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The State of Minority NC

Presentation from the National Institute of Minority Economic Development Executive Networking Conference 2022

Once a state with a clear racial binary (white/black), North Carolina continues to become more diverse as a result of natural increase (births) in minority populations, in-migration from other parts of the United States, and International migration of refugees and immigrants settling in NC. These demographic changes have great implications for housing equity, access to healthcare, educational opportunity, and economic development for North Carolina’s diverse minority communities.

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In the News July 20 – August 3, 2022

Housing Equity:

  1. Treasury Announces New Steps to Increase Affordable Housing Supply and Lower Long-Term Housing Costs for American Families: The U.S. Department of the Treasury announced new guidance to increase the ability of state, local, and tribal governments to use American Rescue Plan (ARP) funds to boost the supply of affordable housing in their communities.
  2. Raleigh first time home buyers priced out despite financial assistance programs: Raleigh’s Homebuyers Assistance Program would typically assist about 50 to 60 people a year before the pandemic and housing boom. So far in 2022, only five people were able to close on their homes with assistance through the program.
  3. Evictions begin to creep back up in parts of central North Carolina: As federal pandemic relief money runs out, evictions across North Carolina are again beginning to increase. While eviction rates are currently lower across a majority of the counties, some counties historically report almost double the rates elsewhere in the state.
  4. Greensboro voters approve $135 million in bond measures: $30 million in housing bonds will go toward affordable housing, making homeownership easier, and making some neighborhoods more attractive to buyers.
  5. Houses were once plentiful across the U.S. Now half of cities don’t have enough homes: More than half of the nation’s metropolitan regions had an undersupply of homes in 2019, a sharp increase from one-third of cities in the 2012. The nation is short 3.8 million homes to meet its housing needs.

Health Equity:

  1. NC Legislature Idles for Now on Medicaid Expansion Agreement: General Assembly leaders acknowledged on Tuesday that a compromise for North Carolina to finally embrace Medicaid expansion likely won’t come quickly and pinned success for a near-future agreement in part on buy-in from a key health care interest group.
  2. NC overdose deaths increased more than the national average in 2020: Drug overdose deaths surged by 30% nationally and 40% in North Carolina during the first year of the pandemic. Across the country, Black and Native American communities saw higher rates of overdose deaths and those disparities are worsening.
  3. Uterine cancer cases rising, outcomes worsening especially for Black women: Researchers at UNC Lineberger Comprehensive Cancer Center are investigating the why Black women die of uterine cancer at twice the rate of white women and are looking at factors of tumor biology, access to care, lifestyle, and behavior to improve outcomes and close the racial disparity gap.
  4. Vanderbilt, UNC and Duke Nurse-Midwives Join Forces to Reduce Black Maternal Health Risks: Nurse-midwives and educators from three prominent research universities form the Alliance of Black Doulas for Black Mamas to improve pregnancy outcomes in Black communities by providing specialized training for doulas.
  5. NC Health Center Aims to Reduce Mental-Health Stigma Among Latinos: Camino Health Center is spreading the word about Spanish-speaking therapists and counselors available to residents in the Charlotte area, addressing the stigma and lack of Spanish language resources in the community.

Economic Development:

  1. Biden-⁠Harris Administration Advances Equity And Economic Opportunity Through Federal Procurement And State And Local Infrastructure Contracting: Administration Announces Record Contract Spending on Small Disadvantaged Businesses and New Steps to Create Contracting Opportunities for Disadvantaged Businesses through the Bipartisan Infrastructure Law
  2. U.S. Senate passes bipartisan bill to boost Cybersecurity Job Training at HBCUs: The Cybersecurity Opportunity Act requires that 50% of grant funds must go to HBCU’s, tribal, and minority serving institutions in order to support greater diversity and equality of opportunity in the cybersecurity field.
  3. Lenovo and Panthers partner to support NC small businesses: Lenovo and the Carolina Panthers have announced the return of the Empowering the Carolinas contest to celebrate and uplift small businesses – especially those that are women and minority-owned – across North America through grant and product donations, mentorship, and community engagement activities.
  4. US sees union boom despite big companies’ aggressive opposition: Wins for Amazon and Starbucks workers shows labor movement surging after years of decline – but pushback has been fierce, and has come amid allegations of union-busting.
  5. UNC Charlotte alum paving the way for diverse developers: Jane Wu, founder of Panorama Holdings LLC, has donated $50,000 to UNC Charlotte to fund a scholarship for students from under represented backgrounds studying commercial real estate.

