CRA

September 2021: Build Back Better

This was originally published in the September 29, 2021 Newsletter.

State News

Revised Financial Literacy Bill Clears House Panel

A measure that would require Ohio high school students to receive financial literacy instruction advanced in the House on Tuesday after it saw a raft of changes.

The bill passed the Senate in May 32 – 0. The House Primary & Secondary Education Committee reported the measure after adopting a substitute version of the legislation (SB 1) and two amendments. Chair Rep. Gayle Manning (R-N. Ridgeville) said the substitute bill:

  • Makes changes to the Ohio Literacy Fund recommended by the state treasurer's office.

  • Requires students who enter ninth grade on or after July 1, 2022 to complete one-half unit of financial literacy as an elective or in place of one-half unit of math. That math course cannot be algebra II or another class with a required end-of-course exam.

  • Requires instruction to be aligned with academic content standards for the subject.

  • Mandates that an advisory committee tasked with consulting with the State Board of Education Track on the standards to include four or more classroom teachers and one financial literacy instruction expert.

  • Exempts educators with valid social studies, business education and family and consumer science licenses or endorsement from new financial literacy license validation requirements.

  • Adds educational service centers to the list of entities that can receive reimbursements for license validation costs.

Federal News

Build Back Better Act in Flux

The Build Back Better Act is a transformational plan to invest in America’s people and communities that includes affordable housing and community development ($300 Billion+), permanently extending the child tax credit, establishing universal pre-K, federally paid family and medical leave, climate change mitigation and renewable energy, among other initiatives. This would be paid for by tax increases on large corporations and the wealthy (2017 witnessed substantial tax reductions). The Build Back Better Act is unfortunately referred to by the oft-cited (without context) amount of $3.5 Trillion in spending. It’s important to note that political attacks and media coverage rarely cite the important nuances of corresponding revenue raised and that the amount is over a whole decade and only represents 1.2% of the American economy over this time period.

House Speaker Nancy Pelosi has planned an infrastructure vote (bi-partisan $1 Trillion for traditional infrastructure) on September 30 as the safety net bill (budget reconciliation bill aka $3.5 Trillion package) that includes community development and housing investments remains mired. The move appears to decouple the two packages after the Democratic consensus strategy to move them concurrently. This is also occurring as the necessity to increase the debt ceiling is being used as a destructive wedge to stall much-needed investments in America’s people and communities. Needless to say the situation is changing constantly.

From NLIHC: The House Budget Committee voted September 25th to advance the “Build Back Better Act,” a $3.5 trillion comprehensive infrastructure and economic recovery package, to the House Rules Committee in preparation for a full vote on the House floor. The full vote in the House could take place as soon as the coming week. While the vote was procedural and did not allow members to make any substantive changes to the bill text, the Rules Committee may make sweeping changes to the bill, including major cuts in funding. Any reduction to the “Build Back Better Act” could result in harmful cuts to the $327 billion proposed for affordable housing currently in the bill and put at risk the HoUSed campaign’s top priorities: $90 billion for rental assistance, $80 billion to preserve public housing, and $37 billion in the national Housing Trust Fund to build and preserve homes affordable to people with the lowest incomes.

From NACEDA: The updated bill out of the House Budget Committee includes:

  • $34.77 billion for the HOME Investment Partnerships Program;

  • $5.7 billion for the Community Restoration and Revitalization Fund in competitive grants;

  • $4.26 billion in competitive grants under the Unlocking Possibilities Program to eliminate exclusionary zoning and land use policies;

  • $6.6 billion for the Community Development Block Grant program.

The Neighborhood Homes Investment Act is also progressing through the budget reconciliation process. The bill would create a new federal tax credit to support the construction and rehabilitation of single-family, owner-occupied homes in distressed communities. Learn more.

OCC Issues NPR to Rescind 2020 CRA Rulemaking

From Enterprise: On September 8, the Office of the Comptroller of the Currency (OCC) issued an official notice of proposed rulemaking (NPR) to rescind its June 2020 Community Reinvestment Act (CRA) rulemaking and replace it with rules largely based on the 1995 CRA rules, as revised. This NPR follows the OCC’s announcement in July to rescind its May 2020 final rule, which it issued independently in an unprecedented break from the other governing agencies, the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System. The CRA, which aims to help low- and moderate-income communities gain access to financial services, loans, and community development investments, was first enacted into law in 1977 and has only been amended twice since – in 1995 and 2005.

The OCC’s NPR notes that replacing the OCC’s 2020 CRA rule with regulations based on rules that were previously adopted jointly by the three banking regulators would facilitate the ongoing interagency work to modernize the CRA regulatory framework and promote consistency for all financial institutions subject to CRA examination. Last month, the U.S. banking regulators issued a joint statement, committing to working together on developing a joint rule that would strengthen and modernize the CRA. The OCC is accepting public comments on its NPR through Friday, October 29.

July 2021: CRA Victory

This was originally published in the July 30th, 2021 newsletter.

