New Deal Alphabet Soup
Federal Housing Administration
The Federal Housing Administration targeted those who lost their homes or those who could not afford a home during the Great Depression. Regulating interest rates and mortgage terms was the plan in order to help the banking crisis of the 1930s. The FHA was an extremely successful organization since it helps clean up the slums and provided loans to help people buy houses. It also helped new houses get built so more people could have homes.
The Federal Housing Administration was passed in 1934. The only opposition was redlining, the practice of refusing to back mortgage in neighborhoods based on racial and ethnic composition. The FHA was apart of the 1st New Deal. The FHA still exists today trying to improve housing standards and conditions. The Federal Housing Administration did provide relief because it allowed more people to buy homes.