HUD Practice Test 2025 – Complete Prep Guide

The National Housing Act primarily aims to provide a framework for government involvement in housing finance and construction. This foundational legislation was enacted in 1934 during the Great Depression to stimulate the housing market and improve access to affordable housing. It established the Federal Housing Administration (FHA), which enabled the government to support home financing through insurance, thus reducing risks for lenders and making it easier for individuals and families to obtain mortgage loans.

This involvement is critical because it helped to expand homeownership opportunities for a broader segment of the population, including those who might not have been able to secure loans otherwise. By fostering an environment where housing finance could thrive, the National Housing Act successfully sought to stabilize the economy and ensure that adequate housing was available for Americans.

The other options, while related to the broader discussion of housing, do not accurately reflect the primary objective of the National Housing Act. For instance, although the act can indirectly influence landlord regulations and might have implications for building materials over time, those aspects are not central to its purpose.