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Pryor issues statement on redlining after recent developments call the practice economic deprivation

IBLC, News & Media

INDIANAPOLIS – State Rep. Cherrish Pryor (D-Indianapolis) today committed to ending redlining and discriminatory housing practices in light of a recent lawsuit following a lengthy investigation into fair housing practices.

Recent investigations allege racially discriminatory mortgage lending practices in Black neighborhoods in the Indianapolis metropolitan area, conduct that would constitute redlining and violate the federal Fair Housing Act.

Redlining refers to the practice implemented by the Federal Housing Administration in the 1930s and 40s that outlined Black communities in red ink on maps to warn mortgage lenders about “risks” of investing in those areas. Although the practice was outlawed by the Fair Housing Act in 1968, the practice continues as historically segregated neighborhoods continue to influence the choices of white residents and banks.

Studies have shown that housing equity accounts for two-thirds of a household's wealth, meaning continued practices of housing discrimination is the largest contributor to the racial wealth gap,” Pryor said. “This gap in equity means that white families are able to accumulate over 10 times more wealth than Black families.

“Redlining and the resulting racial wealth gap continues to hurt communities of color by affecting access to public education, representation in the statehouse, housing affordability, wealth accumulation and the ability to save and retire.

“Continued housing discrimination perpetuates systemic racism by feeding into broken-window policing, disproportionate involvement in the criminal justice system and a lack of public investment in these historically Black communities. These civil rights violations have serious economic consequences for all Hoosiers. 

“Redlining in Indiana systematically strips Black Americans of their opportunities to achieve the American Dream. It is economic deprivation because it robs families of generational wealth and financial security among other things. I will continue to push for legislation that addresses the racial disparities that have robbed Black Hoosiers of life opportunities and our state and country from their contributions.”

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