500
Lyndon B. Johnson did this during his presidency
In 1964, the Housing Act added Section 312, which authorized low-cost loans for rehabilitation. President Lyndon Johnson’s Great Society Initiatives in 1965 and 1968 sought to privatize the low-income housing sector. These acts provide funding in the form of low-interest loans to developers who would build housing for low-income families and promised property managers rent payments. In
1965, the Housing Act was revised again, as rent supplements for privately owned housing was authorized. The supplement would pay the difference between the fair market rent and one-fourth of the tenant’s income. Section 23 also authorized public housing authorities to lease private units.
The next year, in 1966, the Demonstration Cities and Metropolitan Development Act authorized demonstration programs for upgrading inner-city neighborhoods, (Sternlieb 23). In 1967, President Lyndon Johnson appointed the National Commission on Urban Problems, also known as the Douglas Commission. So in 1968,the Housing Act was revised again as the act authorized many new housing programs and established a ten-year housing production goal of 26 million units with about one fifth set to house low-to moderately low-income families. Section 235 subsidized low-income rental projects, Section 236 further revised the mortgages to multi family residencies. Both programs provided mortgages with interest rates as low as 1 percent. The existing FNMA was partitioned into two separate corporations- FNMA, which would continue market operations, and GNMA, which would focus on special assistance functions. In addition, the Housing Act authorized a National Housing Partnership, riot insurance, and flood insurance, and gurantees of obligations issued by new community developers. In 1969, the Housing Act was further revised as rent in public housing was limited to one fourth of the tenant’s income, by the Brooke Amendment.