HOLC's 1936 security map of Philadelphia showing redlining of minority neighborhoods. The Home Owners' Loan Corporation (HOLC or Home Owner's Refinancing Act was a New Deal agency established in 1933 under President Franklin D Philadelphia (ˌfɪləˈdɛlfiə ^[1] People who lived in the red zones could not get mortgages to buy or improve their homes.

Redlining is the practice of denying or increasing the cost of services, such as banking, insurance, access to jobs,^[2] access to health care,^[3] or even supermarkets^[4] to residents in certain, often racially determined,^[5] areas. A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money Insurance, in Law and Economics, is a form of Risk management primarily used to hedge against the Risk of a contingent loss Customer divider barjpg|thumb|In supermarkets sellers periodically change prices for classes of goods in response to market conditions rather than negotiating the price of each good The most devastating form of redlining, and the most common use of the term, refers to mortgage discrimination, in which middle-income black and Hispanic residents are denied loans that are made available to lower-income whites. Mortgage discrimination or mortgage lending discrimination is the practice of banks governments or other lending institutions denying Loans to one or more groups The term "redlining" was coined in the late 1960s by community activists in Chicago. It describes the practice of marking a red line on a map to delineate the area where banks would not invest; later the term was applied to discrimination against a particular group of people (usually by race or sex), no matter the geography. During the heyday of redlining these areas were most frequently black inner city neighborhoods. The inner city is the central area of a major city or metropolis Later, through at least the 1990s, this discrimination involved lending to lower-income whites, but not to middle- or upper-income blacks. {ref: Immergluck, Dedman. )

History of the practice

Part of a series of articles on Racial Segregation

White Australia policy South African Apartheid Antisemitism Jewish Pale of Settlement May Laws Segregation in the US Black Codes Jim Crow laws Redlining Racial steering Blockbusting White flight Black flight Gentrification Sundown towns Proposition 14 Indian Appropriations Indian Reservation Japanese American internment Immigration Act of 1924 Separate but equal Ghettos This box: view • talk • edit

Although in the United States informal discrimination and segregation have always existed, the practice called "redlining" began with the National Housing Act of 1934, which established the Federal Housing Administration (FHA). The White Australia policy is a term used to describe a collection of historical policies that intentionally restricted non-white Immigration to Australia from Antisemitism (alternatively spelled anti-semitism or anti-Semitism; also rarely known as judeophobia) is the Prejudice against or hostility The Pale of Settlement (Черта́ осе́длости cherta osedlosti) was the term given to a region of Imperial Russia, along its western border in which The May Laws were anti-Jewish regulations enacted on May 15 (May 3 O Racial segregation in the United States is the Racial segregation of facilities services and opportunities such as housing education employment and transportation along The Jim Crow laws were state and local laws enacted primarily but not exclusively in the Southern and border states of the United States between 1876 and 1965 Racial steering refers to the practice in which Real estate brokers guide prospective home buyers towards or away from certain Neighborhoods based on their race Blockbusting was a practice used by Real estate agents and developers in the United States to encourage white property owners to sell their homes by giving the impression that White flight is a term for the demographic trend in which working and Middle-class White people move away from Suburbs Black flight is a term recently applied to the movement of African Americans from predominately black or mixed inner city areas to Suburban areas and outlying Gentrification, or urban gentrification, is the change in an Urban area associated with the movement of more affluent individuals into a lower-class A sundown town is a Neologism invented in 2005 by James Loewen to refer to a community in the United States where non- whites — especially California Proposition 14 was an amendment to the constitution of the state of California promoted by segregationists who wanted to nullify the Rumford The Indian Appropriations Act is the name of several acts passed by the United States Congress. An Indian reservation is an area of land managed by a Native American Tribe under the United States Department of the Interior's Bureau Japanese American internment refers to the forcible relocation and Internment of approximately 110000 Japanese nationals and Japanese Americans to housing The Immigration Act of 1924, or Johnson-Reed Act, including the National Origins Act, Asian Exclusion Act, (43 Statutes-at-Large 153 was a United Separate But Equal is a 1991 American Television movie depicting the landmark Supreme Court Desegregation case A ghetto is described as a "portion of a city in which members of a minority group live especially because of social legal or economic pressure The United States of America —commonly referred to as the The National Housing Act of 1934 was passed during the Great Depression in order to make Housing and home Mortgages more affordable The Federal Housing Administration (FHA is a United States Government agency created as part of the National Housing Act of 1934. ^[6] The federal government contributed to the early decay of inner city neighborhoods by withholding mortgage capital and making it difficult for these neighborhoods to attract and retain families able to purchase homes. ^[7] In 1935, the Federal Home Loan Bank Board (FHLBB) asked Home Owners' Loan Corporation (HOLC) to look at 239 cities and create "residential security maps" to indicate the level of security for real-estate investments in each surveyed city. The Federal Housing Finance Board, also known by the abbreviation FHFB, was an independent agency of the U The Home Owners' Loan Corporation (HOLC or Home Owner's Refinancing Act was a New Deal agency established in 1933 under President Franklin D Such maps defined many minority neighborhoods in cities as not eligible at all to receive loans. The maps were based on assumptions about the community, not accurate assessments of an individual's or household's ability to satisfy standard lending criteria. Since blacks were unwelcome in white neighborhoods, which frequently instituted racial restrictive covenants to keep them out, the policy effectively meant that blacks could not secure mortgage loans at all. A real covenant is a Legal obligation imposed in a Deed by the seller upon the buyer of Real estate to do or not to do something A mortgage loan is a Loan secured by Real property through the use of a Mortgage (a legal instrument The assumptions in redlining resulted in a large increase in residential racial segregation and urban decay in the United States. Urban decay is a process by which a City, or a part of a city falls into a state of disrepair Urban planning historians theorize that the maps were used by private and public entities for years afterwards to deny loans to people in black communities. ^[6] However, recent research has indicated that the HOLC did not redline in its own lending activities, and that the racist language reflected the bias of the private sector and experts hired to conduct the appraisals Crossney and Bartelt 2005 Urban GeographyCrossney and Bartelt 2006 Housing Policy Debate

