Harsh Reality

Redlining is the practice of denying or charging more for services such as banking or insurance. Usually redlining targeted minority groups specifically blacks. Redlining began when the National Housing Act of 1934 created the Federal Housing Association (FHA). Redlining policies where legal at the time and the maps were used by investors to determine which areas to invest in. Blacks could not secure mortgage loans at the time and bankers would not invest in black neighborhoods. These factors led to a large increase in racial residential segregation and inner city decay. White people would leave these areas in a process known as white flight.This redlining crippled the housing market and lowered property values in some areas. This led to an increase in landlord abandonment which left many buildings unoccupied. These abandoned buildings gave safe haven to drug dealing and other illegal activity which caused social problems and a greater decline in investment. Since the areas had no investors they couldn't get redevelopment or updating which further contributed to the decay of these areas. With these areas getting worse the wealth gap continued to widen. There are still many types of redlining that still go on today. Small businesses in blacks communities have difficulty getting loans even after meeting all the necessary criteria. Many redlining policies have been outlawed despite this fact. Investors are forced to use criteria that is less racially biased in nature.
http://www.princeton.edu/~achaney/tmve/wiki100k/docs/Redlining.html
http://www.encyclopedia.chicagohistory.org/pages/1050.html