We are including some resources below on banks and community development to supplement the discussion in Episode 2 of our podcast. It continues the discussion on black home ownership. Bob Hunter noted that banks are primarily concerned with risks. Risk calculation itself could also be based on layered institutional racism. Desiree Hunter discussed some of the approaches community development groups could use when dealing with banks and developers.
Banking Links
Even though banks are primarily concerned with managing risk, there are Federal laws that regulate banking activity. These regulations impact lending choices. The banks cannot redline, a practice Pam Taylor described in Episode 1. Banks are also encouraged to invest in their local communities. The Community Reinvestment Act, a Federal statute, requires banks to do a certain amount of investing in local communities. You can read about the act and how banks are measured for compliance here. You can also follow news about banks on the website American Banker. They have a pay wall so we will not link to the site, but if interested you can choose to visit it.
Community Action and Development
Desiree Hunter mentioned several community organizations in her portion of the podcast. The original organization she worked with in the Bronx was Northwest Bronx Community and Clergy Coalition (NWBCC). Desiree was the president of the board for three years.
People’s Action Organization was formed from several grass roots social justice movements. The organization helps grass roots group and communities fight for change. Desiree worked with this group in the fight to enact bank reform during the 2008 financial crisis. Community Change is another organization that helps communities of color fight for social change and provides leadership training.
At the end of the segment, the Hunters discussed how communities and developers can work together to create equitable development. Community Benefits Agreements that hold developers accountable for equitable development were mentioned. You can learn more about them in the toolkit provided here.