Home Owners' Loan Corporation

The Home Owners' Loan Corporation (HOLC) was established in 1933 during the Great Depression to help struggling homeowners. It provided long-term, low-interest loans to homeowners at risk of foreclosure, allowing them to refinance their mortgages and avoid losing their homes. HOLC aimed to stabilize neighborhoods and promote homeownership. However, its practices, particularly the use of redlining—where certain areas were deemed too risky for loans—had lasting negative impacts on communities, contributing to racial segregation and inequality in housing access. The program was vital in the short term but raised important issues about fairness and equality in lending.