On the maps, the newest areas — those considered desirable for lending purposes — were outlined in blue and known as "Type A". These were typically affluent suburbs on the outskirts of cities. "Type B" neighborhoods were considered "Still Desirable", whereas older "Type C" were labeled "Declining" and outlined in yellow. "Type D" neighborhoods were outlined in red and were considered the most risky for mortgage support. These neighborhoods tended to be the older districts in the center of cities; often they were also black neighborhoods. African American neighborhoods or black neighborhoods are types of Ethnic enclaves found in many cities in the United States. ^[6]

Some redlined maps were also created by private organizations, such as J. M. Brewer's 1934 map of Philadelphia. Private organizations created maps designed to meet the requirements of the Federal Housing Administration's underwriting manual. The Federal Housing Administration (FHA is a United States Government agency created as part of the National Housing Act of 1934. The lenders had to consider FHA standards if they wanted to receive FHA insurance for their loans. FHA appraisal manuals instructed banks to steer clear of areas with "inharmonious racial groups" and recommended that municipalities enact racially restrictive zoning ordinances, as well as covenants prohibiting black owners. A real covenant is a Legal obligation imposed in a Deed by the seller upon the buyer of Real estate to do or not to do something ^[8][9]

Impact

Redlining paralyzed the housing market, lowered property values and further encouraged landlord abandonment. As abandonment increased, the population density became lower. Abandoned buildings would serve as havens for drug dealing and other illegal activity. ^[7]

