Action Alert: Johnson-Crapo sign-on extended to Friday, May 2nd
Dear PCRG members:By request, the National Community Reinvestment Coalition (NCRC) is accepting additional signatures for our Johnson-Crapo sign on letter (below and available for download here) until this Friday, May 2nd. The letter is having an impact, which we saw after the April 29 hearing was delayed. It's being circulated on the Hill and has been mentioned in numerous news stories including this New York Times article.But we still need your help. Can you do two things?1. Sign the letter. Or if you have already, please forward to other organizations who might sign. Every organization counts, and will send a strong message to the Senate that this bill cannot go forward without significant changes. You can let me or your Regional Organizer know.2. Contact your Senators, especially if they're on the Senate Banking Committee. Let them know you're opposed to the Johnson-Crapo bill without very significant changes. You can find contact information for your Senators by following this link.If you need a refresher on our concerns, I recommend you check out the resources available on our housing finance page, which is also a good resource to circulate, link to in your newsletters, or to share online.I don't think I need to tell you how important this is. As John Taylor, President of NCRC, said in a member note:Due to the housing crisis and recession so much of that wealth has been lost in low-income communities, and disproportionately by people of color. And little gain will be realized if the current proposals to reform our system of housing finance are to move forward. The leading proposal in front of the Senate Banking Committee, the Johnson-Crapo bill, has serious deficiencies that threaten to restrict fair access for those folks we work hard to protect and promote.This bill would leave a weak regulator in charge of the system of housing finance, and too little to ensure that underserved communities would have access to the American Dream. Now is the time to fight to make sure that doesn't happen.With thanks for all that you do for underserved communities, Jesse Van TolDirector of Membership & OrganizingNational Community Reinvestment Coalition (NCRC)
The Honorable Timothy JohnsonChairmanU.S. Senate Committee on Banking, Housing and Urban AffairsWashington, DC 20510The Honorable Michael CrapoRanking MemberU.S. Senate Committee on Banking, Housing and Urban AffairsWashington, DC 20510Re: Including a Strong Access Mechanism in Housing Finance ReformDear Chairman Johnson and Ranking Member Crapo:Housing finance reform must ensure access to mortgage credit for all creditworthy borrowers and affordable rental housing for renters of all incomes. While the proposal you have set forth takes important steps toward achieving that goal, the undersigned organizations have very serious concerns that the legislation in its current form would harm the ability of working families to access credit.We are encouraged that the Johnson-Crapo proposal includes an incentive mechanism to reward institutions that provide access to conventional mortgage credit in underserved communities, but we are concerned that the proposal falls short in a number of crucial ways. In order for the proposal to create a housing finance system that ensures broad access, the following concerns with the Johnson-Crapo bill must be addressed:
- Identify Communities of Color as a Traditionally Underserved Market Segment. Johnson-Crapo fails to identify communities of color as a traditionally underserved market segment despite the long-standing history of difficulty that minority neighborhoods have experienced in obtaining access to conventional mortgage credit.
- Remove the Unnecessary and Harmful Down Payment Requirements. Down payment requirements have consistently been proven to restrict the ability of communities of color, millennials, and low- and moderate-income borrowers to access mortgage credit, and should be removed from this legislation.
- Require All Market Participants to Provide Fair Credit Access. Johnson-Crapo does not contain any language explicitly requiring institutions that benefit from the government guarantee or securitization platform to provide fair access for all creditworthy borrowers.
- Eliminate the Ability to “Opt Out” of Serving Communities. Secondary market entities can choose to opt out of the incentive-based affordable housing access mechanism, undermining its ability to drive competition between actors in the market to meet unmet housing needs.
- Ensure Existing Anti-Discrimination Laws are Not Harmed. When it comes to serving traditionally underserved communities, Johnson-Crapo prohibits the regulator from interfering with an institution’s business decisions on a loan level. This is problematic not only because it may deprive the regulator of the ability to enforce existing anti-discrimination laws with the entities it is required to regulate, but also because it may weaken the ability of discrimination victims to protect themselves.
