American Banker, December 17, 2019: Will CRA Revamp Stimulate Lending In Down-And-Out Neighborhoods?
Proposed changes to the Community Reinvestment Act could serve as a catalyst for banks to become more active in financing projects inside Opportunity Zones, according to some development experts.
Opportunity Zones provide tax incentives to investors in development projects located low and moderate-income neighborhoods.
But some are concerned that the proposed changes will end up encouraging banks to make loans in areas that are already gentrifying, at the expense of the neighborhoods that most need the investment.
A group of community reinvestment groups, including the National Community Reinvestment Coalition, said in a joint statement last week that the proposal “utterly fails to achieve what were supposed to be the primary objectives of rule changes: greater clarity for lenders and better results for low- and moderate-income communities and people of color.”
