The Legacy and Origin of Redlining in Dallas

For over 30 years, Dallas City Homes (DCH) has been a non-profit leader in promoting and developing mixed income housing. Like many American cities, Dallas has a complex history of urban development, driven by inequitable practices. One practice that has shaped the city's housing landscape is redlining. Redlining originated in the 1930s as a way of determining funding, based on certain factors, it drew red lines around neighborhoods and communities, that in turn defined and perpetuated systemic inequalities. We wanted to share some of the ways that redlining affected the development in Dallas. 

The Origins and Practice of Redlining:

During the Great Depression, Redlining emerged as a result of the Home Owners' Loan Corporation (HOLC). This federal agency assigned risk grades to neighborhoods based on their racial composition and economic conditions. Areas with higher minority populations or lower incomes were deemed "hazardous" and were marked in red on maps, hence the term "redlining." As a result, these neighborhoods were often denied access to loans and other financial resources, which perpetuated cycles of poverty and segregation.

Redlining in Dallas:

Dallas was not exempt from the impact of redlining. Maps created by the HOLC show the discriminatory practices that were implemented, effectively dividing the city into "desirable" and "undesirable" neighborhoods. Redlined neighborhoods in Dallas experienced disinvestment, as banks and lending institutions were hesitant to provide loans or mortgages in these areas. This lack of financial support hindered the growth and development of these communities, leading to deteriorating infrastructure, fewer job opportunities, and limited access to quality education and healthcare. African American and Hispanic communities were disproportionately affected, as they were often relegated to the lowest-rated areas with limited opportunities for upward mobility.

Reinvesting in Communities and Moving Forward 

Redlining was officially outlawed in 1968 with the Fair Housing Act, however its’ impact is still felt in many ways. Efforts to address the legacy of redlining include community-led initiatives, affordable housing programs, and policies aimed at promoting equitable development. Part of our mission at DCH is to invest in disinvested neighborhoods and transform communities who were redlined. Our community partners provide lending opportunities for housing, employment opportunities, and are activists for increasing opportunities for residents in these neighborhoods. 

By understanding the historical context and ongoing consequences of redlining, we can work towards creating a more equitable and inclusive city. Efforts to promote fair housing, community development, and access to resources are essential for breaking the cycles of poverty and segregation, fostering a brighter future for all residents of Dallas.