NACEDA Action Alert

Protect CRA Investment in Low-Income Communities

SUBMIT A COMMENT - Billions of dollars of loans, investments and financial services are at stake!

Proposed changes to the Community Reinvestment Act (CRA) could divert billions of dollars from low and moderate-income communities. Currently, banks meet their CRA requirements by providing capital for affordable housing, small businesses, and economic development in low- and moderate-income communities. Trump appointee Joseph Otting has proposed CRA rule changes could redirect these funds to sports stadiums, roads, bridges, and other infrastructure projects. The proposal would make redlining legal again by permitting banks to avoid investment in low-income and minority neighborhoods. And, it would make banks far less accountable and connected to the communities they are required to serve.

SAMPLE COMMENT LETTERS: NACEDA's sample comment letter is tailored for the community development field. NCRC provides an easy custom comment letter tool at (Click on "Take Action" in the toolbar to find the custom comment letter.)  Submit your comment by April 8, 2020. Urge everyone you know who cares about economic health, wealth, and justice in low and moderate-income communities to submit a comment too. The number of comments really matters! 

The NACEDA Network Speaks Out

New federal CRA proposal could mark return of redlining in Hartford
Hartford Business Journal op-ed by Rex Fowler, CEO of Hartford Community Loan Fund

Hospitals Take Note—An important source of funding to address the social determinants of health may be disappearing
Build Healthy Places Network blog

Civil rights and housing advocates warn proposed change to federal law could spell the return of redlining 
Cleveland Plain Dealer article featuring Nate Coffman of the Ohio CDC Association, Chris Alvarado of Slavic Village Development and Bill Faith of Coalition on Homelessness and Housing in Ohio

Proposed changes would slow progress toward equitable lending in minority communities
MinnPost Op-Ed by Jim Roth of the Metropolitan Consortium of Community Developers, Nasibu Sareva of the African Development Center, and Kathy Wetzel-Mastel of PRG 

Rule change could allow redlining to resume
The Columbus Dispatch Op-Ed by Nate Coffman of the Ohio CDC Association

Changes to Community Reinvestment Act will return us to redlining
Houston Chronicle Op-Ed
by Lori Pampilo Harris of the Houston Housing Collaborative

Fearing proposed changes to community lending regulations would re-legalize redlining
NJ Spotlight Op-Ed
by Staci Berger of Housing and Community Development Network of New Jersey and John Restrepo of Garden State Episcopal Community Development Corporation

Redlining would be relegalized by CRA reform proposal
Shelterforce article by Frank Woodruff of the National Alliance of Community Economic Development Associations | January 9, 2020

Top Regulators Speak Out

FDIC Board Member Martin J. Gruenberg

"The proposal undermines what has been a core strength of CRA for 40 years – the encouragement of bank engagement and dialogue with stakeholders in local communities to understand and better serve historically underserved areas. Taken together, this proposal would fundamentally undermine and weaken the Community Reinvestment Act." Full statement

Federal Reserve Governor Lael Brainard

"An approach that combines all activity together runs the risk of encouraging some institutions to meet expectations primarily through a few large community development loans or investments rather than meeting local needs ... Given that reforms to the CRA regulations are likely to set expectations for a few decades, it is more important to get the reforms done right than to do them quickly." Full remarks

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