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World War II caused a temporary moratorium on domestic housing construction, except for defense purposes. Legislation during this period, however, had a major impact on housing. The 1944 authorization of the Veterans Administration (VA) home loan program guaranteed millions of single-family and mobile home loans. The increase in housing construction following World War II, which led to the growth of suburban areas, is in part attributable to this financing program. The exodus to the suburbs led to new housing programs for declining urban areas authorized by the Housing Act of 1949. The Act authorized funds to localities to assist in slum clearance and urban redevelopment, new construction, and activities not directly related to housing construction (open space land, neighborhood facilities, and basic water and sewer facilities).

 

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line The increase in housing construction following World War II, led to the growth of suburban areas and to new housing programs for declining urban areas authorized by the Housing Act of 1949.