- Maintain and Protect Support for Affordable Housing. The regulator is allowed to temporarily suspend contributions to the National Housing Trust Fund, the Capital Magnet Fund, and the Market Access Fund in times of market instability. These funds are meant to serve communities in need, and suspending contributions during times of crisis will further hurt populations that are already most vulnerable.
As Congress evaluates proposals for reforming or replacing GSEs, we ask that you press for the creation of a secondary-market system that will increase access to affordable homeownership and rental housing opportunities for all Americans. Any reforms to the secondary market must include a strong, enforceable access mechanism that guarantees that creditworthy first-time homebuyers, low- and moderate-income families, and communities of color will have the opportunity to build wealth over generations by securing safe, affordable mortgage credit.The undersigned organizations urge you to support changes to the current proposals that address the above concerns and create a strong, mandatory access mechanism. American families need your leadership to ensure that reforms to the housing finance system support the ability of all hardworking, creditworthy borrowers and renters to access affordable housing. Sincerely, National Community Reinvestment Coalition Advocates for Basic Legal EqualityAffordable Homes of South Texas, Inc.Affordable Housing ServicesAfrican Immigrant ServicesAgora Community Services Corporation NFPAIDS Foundation of Chicago's AIDS Housing Advisory CouncilAlabama A&M University Community Development CorporationAmerican Consumer Credit CounselingAmerican Debt Resources, IncAnacostia Economic Development CorporationAssociation for Neighborhood & Housing Development, Inc.Atlanta Neighborhood Development Partnership, IncBaltimore Neighborhoods, Inc.BAME Renaissance Community Development CorporationBaraga-Houghton-Keweenaw Community Action AgencyBeaulac Associates LLCBEE CoalitionBirmingham Business Development InitiativeBirmingham Business Resource CenterBreaking ChainsBrick Capital Community Development CorporationBridge CommunitiesBridgeport Neighborhood TrustBrio ManagementBrooklyn-wide Interagency Council on Aging, Education Fund, Inc.Buffalo Urban LeagueBuilding Alabama ReinvestmentCalifornia Capital Financial Development CorporationCalifornia Coalition for Rural HousingCalifornia Community Economic Development AssociationCalifornia Reinvestment CoalitionCalifornia Resources and TrainingCalvert FoundationCalvert InvestmentsCarnegie Community Development CorporationCASA of OregonCatalyst MiamiCEI MaineCenter for Changing LivesCenter for Fair HousingCenter for NYC NeighborhoodsCenter for Sustainable NeighborhoodsCentre for Homeownership and Economic Development CorporationCentro Hispano of MilwaukeeChicago Alliance to End HomelessnessChicago Area Fair Housing AllianceChicago Community Loan FundChicanos Por La CausaChosen JourneysCitizens’ Housing and Planning AssociationCity Heights Community Development CorporationCivic Center Barrio Housing Corp.ClarifiCoalition for Equitable Community DevelopmentCommon Wealth Development, Inc.Community Action Agency of St. Louis CountyCommunity Action Committee of the Lehigh Valley, Inc.Community Action DuluthCommunity and Economic Development Association of Cook CountyCommunity Development Corporation Resource ConsortiumCommunity Development Council of Greater Memphis TennesseeCommunity First MilwaukeeCommunity Housing Council of FresnoCommunity Housing FundCommunity Housing Innovations, IncCommunity Improvement ProgramCommunity Legal Services of East Palo AltoCommunity Service Programs of West Alabama, Inc.Consumer ActionConsumer Education Services, Inc.Consumers Council of MissouriCornerstone Services Inc.Covenant Faith Outreach Ministries/Covenant Community Development CorporationDean Lovelace, Dayton City CommissionerDebt Counseling CorporationDelaware Community Reinvestment Action Council, Inc.Detroit