Federal Strength, Local Enforcement: How to Use Local Banking Ordinances to Increase Investment in Your Community

Federal Strength, Local Enforcement: How to Use Local Banking Ordinances to Increase Investment in Your Community Dave Hanzel, Association for Neighborhood & Housing Development (ANHD)April 19, 2012

NYC Responsible Banking Act: Why Necessary

• NYC Banks Consolidating and Growing Between 1998 and 2008, 11 of the city’s 25 largest

banks were acquired and merged with other large banks

• ANHD “State of Bank Reinvestment in NYC” Report $38 billion increase in local deposits at 20 of the city’s

largest banks $4.4 billion decrease in lending and investment Greater share of reductions in LMI neighborhoods and to

LMI borrowers than City overall. # of all MF apartment loans fell by 37%, but the # in LMI neighborhoods fell by 58%

• Qualitative changes to banks’ approach to reinvestment

NYC Responsible Banking Act: Issues to Consider

• Legal and Political Issues

Federal Pre-Emption

Mayoral Curtailment

Industry and Political Opposition

• Bill Drafting Issues

Flexibility and Ability to Respond to Different

Problems

Administration and Implementation

NYC Responsible Banking Act: Dream Bill

• Transparency

Local Reinvestment Plan

Access to Local Level Data

• Accountability

Ratings

Overall Evaluation, Posted on Agency / Council

Website

Formal Role for Public Input

NYC Responsible Banking Act: Actual Bill

• Transparency

Access to Local Level Data

• Accountability

Ratings

Overall Evaluation, Posted on Agency / Council

Website

Formal Role for Public Input

* Not About All Sides Being Happy, About Good Policy

NYC Responsible Banking Act: Campaign Strategy

• Allies (How to Build and Strengthen Coalition)

Members, Other Advocates, Unions

Local Elected Officials

NCRC and Other Cities

• Opponents (How to Persuade or Neutralize)

Banking Industry

Mayor

NYC Responsible Banking Act: Campaign Strategy

• Establishing Credibility

• Crafting a Message: Aggressive vs. Collaborative

• Maintaining Momentum

Community Meetings and Events

Direct Actions

• Measuring Outcomes

THANK YOU!

To follow up with the speaker:Dave HanzelAssociation for Neighborhood & Housing Development (ANHD)(212) 747-1117 x21davidb.h@anhd.org

Presentations will be available at www.ncrc.org/conference by April 30, 2012