One suggested solution to the problem of undervaluation in formerly redlined communities, as suggested by Doug Potts and WithAction LLC, is:

• A. A lending program that uses competitive restorative value
• B. A policy of equal appraisal length
• C. Increased property taxes
• D. Use standard market value only

Answer: (A)

The main idea here is using a financial approach that actively counters undervaluation in historically redlined neighborhoods by valuing property and lending in a way that recognizes restoration and potential, not just current market comps. A lending program that uses competitive restorative value frames value around the neighborhood’s improvement trajectory and the potential for growth, incentivizing investment where traditional appraisals have undercounted worth. This approach aims to close the valuation gap by aligning loan terms with the true, long-term value of communities that have been held back by bias.

Why this fits best: it directly targets the bias by incorporating the community’s revitalization potential into lending decisions, encouraging investment and stabilizing homeownership in formerly redlined areas.

Compared to the others, simply standardizing appraisal length doesn’t address biased valuation; raising property taxes would worsen affordability and doesn’t fix how values are assessed; and relying on standard market value only continues to ignore historical undervaluation and the community-driven improvements that restorative value would capture.