In general, red lining back in the 1950s was the selective restriction of providing real estate services to selected areas that were actually outlined in red on maps. Real estate agents would not show certain neighborhoods to certain buyers. It has been illegal for years.
Today we can ask: Are state governments and local planning boards creating conditions that induce and promote HOA developments that place traditional residential home ownership at a practical disadvantage? For example, among others, tax breaks on common areas while double-taxing property owners; in all intents, holding HOA boards harmless for violations of state laws and governing documents while permitting HOA to “steal” your home for nonpayment of assessments.
Most harmful of all to homeowners is the failure to apply constitutional protections to these de facto – functioning in all reality — private governments. It appears that local governments are steering homebuyers to HOA-Land. It’s a win-win for developers and local governments to the detriment of homeowner property rights.
Allow me to add an important resolution to this red lining. Many moons ago in Lewisboro Township (part of Westchester County, NY) a ruling came down (not familiar with it) that required the township to allow middle income families to find a home in this upscale part of Westchester County. (Think of MS. Hillary’s home in Chappaquiddick, also part of upscale NY suburbs). Here, today, what’s stopping planning boards supported by state law to require such diversion and allow for traditional residential homes? Nothing!
The national lobbying firm, CAI, loves to tout the increase in HOAs as an indication of desirability rather than reflecting in good part, a lack of alternative housing and free choice. It could be argued as a restriction of free speech and a form of coercion with respect to equal but separate housing.
In her latest post on IAC, outspoken homeowner rights advocate Deborah Goonan speaks of “No free market in U.S. home construction,” “Does the house we want exist?”, and “Where are the small detached homes buyers want?” A must read for those who want the truth about the HOA legal scheme and state government protection of unamerican private governments.
For more info, see HOA-Land Nation Within America.
 “The report details top reasons for the growth of community associations. Privatizing public functions. With many local municipalities facing fiscal challenges, communities often are developed with the stipulation that the builder create an association that will assume many responsibilities that traditionally belonged to local and state government (e.g., road maintenance, snow and trash removal, and storm water management. ”MORE AMERICANS ARE CHOOSING TO LIVE IN HOMEOWNERS ASSOCIATIONS AND CONDOMINIUM COMMUNITIES” , CAI (August 1, 2019).
 Deborah Goonan, “Why can’t home buyers find the kind of homes they really want?”, IAC, (August 1, 2019).