Box 7, Folder 11, Document 54

Box 7, Folder 11, Document 54

SUMMARY OF HOUSING AND URBAN DEVELOPMENT ACT OF. 1968

An expanded supply of housing for low-income and moderate-
income families is the key objective of the Housing and Urban
Development Act of 1968.

The Act authorizes a 3-year program aimed at producing an
estimated 1.5 million new and rehabilitated housing units, with
highest priority and emphasis placed on meeting the needs of
families for which the national goal of "a decent home and a
suitable living environment for every American family" has not
become a reality.

The Act's new programs include:

* Homeownership assistance through subsidized interest
rates which could provide housing for 500,000 low and
moderate-income families.

* Rental and cooperative housing, also through subsidized
interest rates, which could make 450,000 dwellings available
for low and moderate-income families.

* Credit assistance and family counseling services to help
families with special problems of debt and budget management
to attain homeownership.

* Mortgage insurance for homes qualifying as "acceptable
risks" in older, declining urban neighborhoods.

* Aid to nonprofit sponsors of low and moderate-income
housing, including information, advice, and technical

assistance; and interest-free loans to cover up to 80

percent of preconstruction costs.

* National Homeownership Foundation to carry out a con-
_tinuing program of encouraging private and public organi-
zations to provide increased homeownership and housing
opportunities for lower income families. The Foundation
will encourage investment in and sponsorship of housing
development, provide technical assistance and advisory
services to public and private organizations, and make
loans and grants to cover expenses of eogat gebtous engaged
in carrying out housing programs.

* National Housing Partnerships to encourage maximum
participation by private investors in programs and projects
to provide low and moderate-income housing. This will join
new capital sources with business and organization skills
in the construction and operation of housing for the low-
income market; and will bring large-scale capital into the
field on a private basis.
-2-

* Federal reinsurance against abnormal property insurance
losses from riots and other civil commotion; and a
National Flood Insurance program to make insurance avail-
able for residential and small business properties in
flooded areas.

kK ek KK eK eK eK RK RK RK KK

Existing programs are also expanded and improved by the Act.
It continues authorizations for public housing to provide 375,000
new units in three years and adds authority to provide social
services for tenants in public housing; rent supplements, which
would support an additional 145,000 dwelling units; model cities,
urban renewal, open space land, and water and sewer facilities.
It expands urban planning grants and provides grants for planning
in non-metropolitan areas. It modifies the college housing pro-
gram. It includes provisions for rural housing.

A new financing method for urban renewal permits neighborhood
redevelopment which permits improvement activity to begin while
planning is in progress. The New Conmunities program is expanded;
FNMA's secondary market operations are transferred to a new
privately-owned corporation; mortgage insurance is provided for
nonprofit hospitals; rehabilitation loans and grants programs
are liberalized and expanded.