On May 5, federal regulators issued a Notice of Proposed Rulemaking to strengthen and modernize the Community Reinvestment Act (CRA), which directs billions of dollars in bank loans, investments, and financial services toward low- and moderate-income communities. The draft rule was issued by the three federal agencies that regulate CRA: the Federal Reserve, OCC, and FDIC. The agencies will host a webinar tomorrow, May 11, at 3 pm Eastern Time to provide an overview of the proposed rule. Registration is required.

Federal Reserve Board Vice Chair Lael Brainard noted that the proposal “provides certainty that banks can receive CRA credit for eligible community development activities nationwide,” in her Federal Reserve Board statement. Her confirmation as Vice Chair in late April was one of the final steps to releasing the draft rule.

NACEDA is examining how the proposed rule will affect the capacity of community-based development organizations to serve low- and moderate-income communities. We will collaborate with state and regional community development networks (our members) to educate the field about the new rule and provide guidance on submitting comments. View NACEDA’s statement, which includes our five focus areas when examining the draft rule.

The comment period ends on August 5, 2022.

Congress Considers HOME Program Reauthorization, CHDO Future

Congress is considering how to rewrite statutes governing the HOME Program. Of particular interest to NACEDA and its members is whether and how changes to the program’s authorizing language could help rebuild the HOME Program’s Community Housing Development Organization (CHDO) set aside, a stipulation in the HOME Program that 15% of funds must be set aside for use by community-based development nonprofit organizations. Shelterforce recently wrote a lengthy piece on CHDO’s history, impact, and future, quoting NACEDA and some of our members.  

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NACEDA News

NACEDA Summit Focuses on Changing Policies & Systems

The NACEDA Summit Series kicked off on May 5 with a robust discussion on federal policy priorities for the community development field. National policy advocates discussed the newly-released CRA draft rule, emphasized that there are still opportunities this year despite disappointment about the housing investments in the Build Back Better bill, and highlighted the importance of coordinating messages among national advocacy networks.

NACEDA members engaged in peer-sharing conversations about local and state policy, press coverage, and membership engagement that gave them the opportunity to share challenges and solutions in a friendly, members-only space. And, NACEDA members and partners in New Jersey and Texas shared insights about their cross-sector creative placemaking projects. Across work that targets policy, financial institutions, and network-building, speakers stressed the importance of patience, intentionality, and trust throughout the stages of a project – a recognition of the importance of process as well as product.

There are three more summits to come! You can still register for the July 14, September 15, and November 17 summits. The May 5 summit was made possible by JPMorgan Chase. 

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Funding & Job Opportunities