Res. No. 113-99-10737RESOLUTION NO.113-99-10737
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI,FLORIDA,RELATING TO
COMMUNITY REINVESTMENT ACT(CRA);STRONGLY
URGING MEMBERS OF THE HOUSE COMMITTEE AND THE
U.S.HOUSE OF REPRESENTATIVES TO AMEND H.R.10 TO
MODERNIZE THE CRA;PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS,sincetheCommunityInvestmentAct(CRA)passed in1977,
ithasproducedmorethan$1.4billioninlendinginunderservedcommunitiesby
FDIC-insured banks;and
WHEREAS,theCRAshouldcontinuetobeanimportanteconomic
developmenttooltoincreasehomeownershipandeconomicdevelopmentinlow-
income urban and rural communities;and
WHEREAS,H.R.10,the Financial Services Modernization Act,should
include modernization of theCRAsothatit continue tocover lending and
traditional banking serviceswhetherperformedbyabankorone of thenew
affiliates of thebankholdingcompanieswhichwillbeallowedtoformwith
passage of H.R.10;and
WHEREAS,if CRAisnot modernized to cover traditional lending and
banking services performed inthepastonlybybanks,thenew affiliates of bank
holding companies willnotbecoveredbytheCRAandcouldfailtoprovide
services to low-income communities;and
WHEREAS,banksthatmergewithinsurance,securitiesandmortgage
bankingentitieswillbepermittedtoshifttheirassetstotheirnewaffiliates,thus
reducingtheamount of capitalcoveredbytheCRA.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA;
Section1.TheCityCommissionstronglyurgesthemembers of the
HouseCommerceCommitteeandtheU.S.House of Representativestoamend
H.R.10 to modernize the CRA.
Additionsshownby underlining and deletions shownby ovorstriking.
Resolution No.113-99-10737
Section 2.That to modernized the CRA H.R.10 must be amended to
requireallaffiliates of thenewbankcompaniesthatperformlendingandbanking
services tobe covered bythe CRA
Section 3.That to increase access to credit for homeownership,
automobileownership,andsmallbusinessinsuranceproductsforunderserved
people,H.R.10mustbeamendedtorequiretheinsuranceaffiliates of thenew
bankholding companies tocollectand maintain dataonthe characteristics oftheir
customers,including race,income,andtheneighborhoodsinwhichtheyreside,to
identifymissedmarketopportunitiesinlow-incomeworkingclasscommunities.
Section 4.This resolution shalltake effect immediately upon approval.
PASSED AND ADOPTED this _lst_day of June
ATTEST:APPROVED:
,1999.
<P^g^ft,;
CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
Page2 of2
^4 £Z
MAYOR
Commission Vote:
Mayor Robaina:
Vice Mayor Oliveros:
Commissioner Feliu:
Commissioner Bethel:
Commissioner Russell:
£cy
5-0
Yea
Yea
Yea
Yea
Yea
,4*"S-e|?*%!^\
CITY OF SOUTH MIAMI
INTER-OFFICE MEMORANDUM
TO:Mayor and City Commission DATE:5/29/99
(OAGENDAITEM#
FROM:Charles D.Scurr /If/II I t/si Comm.Mtg.6/1/99
City Manager f /Ayf/)\J(^A Community Reinvestment
Act (CRA)
The attached resolution is sponsored by Vice Mayor Armando Oliveros,Jr.
urges the members of the House Committee and the U.S.House of
Representatives to amend H.R.10 to modernize the CRA.
History
The Community Reinvestment Act (CRA)passed in 1977.It has produced more
than 1.4 billion dollars in lending in underserved communities by FDIC-insured
banks.
H.R.10,.The Financial Services Modernization Act being considered in
Washington,D.C.should include modernization of the CRA so that it can
continue to cover lending and traditional banking services where performed by
a bank or one of the new affiliates of the bank holding companies which will be
allowed to form with passage ofH.R.10.
IhY-26-1939 17=46 NATL LEAGUE OF CITIES 202 626 3043 P.01/05
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National League of Cities
1301 Pennsylvania Avenue,NW
Washington,D.C.2DDQ4
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TO:
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OFFICE TELEPHONE #:()
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FROM:^
OFFICE TELEPHONE #:("202 )626-•
FAX #:(202 )626-3103 OR(202 )626-3043
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If any part of ttJfiJS^hW**7^P^!rf|i '£office telephone number of the originating party above If *«•«•»
answer,call the NLC switchboard between 8:30 a.m.and 5:00 p.m.EST at
(202)626-3000.
r.eJU
MAY-26-1999 I?:46 NATL LEAGUE OF CITIES 202 626 3043 P.02/05
'''URGENT MEMO
TO:ConstituencyGroupLeadership
DATE:May 26,1999
FROM:Scott Morris and Cameron Whitman
NationalLeague of Cities,Policyand Federal Relations
Mary Gordon
National League of Cities,Member Programs
SUBJECT:Attachedisa CRA Resolution for consideration and passage byyourcity
council.
Background on CRA
The House CommerceCommitteeisexpectedtomarkupH.R.10,the Financial Services
Modernization Act of 1999,the week of June 7,1999.NLC believes thatH.R.10 must
be amended in the House Commerce Committee,or on the floor of the House,foritto
adequatelyupdateand modernize the Community Reinvestment Act (CRA)soit will
covertraditionalbankingservices of thenewaffiliates of bankholdingcompanieswhich
willbe created with passage of H.R.10.Without modernizing theCRAatthe same time
Congress modernizes financial services,banks would beableto shift theirassetsto their
insurance,securitiesandmortgagebankingaffiliates.Thiswouldreducetheamount of
capital coveredbythe CRA which requires bankstolendinthe areas wheretheytake
deposits,particularly low-incomeand underserved coramunides.NLC also supports
another amendment to H.R.10thatwould require insurance companies tocollect data on
the demographic characteristics ofits clients whobuy insurance products.Thiswould
include information on race and gender and other demographic indicators.This
information wouldhelp these companies identifymissed market opportunities and
encourage themto expand their activities to low-income minority communities.
