Redlining is a discriminatory practice that has historically been used in the United States, particularly in the context of housing and lending. It originated in the 1930s when the federal government's Home Owners' Loan Corporation (HOLC) created color-coded maps of neighborhoods in various cities. These maps were intended to guide investment decisions, and the neighborhoods were graded based on their perceived desirability and creditworthiness. The term "redlining" comes from the practice of marking certain neighborhoods, usually those with a high proportion of racial and ethnic minorities, in red on these maps. These redlined areas were deemed high risk and often faced systematic disinvestment, as banks and other financial institutions were reluctant to provide mortgages or other loans to residents living in these neighborhoods. ## Redlining consequences Redlining has had notable long-lasting consequences, including: 1. **Reinforcing segregation**: The practice helped maintain and exacerbate racial and socioeconomic [[segregation]] in American cities, as it limited access to housing and financial resources for minority communities. 2. **Widening the wealth gap**: Redlining made it difficult for residents in redlined neighborhoods to accumulate wealth through homeownership, as they often faced higher interest rates, stricter lending standards, or outright denial of loans. 3. **Negatively affecting neighborhood conditions**: Due to the lack of investment in redlined areas, these neighborhoods often experienced a decline in housing quality, increased blight, and underfunded public services and infrastructure. Although the Fair Housing Act of 1968 and the Community Reinvestment Act of 1977 were enacted to combat redlining and other discriminatory housing practices, the legacy of redlining continues to impact American cities. Disparities in homeownership, wealth accumulation, and neighborhood investment can still be traced back to the historical practice of redlining, and efforts to address these issues are ongoing.