FDR signs National Housing Act creating FHA agency begins redlining Black neighborhoods from day one

President Roosevelt signs the National Housing Act of 1934, creating the Federal Housing Administration to insure mortgage loans and expand homeownership. From the first day of operations, FHA staff implement a redlining policy barring loan insurance in neighborhoods populated by or near Black residents, arguing such areas are not "economically sound" investments. The 1934 FHA Underwriting Manual explicitly lists race as a negative factor and requires restrictive covenants barring Black residents from insured properties. Between 1934 and 1962, only 2% of $120 billion in federally subsidized housing goes to non-white buyers.