HomeMy WebLinkAboutCP 160 0131M (0 Hogg MMOUMM
■
J • , M.q 00m 1FAWmmrqPW "b
;&f
POLICY PROPOSAL
DATE FILE NUMBER SUBJECT COMMUNITY REINVESTMENT ACT PAGE 1 OF?
3-5-91 CP-160 POLICY DEVELOPMENT
PROPOSAL PROPOSED BY: CITY MANAGER'S REVIEW
Virginia Nell Webber
Chairperson , City Council
Housing Programs Committee
PROPOSAL
Authorizing the City Council Housing Programs Committee to
research, hold public hearings and present findings for City
Council consideration in development of a proposed Community
Reinvestment Act (CRA) Policy .
• CKGROUND
The Community Reinvestment Act was originally enacted in 1977 to
require banks/lending institution's to meet the banking and
credit needs of all geographic areas and populations within the
community . However there was little enforcement of the
provisions within the Act . In 1990 , Congress placed new
provisions within the Acw ic�: 1) redefined the CRA ratings
criteria; 2) required disclosure of an institution's
ratings ; and 3) required written evaluations of the institution' s
performance in meeting community credit needs .
These new provisions within the Act are critical given that an
institution 's ratings can be a factor in federal regulatory
approval of many banking activities , including mergers,
acquisitions , expansions and sitings of new branches . Congress
placed a special emphasis on rating the institution 's record of
erving the housing credit needs of low and moderate income
persons and those of small businesses .
The National League of Cities indicates that the changes
provide an opportunity for municipal leaders to participate and
contribute to decisions affecting the investment of dollars . . .
in low income neighborhoods . The potential in housing, community
and economic development . . . create an opportunity for key
public-private partnerships to rebuild neighborhoods in every
municipality. "
LEGAUTY ❑
FISCAL NOTE ❑
CITY MANAGER'S COMMENTS ❑
'� i=�.•—' _
POLICY PROPOSAL (cont'd) PAGE 2 OF2
ACTIVITIES TO BE UNDERTAKEN
The Committee will research: 1 ) how cities can utilize the new CRA
provisions ; 2) CRA policies and activities of other local
governments ; '3) legal issues pertinent to developing and implementing
a CRA policy; 4) data and information provided in the National League
of Cities "CRA Guidebook" ; 5) on-going CRA activities of local
banking institutions .
The Committee will hold a public hearing to hear testimony on the
banking and credit needs of the community. Written and verbal
testimony will be solicited from the general public (with special
emphasis on receiving comments from lower income persons) ,
representatives of community groups , local economic and housing non-
profits , businesses and financial institutions .
Information gained from the research and testimony from the public
hearing will be presented as findings in the development of a
proposed CRA policy for Council consideration.
LEGALITY
This proposal is within the power of the City Council and there are
-tc legal impediments to its implementation.
FISCAL NOTE
It is anticipated that the Community Reinvestment Act Policy
Development will not have any fiscal impact on the City of Fort
Worth.
CITY MANAGER' S COMMENTS
he City Manager ' s Office has reviewed this proposal and has no
objections to it .
MEMBERS OF THE CITY COUNCIL HOUSING PROGRAMS COMMITTEE:
Councilperson Kay Granger
District 4 APPROVED BY
CITY COUNCIL
Councilperson Eugene McCray ps AMENDED
District 5 MAR 5 1991
Councilperson Virginia Nell Webber luNy,��erx ..
District 8
City secretary of the
City of Fort Wortb,TexaX
CITY OF FORT WORTH