Community InitiativeDickerson ManagementDominion Financial Management, Inc.Durham Regional Financial CenterEast Bay Housing OrganizationsEast Los Angeles Community CorporationElder Law of MichiganEmerging ChangeMakers NetworkEmpowering and Strengthening Ohio's PeopleEscambia County Housing Finance AuthorityESR AdvisorsFair Finance WatchFair Housing Center of Metropolitan DetroitFair Housing Council of Northern New JerseyFair Housing Council of San DiegoFair Housing Napa ValleyFair Housing of MarinFair Share Housing CenterFaith Action for Community Equity HawaiiFamily Management Credit Counselors, Inc./Iowa Mortgage HelpFirst Community Christian Pentecostal Church of God Inc.Ford Heights Community Service OrganizationFoundational CapitalFrameworks Community Development CorporationG and H Environmental ConsultingGamaliel FoundationGem City-Hilltop Community Development and Housing, Inc.Genesis Housing Development CorporationGeorgia State Trade Association of Nonprofit DevelopersGlobal Network Community Development CorporationGO- Northwest Housing Resource CenterGood Neighbor FoundationGovernance & Accountability InstituteGrace at Jerusalem Community Development CorporationGreater Beverly Chamber of CommerceGreater Rochester Housing PartnershipHabitat for Humanity Golden EmpireHabitat for Humanity PhiladelphiaHaitian American Community Development CorporationHamilton County Community Reinvestment GroupHarlingen Community Development OrganizationHartford Community Loan FundHavenwoods Economic Development CorporationHazel Joyce Wiley Career & Financial Literacy Institute, Inc.Heights Community CongressHelping Hands Community OutreachHenderson and CompanyHigh Plains Community Development CorporationHill Community Development CorporationHilltown Community Development CorporationHmong American PartnershipHome City Housing, Inc.Home Preservation and Prevention, HPP CaresHome Repair Resource CenterHomes on the Hill Community Development CorporationHomestead Consulting ServicesHOPE of EvansvilleHousing & Community Development Network of New JerseyHousing Action IllinoisHousing Alliance of PennsylvaniaHousing and Economic Rights AdvocatesHousing Corporation of ArlingtonHousing Education and Economic DevelopmentHousing Opportunities for ExcellenceHousing Services of Central FloridaHousing, Options & Planning Enterprises Inc.Hyde Park Transitional Housing ProjectIllinois Iowa Center for Independent LivingIndiana Association for Community Economic DevelopmentInGeniusInland Fair Housing and Mediation BoardInner City Christian FederationIronbound Community CorporationISAIAHJamaica Plain Neighborhood Development CorporationJC Visions and AssociatesJewish Community ActionKenneth Young CenterKorean Churches for Community DevelopmentLa Casa de Don PedroLatino Action NetworkLaw Foundation of Silicon ValleyLawrence CommunityWorks, Inc.Legal Aid Society of MilwaukeeLittle Zion Baptist ChurchLong Island Housing ServicesLouisiana Community Reinvestment CoalitionMaine Center, Inc.Manna, Inc.Maryland Consumer Rights CoalitionMassachusetts Affordable Housing AllianceMassachusetts Association of Community Development CorporationsMetro St. Louis Coalition for Inclusion & EquityMetropolitan Milwaukee Fair Housing CouncilMetropolitan St. Louis Equal Housing Opportunity CouncilMetropolitan Tenants OrganizationMiami Coalition for the HomelessMiami Valley Fair Housing CenterMichigan Community Reinvestment CoalitionMilwaukee Realtist AssociationMississippi Valley Neighborhood Housing ServicesMobile Home Owners Association of IllinoisMoKan Construction Contractors Assistance CenterMovin’ Out, Inc.Mt. Zion Developments CorporationMutual Housing CaliforniaNational Alliance of Community Economic Development AssociationsNational Housing Counseling AgencyNational Housing Law ProjectNational Trust Community Investment CorporationNazareth HousingNeighborhood Housing Services of Greater ClevelandNeighborhood Housing Services of South FloridaNeighborhood Housing Services of the Inland EmpireNeighborhood