IMPACT:
Leading Systems Change

Transparency in Housing Ownership

In 2023, in the face of growing consolidation in the rental housing market, Rise Economy made progress in advocating for a new state policy to increase the transparency of who owns property in our state. The use of anonymous LLCs hides the extent to which California’s housing and commercial property stock is increasingly concentrated in the hands of large corporations.These sophisticated entities use numerous LLCs to create the impression that they are small mom-and-pop investors when, in fact, they own hundreds of properties.

By requiring the owners of businesses held in LLCs and similar corporate entities to disclose their names, existing laws designed to protect Californians can be enforced, ranging from worker safety laws to habitability requirements in rental housing. This policy would support law-abiding business owners by ensuring bad actors are unable to hide behind layers of corporate entities to operate with impunity. It also would enable communities to understand who owns businesses and properties in their neighborhoods.

A Community Reinvestment Act for California

Since the enactment of the federal CRA in 1977, financial services are increasingly provided by non-bank entities. Online mortgage providers, FinTech companies and the explosive growth of credit unions had not been not envisioned at the time the CRA was created, thus these entities are not evaluated for their performance in serving communities where they conduct substantial business. Furthermore, the federal CRA lacks an explicit consideration of race and ethnicity in evaluating banks’ performance.

In 2023, Rise Economy initiated conversations with members and lawmakers on the viability of establishing a state framework similar to the CRA for state chartered banks, state chartered credit unions, independent mortgage companies, and money transmitters that hold consumer funds. By broadening the scope of CRA, California would create an affirmative obligation for these financial institutions to meet community needs like affordable housing and support for small businesses. We have estimated this obligation could generate mortgage lending, small business lending and support, community development lending and investment, and philanthropy upward of $21 billion per year.

A CRA Obligation
for CA Could Generate

0

Upward of $12B
Annually for the State

Capital and Capacity Building for BIPOC Leaders

“Through the $4.5 million Resilience Fund, Rise Economy supported a new generation of BIPOC-led Community Development Financial Institutions (CDFIs) to ensure that small business owners and micro-entrepreneurs of color have access to affordable, patient capital."

- T. Jay Diallo, First Community Capital

Learn more about the Rise Economy vision we believe in

california reinvestment coalition strategic plan