CRA for California (CA-CRA)
A California-level Community Reinvestment Act establishes new reinvestment obligations to meet modern-day needs of historically redlined communities in California.
Resolving inequities in
housing and financial services.
What would a CA CRA do?
◆ Require state-chartered banks, credit unions, fintech companies and non-bank mortgage lenders to meet the financial and credit needs of Black, Indigenous and People of Color communities.
◆ Promote the oversight and accountability of financial institutions by allowing the public to provide input on the performance of financial institutions.
◆ Incentivize banks to finance California’s transition to a just and greener economy and discourage financing activities that fuel climate change.
◆ Fills the policy gaps of the Federal CRA.
◆ Address disparities in access to financial services and narrow the racial wealth gap.
The financial services landscape is not the same today as it was in 1977
History of the CRA
The law encourages banks to meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. The CRA was enacted in 1977 in response to concerns that financial institutions were not adequately serving the credit needs of these communities, often resulting in disinvestment and redlining.The federal Community Reinvestment Act creates a duty for banks to reinvest in communities where they take deposits, including low and moderate-income neighborhoods. But the CRA could do so much more.
Over the years, we’ve worked alongside many of you to strengthen and protect the federal CRA by securing public, detailed, written commitments to communities from banks. We’ve even gone so far as to sue the federal government to uphold this critical piece of legislation. But we imagine a CRA that can do much more for the families and small business owners that call California home. A California CRA will help build an economy that works for everyone who lives in our communities.
Latest CA CRA News
Rise Economy Response to Efforts to Gut the CRA
Statement from Paulina Gonzalez-Brito, CEO of Rise Economy, on the FDIC and OCC’s proposed changes to Community Reinvestment Act (CRA) rules: “This latest proposal by the Trump Administration is
ADUs are unlocking a new door for homeownership in the Inland Empire
A conversation with NPHS on how it leveraged CRA credit to fund its new homeownership pilot program. By Madison D'Ornellas, Communications Specialist As California’s affordable housing crisis deepens, an innovative
Asm. Bonta Introduces AB 801, the California Community Reinvestment Act
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)
Rise Economy Statement on Banking Agencies’ Announcement to Rescind 2023 CRA Final Rule
In response to the announcement made today by federal bank regulatory agencies regarding their intention to rescind the 2023 final rule of the Community Reinvestment Act (CRA) and to reinstate
Can Failing CRA Grades Stop Bad Banks?
When the Office of the Comptroller of the Currency (OCC) handed City National Bank (CNB) a “Needs to Improve” rating under the Community Reinvestment Act (CRA) earlier this year, it
Building California’s Future One CBA at a Time
Innovative Housing and the Power of Reinvestment California is in the midst of an acute housing crisis, especially in cities like Los Angeles, where homelessness and affordable housing shortages continue
