One of the most destructive policies at the time was redlining. Redlining was a policy put in place by the Federal Housing Association starting in 1937. Through the program, the association could rank neighborhoods from Type A, which was desirable, to Type D (outlined in red), which was deemed hazardous. Residents in Type D neighborhoods were ineligible for loans to buy or fix houses. The program was implemented to rank type C or D neighborhoods with any African American population.[52] This was also the case in Palo Alto and the surrounding areas. Palo Alto’s White neighborhoods were ranked mostly Type A and B, allowing for wealth accumulation and eventually resulting in the high housing prices we see today. On the other hand, the surrounding areas were all marked Type C and D, and African Americans found themselves being driven to the outskirts of Palo Alto, what is now primarily East Palo Alto, where there was no money from loans in the economy, leading to a state of decay.
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