Urban Renewal and Gentrification · US History

What role did the Community Reinvestment Act (CRA) of 1977 play in urban geography?

  1. It legally banned all people from living within the boundaries of the city center
  2. It gave the U.S. federal military direct control over all local city planning decisions
  3. It made it completely illegal for any private developers to construct new residential apartment buildings
  4. It required banks to meet the credit needs of their entire community, including low-income neighborhoods
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Correct answer: It required banks to meet the credit needs of their entire community, including low-income neighborhoods

The CRA was designed to counter the effects of redlining. By encouraging banks to lend in the same communities where they took deposits, the law helped provide the capital needed for neighborhood revitalization and homeownership.

Difficulty: Medium Question 14 of 20

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