Challenges to redlining

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In the United States, the Fair Housing Act of 1968 was passed to fight the practice. African Americans or Black Americans are citizens or residents of the United States who have origins in any of the black populations of Africa African American history is the portion of American history that specifically discusses the African American or Black American ethnic group in the United The Atlantic Slave trade, also known as the transatlantic slave trade, was the trade of African people supplied to the Colonies of the New World The word Maafa (also known as the African Holocaust or Holocaust of Enslavement) is derived from a Swahili word meaning disaster terrible occurrence or Slavery in the United States began soon after English colonists first settled Virginia in 1607 and lasted until the passage of the Thirteenth The Military history of African Americans spans from the arrival of the first black slaves during the colonial history of the United The Jim Crow laws were state and local laws enacted primarily but not exclusively in the Southern and border states of the United States between 1876 and 1965 The American Civil Rights Movement (1955–1968 refers to the reform movements in the United States aimed at abolishing racial discrimination against African Afrocentrism or Afrocentricity is a World view that emphasizes the importance of African people in culture philosophy and history Reparations for Slavery is a proposal by some in the United States that some type of compensation should be provided to the descendants of enslaved people in African American culture in the United States refers to the cultural contributions of African ethnic groups to the culture of the United States either as part of or distinct from African American studies is a subset of Black studies or Africana studies. African American neighborhoods or black neighborhoods are types of Ethnic enclaves found in many cities in the United States. Historically black colleges and universities ( HBCUs) are institutions of Higher education in the United States that were established before 1964 with the intention Kwanzaa is a week-long holiday celebrated primarily in the United States, honoring African-American heritage African American art is a broad term describing the visual arts of the American black community This is an incomplete list of museums which can or may never satisfy any objective standard for completeness African American dances in the vernacular tradition (academically known as "African American vernacular dance" are those dances which have developed within African African American literature is the body of Literature produced in the United States by writers of African descent African American music (also called black music) is an umbrella term given to a range of Music and Musical genres emerging from or influenced by the The term black church or African American church refers to predominantly African-American Christian churches that minister to predominantly black congregations This theology maintains that African Americans must be liberated from multiple forms of bondage — social political economic and religious Black theology refers to a variety of Christian theologies which has as its base in the The Doctrine of Father Divine is the teachings of the late Father Divine (d The Nation of Islam ( NOI) (أمة الإسلام Ummah al-Islāmu) is a group founded in Detroit, Michigan, Black Hebrew Israelites (also Black Hebrews, African Hebrew Israelites, and Hebrew Israelites) are groups of people of Black African ancestry Vodou ( Anglicized: Voodoo) or Vaudoo is a family of New World syncretistic religions primarily based on the faiths of the Hoodoo is a form of predominantly African-American traditional folk magic. Santería, also known as La Regla de Lukumi (Lukumi's Rule and The Way of the Saints is an Afro-Cuban religious tradition derived from traditional beliefs Pan-Africanism is a Sociopolitical World view, and Philosophy, as well as a movement which seeks to unify both Native Africans and those of Black nationalism (BN advocates a racial definition (or redefinition of black national identity as opposed to Multiculturalism. Black Power is a racially based Political slogan and a name for various associated ideologies Black Capitalism is a movement among African Americans to build wealth through the ownership and development of businesses Black conservatism is an international political and social movement rooted in communities of African descent that aligns largely with the conservative movement Following the collapse of Reconstruction, African Americans created a broad-based independent political movement in the South black populism that influence all The African American left tends to support leftist positions on social issues and an expansive state that aims at bringing about equality of outcome between the African The Black Panther Party (originally the Black Panther Party for Self-Defense) was a Marxist / Maoist African-American organization established Garveyism is an aspect of Black Nationalism which takes its source from the works words and deeds of UNIA-ACL founder Marcus Garvey. The National Association for the Advancement of Colored People, usually abbreviated as NAACP, is one of the oldest and most influential Civil rights organizations The Southern Christian Leadership Conference ( SCLC) is an American Civil rights organization The Student Nonviolent Coordinating Committee (or SNCC, pronounced "snick" was one of the principal organizations of the American Civil Rights Movement The National Urban League ( NUL) formerly known as the National League of black men and women, is a Civil rights organization based in New York City The Association for the Study of African American Life and History (ASALH is a non-profit organization founded in Chicago, Illinois, on September 9, The United Negro College Fund ( UNCF) is a Fairfax, Virginia -based American philanthropic organization that fundraises College tuition The National Black Chamber of Commerce was incorporated in 1993 by Harry Alford who in 2007 continues as CEO History The National Pan-Hellenic Council was established in an age when Racial segregation and disenfranchisement plagued African Americans, the rise of each The Links Incorporated is an exclusive non-profit organization based upon the ideals of combining friendship and community service The National Council of Negro Women (NCNW is a Non-profit organization with the mission to advance the opportunities and the quality of life for African American women their Part of the History of baseball in the United States series The Negro leagues were American professional Baseball leagues History The Central Intercollegiate Athletic Association, founded on the campus of Hampton Institute (now Hampton University) in 1912 is the oldest African-American Conference sports Conference member schools Current members Former members Conference Stadia Championships The Mid-Eastern Athletic Conference (MEAC is a Collegiate athletic conference of historically black colleges and universities (HBCUs in the Southeastern "Southwestern Conference" redirects here For the former major conference in Texas and Arkansas see Southwest Conference; for the Ohio High School Conference English is a West Germanic language originating in England and is the First language for most people in the United Kingdom, the United States The Gullah language (Sea Island Creole English Geechee is a Creole language spoken by the Gullah people (also called "Geechees" an African Louisiana Creole is a French Creole language spoken by the mixed Louisiana Creole people of the state of Louisiana. African American Vernacular English ( AAVE) – also called African American English; less precisely Black English, Black Vernacular, Notable African-Americans or Black Americans For people from current African countries see lists for individual countries List of first African-American mayors for most mayor listings African Americans are a demographic minority in the United States. This is a list of landmark legislation, court decisions, executive orders and proclamations in the United States significantly affecting African Americans This is an alphabetical list of African-American-related topics: A African American African American culture This is a list of articles that are related to African and black people The United States of America —commonly referred to as the Types of banned discrimination The Civil Rights Act of 1968 prohibited the following forms of discrimination 1 It prohibited redlining when the criteria for redlining are based on race, religion, gender, familial status, disability, or ethnic origin. The Community Reinvestment Act of 1977 further required banks to apply the same lending criteria in all communities. The Community Reinvestment Act (or CRA,, title VIII, et seq) is a United States federal law designed to encourage commercial Banks and ^[10] Although open redlining was made illegal in the 70s through community reinvestment legislation, the practice continued in less overt ways. ^[7]

