Final answer:
The federal government's housing programs from 1934 to 1962 provided only 2 percent of their housing funds to non-whites, contributing to residential segregation and the expansion of predominantly white suburbs.
Step-by-step explanation:
Between 1934 and 1962, the federal government underwrote 120 billion dollars in new housing, of which 2 percent went to non-whites. The Federal Housing Administration (FHA) was created to stimulate the housing sector during the Great Depression and to extend federal oversight to the home loan industry. Despite the FHA's intentions to improve homeownership rates, which did indeed rise from around 40% to approximately 70%, the execution of these programs disproportionately favored white individuals and contributed to the residential segregation of minorities. The G.I. Bill, although race-neutral in its language, effectively excluded many non-white veterans from its benefits due to practices like redlining and restrictive covenants. Consequently, suburban communities expanded but largely remained exclusive to white families, while public housing projects, often the only option for poor non-whites, concentrated poverty in inner cities.