Redlining in Schenectady: A Historical and Contemporary Examination of Housing Discrimination

My purpose is to examine the historical and contemporary trends associated with housing and discriminatory practices in Schenectady, New York. During the 1930s, the Home Owners' Loan Corporation created residential security maps of cities all over the country to determine levels of risk for federal insuring of residential mortgages. These maps classified different parts of the city using a four grade scale: neighborhoods rated as being more desirable were given blue or green ratings, while those seen to be in decline were rated as yellow or red. All over the country, these maps were used as a tool of discrimination in a practice known as redlining. The racial and ethnic composition of neighborhoods was often taken into account, and areas with significant Black or immigrant populations were frequently rated as red. This allowed for federal lenders to deny loans to marginalized groups looking to become homeowners. In 1938, such a map was created for Schenectady. Some areas, like the GE Realty Plot and Upper Union Street, were rated as green, while other areas, in particular those concentrated near the downtown, were rated as red. However, in 1940, Schenectady was over 99% white, meaning many of its redlined neighborhoods did not have substantial Black populations. Today, only half of Schenectady's population is white, and many of the areas rated as red in 1938 remain some of the poorest parts of the city, and are home to much of Schenectady's minority population. This paper traces the Black population of Schenectady as it grew and relocated, eventually settling in the neighborhood of Hamilton Hill, as well as the role played by the city in the past and present. HOLC maps, numerous reports produced by and for the City of Schenectady, and other resources were used to help piece together this story. Additionally, case studies of the Schenectady Development Department and Better Community Neighborhoods Inc., a local non-profit, were conducted to examine contemporary community response to housing problems. The results of this research suggest that while redlining in the traditional sense may not have occurred due to the very small Black population in Schenectady at the time, even when this population made up less than 1% of the city, they faced discrimination and segregation.