Educational Equity:

  1. NC legislative proposal would dramatically overhaul how North Carolina governs its public schools: GOP sponsors push for an elected state school board, but Democrats warn against further politicizing public education.
  2. 144 organizations sign onto brief asking Supreme Court to order compliance with school funding plan: Attorneys filed an amicus with the North Carolina Supreme Court this week in the long-running Leandro school funding lawsuit contending the state has consistently failed to provide every child in North Carolina with access to the educational opportunities to which they are constitutionally entitled under the previous ruling.
  3. New report delves into state of early childhood education in Western NC: Early childhood education opportunities and challenges across the state’s 18 westernmost counties have decreased since 2019 and put a cost burden on families, leaving many to enroll in lower-quality programs.
  4. Half of NC’s community colleges not within walkable transit: In North Carolina, more than 500,000 people attend community colleges annually. Without consistent and easily accessible transit options students that lack access to a car could be discouraged from seeking higher education — a significant driver of economic mobility in the state.
  5. NCAE opposes plan to pay NC teachers based on performance instead of their experience: A state commission is working on a new licensure and compensation model that would pay teachers based on their ratings on student test scores.
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In the News 7.20.2022

Housing Equity:

  1. New Policy Protects People with Vouchers Seeking City-Supported Housing: The Charlotte City Council on Monday voted to adopt a new city policy that protects prospective tenants in City of Charlotte-supported housing developments from being disqualified from renting a unit because they participate in a rental subsidy program.
  2. Residents urge High Point city council members to rethink vote against fair housing: Residents in the city of High Point are urging city council members to rethink their vote against becoming a fair housing assistance program in May which would provide freedom from housing discrimination based on race, color, national origin, religion, sex, familial status, or ability.
  3. Congress Finds Private Equity Kept Buying Homes, Hiking Fees Over Pandemic: A survey by the house financial services committee found private equity homeownership has been growing in low-income neighborhoods where companies have increased tenants fees 40% between 2018 and 2022.
  4. HUD Announces 24 Programs to Join Biden-Harris Administration Justice40 Initiative: The programs included in today’s announcement create affordable and sustainable housing and meet a range of different housing needs for individuals and communities, including single- and multi-family housing and housing for seniors, persons with disabilities, and tribal communities.
  5. New NC funding will help expand affordable housing for those with specific needs: The North Carolina State Housing Finance Agency has approved $4.3 million in funding for properties geared toward those with special housing needs, including military veterans, children aging out of foster care, and people with disabilities who fall below 50 percent of the area median income.
  6. Housing Connections Initiative working to combat affordable home crisis: The North Carolina Coalition to End Homelessness has helped house more than 2,300 people by providing financial incentives and assistance to landlords willing to work with households coming out of homelessness.

Health Equity:

  1. How healthy are NC’s women, and are their needs ready to be met?: The women’s health report card from the UNC-Chapel Hill Center for Women’s Health Research spotlights promising trends in preventative health and adverse trends in perinatal and chronic health. Notable racial disparities in the data suggest differences in access to health care services and screenings.
  2. UNC, N.C. A&T Team to Lead Project to Address Social Determinants of Health in Women of Color: As part of the American Heart Association’s pledge to address social determinants of health in women of color, Alison Stuebe, MD, and her team of researchers received a $2.4-million grant to develop a curriculum that cultivates trust among patients and health team members.
  3. Biden Signs Executive Order on Access to Abortion Services: Executive order directs federal agencies to take steps within their power to safeguard abortions and reproductive health services, including ensuring the availability of emergency contraceptive medications and providing legal protection for out-of-state patients and abortion providers.
  4. Blue Cross NC taps Headway to expand mental health access for underserved members and children: In its latest effort to address critical mental health needs in the state, Blue Cross and Blue Shield of North Carolina is tapping a fast-growing mental health startup to help expand its network of behavioral health providers to underserved communities including children from diverse racial and ethnic backgrounds.
  5. Medicaid expansion would help people incarcerated in jails and prisons: Thousands of people currently cycling in and out of jails and prisons are among the roughly 600,000 who would get health coverage under Medicaid expansion, potentially transforming North Carolina’s justice system.
  6. NCDHHS Announces New National 9-8-8 Number for People in Mental Health Crisis: Starting Saturday, people in mental health crisis can dial 9-8-8 to reach the National Suicide Prevention Lifeline and get immediately connected to trained crisis counselors 24/7.

