Redlining in DSM
The system of redlining is a historical housing policy that was established by the Federal Housing Administration (FHA) in 1934. It was the first time in US history that the federal government got involved in the homeownership and mortgage lending system. The FHA created a universal lending system that completely changed access to homeownership for middle-income households. As part of the program, risk assessment maps were developed. These maps used a color-coded system to depict the level of risk in each neighborhood. The maps used RED to show the highest risk neighborhoods, the neighborhoods with the highest concentration of "hazardous populations," low valued property, and low economic incomes. These were the neighborhoods that were cut off from receiving FHA loans. This is where the term redlining came from.