"An investment in a home is the cornerstone of wealth for most Americans. When you own a home, you own a real, tangible, appreciating asset. As your home equity grows it can be leveraged to generate even more wealth. So it follows that where there is a homeownership gap in this country there is also a wealth gap.

For far too long, African Americans (and other racial and ethnic groups-ed.note) have been denied equal acess to the best system in the world for building wealth. The denial began over a century ago with the broken promise of "40 acres and a mule" to slaves who fought in the Civil War." (CBCF Housing News Servcies Vol3/No2)

The federal government was a major force behind segregated housing: The Federal Housing Administration, established in 1934, supported racially restrictive covenants and segregated housing patterns. In the 30’s and 40’s the FHA’s Underwriting Manual stated: “If a neighborhood is to retain its stability, it is necessary that properties shall continue to be occupied by the same racial class”

In 1950 the Code of Ethics of the National Association of Real Estate Boards included this statement: “The Realtor should not be instrumental in introducing into a neighborhood…members of any race or nationality…whose presence will clearly be detrimental to property values in the neighborhood.” The Code specifically forbade sales to black in white areas (this was challenged in 1975). A 1975 printing of McMichael’s Appraisal Manual contained a ranking of races and nationalities in order of supposed beneficial effect on land values. This ranking listed English, Germans, Scotch, Irish, and Scandinavians first, Northern Italians second, Russian Jew “of the lower class” seventh, Southern Italians, eight, Negroes ninth, and Mexican tenth.

1974 report by the U.S. Commission on Civil Rights (“The Federal Civil Rights Enforcement Effort” Vol. II), “segregation has resulted in overcrowding; concomitantly, it produces unhealthy and unsafe living conditions. Frequently segregated housing patterns have brought with them substandard education and inadequate public services. Segregation in housing also causes severe humiliation to the people who are segregated and often contributes to physical and psychological illness.”

Home Ownership is one way to fight discrimination, segregation and poverty.