What does the practice of steering/channeling involve?

The practice of steering, also known as channeling, involves the directed practice of influencing homebuyers to move towards or away from certain neighborhoods based on specific characteristics, such as race, ethnicity, or socio-economic status. This practice is considered unethical and illegal, as it perpetuates segregation and discrimination in housing markets. It essentially limits the choices available to homebuyers, unfairly guiding them in ways that deny them the opportunity to explore diverse neighborhoods and living environments.

This unethical behavior stems from the history of redlining and discriminatory practices that have sought to maintain segregation in communities. By directing individuals based on their backgrounds rather than their preferences or needs, steering violates the Fair Housing Act, which aims to promote equal opportunity in housing and eliminate discrimination.

The other choices do not align with the concept of steering. Encouraging diverse homeownership and enhancing property values relate to positive practices that promote inclusion and community development. Providing financial assistance focuses on the economic aspects of home purchasing rather than directing individuals based on demographics.