Greetings,
Yesterday, on Tuesday, January 10, 2012, I sponsored Bill #2012-0014, which requires financial institutions seeking to become City depositories to make a commitment to community reinvestment in low to moderate income neighborhoods. The bill also instructs the City Controller to evaluate banks with which the City does business as to their success or failure in meeting this commitment. This legislation was prematurely passed by Council last year but vetoed by the Mayor last year because of the lack of community input from low to moderate income neighborhoods. Also because as written the bill would have likely had the adverse effect on the communities it purports to serve.
This legislation now has stronger language that is aimed at ensuring banks are committed to investing in low to moderate income communities. A few of the important changes that my office has made to this legislation include the following:
- Provision requiring financial institutions to meet a minimum of a satisfactory Federal CRA rating (Community Reinvestment Act) in order to be deemed eligible as a city depository. Institutions that do not meet this minimum criteria will not be evaluated further for consideration.
- Any financial institution receiving City funds as a City depository must keep those funds in a branch located within City limits. Furthermore, as banks are asked, to the greatest extent possible, to keep monies in branches located in low-moderate income census tract blocks in order to to ensure the the sustainability of branches in those communities.
- Provision requiring financial institutions reporting to be detailed down to census tract blocks.
It is my hope that this legislation will better assist low to moderate income communities economically grow and thrive within the City of Pittsburgh. You can view Bill #2012-0014 by clicking here.
This article provided by pittsburghpa.gov, to view the original article page click here!
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