United States Housing Authority
Encyclopedia
The United States Housing Authority, or USHA, was an agency created during 1937 as part of the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...

.

It was designed to lend money to the states or communities for low-cost construction. Units for about 650,000 low-income people but mostly homeless were started. Progressives early in the 20th century had argued that improving the physical environment of poorer citizens would improve their quality of life and chances for success (and cause better social behavior). As governor of New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

, Al Smith
Al Smith
Alfred Emanuel Smith. , known in private and public life as Al Smith, was an American statesman who was elected the 42nd Governor of New York three times, and was the Democratic U.S. presidential candidate in 1928...

 began public housing programs for low income employed workers. New York Senator Robert F. Wagner
Robert F. Wagner
Robert Ferdinand Wagner I was an American politician. He was a Democratic U.S. Senator from New York from 1927 to 1949.-Origin and early life:...

 carried those beliefs into the 1930s, when he was a power in the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

. From 1933-37, the Public Works Administration
Public Works Administration
The Public Works Administration , part of the New Deal of 1933, was a large-scale public works construction agency in the United States headed by Secretary of the Interior Harold L. Ickes. It was created by the National Industrial Recovery Act in June 1933 in response to the Great Depression...

 (PWA) under Harold Ickes
Harold Ickes
Harold Ickes may refer to:*Harold L. Ickes , U.S. Secretary of the Interior in Franklin D. Roosevelt's administration*Harold M. Ickes , son of the U.S. Interior Secretary, deputy White House Chief of Staff during the administration of U.S. President Bill Clinton...

 razed 10,000 slum units and built 22,000 new units, with the primary goal of providing construction jobs. Ickes was a strong friend of blacks and reserved half the units for them. The courts ruled the PWA lacked eminent domain power to condemn slums, so the Wagner-Steagall bill, the Housing Act of 1937
Housing Act of 1937
The Housing Act of 1937, sometimes called the Wagner-Steagall Act, provided for subsidies to be paid from the U.S. government to local public housing agencies to improve living conditions for low-income families....

, envisioned a long term federal role under the new agency, the United States Housing Authority.

This Act was strongly influenced by Catherine Bauer. She became its Director of Information and Research, a position she held for two years.

The private sector saw an economic danger in nationalized housing, and insisted that there be a clear differentiation between the main housing industry and welfare programs focused on people too poor to buy but who were worthy and deserved help. There was a concerted effort, in the words of Senator Wagner, at "avoiding competition" between the private and public sectors. The law required a 20 percent gap between the upper income limits for admission to public housing projects and the lowest limits at which the private sector provided decent housing. Wagner obtained support from conservative leaders Robert A. Taft and Allen Ellender to guarantee a bipartisan approach. Ellender insisted and civil rights groups accepted, that the units be racially segregated. Critics eventually pointed to the culture of poverty, violence, drugs, crime and hopelessness that thrived in the "vertical ghetto" as a refutation of the original Progressive theory.

Defenders of public housing point out that the program was beset with limitations at its outset, has never been truly fully funded, and continues to serve a limited income population that the private real estate sector has never tried to serve.
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