Program, which produces affordable housing for low-income families, has assisted more than 600 communities commit to the production of near 1,200,000 affordable housing units, including almost 500,000 units for first time homebuyers. In addition, HOME has assisted nearly 300,000 tenants in obtaining direct rental assistance.
- Native American Housing: HUD has funded nearly 87,000 housing units on Indian reservations and tribal areas. Housing produced through HUD programs now provides shelter for a quarter of Native Americans living on reservations and tribal areas.
- Community Development: Since its inception in 1974, HUD’s Community Development Block Grant (CDBG) Program has awarded more than $144 billion to state and local governments to target their own community development priorities. This funding has gone toward the rehabilitation of affordable housing, the construction of public facilities, and the creation of job growth and business opportunities.
- Homelessness Initiatives: Since the passage of the Stewart B. McKinney Homeless Assistance Act in 1987, HUD has awarded more than $14 billion to thousands of local housing and service programs around the U.S. to combat homelessness.