New Deal
Redlining

This also marked the beginning of discriminatory redlining within the United states under the HOLC. Their maps broadly determined what housing loans would be backed by the federal government. Though other criteria existed, the most major criterion was race. Any neighborhood with "inharmonious racial groups" would either be marked red or yellow, depending on the proportion of black residents. This was explicitly stated within the FHA underwriting manual that the HOLC used as a guideline for its maps.

Alongside other discriminatory housing policy, this meant in practice is that Black Americans were denied federally backed mortgages locking most out of the housing market and all Americans were denied backing for any loans within black neighborhood. Lastly, for the other policies in place meant for neighborhood building projects, the federal government required they be explicitly segregated to be backed. The federal government's financial backing also required the use of racially restrictive covenants, that banned white homeowners from reselling their house to any black buyers.
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