American Institute of Certified Planners (AICP) Practice Exam

What is the practice of making loans to declining or high-risk neighborhoods in order to stimulate their renewal called?

1. Bluelining

2. Redlining

3. Greenlining

4. Urban Renewal

The correct answer is: Greenlining

The practice of making loans to declining or high-risk neighborhoods to stimulate their renewal is known as greenlining. This term contrasts with redlining, which refers to the discriminatory practice of denying services, often financial, to residents of certain areas based on their race or economic status. Greenlining is aimed at promoting investment in underserved communities, counteracting the effects of disinvestment. It often involves targeted financing, government incentives, and efforts to improve local infrastructure and services, thereby fostering economic revitalization and helping to enhance quality of life for residents. In the context of urban planning and development, greenlining is essential for encouraging equitable growth and addressing systemic inequalities. It is commonly associated with community development financial institutions (CDFIs) and cooperatives that aim to democratize access to capital for neighborhoods traditionally overlooked by mainstream financial institutions. Understanding the nuances of these terms helps clarify the importance of inclusive and equitable approaches in urban policy and development efforts.