HOUSING
AND COMMUNITY NETWORK OF NEW JERSEY
September 14, 2004
John M. Reich
Vice Chairman
Federal Deposit Insurance Corporation
550 17th Street,
NW
Washington, DC 20429
Dear Mr. Reich:
Despite the successes locally and nationally of community investment,
the banks and thrift institutions that provided the loans and investments
to build new homes, businesses, and community facilities may no longer
have the impetus to do so if you change the CRA exam threshold.
We have been informed by our association, the National Congress
for Community Economic Development that the Federal Deposit Insurance
Corporation is considering changes to weaken the Community Reinvestment
Act.
it is estimated that 2,000 financial institutions would no longer
be evaluated on their investment or services to low- and moderate-income
communities. These banks have assets of nearly $1 trillion, and an
estimated $5 billion of private capital for affordable housing and
community development over the next few years.
These proposed rule changes would have a devastating effect on affordable
housing investment in New Jersey and elsewhere throughout the nation.
In the past 15
years the members of our organization have built 20,000 of homes;
provided
job training for over 8,000 residents:
helped 2,500 move into permanent jobs; opened 50 child care centers
serving 9,000 children annually; & empowered thousands of residents & community
leaders to accomplish greater results in years to come, We have increased
property values and the quality of life for tens of thousands of
residents of our community.
We are very concerned that this step is being taken without Congressional
action. Our legislators know that without financial partners, our
efforts to revitalize our community would be nearly impossible.
The FDIC should be strengthening incentives for financial institutions
to invest in the communities that provide homes, jobs, and economic
opportunities to working families. Please do not raise the CRA exam
threshold.
Sincerely,
Diane Sterner,
Executive Director
|
