HomeMy WebLinkAbout1993-01-12 - AGENDA REPORTS - CMTY REINVESTMENT ACT (2)AGENDA REPORT
CONSENT CALENDAR
DATE: January 12, 1993
SUBJECT. . Community Reinvestment Act
DEPARTMENT: Finance
BACKGROUND
City ManagerApprova
Item to be presented
Steve Stark Sf
In the City Council meeting in October, Mayor Jill Klajic directed staff to bring an agenda
item back to City Council regarding financial institutions having a continuing and
affirmative obligation to help meet the credit needs of the local communities in which they
are chartered. This obligation was established by the United States Congress in October
of 1977 in a document titled the Community Reinvestment Act. Congress passed this Act
to address disparate lending patterns in communities across the nation. The Community
Reinvestment Act encourages financial institutions to ascertain and help meet the credit
needs of their communities, including the low and moderate income neighborhoods within
those communities, consistent with safe and sound banking practices.
Financial institutions must prepare well-planned, written, and documented strategies that
recognize the unique credit needs of their communities and the institutions own area of
expertise, products, and services.: In 1989 Congress passed the financial institutions'
Reform Recovery and Enforcement Act which required federal financial supervisory
agencies to evaluate an institutions CRA performance based on a four tier rating system
and that these ratings and written evaluations be made available to the public.
The City has contacted all local financial institutions and requested that they provide
copies of their CRA's to be on file in the Finance Department.
RECOMMENDED ACTION
To receive and file the agenda report making the citizens of Santa Clarita aware of the
Community Reinvestment Act and also to make citizens aware that the written CRA plan
is available for review at their financial institution or through the City of Santa Clarita
Finance Department. - _ —
SS/g" APPROVED
Agenda item.