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“Government's commitment to separating residential areas by race began nationwide following the violent suppression of Reconstruction after 1877. Although the Supreme Court in 1917 forbade the first wave of policies—racial segregation by zoning ordinance—the federal government began to recommend ways that cities could evade that ruling, not only in the southern and border states but across the country. In the 1920s a Harding administration committee promoted zoning ordinances that distinguished single-family from multifamily districts. Although government publications did not say it in as many words, committee members made little effort to hide that an important purpose was to prevent racial integration. Simultaneously, and through the 1920s and the Hoover administration, the government conducted a propaganda campaign directed at white middle-class families to persuade them to move out of apartments and into single-family dwellings. During the 1930s the Roosevelt administration created maps of every metropolitan area, divided into zones of foreclosure risk based in part on the race of their occupants. The administration then insured white homeowners' mortgages if they lived in all-white neighborhoods into which there was little danger of African Americans moving. After World War II the federal government went further and spurred the suburbanization of every metropolitan area by guaranteeing bank loans to mass-production builders who would create the all-white subdivisions that came to ring American cities. In 1973, the U.S. Commission on Civil Rights concluded that the 'housing industry, aided and abetted by Government, must bear the primary responsibility for the legacy of segregated housing. . . . Government and private industry came together to create a system of residential segregation.”

RacismInjusticeDiscriminationHousingSegregation
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“At the time, the Federal Housing Administration and Veterans Administration not only refused to insure mortgages for African Americans in designated white neighborhoods like Ladera; they also would not insure mortgages for whites in a neighborhood where African Americans were present. So once East Palo Alto was integrated, whites wanting to move into the area could no longer obtain government-insured mortgages. State-regulated insurance companies, like the Equitable Life Insurance Company and the Prudential Life Insurance Company, also declared that their policy was not to issue mortgages to whites in integrated neighborhoods. State insurance regulators had no objection to this stance. The Bank of America and other leading California banks had similar policies, also with the consent of federal banking regulators.”

RacismHousingSegregationBlockbustingMortgage Insurance
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“...Vito Marcantonio of New York, who argued on the the House floor that “you have no right to use housing against civil rights...Housing is advanced in the interest of the general welfare and in the interest of strength[en]ing democracy. When you separate civil rights from housing you weaken that general welfare.”

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Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“The Federal Government government's policy of racial exclusion had roots earlier in the twentieth century. The Wilson administration took the initial steps. Terrified by the 917 Russian revolution, government officials came to believe that communism could be defeated in the United states by getting as many white Americans as possible to become homeowners-the idea being that those who owned property would be invested in the capitalist system. So in 1917 the federal Department of Labor promoted an 'Own-Your-Own-Home' campaign, handing out 'We Own Our Own Home' buttons to schoolchildren and distributing pamphlets saying that it was a 'patriotic duty' to cease renting and to build a single-family unit. the department printed more than two million posters to be hung in factories and other businesses and published newspaper advertisements throughout the country promoting single-family ownership-each one had an image of a white couple or family.”

CapitalismCommunismSegregationRacial InjusticeHome Ownership
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“Rosewood Courts, Austin's Eastside project for African Americans, was built on land obtained by condemning Emancipation Park, the site of an annual festival to commemorate the abolition of slavery. The park had been privately owned by a neighborhood association the Travis County Emancipation Organization, and residents protested the condemnation of this community institution in which they took great pride. But their objects had no effect, despite the availability of other vacant land.”

SegregationPublic HousingEmancipation Park
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“In New Jersey, for example, Governor Harold Hoffman refused to allow any camps for African American corps members because of what he termed “local resentment.” The national CCC director, Robert Fechner, implemented a policy never to “force colored companies on localities that have openly declared their opposition to them.”

SegregationPublic HousingCivilian Conservation Corp
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“The USHA manual warned that it was undesirable to have projects for white families “in areas now occupied for Negroes” and added: “The aim of the [local housing] authority should be the preservation rather than the disruption of community social structures which best fit the desires of the groups concerned.”

