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Resolutions Adopted at the
67th Annual Conference of Mayors
New Orleans, Louisiana
June 11-15, 1999 |
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COMMUNITY DEVELOPMENT AND HOUSING
COMMUNITY REINVESTMENT ACT (CRA)
WHEREAS, the Community Reinvestment Act (CRA) has played a critical role in
encouraging federally supported insured financial institutions to invest in our
nation’s cities; and
WHEREAS, CRA has been a key component in the revival of urban areas and their
surrounding regions, creating new businesses, new jobs and new homeowners; and
WHEREAS, CRA has helped to spur bank and thrift investment in multifamily rental
housing development and rehabilitation, small businesses expansion, and community economic
development; and
WHEREAS, CRA is a crucial complement to FHA Insurance, the HOME program,
Community Development Block Grants, and the low-income housing tax credit, programs which
have built or financed the purchase of millions of units of affordable rental and
ownership homes; and
WHEREAS, the Senate has passed S.900, the Financial Modernization Act of 1999
that would dramatically weaken the CRA and have dire consequences for the nation’s
cities; and
WHEREAS, the Senate bill fails to require banks seeking to affiliate with
securities and insurance firms have a satisfactory CRA rating and would permit banks to
ignore the credit needs of their communities; and
WHEREAS, the Senate bill also provides a "safe harbor" from public
comment on CRA performance to banks with a "satisfactory" or better CRA rating;
and
WHEREAS, the Senate bill exempts small banks in rural areas (less than $100
million in assets) from CRA obligations; and
WHEREAS, the House is also considering a bill H.R.10, the Financial Services Act
of 1999, that would also weaken CRA; and
WHEREAS, the House bill does not require securities companies, insurance
companies, real estate companies and commercial and industrial affiliates engaging in
lending or offering banking products to meet the credit, investment and consumer needs of
the local communities they serve,
NOW, THEREFORE, BE IT RESOLVED, that The U.S. Conference of Mayors opposes both
S.900, the Financial Modernization Act of 1999, and H.R.10, the Financial Services Act of
1999, unless CRA is preserved and protected.
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