Urban Renewal and Gentrification · US History

How did the process of 'Redlining' contribute to the later patterns of urban renewal?

  1. It temporarily made neighborhoods appear equal in market value for five decades across the city
  2. It denied investment in minority neighborhoods, creating 'blight' used to justify later demolition
  3. It reclassified minority neighborhoods as safe, high-value zones for federal bank investment purposes
  4. It provided low-interest federal loans to African American families to buy suburban homes
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Correct answer: It denied investment in minority neighborhoods, creating 'blight' used to justify later demolition

Redlining by the Home Owners' Loan Corporation and the FHA categorized minority areas as 'hazardous' for investment. This lack of capital led to physical deterioration, which urban planners then used as evidence that those neighborhoods were beyond repair and needed to be razed.

Difficulty: Medium Question 7 of 20

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