Equal Housing Opportunities For All

Posted on March 13th, 2024

Redlining originated with a process whereby banking institutions refused to issue mortgages in areas on a map considered hazardous (colored in red) – or imposed extraordinary terms (high interest rates and early payoff penalties) – that made mortgages unaffordable or highly restrictive to African Americans. Racially driven government and development policies (zoning and restrictive covenants) defined where whites and African Americans could live.Redlining was exacerbated by the practice of Steering by real estate agents. This practice included directing (or Steering) buyers towards or away from specific neighborhoods based on the characteristics outlined in the Fair Housing Act. Real estate agents would also create fear of a neighborhood’s loss of appeal and lowered values due to a threat of African Americans moving in. This practice, called “Blockbusting”, was to invoke sales in order to profit from turnover.

Redlining, Steering and Blockbusting are sadly still practiced today, and still impact segregated neighborhoods. The implications of this intentionally constructed housing segregation define neighborhoods beyond demographics. As recently as May and June of 2023 there were disturbing allegations of racial discrimination recognized with Clover Group Development Company based in Western New York who was building (or not building) their developments based on the proximity to communities with 20% or more black population. Housing and Urban Development lost a 10-year discrimination lawsuit in 2005 after findings proved HUD violated the Fair Housing Act of 1968 by unfairly concentrating African American public housing residents in the most impoverished, segregated areas of Baltimore City. There are still mortgage representatives who offer loan products based on race, associating race with risk, and denying loans based on a property’s location.

While the 5th, 13th, and 14th Amendments should have provided protections for African Americans, these protections were ignored until 1968 when a couple sued a developer for violating the Civil Rights Act in Jones v. Mayer. But the lawsuit was dismissed with the courts claiming that the Civil Rights Act only applied to government discrimination. This suit led to the Fair Housing Act of 1968, noting that private properties sold or rented would be subject to discrimination laws, not just government policies. Despite this small victory, housing discrimination continues today creating perpetual segregation and cycles of generational equity gaps.

The real estate industry recognized that these appalling practices needed to be eliminated and implemented a deep dive into education helping to curve this type of discrimination in the industry. There are at least four continuing education classes, with new courses being added periodically, and currently includes one 6-hour course required every two years, and three elective classes, including a Certification named “At Home with Diversity”.

As a side note: Washington state passed House Bill (HB) 1474, the Covenants Homeownership Account Act, which addresses the history of housing discrimination due to racially restrictive real estate covenants in Washington State. Additionally, to support the Act the Washington State Housing Finance Commission has been assigned to oversee the research study and source of funding for the Covenant Homeownership Program. To further the intent of HB 1474, there is a terrific non-profit organization in Washington state, Black Home Initiative, whose goal is to foster more homeownership within Black communities in Western Washington.

With all that said, we have come a long way – but not nearly far enough – to say there is truly Liberty and Justice, and Equal Opportunity, For All.

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In my library of books is one titled The Climate Action Handbook: A Visual Guide to 100 Climate Solutions, by Heidi Roop. This month, following my newsletter subject, I’d like to share this quote.
“… people whose incomes are below the federal poverty threshold, Indigenous people, and people of color – are often already experiencing the negative impacts of climate change and face greater risks than other communities and individuals. Simply put, where you live and work, the color of your skin, and the community or country you come from influence the risks you face from climate change.”