Redlining is the systematic denial of services to residents of a particular group, community, or neighborhood by selectively raising prices.
In 1934 The National Housing Act was passed, which resulted in the establishment of the Federal Housing Administration. This specifically targeted minority, poor white, and working class communities. In 1935 the Federal Home Loan Bank Board asked the Home Owners Loan Corporation to create what they called “security maps,” for 239 cities. Cities that were considered desirable were given the name Type A, which were mainly affluent suburbs outside of the city. Type B neighborhoods were know as “still desirable,” and Type C neighbors were known as “declining.” Type D neighborhoods were labeled “Red,” and were considered to be the most risky in terms of mortgage lending or financial support.
Even though the United States enacted legislation in the 1970’s to address and reduce segregation, we still face many issues to this day due to redlining. It has reduced dynamism and economic mobility for millions of Americans, has created the race wealth gap and discrimination within retail called Retail redlining. Companies such as Staples, Home Depot or Rosetta Stone display different prices to customers based on their location, Liquorlining, financial services and student loans, credit care redlining with banks and insurance companies, digital redlining, environmental racism (Flint, Michigan and Newark, New Jersey), and political redlining.
Laws intended to stop redlining have led to the rise of white gentrification in poor predominantly black neighborhoods due to not lending to longtime residents. TGR will combat redlining by further investigating, monitoring and regulate all institutions and companies involved in redlining such as banks, mortgage companies, insurance companies, digital and media companies, and all companies that offer pricing based on this discriminatory practice.