What does "redlining" refer to in the context of fair housing laws?

"Redlining" refers to discriminatory lending practices wherein banks and insurance companies denied or limited services to residents of certain areas based on the racial or ethnic composition of those neighborhoods. This practice was named after old maps used by lenders that marked high-risk areas in red ink, signaling to lenders to avoid lending to these areas.

Under fair housing laws, redlining is considered a violation because it perpetuates segregation and inequality in housing and financing. These laws aim to eliminate discrimination in housing-related activities, ensuring that individuals have equal access to housing opportunities regardless of race, ethnicity, or neighborhood demographics.

The other options do not accurately capture the essence of redlining; for instance, outlining areas for investment, providing economic incentives, and establishing zoning laws do not inherently involve discriminatory practices against specific groups based on race or ethnicity.