Feb 2020: Presidential Budget & CRA

This was originally published on February 28, 2020 in the OCDCA Newsletter.

Federal News

Take Action to Defend the Community Reinvestment Act

The Community Reinvestment Act (CRA) was passed by Congress in 1977 as a response to redlining and lending discrimination. Since 1996, banks have issued $2 trillion in community development loans and investments in low- and moderate-income (LMI) communities.

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) released a Notice of Proposed Rulemaking (NPR) to "reform" the CRA. Former FDIC chair and current board member Martin Gruenberg explained succinctly that it's a "deeply misconceived proposal that would fundamentally undermine and weaken the CRA."

Why this "reform" is misconceived:

  • Banks could get CRA credit for investments in sports stadiums, roads, bridges, and other infrastructure projects that are disconnected from CRA's purpose of ending redlining and supporting disinvested people and places.

  • A modern-day form of redlining could be an unintended consequence by allowing banks to choose which of its assessment areas to serve and which to ignore.

  • Banks would be held accountable to a ratio instead of their communities.

  • By proposing a list of CRA-eligible activities, Washington will now decide your community's needs, instead of you.

  • A modest 10% decrease in CRA lending would cause Ohio to realize a loss of $975 million in LMI mortgage and small business lending over five years.

CRA works. We need to modernize CRA - not weaken it! OCDCA urges every member to submit a public comment that's customized to your organization. Here are some helpful templates, but supplementing with your own voice is important.

For additional information read OpEd from members in the Cincinnati Enquirer, New York Times editorial, Jesse Van Tol's OpEd in The Hill, and my OpEd in the Columbus Dispatch.

Public comment (April 8 deadline) is critical in building the case against the proposed changes. Tell the OCC and FDIC that any changes to CRA should strengthen it and live up to the spirit and intent of the act - ensuring that LMI communities and communities of color have equal access to capital and credit.

Please take the time to make your voice heard. If you have any questions please contact me at ncoffman@ohiocdc.org or 614-461-6392 ex. 207. Thank you for your advocacy!

President Releases FY21 Budget Request

On February 10, the White House released a $4.8 trillion budget request that outlines spending priorities for Fiscal Year (FY) 2021. Similar to this Administration's past proposals, this budget seeks to cut many critical housing and community development programs across agencies. Overall, the request calls for HUD to be funded at $47.9 billion, a 15 percent decrease in funding from the FY20 enacted level. The budget request proposes eliminating the Community Development Block Grant Program, the HOME Investment Partnership Program among many others.

The President's request serves as a vehicle to communicate the Administration's priorities for FY21 to Congress and is non-binding. In the past three years, lawmakers have mostly rejected the president's budget request, and have funded critical affordable housing and community development programs at the urging of advocates. Learn more about the President's budget request.

State News

Opportunities for Civic Engagement in Ohio

With it being an election and census year there are two opportunities for your organization to engage in civic engagement. Check out the Ohio Census Advocacy Coalition to learn how to get involved and for information on mini-grants in some parts of the state. And check out Ohio Votes and learn how to become an Ohio Votes Partner, help registration efforts and mobilize underserved voters. You'll also have a chance to hear from them at upcoming member meetings.