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Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“According to Bartholomew, an important goal of St. Louis zoning was to prevent movement into 'finer residential districts . . . by colored people.' He noted that without a previous zoning law, such neighborhoods have become run-down, 'where values have depreciated, homes are either vacant or occupied by color people.' The survey Bartholomew supervised before drafting the zoning ordinance listed the race of each building's occupants. Bartholomew attempted to estimate where African Americans might encroach so the commission could respond with restrictions to control their spread. The St. Louis zoning ordinance was eventually adopted in 1919, two years after the Supreme Court's Buchanan ruling banned racial assignments; with no reference to race, the ordinance pretended to be in compliance. Guided by Bartholomew's survey, it designated land for future industrial development if it was in or adjacent to neighborhoods with substantial African American populations. Once such rules were in force, plan commission meetings were consumed with requests for variances. Race was frequently a factor. For example, on meeting in 1919 debated a proposal to reclassify a single-family property from first-residential to commercial because the area to the south had been 'invaded by negroes.' Bartholomew persuaded the commission members to deny the variance because, he said, keeping the first-residential designation would preserve homes in the area as unaffordable to African Americans and thus stop the encroachment. On other occasions, the commission changed an area's zoning from residential to industrial if African American families had begun to move into it. In 1927, violating its normal policy, the commission authorized a park and playground in an industrial, not residential, area in hopes that this would draw African American families to seek housing nearby. Similar decision making continued through the middle of the twentieth century. In a 1942 meeting, commissioners explained they were zoning an area in a commercial strip as multifamily because it could then 'develop into a favorable dwelling district for Colored people. In 1948, commissioners explained they were designating a U-shaped industrial zone to create a buffer between African Americans inside the U and whites outside. In addition to promoting segregation, zoning decisions contributed to degrading St. Louis's African American neighborhoods into slums. Not only were these neighborhoods zoned to permit industry, even polluting industry, but the plan commission permitted taverns, liquor stores, nightclubs, and houses of prostitution to open in African American neighborhoods but prohibited these as zoning violations in neighborhoods where whites lived. Residences in single-family districts could not legally be subdivided, but those in industrial districts could be, and with African Americans restricted from all but a few neighborhoods, rooming houses sprang up to accommodate the overcrowded population. Later in the twentieth century, when the Federal Housing Administration (FHA) developed the insure amortized mortgage as a way to promote homeownership nationwide, these zoning practices rendered African Americans ineligible for such mortgages because banks and the FHA considered the existence of nearby rooming houses, commercial development, or industry to create risk to the property value of single-family areas. Without such mortgages, the effective cost of African American housing was greater than that of similar housing in white neighborhoods, leaving owners with fewer resources for upkeep. African American homes were then more likely to deteriorate, reinforcing their neighborhoods' slum conditions.”

DiscriminationSegregationRacial InjusticeSt LouisZoning
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“Although the federal government had been trying to persuade middle-class families to buy single-family homes for more than fourteen years, the campaign had achieved little by the time Franklin D. Roosevelt took office in 1933. Homeownership remained prohibitively expensive for working- and middle-class families: bank mortgages typically required 50 percent down, interest-only payments, and repayment in full after five to seven years, at which point the borrower would have to refinance or find another bank to issue a new mortgage with similar terms. Few urban working- and middle-class families had the financial capacity to do what was being asked. The Depression made the housing crisis even worse. Many property-owning families with mortgages couldn't make their payments and were subject to foreclosure. With most others unable to afford homes at all, the construction industry was stalled. The New Deal designed one program to support existing homeowners who couldn't make payments, and another to make first-time homeownership possible for the middle class. In 1933, to rescue households that were about to default, the administration created the Home Owners' Loan Corporation (HOLC). It purchased existing mortgages that were subject to imminent foreclosure and then issued new mortgages with repayment schedules of up to fifteen years (later extended to twenty-five years). In addition, HOLC mortgages were amortized, meaning that each month's payment included some principal as well as interest, so when the loan was paid off, the borrower would own the home. Thus, for the first time, working- and middle-class homeowners could gradually gain equity while their properties were still mortgaged. If a family with an amortized mortgage sold its home, the equity (including any appreciation) would be the family's to keep. HOLC mortgages had low interest rates, but the borrowers still were obligated to make regular payments. The HOLC, therefore, had to exercise prudence about. its borrowers' abilities to avoid default. to assess risk, the HOLC wanted to know something about the condition of the house and of surrounding houses in the neighborhood to see whether the property would likely maintain its value. The HOLC hired local real estate agents to make the appraisals on which refinancing decisions could be based. With these agents required by their national ethics code to maintain segregation, it's not surprising that in gauging risk HOLK considered the racial composition of neighborhoods. The HOLC created color-coded maps of every metropolitan area in the nation, with the safest neighborhoods colored green and the riskiest colored red. A neighborhood earned a red color if African Americans lived in it, even if it was a solid middle-class neighborhood of single-family homes. For example, in St. Louis, the white middle-class suburb of Ladue was colored green because, according to an HOLC appraiser in 1940, it had 'not a single foreigner or negro.' The similarly middle-class suburban area of Lincoln Terrace was colored red because it had 'little or no value today . . . due to the colored element now controlling the district.' Although HOLC did not always decline to rescue homeowners in neighborhoods colored red on its maps (i.e., redlined neighborhoods), the maps had a huge impact and put the federal government on record as judging that African Americans, simply because of their race, were poor risks.”

