The Rise Economy co-sponsored bill will address growing wealth gap, expand access to affordable housing with strengthened obligations for financial institutions in California.
SACRAMENTO, Calif. – Assemblymember Mia Bonta (D-Oakland) today introduced AB 801, the California Community Reinvestment Act (CA‑CRA), which will establish new obligations for state‑chartered banks, credit unions, mortgage lenders and fintech firms to reinvest in the neighborhoods they serve. Designed to narrow the racial wealth gap, address statewide funding gaps and expand access to affordable housing, the legislation sets clear accountability measures for financial institutions.
The CA‑CRA builds upon the federal Community Reinvestment Act of 1977—addressing its race-neutral limitations and weak enforcement—by broadening oversight to include a greater share of our financial institution landscape. Recognizing the urgency of recovery in communities hit hard by recent wildfires, the bill also includes measures to stabilize communities that need the help most.
“California has an opportunity to ensure that leading mortgage lenders are reinvesting into the communities they serve, including low-income communities, communities of color, and wildfire-impacted communities,” said Assemblymember Mia Bonta. “I’m proud to lead this California Legislative Black Caucus priority bill, recognizing that the mortgage lending landscape has changed in the last 50 years. AB 801 seeks to combat the racial wealth gap, expand access to affordable housing , and focus on accountability of our financial institutions to ensure they are investing in communities and community programs to help Californians. It is time for California to prioritize our historically neglected communities. I’m grateful for the far-reaching support AB 801 has received so far.”
AB 801 directs the California Department of Financial Protection and Innovation (DFPI) to prioritize stabilization efforts where they are needed most. For the first two years, the DFPI will:
- Give additional credit in its evaluation process to covered entities whose loans, investments, and financial services support community stabilization, anti‑speculation measures, the right of return, and other critical assistance to existing homeowners, tenants, small businesses, and community institutions in disaster‑impacted areas, including Altadena, a census-designated place in the San Gabriel Valley that was hit particularly hard by the Los Angeles wildfires.
- Award higher performance ratings to institutions demonstrating these efforts — ensuring the DFPI considers both immediate recovery actions and longer‑term stabilization during subsequent evaluations.
- Incentivizes impact through reductions in licensing and other fees for covered entities that make particularly impactful contributions.
“California has a chance to set a new standard in financial equity. With attacks and cuts by the Trump administration on the Department of Housing and Urban Development, potential weakening enforcement of the federal Community Reinvestment Act, and the gutting of the Consumer Financial Protection Bureau, state-level action is essential,” said Paulina Gonzalez‑Brito, CEO of Rise Economy, a co-sponsor of the bill. “AB 801 not only holds financial institutions accountable, it will also drive billions of dollars into areas that need it most, creating jobs, expanding affordable housing, supporting homeownership and fostering economic equity.”
California is confronting a series of urgent crises, many of which disproportionately affect Black and Latino families, veterans and low-to-moderate-income households. Rising costs, predatory lending practices and chronic underinvestment have left too many Californians locked out of homeownership and financial stability, and in dire need of bold solutions. Additionally, as the federal government considers rescinding the 2023 final rule of the federal CRA, which called for a more robust evaluation process for banks as well as provisions that would combat displacement, the need for innovative solutions and state-level protections has never been greater.
“As California’s leading experts on affordable housing finance, we know how challenging it is to finance new affordable homes,” said California Housing Partnership CEO Matt Schwartz. “AB 801 is critical to making sure that there is a level playing field so that all financial institutions doing business in California are lending to and investing in the production and preservation of desperately needed affordable homes.”
“We’re proud to stand with other Community Development Financial Institutions in support of AB 801 to hold traditional banking institutions accountable for reinvesting in the communities they profit from,” said Luz Castro, Associate Director of Policy at Inclusive Action for the City. “This bill will expand opportunities for entrepreneurs, strengthen local businesses, and bolster CDFIs’ capacity to increase access to capital and financial services in historically underserved communities. It represents a critical step toward a more just financial system in California.”
To learn more about the CA‑CRA and to show your support, visit rise‑economy.org/californiacra.
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Assemblymember Mia Bonta represents California’s 18th Assembly District encompassing the East Bay including Oakland, Alameda, and Emeryville. She also chairs the Assembly Health Committee. Courtesy photos can be found HERE.
About Rise Economy
Rise Economy, formerly the California Reinvestment Coalition (CRC), is a member-led alliance focused on creating a more equitable society where Black, Indigenous, and People of Color have access to resources and opportunities to build generational wealth. As the largest statewide community reinvestment alliance in the country, Rise Economy advocates for policies and practices that promote racial and economic justice and that address the root causes of inequality, redlining, and systemic racism.
About Inclusive Action for the City
Inclusive Action is a nonprofit community development financial institution (CDFI) and economic justice organization based in Boyle Heights and serving communities throughout Los Angeles County. Inclusive Action’s mission is to serve underinvested communities and build thriving local economies by improving access to transformative capital, and advancing policy through collaborative research and community-driven advocacy.