The FWA commissioned Modernist architects such as Walter Gropius, Marcel Breuer, Oscar Stonorov, and Richard J. Neutra to provide "modern" housing for workers and low-income families throughout the United States.

This focus on Modernist and Internationalist architects was colored by the hope that the developments, which included then-rare shared amenities such as play areas for children, laundries, and sports facilities, would foster a sense of community, and render more traditional urban and suburban arrangements (referred to as "isolated") unappealing.

Based on recommendations by the Defense Housing Division and approval by President Roosevelt, the FWA commissioned Aluminum City Terrace as part of a plan to bring some 5000 new units to Pittsburgh and the surrounding area.

[1][2] Alcoa, New Kensington's primary employer, expressed skepticism over FWA plans for Aluminum City Terrace due to fears the development's emphasis of social components could render unionization efforts among its employees easier.

[1] Industrial concerns at the time also preferred that their employees purchase housing, rather than rent, as it tethered them financially and geographically to the plant, so reducing overturn.

Both residents of ACT and New Kensington worried that the end of World War II would mean the sale of the complex to a private company, or its conversion to low-income, government-supported housing.