NCRC 2025
Policy Priorities
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Priorities
1
Strengthen and safeguard the Community Reinvestment Act
2
Advance the implementation of the Small Business Lending Data rule
3
Champion ways to increase housing supply
4
Accelerate investment in community development institutions
5
Demand federal funding for key programs in 2025
6
Prioritize state and local efforts leading to a more Just Economy
In 2025, NCRC will continue to prioritize strengthening the Community Reinvestment Act, advocating for housing affordability, and advancing the implementation of lending data transparency for small businesses.
We will also lean into state-level opportunities for housing and banking policies that can lead to a more just economy. State legislatures will become a crucial venue in 2025. We believe all sectors must engage in building an equitable and fair economy. There is a legal obligation for banks and other financial institutions to invest in and lend to low- and moderate-income communities. There is also a moral obligation to combat discrimination and to address the financial industry’s role in creating and reinforcing the racial wealth divide and inequities.
Working with our 700+ state and local members across 40+ states, our strategic priorities include:
1
Strengthen and safeguard the Community Reinvestment Act
2025 will be a critical year for the Community Reinvestment Act. In late 2023, for the first time in almost thirty years, federal agencies updated the Community Reinvestment Act to reflect the advent of online banking, as well as updates to the definition of community development to better serve the needs of low-and-moderate income communities.
Congress passed the Community Reinvestment Act of 1977 to establish continuing and affirmative responsibilities for banks to meet the credit needs of all communities, including low- and moderate-income communities. The law has been a cornerstone for increasing investment and access to credit in underserved communities.
Implementation of the updated rule has been put on hold pending litigation initiated by the banking lobby in late 2023. This year, NCRC expects to lead and manage a wide range of challenges, ranging from legal attacks in the courts, surprise regulatory and industry tactics, and targeted legislation aimed at weakening the Community Reinvestment Act.
2
Advance the implementation of the Small Business Lending Data rule
NCRC will focus on advancing the implementation of Section 1071, which requires financial institutions to collect and report data on applications for credit for small businesses to the Consumer Financial Protection Bureau, including those owned by women and minority groups. We expect to defend against industry, regulatory, and legal challenges, as well as legislation meant to weaken the database.
As envisioned by Congress, the small business lending rule in Section 1071 of the Dodd-Frank Act would create the nation’s first consistent and comprehensive database on lending to small businesses, including small farms. Over time, the rule will serve as the foundation for assessing fair lending enforcement and allow a wider range of stakeholders to better identify business and community development needs and opportunities for small businesses.
3
Champion ways to increase housing supply
Increasing the supply of housing that is affordable remains one of the most effective ways to build generational wealth by lowering costs for low-and-moderate income households. For the first time in two decades, federal policy is paying attention to housing supply shortage. In 2025, NCRC will support legislation, rules, and regulations tackling the housing shortage, including the following programs and initiatives:
- The Affordable Housing Credit Improvement Act (AHCIA), a comprehensive piece of legislation aimed at expanding and updating the Low-Income Housing Tax Credit to spur construction and rehabilitation of affordable rental housing.
- The Neighborhood Home Investment Act, a bipartisan piece of legislation that would cover the gap between the cost of building, or renovating, owner-occupied homes and the price they can be sold for in distressed neighborhoods. This is important in distressed neighborhoods because renovation costs often exceed the value of homes in poor condition. NCRC has supported this legislative fix since the bill was first proposed.
- Policies that make homeownership more attainable for low-and-moderate income households. In addition to increasing the supply of housing that is affordable, NCRC supports funding for downpayment assistance programs and interest rate buydowns, especially for first time home buyers and affordable housing construction loans backed by Government Sponsored Enterprises.
4
Accelerate investment in community development institutions
Increasing investment in community development financial institutions (CDFIs) is a major priority for NCRC and its 200+ CDFI member organizations as housing costs astronomically rise and as small businesses face barriers in securing long-term financing for projects. CDFIs provide low to moderate-income communities with access to credit that they may otherwise lack from mainstream lending institutions. In 2025, NCRC will support the following pieces of legislation:
- The New Markets Tax Credit Extension Act, a bipartisan piece of legislation that would make the New Markets Tax Credit permanent in the federal tax code, enabling community development entities to receive tax credits on a long-term basis providing financing towards the development of community facilities, and supporting small businesses.
- The Community Development Investment Tax Credit Act, a piece of legislation that would incentivize private investors and banking institutions to increase their investments in CDFIs in exchange for tax credits.
- The Analysis and Improvement Act of 2024, a bipartisan piece of legislation that would require federal regulators to establish studies regarding the usage of AI within financial institutions. For many small and mission-based lenders, there is very little public information regarding how AI is being used across different parts of their operations and the challenges of adopting newer technologies.
5
Demand federal funding for key programs in 2025
The federal budget is a statement of our nation’s values and priorities. NCRC supports robust appropriations that help low to moderate-income Americans gain access to housing and credit and protect Americans from abusive, unfair, and deceptive financial industry practices. NCRC supports the following legislative line items that have been targeted for budgetary cuts:
- $6.2 billion for public housing operations and $5.1 billion for public housing capital needs
- $4.2 billion for The Community Development Block Grant
- $1.4 billion for the HOME Investment Partnerships Program, the largest federal grants for building, buying, and rehabilitating affordable housing
- $1.3 billion for tribal housing programs
- $324 million for the Community Development Financial Institutions Fund
- $140 million for Choice Neighborhood Programs to assist struggling neighborhoods by improving distressed public and HUD-assisted housing
- $100 million for the Eviction Protection Grant Program
- $100 million for grants to reduce barriers to affordable housing
- $86 million for fair housing enforcement activities
- $58 million for housing counseling assistance programs
- $27 million for the Women’s Business Center
- $10 million for the Mentor-Protégé program at the Small Business Administration
6
Prioritize state and local efforts leading to a more just economy
Working at the state and local level is vital to our mission. Collaborating with our members across the United States, NCRC’s priorities will include:
- Advancing the Community Reinvestment Act at the state level
- Increasing the availability and affordability of property insurance in low to moderate-income communities
- Advancing laws that make business lending more transparent and fairer, such as the Truth in Lending Act for small businesses