Economic Development:

  1. Can people live on minimum wage in NC? Here’s how it compares to cost of living: With inflation affecting the cost of everything from food to gas, it’s getting harder for minimum wage employees to afford necessities. While the minimum wage in North Carolina is $7.25, the living wage for a single adult with no children in the state is $17.14. For single adult with one child, the living wage is nearly double.
  2. Climate Change, Extreme Temps Affect NC Black-Owned Small Businesses: In North Carolina, small Black-owned businesses say they’re struggling to cope with losses and damages from extreme weather events including floods, extreme heat, blackouts or severe storms.
  3. Equal Pay Gains Dampened as Wage Gaps Widen for Women of Color: Some incremental progress has been made in the effort to bring equal pay to women in the workplace, but data indicate women of color still face certain inequities exacerbated by the Covid-19 pandemic, widening their respective wage gaps from last year.
  4. Interest rates, price increases stand to have outsized effect on Black consumers, businesses: Black Americans — who already make less money, have a harder time securing loans for their businesses and have less financial security — stand to be hurt more than other demographic groups in this uncertain economy.
  5. CNBC Names North Carolina as America’s Top State for Business in 2022: North Carolina ranked highly in developing and training a strong workforce due to the Longleaf Commitment Community College Grants Program and the North Carolina Child Care Stabilization Grants and supported businesses through the pandemic with the Business Recovery Grant Program and ReTool NC Program for women- and minority-owned businesses.
  6. Truist announces $120 million commitment to strengthening small businesses: The commitment includes $30 million in philanthropic grants to support nonprofits who assist small businesses and diverse entrepreneurs and $5 million in philanthropic grants, which will support technical assistance, small businesses and volunteerism.

Educational Equity:

  1. Budget bill sent to Cooper puts NC’s controversial school voucher program on path to dramatic expansion: If the bill becomes law, funding for the underutilized voucher program would grow from $120.54 million to $176.54 million for the 2023-2024 school year, while traditional public schools are grappling with funding challenges and staffing shortfalls.
  2. U.S. Department of Education Awards Final $198 Million of American Rescue Plan Higher Education Funds to Support Students at Community Colleges, Rural, and Minority-Serving Institutions: Of the funds awarded, almost 90 percent will go toward Historically Black Colleges and Universities (HBCUs), Minority Serving Institutions (MSIs), community colleges, rural institutions, and institutions serving large populations of low-income students. The majority of institutions are also required to distribute roughly half of all grant funds directly to students with the greatest need.
  3. Education advocate joins task force to increase teacher diversity: Monique Perry-Graves, the executive director for Teach for America North Carolina, recently joined the State’s DRIVE Task Force to recruit teachers of racially, ethnically and linguistically diverse backgrounds to prioritize equity and inclusion in the educational system in North Carolina.
  4. N.C. A&T Works with Guilford County Schools to Build Community Education Center: The facility will be used to address the negative impact of COVID-19 on the district’s students, families, staff and community by providing flex spaces with tutoring, adult education and community meeting rooms for students and adults.
  5. U.S. Department of Education Announces Engage Every Student Initiative to Ensure Every Student Has Access to High-Quality Learning: The Initiative will help communities utilize American Rescue Plan funds alongside other state and local funds to allow more students to access more programs year-round to support their academic and mental health needs.
  6. NCDHHS Launches Raise NC to Highlight the Value of the State’s Early Care and Learning Network: The public education campaign highlights the value of the state’s early care and learning network to support children’s healthy development as well as families’ participation in the workforce.
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Current & Proposed Efforts for Improving African American Homeownership

Rather than narrowing, the gap in homeownership rates by race has grown steadily over the last century. In 1900, the gap between white and Black homeownership was 27.6%, that gap has not improved in the last 121 years with U.S. Census Bureau data from April 2021 showing a 29.6% difference between white and Black homeowners. The difference in median wealth has been attributable almost entirely to homeownership and the passing of resources through inheritance. Shapiro (2006) explains that homeownership acts as a vehicle for savings and for growing capital over the life course: “Homeownership and housing appreciation are the foundation of institutional accumulation. Indeed, for most Americans, home equity represents the largest reservoir of wealth: home wealth accounts for 60% of the total wealth among America’s middle class.”

