ipl-logo

Housing Act Of 1934 Essay

632 Words3 Pages

In 1934 the United States of America is still recovering from the disastrous great depression. The previous year in 1933, millions of americans defaulted on their mortgages and the numbers would have kept increasing. President Franklin D. Roosevelt signed the National Housing Act of 1934 hoping to improve the living standards and conditions of americans. The law also created the Federal Housing Administration which provided mortgage insurance on loans made by banks and private sectors. The National Housing Act at first was a success due to the millions of jobs that were created, and americans could now being buying homes. However the FHA would deny loans to African Americans, Latinos and minority groups. During the early 1930’s the federal government sent surveyors to “grade …show more content…

Loans in the redlined neighborhoods were either unavailable or unbelievably expensive making it almost impossible for people of color to buy homes and accumulate wealth. Racist methods practiced by banks and private sectors believed if African Americans acquired homes in or near suburban areas the property value will decrease and their loans would be at risk. When minorities attempted to buy homes or property in predominantly all white neighborhoods prices rose would raise outrageously, restricted to a certain area, or they were denied. Richard Rothstein the author of the publication color of law says Underwriting Manual of the Federal Housing Administration, which said that "incompatible racial groups should not be permitted to live in the same communities." Meaning that loans to African-Americans could not be insured.(2) The underwriting manual also describes how the highway system would be good way to separate minorities from predominantly white neighborhoods. Communities such as Levittown, New York refused to sell homes to African Americans.

Show More
Related

How Did JC Nichols Use Restrictive Covenants?

976 Words | 4 Pages

Nichols enhanced and streamlined the use of restrictive covenants. Using the fears of property values decreasing, Nichols added a racial restriction into the deeds. In all of the deeds for the land he developed was this restriction, “None of said lots may be conveyed to, used, owned or occupied by negroes as owners or tenants. ”1 While this might seem like an isolated instance, restrictive covenants occurred all over the United States in the early 20th century. J.C. Nichols employed an addition that would enhance the covenant and make it more appealing to the “desired” homeowner; that addition was a self-renewing contract every 25 years.2

Read More

How The FHA Changed In The 1930s

336 Words | 2 Pages

Overall, the federal government was never really hands on in housing, that changed in the 1930’s when the Federal Housing Administration (FHA) was created to be apart of the New Deal. After the Great Depression, the FHA sought to rebuild the housing market by introducing the mortgage lending system, that is still used today. The FHA actually did quite the opposite, “instead, the FHA adopted a racial policy”, that took advantage of racial covenants and insisted properties that were insured by them to use those covenants. The FHA introduced redlining policies in many American cities and with the Home Owners Loan Coalition (HOLC), a federally-funded program created to help homeowners refinance their mortgages, it seemed that it would never end.

Read More

Analysis Of The Article 'Gridlock' By Steve Francks

561 Words | 3 Pages

pg 17, This article talks about the highs and lows of the housing market and how it has contributed to the victories and down falls of housing bills/policies. President Roosevelt had a huge impact on housing during his presidency, however 55 years later we have not reach his goal in the right to house every family. During those 55 years we had success stories and failures in making this dream come true. Some of these success stories about housing comes from the efforts and funding of nonprofits. However the government still lacks a large part in making this goal come true.

Read More

Peggy Mcinntosh White Privilege During World War 2

1070 Words | 5 Pages

The racial wealth divide is wealth and poverty created after World War II. When veterans returned home the FHA approved 98% (podcast, House Rule) of the mortgage to white people allowing them to buy lands, farms, properties, and houses. Helping building up the middle-class people by allowing them to get home ownership. They were approved for G.I. Bill to attend school and grants to start up small business. Meanwhile black veterans returned from war and was turned down for all the these benefits that left them remain in poverty.

Read More

Summary Of We Gon Be Alright

798 Words | 4 Pages

It was this way all across the country. Neighborhoods where mostly people of color lived were more than twice as likely to have received subprime loans as mostly white neighborhoods.” (Chang, 79) This means that when there was a crash, minorities who lived in these areas were subjected to losing their homes because of

Read More

New Deal Dbq

1150 Words | 5 Pages

In “African Americans and the New Deal, the documents starts with, “Most New Deal programs discriminated against African Americans” This was only the beginning. The article goes on to say that the FHA had lower pay scales for Black Americans (African Americans and the New Deal 1). This is discrimination to give higher pay for Whites and not Blacks. One of the New Deal’s program called the AAA, “forced 100,000 blacks off the land in 1933 and 1934”

