Strengthen the Community Reinvestment Act - Comments Needed by February 16th
In 2019, an estimated 73% of all Low-Income Housing Tax Credit investment came from banks motivated by federal Community Reinvestment Act (CRA) requirements. In 2020, the Trump Administration pushed the Office of the Comptroller of the Currency (OCC) to adopt harmful changes to CRA regulations governing approximately 70% of financial institutions with little public notice. The Federal Reserve Board of Governors (Fed) is currently considering mostly positivechanges to CRA that could greatly influence the level of bank lending to, and investment in, affordable housing. It is critical that the affordable housing community speak up to support a strong CRA incentive for banks to continue and even increase this level of lending and investment in housing California's low-income families. Your voice is needed.
The California Housing Partnership, with significant input from the California Reinvestment Coalition and the Affordable Housing Tax Credit Coalition, has created the attached template letter (Word document) which we encourage you to send to the Fed by the comment deadline of February 16. Letters can be emailed to email@example.com with the header "Community Reinvestment Act Proposed Rulemaking Docket Number (R-1723) and RIN (7100-AF94)." The Partnership's letter focuses on two overarching goals:
1) Incentivizing banks to invest in Low-Income Housing Tax Credits (LIHTC) in lieu of easier and less beneficial opportunities at a time when there is a shortage of LIHTC purchasers; and
2) Reducing inequities in LIHTC pricing between CRA "hot spots and not spots," including rural areas.
We hope you will join us in this important advocacy and make your voice heard. Please contact firstname.lastname@example.org with any questions. Thank you for your partnership.