I agree. I had mentioned the FHA, the creation of Levittowns etc. in an earlier post.
Thanks for writing. Wilma de Soto On 10/13/03 8:43 PM, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote: > Although you two, Wilma and Fred, probably know this well, everyone on the > list may not be aware of how much of the "credit" for white flight and > abandonment of cities needs to be given to the FHA. It used to be difficult > to get > long-term financing to buy houses, and there were many time in the early 20th > century when people simply couldn't get mortgages. The Federal government > came > up with FHA mortgages to solve this problem, but for many years, the > underwriting process was heavy on noting neighborhood characteristics and > adamant about > excluding "mixed" areas. Even areas with more than one religion were > considered "mixed" and therefore excluded - I remember reading a history with > quotes > about turning down a loan because of a "creeping Jewish influence" in the > neighborhood. So in a place like what we now call University City, as soon as > the > population became diverse, no one could get these long-term, low-rate FHA > mortgages - OR loans to repair properties. While white homeowners had an > option > - to move to the suburbs, where they could get FHA mortgages in new suburban > (white) housing developments - black homeowners didn't have that option. > > I'm not making any excuses for white flight, but this predicament does add > another layer to the reasons for it. If the next generation wanted to stay in > the old neighborhood, live near the parents, and buy a house of their own, a > mortgage wasn't available. (But they COULD get an FHA mortgage in the > suburbs...) If their parents died and left them the house but they needed to > fix it > up, they couldn't get a loan to do that. (But they COULD keep it, in > deteriorating condition, and rent it to someone who couldn't buy, while they > bought a > brand-new place across the city line...) > > Whether it's redlining, white flight or inequity based on race which makes a > listserv reader angry here, we owe all of these problems to our Federal > government. > > Melani Lamond ---- You are receiving this because you are subscribed to the list named "UnivCity." To unsubscribe or for archive information, see <http://www.purple.com/list.html>.
