Posted in Finance, Accounting and Economics Terms, Total Reads: 307
Definition: Urban Development Act Of 1970
The Urban Development Act Of 1970 was introduced to establish the policy of national growth in the United States; to strengthen and support growth and development in the states of the country, metropolitan regions, cities, counties and new springing towns. It also aimed at amending certain laws and regulations concerning the urban and housing development.
The Urban Development Act is also known as Title VII and the New Communities Assistance Program. It guarantees bonds, no collateral loans (debentures) and other financing schemes to private and public community developers and provides assistance in their growth through various other ways like interest loans and planning support.
A 1973 Urban Land Institute study noted: “A Title VII commitment bestows almost instant credibility on the developer in the financial community, since it legally allies the federal government with the developer. It also reassures the local governments and communities affected of the developer’s real obligation to meet the planning, development, and environmental standards contained in federal law."
The Urban Development Act Of 1970 authorized the US government to provide greater range of house subsidies and rent ancillary programs for households with low and moderate income. The Act raised the upper limit of guarantees for new enrolling people up to $500 million. It was successful in encouraging and funding new urban development and public services. It made the large projects feasible in the urban development area.