Community Reinvestment Act 

NACEDA advocacy works to ensure the voice of community-based developers is understood and prioritized by the Federal Government. Our voice and memberships’ advocacy around the Community Reinvestment Act (CRA) continues to play an important role in the CRA modernization process and in the process of keeping banks accountable to the community development needs of the communities they serve. Come back to this page often as CRA modernization continues in the months ahead.

Notice of Public Rulemaking

On May 5, a Notice of Proposed Rulemaking to strengthen and modernize the Community Reinvestment Act (CRA) was issued by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board of Governors, and the Federal Deposit Insurance Corporation (FDIC). Comments are due August 5, 2022.

NACEDA Statement on Draft CRA Rule

CRA Rule Will Chart the Community Development Sector’s Course for a Generation or More

Successful mission-based community economic development is rooted in themes of social justice while remaining culturally, ethnically, and racially relevant. It attracts private investment and engages local institutions and residents to lead and own local change.

The Community Reinvestment Act (CRA) was passed in 1977 to end discrimination known as redlining. CRA directs billions of dollars in bank loans, investments, and critical financial services toward low- and moderate-income communities. This keystone systemic policy lever shapes how community institutions and low- and moderate-income neighborhoods attract investment and build long-term capacity. The last major changes made to the Act’s regulations were finalized over 25 years ago.

“CRA’s final shape will set the rules for how the private market interacts in low- and moderate-income communities for a generation or more,” said NACEDA Executive Director Frank Woodruff after the rule’s release.

As an organization that advocates for the needs of local community-based development organizations, NACEDA will focus on five issues facing CRA’s future. We will pay careful attention to how the rule:

1) addresses race and equity,
2) changes assessment areas,
3) accounts for non-bank lenders,
4) balances objectivity with community impact, and
5) clarifies and strengthens the role of local community development organizations.

CRA comments are due August 5. Members and partners should expect to hear a lot more from NACEDA in the coming weeks and months as we digest the 679-page proposed rule.

NACEDA is a national alliance of 38 community development and affordable housing associations in 25 states and Washington, DC. NACEDA defines “community economic development” as place-based, anti-racist development and economic support that builds and improves equitable outcomes for disinvested and marginalized communities.