National Housing Act of 1961 is adopted in Washington, D.C.

The legislation increases funding to $4 billion, permits 30% of the federal grants to be used for nonresidential projects, allows land to be sold at a price to enable construction of moderate income housing, and permits local public agencies to engage in demonstration rehabilitation projects. It also establishes and funds the FHA section 221d3 program which makes available low-interest mortgages to developers of low income rental units.