Real Estate
Home›Real Estate›Residential›NAAHL warns proposed CRA changes could cut community d…
NAAHL warns proposed CRA changes could cut community development coverage
NAAHL estimates 2.6 million people could live in areas with no banks evaluated for community development if regulators raise CRA asset thresholds and restrict grants.
HousingWire reports the National Association of Affordable Housing Lenders is urging the OCC and FDIC to rethink proposed Community Reinvestment Act changes, warning the revisions could weaken incentives for affordable housing and broader community development financing.
In comments filed Tuesday, NAAHL said higher CRA asset thresholds and grant restrictions could reduce banks’ support for affordable housing, small businesses, and community facilities, particularly in rural areas and smaller markets.
NAAHL’s analysis estimates 2.6 million people could live in areas with no banks evaluated for community development under the proposed framework.
NAAHL also said changes could jeopardize partnerships that help drive housing supply and support local economies, arguing CRA helps catalyze private capital for housing and community development.