- Sep 2007
[ame="http://en.wikipedia.org/wiki/Redlining"]Redlining[/ame]White flight is a term for the demographic trend where working- and middle-class white people move away from increasingly racial-minority inner-city neighborhoods to white suburbs and exurbs. The phenomenon was first named in the United States, but has occurred in other countries as well. Some scholars have noted the impact of red-lining, lending discrimination, and racially restrictive covenants on white flight: these factors denied or increased the cost of services, such as banking and insurance, to residents in minority inner-city neighborhoods.
Today, a new phenomenon is occuring in many of America's largest cities, black flight, which is very similar to the concept of white flight.
LizRedlining began in the United States with the National Housing Act of 1934 which established the Federal Housing Administration (FHA). 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. In these maps many minority neighborhoods in cities were not eligible to receive loans at all. This meant that ethnic minorities could secure mortgage loans only in certain areas, and it resulted in a large increase in the residential racial segregation and urban decay in the United States. Urban Planning historians theorize that the maps were used for years afterwards to deny loans to people in black communities by private and public entities.
On the maps the most affluent areas, those considered desirable for lending purposes, were outlined in blue and known as "Type A". "Type B" neighborhoods were less well off and outlined in yellow. "Type D" neighborhoods were outlined in red on the map. Most of the Black neighborhoods were characterized as "Type D" and were considered to be the worst for lending.