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Housing starts dramatically climbed from 332,000 to a staggering 619,000 in 1941. But looks are in this are deceiving.
In fact, there was an underlying problem with the FHA. The most basic sentiment the FHA's concern was its fear that property values would decline if a rigid black and white segregation was not maintained. The Underwriting manual openly stated, "If a neighborhood is to retain stability, it is necessary that properties shall continue to be occupied by the same social and racial classes." The FHA went even further to enforce restrictive covenants which basically are segregated developments...
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