ShoreBank, a community-development bank in Chicago's South Shore neighborhood, was a part of the private-sector fight against redlining. ShoreBank is an American Community development bank and green bank Chicago (ʃɪˈkɑːgoʊ is the largest City by population in the state of Illinois and the American Midwest of the United States. South Shore may refer to In Canada: South Shore (Montreal, Quebec the region of the greater Montreal area on the south shore of the Saint Lawrence ^[11] Founded in 1973, ShoreBank sought to combat racist lending practices in Chicago's African-American communities by providing financial services, especially mortgage loans, to local residents. Year 1973 ( MCMLXXIII) was a Common year starting on Monday (link will display full calendar of the 1973 Gregorian calendar. African Americans or Black Americans are citizens or residents of the United States who have origins in any of the black populations of Africa ^[12] Many sources characterize ShoreBank's efforts as overwhelmingly inspirational and successful. ^[13] In a 1992 speech, then-Presidential candidate Bill Clinton called ShoreBank “the most important bank in America. William Jefferson "Bill" Clinton (born William Jefferson Blythe III, August 19 1946 served as the forty-second President of the United States ”^[11]

Contemporary issues

Dan Immergluck writes that in 2002 small businesses in black neighborhoods still received fewer loans, even after accounting for business density, business size, industrial mix, neighborhood income, and the credit quality of local businesses. ^[14] Gregory D. Squires wrote in 2003 that it is clear that race has long affected and continues to affect the policies and practices of the insurance industry. ^[15] Workers living in American inner cities have a harder time finding jobs than suburban workers. ^[16] Redlining has helped preserve segregated living patterns for blacks and whites in the United States, because discrimination motivated by prejudice is often contingent on the racial composition of neighborhoods where the loan is sought and the race of the applicant. The word prejudice refers to prejudgment making a decision before becoming aware of the relevant facts of a case or event Lending institutions have been shown to treat black mortgage applicants differently when they are buying homes in white neighborhoods than when buying homes in black neighborhoods. ^[17]

Retail

Retail redlining is a spatially discriminatory practice among retailers, of not serving certain areas, based on their ethnic-minority composition, rather than on economic criteria, such as the potential profitability of operating in those areas. Consequently, consumers in these areas often find themselves "vulnerable" because no other retailers will serve them. They may be exploited by other, often smaller, retailers who charge them higher prices and/or offer them inferior goods. ^[18]

Credit cards

Credit card redlining is a spatially discriminatory practice among credit card issuers, of providing different amounts of credit to different areas, based on their ethnic-minority composition, rather than on economic criteria, such as the potential profitability of operating in those areas. A credit card is part of a system of Payments named after the small Plastic card issued to users of the system ^[19]

Insurance

Racial profiling or redlining has a long history in the property-insurance industry in the United States. Racial profiling is the inclusion of racial or ethnic characteristics in determining whether a person is considered likely to commit a particular type of crime or Insurance, in Law and Economics, is a form of Risk management primarily used to hedge against the Risk of a contingent loss From a review of industry underwriting and marketing materials, court documents, and research by government agencies, industry and community groups, and academics, it is clear that race has long affected and continues to affect the policies and practices of the insurance industry. ^[20] Home-insurance agents are generally able to detect the race of someone who contacts them by telephone. This information affects the services provided to those who inquire about purchasing a home-insurance policy. This type of discrimination is called linguistic profiling. Racial profiling is the inclusion of racial or ethnic characteristics in determining whether a person is considered likely to commit a particular type of crime or ^[21] There have also been concerns raised about redlining in the automotive insurance industry. Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is Insurance purchased for cars, Trucks ^[22]

