After World War II the VA home loan program guaranteed millions of single-family and mobile home loans, causing a boom of construction in suburban areas. Many urban families fled to the suburbs, leaving urban areas in a steep decline. President Truman and Congress responded to this urban decline with the Housing Act of 1949. This act was a landmark, sweeping expansion of the federal role in mortgage insurance and the construction of public housing. It provided federal financing for slum clearance programs and urban renewal projects, increased the authorization of the FHA, extended federal money to more than 800,000 housing units. For example, in 1949 it provided funding for a Cabrini Green extension in Chicago with a new high rise of 1921 units.
President Truman addressed congress in 1950 with these words:
"One of the most important factors in our continued growth is the construction of more good, up-to-date housing. In a country such as ours there is no reason why decent homes should not be within the reach of all. With the help of various Government programs we have made great progress in the last few years in increasing the number of homes.
Despite this increase, there is still an acute shortage of housing for the lower and middle-income groups, especially in large metropolitan areas. We have laid the groundwork for relieving the plight of lower-income families in the Housing Act of 1949. To aid the middle-income families, I recommend that the Congress enact new legislation authorizing a vigorous program to help cooperatives and other nonprofit groups build housing which these families can afford. "
But due to poor planning, and perceived discrimination against minorities, urban renewal was often equated by critics with 'Negro removal'. Shown in the picture is one of the many urban slums that existed across America in 1949. This one was within blocks of the White house which at the time was going through a major renovation. The act has also been under criticism for using it's federal subsidies and the powers of eminent domain to clear out the slums. By the time the program ended in 1974, 2,100 distinct urban renewal projects had been completed using grants that totaled about $53 billion (in 2009 dollars).
http://www.presidency.ucsb.edu/ws/index.php?pid=13567
http://freakonomics.com/2011/09/30/the-controversial-legacy-of-slum-clearance/
http://i.imgur.com/dhcth11.jpg
http://twistedsifter.files.wordpress.com/2013/02/white-house-gutted-truman-restoration-1949-1951-1.jpg
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