The Great Depression was the worst economic time period in American history as many Americans became unemployed and poverty stricken. This made it hard for people to buy everyday necessities such as food. People who owed the bank money because of mortgages and loans were also unable to pay their debts and as a result, many Americans faced the threat of losing their homes due to foreclosure. Foreclosure happens when someone cannot pay their debts and in turn, the person who loaned the money can legally force the sale of property (like a house) and own it. To curb foreclosure, President Franklin D. Roosevelt created the Home Owners’ Loan Corporation (HOLC) in 1933 and this corporation sought to lower interest rates for mortgages and loans  Although President Roosevelt created HOLC with good intentions, HOLC unraveled a spiral of racial injustices that are still present in communities today. 

In order to decide who was qualified for a loan, the HOLC created Residential Security Maps that determined the risk of loaning money to a group of people living in a certain neighborhood or area. Areas marked green are best and were areas with businessmen. Blue meant still desirable and office/white collar workers were common in these areas. Yellow meant declining areas and these were the areas of working class families. Red meanest hazardous and these areas were often neighborhoods with immigrants, people of low class, and people of color (especially those of Black and Brown descent). In San Francisco, these redlined neighborhoods included the Western Additions, Chinatown, the Mission district, and Bayview. These maps created by the HOLC essentially determined who was deserving of resources and ultimately, redlined areas could not get the financial support or loans to purchase homes.

It took over thirty years after the creation of HOLC to finally codify equality in the home owning sector. In 1968, President Lyndon B. Johnson signed the Fair Housing Act which prohibited the discrimination in sale, rental, or financing of housing based on race, color, gender, or status. Still, this was signed too late as the damage was already done. Communities became more segregated and less fortunate communities had little access to good quality housing, education, and healthy living conditions. 

Since redlined areas are less valued, people became reluctant to start businesses there and this led to a lack of grocery stores, libraries, and other public services such as parks. Instead, industrial buildings were built near these areas which resulted in bad air quality, reproductive health, and an increased risk in early mortality because of heart diseases. 

Creating generational wealth is also important for many people as it allows one to pass down money and assets such as houses down to future generations. Because it was difficult for those in redlined areas to purchase assets such as houses during the HOLC era, there currently is a large wealth gap between lower class Americans who could not invest in a home and middle to high class Americans who were able to pass down assets to their children. 

Public schools are funded from taxes at the state and local level while the federal government is barely involved. In California, 62% comes from state funding and 21% comes from local property taxes. According to Pew Research Center, 81% (65.5 million) students were enrolled in public schools in 2021. The majority of students in America attend public schools, but there is a drastic unequal distribution of funds in the education system. 

Wealthier neighborhoods with more expensive houses generate more revenue for the schools which in turn allows the school to use that money for higher salaries for teachers, better facilities, and a higher quality of education. This leaves schools in previously redlined or poorer neighborhoods to receive an insufficient amount of funding to provide quality education and a decent salary for teachers. Enacted in 1979, Proposition 13 prevented the increase of more than 2% on property taxes and limited the property tax rate to 1%. This severely cut the funding for public schools and this lack of sufficient education traps those in poorer neighborhoods in a cycle of poverty. 

Everyone is in some way part of a community. To make an effort to remedy the effects of redlining, staying informed and doing research about the propositions/government decisions that are voted on can help make sure you know clearly what you are voting for. One can also make a lasting impact by volunteering at organizations that help the community and or be a tutor for those who need additional support with school. Finally, looking out and noticing injustices in a community and advocating about them can help erase the lines and inequities that divide us.