The Research, Policy, and Impact Center hosted a colloquium on the topic of increasing Black homeownership moderated by Dr. Stephen Sills. Our guest speakers included:

  • Sofia Crisp, Executive Director, Housing Consultants Group.
  • Jung Hyun Choi, Senior Research Associate, Housing Finance Policy Center, Urban Institute.
  • Lauren Lowery, Director, Housing & Community Development, National League of Cities.
  • Joshua Devine, Director of Racial Economic Equity, National Community Reinvestment Coalition.
  • Michael Wallace, Vice President, Business Account Management Solutions, Fannie Mae.
  • Sam Gunter, Executive Director, NC Housing Coalition.

Please watch the recording of this discussion at:

Additional materials:

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Colloquium: Current & Proposed Efforts for Improving African American Homeownership

Rather than narrowing, the gap in homeownership rates by race has grown steadily over the last century. In 1900, the gap between white and Black homeownership was 27.6%, that gap has not improved in the last 121 years with U.S. Census Bureau data from April 2021 showing a 29.6% difference between white and Black homeowners. The difference in median wealth has been attributable almost entirely to homeownership and the passing of resources through inheritance. Shapiro (2006) explains that homeownership acts as a vehicle for savings and for growing capital over the life course: “Homeownership and housing appreciation are the foundation of institutional accumulation. Indeed, for most Americans, home equity represents the largest reservoir of wealth: home wealth accounts for 60% of the total wealth among America’s middle class.”

Register to join us on Friday, June 17, 2022 at 12:00PM (EST) via ZOOM. The colloquium will be hosted by the Research, Policy, & Impact Center at the National Institute of Minority Economic Development and moderated by Dr. Stephen Sills. Our guest speakers include:

  • Sofia Crisp, Executive Director, Housing Consultants Group.
  • Jung Hyun Choi, Senior Research Associate, Housing Finance Policy Center, Urban Institute.
  • Lauren Lowery, Director, Housing & Community Development, National League of Cities.
  • Joshua Devine, Director of Racial Economic Equity, National Community Reinvestment Coalition.
  • Michael Wallace, Vice President, Business Account Management Solutions, Fannie Mae.
  • Sam Gunter, Executive Director, NC Housing Coalition.

SIGN UP AT >>>https://tinyurl.com/NIMEDPolicyCenter

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RPIC Policy Agenda – Increase Affordable, Fair, & Healthy Housing Options

The relationship between income, housing, and wealth accumulation is interconnected. As Choi et al.  (2019) note, “there is a well-documented persistence of income inequality by race, a key factor contributing to the homeownership gap. Household income is a key input for mortgage underwriting determinations, and income is used in various calculations required for mortgage approval, such as the debt-to-income ratio.” [i] While the median income differences between white and Black households plays a major role in explaining the current differences in homeownership,[ii] research finds that “even among Black and white households in the same income cohort, there is a noticeable homeownership gap.”[iii] Evidence therefore points to the intergenerational impact of homeownership, and not income alone, as the accumulated inheritances and parental support that accompany home ownership, are “crucial in helping low-income households attain homeownership.”[iv]

Rather than narrowing, the gap in homeownership rates by race has grown steadily over the last century. In 1900, the gap between white and Black homeownership was 27.6%,[v] that gap has not improved in the last 121 years with U.S. Census Bureau data from April 2021 showing a 29.6% difference between white and Black homeowners. [vi],[vii] The difference in median wealth has been attributable almost entirely to homeownership and the passing of resources through inheritance. Shapiro (2006) explains that homeownership acts as a vehicle for savings and for growing capital over the life course: “Homeownership and housing appreciation are the foundation of institutional accumulation. Indeed, for most Americans, home equity represents the largest reservoir of wealth: home wealth accounts for 60% of the total wealth among America’s middle class.”[viii]