Recovery Community Development CorporationNeighborhood Service OrganizationNevada Fair Housing Center, Inc.New Economy ProjectNew Frontier Community Development CorporationNew Hampshire Community Loan FundNew Jersey Citizen ActionNew Jersey Community CapitalNew Jersey State Industrial Union CouncilNew Orleans Neighborhood Development FoundationNew York Mortgage CoalitionNew York State Rural Housing CoalitionNew York StateWide Senior Action CouncilNorth County Churches Uniting for Racial Harmony and JusticeNorth Shore Community Development CorporationNorth/Northwest Suburban Task Force on Supportive Housing for Individuals with Mental IllnessNorthbay Family HomesNorthern New England Housing Investment FundNorthern Ohio Affordable HousingNorthwest Counseling Service, Inc.Northwest Indian Opportunities Industrialization CenterNorthwest Indiana Reinvestment AllianceNorthwest Side Housing CenterNorthwestern Housing Enterprises, IncorporatedNorwalk Fair Housing OfficeNW HomeStart, Inc.Oak Park Regional Housing CenterOhio Community Development Corporation AssociationOpen CommunitiesOregon Opportunity NetworkOur Casas Resident Council, IncPacific Asian Consortium in Employment, Business Development CenterPartners in CharityPartners in Community BuildingPathStone CorporationPeoples' Self-Help HousingPhiladelphia Association of Community Development CorporationsPhiladelphia Council for Community AdvancementPittsburgh Community Reinvestment GroupPlymouth Redevelopment AuthorityProject IRENEProject LIFTProsperity Unlimited Inc.Public Counsel Law CenterPublic Justice CenterR.A.A - Ready, Aim, AdvocateRegional Housing Legal ServicesReinvestment Partners North CarolinaRemax CityviewRenaissance Entrepreneurship CenterRenewed, Inc.Respond NowREVA Development CorporationRevival CenterRiver Cities Development ServicesRiver City Community Development CorporationRoberts Law FirmRobeson County DCRural Community Assistance CorporationRural Housing, Inc.Sacramento Housing AllianceSchoolcraft County Economic Development CorporationScott County Housing CouncilSelect MilwaukeeSelf Help EnterprisesSouth Philadelphia H.O.M.E.SSoutheast Arizona Governments OrganizationSouthern Regional Community Reinvestment CorporationSouthwest Community Development CorporationSouthwest Fair Housing CorporationSouthwest Michigan Community Action AgencySouthwest Neighborhood Housing ServicesSpanish Coalition for HousingSpringfield Center for Independent LivingSt. Louis Equal Housing and Community Reinvestment AllianceSt. Petersburg Neighborhood Housing Services, Inc. dba Neighborhood Home SolutionsTennessee Human Rights CommissionTexas Small Farmers and Ranchers Community Based OrganizationThai Community Development CenterThe Arc of HiloThe Center for Working Families, Inc.The Fair Housing Center of Greater BostonThe Fair Housing Center of Northern AlabamaThe Midas CollaborativeThe National Consumer Reporting AssociationThe PERICO Institute for Development and EntrepreneurshipThe Pride Through Empowerment Foundation, Inc.The Victoria FoundationToledo Fair Housing CenterTotally FreeTraining Grounds Inc.Union of Pan Asian CommunitiesUnited Housing ConnectionsUnited Neighborhood Centers of Northeastern PennsylvaniaUnited Neighbors, Inc.United South Broadway CorporationUnity CouncilUrban Housing AllianceUrban League of Greater MiamiVermont Slauson Economic Development CorporationWashington East Development AllianceWatts/Century Latino OrganizationWe Help Community Development CorporationWestern Egyptian Economic Oppurtunity CouncilWestern New York Law CenterWill Grundy Center for Independent LivingWilson Community Improvement AssociationWindmon Windy City Family & Community Resource CenterWisconsin Council on Children and FamiliesWisconsin Partnership for Housing DevelopmentWoodstock InstituteWorking In NeighborhoodsYolo Mutual Housing AssociationYWCA of Madison
For more information on this post, contact Chris Sandvig, PCRG's Regional Policy Director, at csandvig@pcrg.org or (412) 391-6732 ext. 208.