DISCRIMINATORY FEDERAL HOUSING POLICIES DENIED BLACK FAMILIES HOME EQUITY AND WEALTH-BUILDING OPPORTUNITIES THAT BENEFITED COUNTLESS WHITE FAMILIES.
Throughout the 20th century, discriminatory federal housing policies as well as state and local government practices systematically excluded Black families from homeownership and wealth-building opportunities while expanding affordable housing and home equity for white families. Tactics like redlining, racially restrictive covenants, biased administration of the GI Bill, exclusionary suburban developments, urban renewal programs that displaced Black neighborhoods, and the perpetuation of segregation through policies like the neighborhood composition rule have had enduring multi-generational impacts.
Due to this segregation, middle-class Black families today are still more likely than low-income whites to live in high-poverty areas and send their children to under-resourced schools. The Fair Housing Act of 1968, while outlawing discrimination, has lacked enforcement, and roadblocks to equal housing opportunities and wealth creation remain an issue because of ongoing bias.
KEY TERMS
FAIR HOUSING ACT OF 1968 - The Fair Housing Act of 1968 prohibited discrimination in housing based on race, color, religion, sex, or national origin. This landmark civil rights legislation banned practices like redlining, racial steering, blockbusting, and discrimination in lending that had long excluded African Americans and other minorities from many neighborhoods. The act aimed to promote residential integration and equal opportunity in housing.
GI BILL - The GI Bill provided extensive benefits to help veterans transition to civilian life, including funding for hospitals, tuition, home/business purchases, loans, job assistance, unemployment stipends, and discharge reviews. However, these benefits were often denied to Black veterans due to discriminatory implementation of the bill.
RACIALLY RESTRICTIVE COVENANTS - Racially restrictive covenants were private agreements that prohibited the sale, lease, or occupation of property to certain racial or ethnic groups, especially African Americans. They typically barred buyers from reselling to minorities, allowing builders to create all-white suburbs and schools. Despite being unconstitutional, the Supreme Court initially permitted restrictive covenants, claiming no jurisdiction over private property transfers. In effect, these covenants enforced housing segregation even though they violated civil rights.
REDLINING - The Home Owners' Loan Corporation created maps grading neighborhoods' mortgage default risk during the Depression, with high-risk areas marked "D" in red. These maps often discriminated by race and class, redlining Black, immigrant, and poor neighborhoods and worsening segregation by restricting their access to government-backed loans.
ADDITIONAL RESOURCES