90 Years of the Federal Housing Administration Enhancing Homeownership



On June 27, 2024, the Federal Housing Administration (FHA) proudly marked its 90-year legacy since its establishment under the National Housing Act of 1934, an initiative signed into law by President Franklin Delano Roosevelt. 

This significant anniversary was commemorated with a special event at the HUD headquarters in Washington D.C., featuring insightful opening remarks by HUD Acting Secretary Adrianne Todman and Federal Housing Commissioner Julia Gordon. The celebration was attended by a notable audience, including former FHA Commissioners and advocates from the housing finance sector.

Reflections on FHA's Impact

Acting Secretary Todman reflected on the FHA's pivotal role in shaping homeownership opportunities for millions, stating, “The Federal Housing Administration has provided a path to homeownership for millions of people, and changed their families lives for generations to come,” Emphasizing inclusivity, Todman noted, “Under the Biden-Harris Administration, we are ensuring that FHA is accessible to everyone, particularly first-time homebuyers and people we have provided with fair access to homeownership in the past.”

Commissioner Julia Gordon used the occasion to highlight the dual nature of FHA’s 90-year journey—its achievements and the hurdles it has confronted. She underscored the invaluable support it has provided to the nation's first-time homebuyers, borrowers from minority backgrounds, and underserved communities. 

Gordon remarked, “As one of the first public-private partnerships, FHA has a rich history of supporting the nation’s housing system in all market conditions and making homeownership possible for those not adequately served by the private market.”

FHA's Contributions to Homeownership

With the claim of being the world’s largest mortgage insurer, FHA proudly serves a significant portion of first-time homebuyers, low- and moderate-income households, and people of color. Thanks to FHA’s accessible mortgage financing programs, over 91 million low- and moderate-income Americans and first-time home buyers have been able to invest in homes, thereby fostering generational wealth through homeownership. 

Presently, over seven million American families reside in homes financed by FHA-insured mortgages. On the commercial front, FHA ensures more than 11,000 multifamily and over 3,700 healthcare facility mortgages, reinforcing both housing and healthcare access across urban and rural settings.

Current Administrative Efforts and Ongoing Commitment to Diversity and Equity

The current efforts under the Biden-Harris Administration addressed homeownership barriers, enhanced affordable rental options, and promoted quality healthcare facilities. Some of these efforts include serving over 3.4 million homebuyers and renters since 2021, slashing the annual mortgage insurance premium by 35% in March 2023—resulting in significant savings for homeowners, aiding senior homeowners through the Home Equity Conversion Mortgage program, and improving access to homeownership for various demographics including those with student loan debt.

Moreover, to combat housing discrimination and support community development, FHA has participated in initiatives to eradicate appraisal bias and introduced measures to help families affected by COVID-19 retain their homes. The administration has also encouraged the financing of manufactured home communities and enhanced programs to support energy-efficient housing developments.

Looking Ahead: FHA's Role in Fostering Inclusive Housing Markets

We all must reflect on vital historical milestones of the FHA, from its foundation in 1934 through significant legislative and policy changes that expanded its role and reach to contemporary efforts in addressing the needs of diverse American communities. This journey underscores the FHA's integral role in fostering a robust, inclusive housing market, committed to building strong, sustainable communities and ensuring quality affordable homes for all.

For more updates and information about HUD and FHA programs, enthusiasts are encouraged to visit www.hud.gov or connect through social media channels.

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