Woke
Out of context: Reply #71
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Redlining is a discriminatory housing policy that began in the 1930s under the New Deal, during the administration of President Franklin D. Roosevelt. At the time, the federal government was trying to address the housing crisis of the Great Depression by introducing new ways to provide affordable housing and make home ownership accessible to a greater number of Americans.
The term "redlining" comes from the color-coded maps created by the Home Owners' Loan Corporation (HOLC), a New Deal agency. On these maps, neighborhoods were graded and color-coded based on their "desirability" for investment. The lowest grade — D, colored red — was often assigned to neighborhoods that were predominantly African American or immigrant communities. These areas were deemed "hazardous" for investment, leading to a severe curtailment of home loans and insurance availability in these neighborhoods, regardless of the residents' individual qualifications or circumstances.
In the years that followed, the practice of redlining was adopted by private banks and other lending institutions, often with the backing of the Federal Housing Administration (FHA). The FHA's underwriting manual even recommended against insuring loans in racially mixed neighborhoods to prevent supposed "inharmonious racial groups."
This systemic discrimination led to a number of devastating effects for communities of color:
Limited Home Ownership: Because it was nearly impossible to get a mortgage in a redlined area, many people in these communities were forced to rent rather than buy homes.
Disinvestment and Decline: Without access to loans for home repairs or business investment, redlined neighborhoods often suffered from neglect and disinvestment, leading to a decline in property values.
Housing Segregation: Redlining, combined with other discriminatory practices like racial covenants (legal clauses in property deeds restricting the sale of property to certain racial groups), contributed to the racial segregation of cities, a legacy that persists to this day.
Wealth Disparity: Because home ownership is a key source of wealth creation in America, redlining has played a significant role in creating the racial wealth gap, which continues to widen.
Redlining was officially outlawed by the Fair Housing Act of 1968, part of the Civil Rights Act, which prohibits discrimination in the sale, rental, and financing of dwellings based on race, color, national origin, religion, sex, familial status, or disability. However, the long-term effects of redlining are still felt today, as many neighborhoods remain racially segregated, and significant disparities in wealth, education, and employment persist. Additionally, there are ongoing concerns about contemporary practices that perpetuate housing discrimination, such as discriminatory lending practices and the siting of affordable housing.