Black homeownership peaked in 2004 at 49.7%, but fell as a result of the foreclosure crisis in which “black families were hit particularly hard, housing data show, forcing many out of their homes and pushing black homeownership rates to record lows.”[ix]  In all, over 240,000 Black families or eight percent of Black homeowners lost their homes in the 2005-2008 period.[x]  The impact of the housing recession of was largely the result of predatory lending which, while increasing the number of minority homeowners, did so at higher interest and with worse lending terms for borrowers. Dey and Brown (2020) note, “at the center of the Great Recession was a subprime mortgage crisis that disproportionately affected Black and Hispanic homeowners. New mortgage originations declined whereas foreclosures and other reversals in homeownership increased, wiping out gains in minority homeownership rates.”[xi] Following the recession, Black households did not see the rebound in homeownership that white households experienced.[xii] In fact, between January of 2000 and January of 2019, Black homeownership fell 6.3% overall.[xiii] More importantly, “half of the wealth owned by Black households in the United States was destroyed.”[xiv]

Solution #1: Increase minority homeownership

Reform(s) Needed:

  1. Expanded down payment assistance programs in minority communities.
  2. Address bias and disparities in appraisals.
  3. Expanded emergency mortgage assistance/foreclosure prevention programs to ensure that a low income household doesn’t lose their home.
  4. “Ban the box” on NC Standard Offer to Purchase that asks if the borrower is receiving down payment assistance.

Solution #2: Provide more affordable housing options for those making less than 80% AMI

Reform(s) Needed:

  1. Expand the number and amount for Low Income Housing Tax Credits (LIHTC).
  2. By-right zoning of multifamily, including small-to-medium-sized multifamily like duplexes, quadplexes, and ADUs.
  3. Provide seed funding for Community Land Trusts in major urban markets.
  4. Promote permanent supportive housing for those under 30% AMI.

Solution #3: Promote Affordable Housing Development in High Opportunity Areas

Reform(s) Needed:

  1. Increase incentives to landlords to accept HUD Housing Choice Vouchers.
  2. Enact statutes allowing mandatory  Inclusionary Zoning, not just in conditional programs.
  3. Expand Affirmatively Furthering Fair Housing rule and require Fair Housing Equity Assessments.
  4. Promote the use of publicly owned property for affordable housing or mixed-use development.

Download the printable Research, Policy, and Impact Agenda Part 2 Increase Housing Options


[i] Choi J., McCargo A., Neal M., Goodman L., Young C. (2019). “Explaining the Black-White Homeownership Gap: A Closer Look at Disparities across Local Markets.” Urban Institute. https://www.urban.org/sites/default/files/publication/101160/explaining_the_black-white_homeownership_gap_2.pdf

[ii] Choi, Jung Hyun. (2020). “Breaking Down the Black-White Homeownership Gap.” Urban Wire: Housing and Housing Finance. https://www.urban.org/urban-wire/breaking-down-black-white-homeownership-gap

[iii] Choi et al. ,2019

[iv] Choi, 2020.

[v] Olsen, Skylar. (2018). “Black and White Homeownership Rate Gap Has Widened Since 1900.” Zillow. https://www.zillow.com/research/homeownership-gap-widens-19384/

[vi] U.S. Census Bureau. (2021). “Homeownership Rates by Race and Ethnicity: Non-Hispanic White Alone in the United States [NHWAHORUSQ156N].” retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/NHWAHORUSQ156N

[vii] U.S. Census Bureau. (2021). “Homeownership Rates by Race and Ethnicity: Black Alone in the United States [BOAAAHORUSQ156N].” retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/BOAAAHORUSQ156N

[viii] Shapiro, Thomas. (2006). “Race, Homeownership and Wealth.” Journal of Law and Policy 20:53-74. https://openscholarship.wustl.edu/law_journal_law_policy/vol20/iss1/4.