RacismDiscriminationSegregationRedlining
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“To solve the inability of middle-class renters to purchase single-family homes for the first time, Congress and President Roosevelt created the Federal Housing Administration in 1934. The FHA insured bank mortgages that covered 80 percent of purchase prices, had terms of twenty years, and were fully amortized. To be eligible for such insurance, the FHA insisted on doing its own appraisal of the property to make certain that the loan had a low risk of default. Because the FHA's appraisal standards included a whites-only requirement, racial segregation now became an official requirement of the federal mortgage insurance program. The FHA judged that properties would probably be too risky for insurance if they were in racially mixed neighborhoods or even in white neighborhoods near black ones that might possibly integrate in the future. When a bank applied to the FHA for insurance on a prospective loan, the agency conducted a property appraisal, which was also likely performed by a local real estate agent hired by the agency. as the volume of applications increased, the agency hired its own appraisers, usually from the ranks of the private real estate agents who had previously been working as contractors for the FHA. To guide their work, the FHA provided them with an Underwriting Manual. The first, issued in 1935, gave this instruction: 'If a neighborhood is to retain stability it is necessary that properties shall continue to be occupied by the same social and racial classes. A change in social or racial occupancy generally leads to instability and a reduction in values.' Appraisers were told to give higher ratings where '[p]rotection against some adverse influences is obtained,' and that '[i]mportant among adverse influences . . . are infiltration of inharmonious racial or nationality groups.' The manual concluded that '[a]ll mortgages on properties protected against [such] unfavorable influences, to the extent such protection is possible, will obtain a high rating.' The FHA discouraged banks from making any loans at all in urban neighborhoods rather than newly built suburbs; according to the Underwriting Manual, 'older properties . . . have a tendency to accelerate the rate of transition to lower class occupancy.' The FHA favored mortgages in areas where boulevards or highways served to separate African American families from whites, stating that '[n]atural or artificially established barriers will prove effective in protecting a neighborhood and the locations within it from adverse influences, . . . includ[ing] prevention of the infiltration of . . . lower class occupancy, and inharmonious racial groups.”

RacismSegregationRedliningFha
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“We have greater political and social conflict because we must add unfamiliarity with fellow citizens of different racial backgrounds to the challenges we confront in resolving legitimate disagreements about public issues. Racial polarization stemming from our separateness has corrupted our politics, permitting leaders who ignore the interests of white working-class voters to mobilize them with racial appeals.”

PoliticsSegregationRace RelationsZoningDog Whistle PoliticsDe Jure SegregationRacial Polarization
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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“Events in the African American town of Hamburg, in the Edgefield District of South Carolina, were typical of many others across the former Confederacy where white paramilitary groups mobilized to regain control of state governments. Their aim was simple: prevent African Americans from voting. In July 1876, a few months before the election that gave the presidency to Hayes, a violent rampage in Hamburg abolished the civil rights of freed slaves. Calling itself the Red Shirts, a collection of white supremacists killed six African American men and then murdered four others whom the gang had captured. Benjamin Tillman led the Red shirts; the massacre propelled him to a twenty-four-year career as the most vitriolic racist in the U.S. Senate. Following the massacre, the terror did not abate. In September, a 'rifle club' of more than 500 whites crossed the Savannah River from Georgia and camped outside Hamburg. A local judge begged the governor to protect the African American population, but to no avail. The rifle club then moved on to the nearby hamlet of Ellenton, killing as many as fifty African Americans. President Ulysses S. Grant then sent in federal troops, who temporarily calmed things down but did not eliminate the ongoing threats. Employers in the Edgefield District told African Americans they would be fired, and landowners threatened black sharecroppers with eviction if they voted to maintain a biracial state government. When the 1876 election took place, fraudulent white ballots were cast; the total vote in Edgefield substantially exceeded the entire voting age population. Results like these across the state gave segregationist Democrats the margin of victory they needed to seize control of South Carolina's government from the black-white coalition that had held office during Reconstruction. Senator Tillman later bragged that 'the leading white men of Edgefield' had decided to 'seize the first opportunity that the Negroes might offer them to provoke a riot and teach the Negroes a lesson.' Although a coroner's jury indicted Tillman and ninety-three other Red Shirts for the murders, they were never prosecuted and continued to menace African Americans. Federal troops never came to offer protection. The campaign in Edgefield was of a pattern followed not only in South Carolina but throughout the South. With African Americans disenfranchised and white supremacists in control, South Carolina instituted a system of segregation and exploitation that persisted for the next century. In 1940, the state legislature erected a statute honoring Tillman on the capitol grounds, and in 1946 Clemson, one of the state's public universities, renamed its main hall in Tillman's honor. It was in this environment that hundreds of thousands of African Americans fled the former Confederacy in the first half of the twentieth century.”

RacismSegregationReconstructionRacial Injustice
Book:The Color of Law: A Forgotten History of How Our Government Segregated America
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