I believe the parent is referring to the fact that the GI Bill and home loans for returning WW II veterans were written in such a way to systematically discrimi

I believe the parent is referring to the fact that the GI Bill and home loans for returning WW II veterans were written in such a way to systematically discriminate against blacks in this country. The explicit prohibitions you mention obviously existed at that time in the form of segregation, but whites were also given extra advantages by the racist way these programs were implemented. The extension of these benefits overlaps precisely with growth of sprawl, as whites used the increased purchasing power afforded to them by these programs to buy homes in the emerging suburbs (essentially following the incentive). Ira Katznelson of Columbia University wrote a good history of this in his book,"When Affirmative Action was White"