Erasing the Red Line? National Lessons from a New York Homeowner Policy

The centrality of home equity to the balance sheets American households, and oppressive legacy racial exclusion from mortgage markets, compel design intentionally anti-racist housing policy capable building lasting wealth for Black families. In this study, we compare home-mortgage terms offered middle-income Whites in New Deal era, with a contemporary York City formerly redlined districts. city's Housing Development Fund Corporation is limited-income households but does not limit down payments nor qualify federal loans. Using mined listing data 2017 Panel Study Income Dynamics, find more than 80% income-eligible urban lack purchase median listing, versus 51% Whites. Moreover, policy's market exclusions preclude access what now substantial accumulated equity. Unit owners face wide-scale housing-code violations property seizure, highlighting limitations “limited equity” ownership, which counteracts creation. We draw two primary lessons. First, cannot demand financial assets. Second, financing schemes improvement or climate-responsive adaptation, addition initial purchase, should be well-tailored family budgets designed deliver excluded.