What is redlining? Redlining is a discriminatory practice whereby lenders refuse to lend money or extend credit to homebuyers in specific areas of town or when realtors refuse to show properties to certain buyers in specific neighborhoods. This practice has been prevalent in areas occupied by lower-income households and people of color. “Redlining” got its name from lenders who literally drew red lines around neighborhoods on a map, declaring those areas high risk. Redlining is illegal. The Fair Housing Act protects people from discrimination in housing on the basis of race, color, religion, national origin, sex, handicap, and familial status.
Although redlining began in the 1930s, according to a recent study by the National Community Reinvestment Coalition, three out of four neighborhoods that were redlined on government maps 80 years ago continue to struggle economically and are much more likely than other areas to include lower-income, minority residents. This video, produced by The 200, talks about the legacy of redlining, the wealth gap it created, and the impact it is still having today.
The Two Hundred (The 200) is a coalition of community leaders, opinion makers and advocates working on behalf of communities of color who have been affected by California’s housing crisis and increasing wealth gap. Their goal is to advocate for policies that create opportunities for increased housing and homeownership. Note that the 200 is growing its coalition to what they are now calling “the M&MS” – minorities, millennials and students.