Environmental racism

Main article: environmental racism

See also: Race and health

Policies related to redlining and urban decay can also act as a form of environmental racism, which in turn have an impact on public health. Environmental racism refers to intentional or unintentional Racial discrimination in the enforcement of environmental rules and regulations the intentional or unintentional Race and health research is mostly from the United States. It has found both current and historical racial differences in the frequency treatments and availability of treatments Urban decay is a process by which a City, or a part of a city falls into a state of disrepair Environmental racism refers to intentional or unintentional Racial discrimination in the enforcement of environmental rules and regulations the intentional or unintentional Urban minority communities may face environmental racism in the form of parks that are smaller, less accessible and of poorer quality than those in more affluent or white areas in some cities. ^[23] This may have an indirect impact on health, since young people have fewer places to play and adults have fewer opportunities for exercise. ^[23]

Robert Wallace writes that the pattern of the AIDS outbreak during the 80s was affected by the outcomes of a program of 'planned shrinkage' directed at African-American and Hispanic communities. Planned shrinkage is a United States policy of withdrawing essential city services (such as police patrols garbage removal street repairs and fire services from It was implemented through systematic denial of municipal services, particularly fire protection resources, essential to maintain urban levels of population density and ensure community stability. ^[24] Institutionalized racism affects general health care as well as the quality of AIDS health intervention and services in minority communities. Institutional Racism (or structural racism or systemic racism) refers to a form of Racism which occurs specifically in institutions such as public The overrepresentation of minorities in various disease categories, including AIDS, is partially related to environmental racism. The national response to the AIDS epidemic in minority communities was slow during the 80s and 90s, showing an insensitivity to ethnic diversity in prevention efforts and AIDS health services. ^[25]

See also

• Black flight
• Blockbusting
• Computer-assisted reporting
• Community Reinvestment Act
• Inclusionary zoning
• Mortgage Discrimination
• Planned shrinkage
• Racism
• Racial steering
• Urban renewal
• Timeline of Racial Tension in Omaha, Nebraska
• White flight

External links

• Redlining in Philadelphia. Amy Hillier, PhD
• Redlining, and Neighborhood Appraisals in Philadelphia
• Housing Policy History, NC Housing Coalition
• From 'black-balling' to 'marking': the suburban origin of redlining in Canada
• "The Color of Money": Bill Dedman received the Pulitzer Prize in investigative reporting in 1989 for this series of articles, which described racial discrimination in mortgage lending in the Atlanta area. Black flight is a term recently applied to the movement of African Americans from predominately black or mixed inner city areas to Suburban areas and outlying Blockbusting was a practice used by Real estate agents and developers in the United States to encourage white property owners to sell their homes by giving the impression that Computer-assisted reporting is the use of Computers to gather and analyze the data necessary to write News stories The Community Reinvestment Act (or CRA,, title VIII, et seq) is a United States federal law designed to encourage commercial Banks and Inclusionary Zoning, also known as inclusionary housing, refers to municipal and county planning ordinances that require that a given share of Mortgage discrimination or mortgage lending discrimination is the practice of banks governments or other lending institutions denying Loans to one or more groups Planned shrinkage is a United States policy of withdrawing essential city services (such as police patrols garbage removal street repairs and fire services from List of racism-related topics|Racism by country Racism, by its simplest definition is the belief that race is the primary determinant of human traits and capacities and that Racial steering refers to the practice in which Real estate brokers guide prospective home buyers towards or away from certain Neighborhoods based on their race Urban Renewal (similar to Urban Regeneration in British English) is a controversial U See also Racial Tension in Omaha Nebraska See also Civil Rights Movement in Omaha Nebraska The timeline of racial tension in Omaha Nebraska White flight is a term for the demographic trend in which working and Middle-class White people move away from Suburbs Bill Dedman, an American Journalist, is an investigative reporter for Msnbc
• Kozmo delivering consumer racism? Investigative probe by MSNBC.com unearths first case of "cyber-redlining."
• Crossney and Bartelt 2005. Residential Security, Risk, and Race: The Home Owners' Loan Corporation and Mortgage Access in Two Cities. Urban Geography
• Crossney and Bartelt. The Legacy of the Home Owners' Loan Corporation. Housing Policy Debate.

References