State News

Discriminatory Property Restrictions Can Now Be Removed from Ohio Deeds

From the Columbus Dispatch...As part of the state budget bill that recently became law, licensed real estate attorneys now have legal backing to remove discriminatory passages from deeds whenever a property is sold or transferred. Prior to July, there merely existed a gray area when it came to whether a lawyer could independently remove a discriminatory covenant in a deed of property transfer. The Ohio Realtors Association requested this change. While this measure is not a concrete action towards housing equality, its symbolism is important. The legislation marks a step forward, according to advocates. Read more of the article here.

Report Reveals How "Out of Reach" Housing is for Minimum Wage Workers

From the National Low Income Housing Coalition (NLIHC)…A new report titled "Out of Reach: The High Cost of Housing" contains shocking revelations about just how unattainable housing in the United States has become for some. In Ohio, the Fair Market Rent for a two-bedroom apartment is $865. According to the report, in order to afford this level of rent and utilities — without paying more than 30% of income on housing — a household must earn $2,884 monthly or $34,608 annually. This is above the statewide minimum wage. Working at the current minimum wage of $8.80/hour, an individual would have to work 60 hours a week to afford a modest, 1-bedroom rental home. See more Ohio statistics or view the national report here.

Federal News

OCC to Rescind Harmful CRA Rule Changes

From National Community Reinvestment Coalition (NCRC)…the Office of the Comptroller of the Currency (OCC) announced it will propose to rescind its controversial Trump-era rules weakening the Community Reinvestment Act (CRA) and work jointly with other banking regulators to adopt new CRA rules.

The 2020 CRA rules set by the OCC were a mess, a regulatory failure, and a transparent attempt to weaken the law and make it less effective by easing up on requirements for banks to meet the credit needs of all the communities where they do business. We sued the OCC to cancel the rules, and yesterday the agency announced it would do just that.

Here's more about the news from NCRC CEO Jesse Van Tol.

The move to start over and work jointly with the Federal Reserve and FDIC on new rules is a huge victory for NCRC and all our members and allies who challenged the 2020 rules, submitted comments and helped spread the word in the middle of a historic pandemic.

CRA compliance rules are technical, complex and off the radar for most people, but they influence trillions of dollars in local lending for mortgages and small businesses.

Our #TreasureCRA campaign is far from over. Now we've got to rally again to ensure new rules truly modernize and strengthen CRA enforcement so lenders focus on the financial needs of borrowers and communities where they do business and take deposits. Rooting out discrimination in lending and expanding access to credit is also critical for families and communities of color who were disproportionately impacted by the pandemic and who now face a longer road to financial recovery.

OCDCA would like to thank the many members that have engaged with this important issue! Your advocacy to Congress and regulators, the time you spent crafting public comment letters, and efforts making the voice of your community heard has made a difference. Read some history of the rule change. Thank you for your advocacy!

Eviction Crisis Looms as Moratorium is Set to End Sunday

From NLIHC…The Biden administration announced on June 24 an extension of the federal eviction moratorium issued by the Centers for Disease Control and Prevention (CDC) through July 31, 2021, and that it would implement a whole-of-government approach to prevent an historic wave of evictions this summer. The moratorium was set to expire on June 30.

These actions from the White House extended an essential lifeline to millions of renters who remain behind on rent and would be at heightened risk of eviction when the moratorium expires. Extending the moratorium through July gave state and local governments more time to distribute more than $46 billion in emergency rental assistance (ERA) to those most in need. The administration’s whole-of-government effort to stem evictions and help ensure ERA is provided efficiently, effectively, and equitably can keep families safely housed and bolster the administration’s efforts to contain COVID-19. While in many areas in the U.S. vaccinations rates are up and COVID-19 caseloads are down, communities with lower vaccination rates and more COVID-19 cases tend to be the same communities that have large numbers of renters at heightened risk of eviction.

While the previous extension allowed for more time, the end of the moratorium is said to put approximately 16% of renters in danger. Many organizations have already signed on to a joint letter from the NLIHC and ACRE calling on Congress to extend the moratorium once again. President Joe Biden has echoed these sentiments.

House Appropriations Committee Releases THUD Funding Bill

From Enterprise Community Partners…On July 11, the House Appropriations Committee released their Fiscal Year (FY) 2022 Spending bill for Transportation and Housing and Urban Development. The bill seeks $84.1 billion in funds, which represents an $8.7 billion increase above FY 2021 levels. Within the bill, HUD would receive a $6.8 billion increase in funds, totaling $56.5 billion. The bill includes several of the President’s housing priorities, including an expansion of the housing choice voucher program by 125,000 vouchers, $205 million in funding for improving energy and water efficiency in public housing, as well as other resiliency efforts. Additional components of the bill include $1.85 billion for the HOME Investment Partnership program, $3.7 billion for the Community Development Block Grant, $950 million for Native American Programs, and $185 million for NeighborWorks. Since its release, the bill has been under review by the THUD Subcommittee. Once marked up and approved by the full committee, it will be sent to the House floor for final approval.