[ix] McMullen, Troy. (2019).” The ‘heartbreaking’ decrease in black homeownership: Racism and rollbacks in government policies are taking their toll.” Washington Post. https://www.washingtonpost.com/news/business/wp/2019/02/28/feature/the-heartbreaking-decrease-in-black-homeownership/

[x] Gruenstein Bocian, Debbie, Li, Wei & Ernst, Keith. (2010). “Foreclosures by Race and Ethnicity: The Demographics of a Crisis.” Center for Responsible Lending. https://www.responsiblelending.org/mortgage-lending/research-analysis/foreclosures-by-race-and-ethnicity.pdf

[xi] Dey , Jaya & Brown, Lariece. (2020). “The Role of Credit Attributes in Explaining the Homeownership Gap Between Whites and Minorities Since the Financial Crisis, 2012–2018.” Housing Policy Debate. DOI: 10.1080/10511482.2020.1818599

[xii] Choi et al. 2019.

[xiii] U.S. Census Bureau. (2021). “Homeownership Rates by Race and Ethnicity: Black Alone in the United States [BOAAAHORUSQ156N].” retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/BOAAAHORUSQ156N

[xiv] Markley, Scott, Hafley, Taylor, Allums, Coleman, Holloway, Steven, & Chung, Hee Cheol. (2020). “The Limits of Homeownership: Racial Capitalism, Black Wealth, and the Appreciation Gap in Atlanta.” International Journal of Urban and Regional Research. DOI: 10.1111/1468-2427.12873

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Redlining Reparations: Evanston Illinois takes a Lead in Addressing the Race Wealth Gap

“This neighborhood houses the large negro population living in Evanston. It is somewhat better than the average negro district in that the bulk of the houses are one family detached units in anything but a congested district for this class of population. Here live the servants for many of the families all along the north shore. There is not a vacant house in the territory, and occupancy, moreover, is about 150 percent for most houses have more than one family living in them. Sales have been very good where liberal financing terms are available, but on other sales mortgage financing is virtually impossible to obtain.  This concentration of negroes in Evanston is quite a serious problem for the town as they seem to be growing steadily and encroaching into adjoining neighborhoods. The two family structures are in most cases converted singles and they likewise are overflowing with occupants; these buildings are rented as unheated units. The number of persons on relief in this district is probably heavier than in any other area along the north shore. Although this area is unattractive to other than the class of occupants already here, it is difficult to say that the section is declining, for it is in constant demand because of the limited number of areas available for negro occupancy in the north shore towns.

Location: Evanston, Ill.                  Security Grade: D             Area No: 2          Date: Jan. 1940

(https://dsl.richmond.edu/panorama/redlining/)

Evanston, IL will be the first city in the United States to make good on their promise to offer a reparations program to its black residents that have suffered economic devastation from discriminatory lending practice (https://www.cityofevanston.org/government/city-council/reparations). In 2019, the city council voted to provide $10 million towards a housing program for black residents, and on March 1st the Council approved a $400,000 initiative to be doled out in $25,000 grants for home improvement or down payments. The grants will be made to qualifying residents who can show they lived in Evanston from 1919-1969 or were a direct descendant of an individual that lived in the area and suffered from discriminatory lending practices.

Evanston’s focus on housing is an excellent way to bring reparations to communities of color, who have suffered decades of discrimination and should be used as a blueprint for cities across the country. Too often the call for reparations begins and ends with reparations for slavery. While reparations for slavery are necessary to address the inequities in American society, they are only a beginning. Focusing on slavery ignores the century of institutionalized discriminatory practices that kept black and other minority Americans from achieving the most important source of wealth accumulation: home ownership (https://www.huduser.gov/publications/pdf/wealthaccumulationandhomeownership.pdf ) The Post-WW2 economic boom was helped in large part by the G.I. Bill which promised low-rate mortgages, low interest loans and education to those who fought in WW2. But black veterans who fought to end a holocaust in Europe faced their own holocaust when they returned home in the form of lynching and red lining when they tried to cash in on the benefits of the GI Bill (https://www.history.com/news/gi-bill-black-wwii-veterans-benefits). The newly minted Home Owners Loan Corporation (HOLC), began rating neighborhood with four grades  A: “Best”, B: “Still Desirable”, C: “Definitely Declining”, and D: “Hazardous”