On this dayNov 20, 1962

Discrimination in Federally-Funded Housing Finally Banned; Lacked Enforcement

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On November 20, 1962, President John F. Kennedy issued Executive Order 11063, banning federally-funded housing organizations from discriminating against individuals on the basis of race.

The order attempted to address the rampant racial prejudice that had long influenced the loan decisions of government-backed organizations like the Federal Housing Administration. These organizations commonly engaged in practices like “red-lining,” a color-coded method of labeling the riskiness of a mortgage based on the racial demographics of a borrower’s neighborhood. Under this system, black neighborhoods typically received the worst ratings (red). As a result, home loans were channeled away from those communities and into mostly white, “less risky” neighborhoods. In the face of high levels of residential segregation, this system left African Americans without ready access to federal home loans and largely unable to purchase homes regardless of their financial situation. Many African Americans were thus relegated to living in segregated, impoverished areas.

While President Kennedy’s executive order marked an important symbolic step in redressing the problem of discriminatory housing policies in the United States, it did not immediately have a dramatic impact largely because the order failed to provide a strong enforcement mechanism. Impacted agencies were simply directed to take steps to police themselves, allowing discriminatory lending practices to continue without the threat of federal intervention. It was not until the passage of the Fair Housing Act of 1968 that fair housing regulations began to be meaningfully enforced.

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