American Institute of Certified Planners (AICP) Practice Exam

Which act facilitated the growth of suburbs through guaranteed loans for veterans?

1. Homestead Act

2. Serviceman's Readjustment Act

3. Housing and Community Development Act

4. Veterans Housing Act

The correct answer is: Serviceman's Readjustment Act

The Serviceman's Readjustment Act, commonly known as the GI Bill, played a crucial role in facilitating the growth of suburbs after World War II by providing a range of benefits to returning veterans. Among these benefits were guaranteed loans for purchasing homes, which significantly eased the financial barriers to homeownership for many veterans. This access to low-interest mortgages allowed a substantial number of military personnel and their families to buy homes in the newly emerging suburbs, contributing to the rapid suburbanization of the United States during the mid-20th century. The act also included provisions for education and unemployment benefits, but it is primarily the housing benefits that directly impacted suburban development. By making homeownership more affordable and accessible, this legislation not only supported the returning veterans in their reintegration into civilian life but also spurred economic growth through the construction of new homes and the development of suburban communities. Other legislative acts listed primarily addressed different issues. The Homestead Act aimed to promote western expansion by granting land to settlers, but it did not specifically focus on veterans' housing. The Housing and Community Development Act relates more to urban development and community improvement initiatives rather than direct support for veterans. The Veterans Housing Act, while relevant to veterans' housing, does not specifically capture the extensive