Read More

Housing Segregation In Chicago, Illinois During The 1900s

1489 Words | 6 Pages

The first to do so was Baltimore, who in 1910, chose to formalize legislation that prohibited Black people from purchasing residences in majority-white neighborhoods and vice versa. In response to this injustice, President Lyndon B. Johnson ratified the Fair Housing Act in 1968, declaring it unlawful for real estate agents to discriminate on the account of race, religion, or nationality. Despite the FHA’s legalization, the racial wealth gap remains a current and significant concern in the African-American community due to the expanding racial wealth gap supported by Redlining’s legacy. Redlining and housing segregation continue to be interwoven with the racial wealth gap due to the low homeownership rates amongst the minority community, deflated home prices of residences in redlined areas – where most Black people reside –, and the lack of funding for education and resources in majority-Black neighborhoods. Chicago was among the numerous cities that were heavily impacted by the housing segregation crisis and continues to face the devastating effects, one of the many being the racial income disparities.

Read More

Housing Act Of 1934 Research Paper

588 Words | 3 Pages

Having exposed ourselves to some of the legislation and actions taken to address the housing problem, we can now see how effective they were, starting with the National Housing Act of 1934. The National Housing Act of 1934 gave rise to the Federal Housing Administration (FHA), revolutionizing mortgage practices during the Great Depression. Its primary objectives were to enhance housing standards, establish mutual mortgage insurance, and mitigate foreclosures. In the 1930s, the housing market was in disarray, with thousands defaulting on mortgages daily. A staggering 50% of all mortgages in the U.S. were arrears by 1933.

Read More

Cultural Oppression By Jerome Schiele Analysis

485 Words | 2 Pages

So, many African Americans are denied jobs and receive much lower wages than people of European descent, and it's most likely due to the roots of slavery and discrimination. A possible solution to reducing the great wealth gap that exists between whites and blacks in the United States is to eliminate the discrimination in the realm of housing

Read More

Inequality In George S. Schuyler's Black No More

748 Words | 3 Pages

How? In order for homes to receive financing, they would have to be certified by home appraisers. The appraisers were given written criteria that assigned colors to different types of homes” (Oliver). As he had said, blacks weren’t allowed to be given the homes in good neighborhoods with white

Read More

Redlining In Lorraine Hansberry's A Raisin In The Sun

539 Words | 3 Pages

For bringing the home within the reach of a black purchaser, however, the speculator extracted a considerable price.” (Jamelle Bouie,How we built the ghettos, page 2) This is like when Lena the mother of Walter and beneatha bought a new house and only had to put a small down payment on it in order to buy the

Read More

Dbq On The New Deal

1041 Words | 5 Pages

The Great Depression was the worst depression in the United States history, as a result of unemployment, hundreds of thousands of American workers were forced to live on the streets or in makeshift shacks. The election of Franklin D. Roosevelt in 1932 brought a sense of hope to American citizens because he had a plan to lead the United States out of the catastrophic depression which was called the “New Deal”. The New Deal was divided into short term goals and long term goals. The short term goals were to relief and to recover immediately. The long term goals were to ensure permanent recovery and rectify the abuses of that time period.

Read More

Arguments Against Racism And Finance In America

1617 Words | 7 Pages

In many cases, racism in mortgage lending and finance ended up causing devastating results. During the mortgage crisis of 2008 for example, minorities who were given sub-prime mortgages suffered many more foreclosures on their properties than Whites. This is because they were offered low, affordable “ teaser” rates to get their business. Later on, people of color were often slammed with much higher variable rates that banks knew they couldn’t afford. This forced them to lose their properties that the banks later sold off for a profit to developers or White clients who were looking to make a good deal off of the backs of minorities that had suffered (marketwatch.com, 2009).

Read More

Ghetto Segregation

1058 Words | 5 Pages

With this comes the phenomenon of class prejudice in which affluent, white families seek to “carve out enclaves” that exclude poor, minority groups, majority of which are black. Even more corrupt is that fact that the wealthy upper class whites have the legal power to do this because of the “institutional nexus of home-ownership rights, tax policy, local political autonomy, and the authority to restrict school district membership” (Shelby

Read More

Causes And Consequences Of Residential Segregation

860 Words | 4 Pages

Residential segregation is when different groups of people live in different neighborhoods, often based on level of income or race. There are a few causes contributing to this problem, which result in consequences. There is also the question of opportunity. Some black people will never have the opportunity to move out of black neighborhoods and into multi-racial neighborhoods because of the difference in quality of education, healthcare and the problem of crime (Pappas, 2012). In this section, we will be discussing the residential segregation associated with race and the various factors contributing to the cause of this separation to help us answer our problem formulation.

Read More

More about Housing Act Of 1934 Essay

Related Topics

Open Document