In the last 10 years Chicago housing has went through drastic changes. Changes in Public housing, rental apartments, and the real-estate market. This report will look at the history of Chicago housing, current demographics, urban renewal, and the affects these changes may have on the citizens. .
Long ago, Chicago was a big growing city that grew more and more during the southern migration. African Americans were segregated and moved into slums. The Chicago housing Authority was established in 1937. When it started there were few units built. In 1950 a major slum program began to displace African American families who were excluded from much of the available housing. The public housing program boomed. Between 1950 and 1966, an average of 100 units a year were built (1). .
Housing development slowed down after 1966. It was also very segregated. African Americans made up 85% of CHA residents, 15% were white, and 10% were Latinos. In 1966, a public housing resident filed suit claiming the CHA was reinforcing segregation (2). Gautreaux v/s CHA resulted in a ban of further construction of public housing in segregated areas of the city (3). In 1969, a federal judge ordered the CHA to desegregate public housing. In response, the CHA started to build scattered site housing. It was met with opposition of whites in the white areas, and the program was crippled. Very few of the units were built. .
The federal government played a role in widespread housing segregation. In the 1920's to the 1940's realtors used restricted covenants that affected future sales of property on racial and ethnic exclusion. The Federal housing act of 1934 provided mortgage guarantees and low or no down payments almost exclusively for suburban development that excluded African-Americans. Language in the FHA manual to banks reinforced discrimination of the real-estate industry by stating "If a neighborhood is to retain stability It is necessary that the properties shall continue to be occupied by the same social and racial class.