ACTION is needed on the CRA Resolution bv Tune 4:
1.)Please call ormeetwith your member ofthe House of Representatives and urge him/her to
actively support modernization of the CRAby passing the amendments suggested inthe
resolution.
2.)Please fax the CRA resolution to as many members ofthe House Commerce Committee (list
attached)as possible and to your member ofthe House of Representatives.
3.)Send copies of your CRA resolution to your two U.S.Senators.
Please call Mary Gordon or Cameron Whitman at NLC if you have questions.The telephone
number is 202/626-3000.Please fax copies of your final resolution to Cameron at 202/626-3043.
MAY-26-1999 17:47 NATL LEAGUEOF CITIES 202 626 3043 P.03/05
CRA MODERNIZATION MUST BE INCLUDED IN ANY
FINAL FINANCIAL SERVICES MODERNIZATION LEGISLATION
WHEREAS,sincetheCommunityReinvestmentAct(CRA)passedin 1977,ithas
producedmorethan$1.4billioninlendinginunderservedcommunitiesby
FDIC-insured banks;and
WHEREAS,the City of hasseenthe revitalization of dueto
CRA lending;and
WHEREAS,theCRA should continue tobean important economic development toolto
increasehomeownershipandeconomicdevelopmentinlow-incomeurban
and rural communities;and
WHEREAS,H.R.10,theFinancialServicesModernizationAct,shouldinclude
modernizationoftheCRAsothatitcontinuetocoverlendingand
traditionalbankingserviceswhetherperformedbyabankoroneofthenew
affiliatesofthebankholding companies whichwillbeallowedtoformwith
passage of H.R.10;and
WHEREAS,ifCRAisnot modernized tocover traditional lendingand banking services
performedinthepastonlybybanks,thenewaffiliatesofbankholding
.companieswillnotbecoveredbytheCRAandcouldfailtoprovide
services to low-income communities;and
WHEREAS,banks that merge with insurance,securities and mortgage banking entities
willbepermittedtoshifttheir assets totheirnew affiliates,thusreducing
theamountofcapitalcoveredbytheCRA.
NOW,THEREFORE BE TT RESOLVED thattheCity Council of strongly
urges the members of the House Commerce Committee and the U.S.House
ofRepresentativestoamendH.R.10tomodernizetheCRA;and
THEREFORE BEITFURTHER RESOLVED thattomodernizetheCRA,H.R.10must
be amended to require all affiliates ofthe new bank holding companies that
perform lending and banking services to be covered by the CRA;and
THEREFOREBEITFURTHERRESOLVEDthattoincreaseaccesstocreditfor
homeownership,automobile ownership,and small business insurance
products for underserved people,H.R.10 must be amended to require the
insurance affiliates of the new bank holding companies to collect and
maintain data on the characteristics of their customers,including race,
income,and the neighborhoods in which they reside,to identify missed
market opportunities in low-income working class communities.
MAY-26-1999 17:48 NAT'L LEAGUE OF CITIES 202 626 3043 P.04/05
Fax CRA Resolution to:
Members of the House Commerce Committee
Tel:202/225-2927 Fax:202/225-1919
Republicans
ThomasJ.Bliley,Jr.,7th-VA
Chair
WJ.Tauzin,3ri-LA
Michael G.Oxley,4lh-OH
Michael Bilirakis,9m-FL
JoeBarton,6th-TX
Fred Upton,6th-MI
Cliff Stearns^-FL
Paul E.Qillmor,5th-OH
Jim Greenwood,8th -PA
Christopher Cox,47th-CA
Nathan Deal,9th -GA
StcvQ Largent,lsr-OK
RichardM.Burr,5th -NC
Brian Bilbray,49th -CA
Edward Whitfield,l"-KY
GregGanske^-IA
Charles-Norwood,lO^-GA
TomCoburn,2nd-OK
RickLazio,2nd-NY
BarbaraCubin,At-Large-WY
James E.Rogan,27th -CA
JohnM.Shimkus,20*-^
Heather A.Wilson,lst-NM
John Shadegg,4,h-AZ
Charles Pickering,Jr.,3*-MS
Vito Fossella,13 -NY
Roy Blunt,7th-MO
Ed Bryant,7th-TN
Robert EhrUch,Jr..2nd-MD
MAY-26-1999 17:48 NATL LEAGUE OF CITIES 202 626 3043 P.05/05
Fax CRA Resolution to:
Members of the House Commerce Committee
Tel:202/225-2927 Fax:202/225-1919
Democrats
JohnD^Dinge^ie^-MI
RankingMinority
Henry A.Waxman,29*-CA
Edward J.Markey,7th-MA
Ralph M.Hall,4A-TX
Rick Boucher,9th-VA
Edolphus Towns,lO^-NY
FrankPalloneJr.,e^-NJ
Sherood Brown,13,h-OH
Bart Gordon,e^-TN
Peter Deutsch,20m-FL
Bobby Rush,lst-IL
AnnaEshoo,14,h-CA
RonKlink,4th-PA
Bart Stupak,lst-MI
Eliot Engel,H^-NY
Thomas C.Sawyer,14lh-OH
Albert Wynn,4^-MD
GeneGreen,29th-TX
Karen McCarthy,5*-MO
Ted Strickland,a^-OH
Diana L.Degette,lst-CO
Thomas Barrett,S^-WI
BillLuther,6th-MN
TOTAL P.85