wlm4 at cornell.edu (Will
05-08-1995, 08:10 PM
A New Report from the Woodstock Institute Argues for the Success of CRA.
Call 312-427-8070 for copy. No Email requests please.
Community Reinvestment Act Success Story:
Large Increases in Multifamily Lending in Chicago's Low- and Moderate-Income
Communities
Chicago, May 5 -- During the last ten years multifamily lending has
increased almost 350 percent in the city's low- and moderate-income
community areas. The result has been improved housing conditions in these
neighborhoods according to a new study released today by the Woodstock
Institute in Chicago.
This success demonstrates that the Community Reinvestment Act works and that
Congress should leave it alone, said Malcolm Bush, President of the
Woodstock Institute. Bills introduced in both the U.S. House and Senate
would seriously weaken the legislation.
The Woodstock study, CRA Boosts Multifamily Housing Loans in Chicago, shows
that from 1983 to1993 multifamily lending (for buildings with 5 or more
units) increased dramatically both in number and dollar value in Chicago's
45 low- and moderate- income community areas. The constant dollar value
increased 345 percent expanding from a yearly average of $54 million between
1983-85, to a yearly average of $240 million between 1991-93. The
number of loans similarly increased, from an average of 361 to 1,105, an
increase of 206 percent.
Multifamily lending is crucial to economically healthy communities. It is a
key source for neighborhood stability and revitalization. This increase is
a CRA
success -- CRA is responsible for introducing financial institutions to new
markets and business opportunities, Bush added. An ineffective CRA will
destroy years of slow rebuilding that have resulted in the successes
exemplified in the multifamily housing story in Chicago.
One of the reasons for the boom in lending was the
increase in the number of multifamily lenders servicing low- and
moderate-income communities.
Many neighborhoods saw the number of lenders go up by 50-100%.
Most of Chicago's low- and moderate-income community areas (36 out of 45)
saw increases of more than 50 percent in the constant dollar amount of
multifamily lending over ten years.
In the same 45 communities, the dollar value of permits for multifamily
rehab more than doubled.
Jean Butzen, President of the Organization of the Northeast and Executive
Director of Lakefront SRO commented: We are delighted that an increasing
number of lenders are active in Uptown. Their presence is critical to the
continued economic health of the community.
This multifamily study was released in conjunction with the publication of
the Institute's 10th Annual Community Lending Fact Book.
The Woodstock Institute is a 22 year-old, non-profit organization dedicated
to promoting reinvestment in lower-income neighborhoods in ways that
encourage racially and economically diverse communities.
Contact the Institute at 312-427-8070 for a copy of the study (ask for the
Reinvestment Alert) or a publications list.
This post transferred from the cdb-l mailing list
Call 312-427-8070 for copy. No Email requests please.
Community Reinvestment Act Success Story:
Large Increases in Multifamily Lending in Chicago's Low- and Moderate-Income
Communities
Chicago, May 5 -- During the last ten years multifamily lending has
increased almost 350 percent in the city's low- and moderate-income
community areas. The result has been improved housing conditions in these
neighborhoods according to a new study released today by the Woodstock
Institute in Chicago.
This success demonstrates that the Community Reinvestment Act works and that
Congress should leave it alone, said Malcolm Bush, President of the
Woodstock Institute. Bills introduced in both the U.S. House and Senate
would seriously weaken the legislation.
The Woodstock study, CRA Boosts Multifamily Housing Loans in Chicago, shows
that from 1983 to1993 multifamily lending (for buildings with 5 or more
units) increased dramatically both in number and dollar value in Chicago's
45 low- and moderate- income community areas. The constant dollar value
increased 345 percent expanding from a yearly average of $54 million between
1983-85, to a yearly average of $240 million between 1991-93. The
number of loans similarly increased, from an average of 361 to 1,105, an
increase of 206 percent.
Multifamily lending is crucial to economically healthy communities. It is a
key source for neighborhood stability and revitalization. This increase is
a CRA
success -- CRA is responsible for introducing financial institutions to new
markets and business opportunities, Bush added. An ineffective CRA will
destroy years of slow rebuilding that have resulted in the successes
exemplified in the multifamily housing story in Chicago.
One of the reasons for the boom in lending was the
increase in the number of multifamily lenders servicing low- and
moderate-income communities.
Many neighborhoods saw the number of lenders go up by 50-100%.
Most of Chicago's low- and moderate-income community areas (36 out of 45)
saw increases of more than 50 percent in the constant dollar amount of
multifamily lending over ten years.
In the same 45 communities, the dollar value of permits for multifamily
rehab more than doubled.
Jean Butzen, President of the Organization of the Northeast and Executive
Director of Lakefront SRO commented: We are delighted that an increasing
number of lenders are active in Uptown. Their presence is critical to the
continued economic health of the community.
This multifamily study was released in conjunction with the publication of
the Institute's 10th Annual Community Lending Fact Book.
The Woodstock Institute is a 22 year-old, non-profit organization dedicated
to promoting reinvestment in lower-income neighborhoods in ways that
encourage racially and economically diverse communities.
Contact the Institute at 312-427-8070 for a copy of the study (ask for the
Reinvestment Alert) or a publications list.
This post transferred from the cdb-l mailing list