"The goal is to find students who have transcended their environments by examining factors that are correlated, according to research, with lower academic achievement and lower lifetime earnings.
Some of the neighborhood factors are: median family income, percentage of households in poverty, percentage of single-parent households, percentage of vacant housing units, percentage of adults without a high school degree, percentage of adults without a college degree, percentage of adults with agriculture jobs and the unemployment and crime rates.
The school social measures look at a similar list of factors across all the census tracts of the students in the applicant’s school. The rating system potentially benefits gentrifiers on neighborhood factors, but its two-pronged approach balances that to some degree by also looking at a student’s school. Many middle-class and affluent parents living in poor neighborhoods do not send their children to local schools alongside low-income peers."
Source:
Your Questions about the New Adversity Score on the SAT, Answered
Unlike the OP who most likely has never attended college much less taken the SAT, ACT, MCAT, LSAT, GMAT, GRE or any other test college students (or post-bac) or potential students take that requires intellectual fortitude. This isn't about race but looking at extraneous factors which may factor in a student's ability to succeed.
Now in looking at what schools look for as far as admissions processes go, it depends on the university itself. When it comes to Junior Colleges admissions process is not strenuous, but when it comes to four-year universities its a different story. It is even strenuous when you apply to graduate school as some admissions processes want you to write a personal statement in APA format. What schools are looking for in a student vary but what they all have in common is they want a student that is well rounded.