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BANKING COUNCILS
PARTNERSHIPS FOR COMMUNITY DEVELOPMENT
I n these times of decreased profits
I and increased regulatory over00-
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sight, many banks are looking for
new ways to increase their commitment to their local community while
keeping costs to a minimum. For
some, collaboration has proven the
best path to this end.
Although banks have long had
working relationships with other
banks, local government officials,
and community leaders, few formalized these associations by creating
an independent working group or
council. Several innovative community banking councils have been
established in New England within
the past three years, however. They
range in design from a network of
banks that meet regularly to focus on
a specific credit need, to a collective
of banks, public agencies, and
nonprofits that acts as a forum for
discussion of local economic issues.
Some have paid staff which work on
independent projects, such as credit
needs assessments. Others rely on
staff members who volunteer their
time, for example, to help conduct
consumer education programs or
distribute funds from a loan pool.
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Collaboration for the purpose of
developing a loan pool is much more
common than the creation of an
open-ended forum. It is not difficult
to see why. Loan pools are productoriented, offering tangible results in
a relatively short time. Conversely,
councils that promote discussion of a
wide range of issues can often be
intimidating and frustrating to banks.
Not only will their commitment to
their local community be the topic of
continual debate, but banks may
also feel uncomfortable about pub1icly acknowledging a lack of
awareness of certain credit needs in
their area.
Despite the discomfort, such banks
have found that councils usually build
and strengthen working relationships
among banks and public and private
agencies. Furthermore, combining
forces with other banks and the
community at large has enabled
smaller banks and specialty banks to
get more for their effort.
This issue of Communities & Banking
focuses on three banking councils
in New England. The Massachusetts
Community and Banking Council,
representing the entire state, has an
ambitious agenda encompassing
consumer education, banking services, and bank CRA programs. The
Burlington Community Banking
Council consists of all of the banks
that operate in Burlington, Vermont,
plus city agencies and community
organizations. So far, the Council
has focused on assessing local credit
needs and working with a local community development credit union to
increase credit flowing into lowerincome areas. Finally, the Seacoast
Community Banking Council, which
focuses on the housing needs of a
twenty-town area in New Hampshire, is primarily a loan consortium,
but also is involved in consumer
education and needs assessment.
Because these banking councils are
fairly new, their leverage within their
communities is relatively unknown. It
is clear, though, that banks have
been able to improve their relationships with local community organizations and expand their knowledge
of community issues much more
effectively by working together rather
than independently. CB
MASSACHUSETTS COMMUNITY AND BANKING COUNCIL
B
oston banks have come under
fire once again for their lending
practices in the city's minority neighborhoods.
Several months ago,
local news media began reporting
the plight of victims of second mortgage scams. Stories were told of
Faced with such serious allegations,
the banking community found itself
in need of a way to organize a joint
response. Fortunately, a structure
was already in place that would
allow them to deal with the issues
collectively.
The Massachusetts Community and
Banking Council (MCBC), established in July of 1990, was designed
as a forum to discuss and devise
solutions to community credit needs
issues across the Commonwealth. It
is one of three entities created by the
Massachusetts Bankers Association
as part of its Community Investment
Program (CIP). The CIP is a statewide response to the problems of
underinvestment and disinvestment
in lower-income and minority communities.
SCENES FROM MCBC's ANNUAL MEETING: R1cHARD
POLLARD, CHAIRMAN, BAYBANKS; JOSEPH D. FEASTER, JR.,
PRESIDENT, MCBC; RICHARD 0. DRISCOLL, PRESIDENT,
MASSACHUSETT'S BANKERS' ASSOCIATION; RICHARD SYRON,
PRESIDENT, FEDERAL RESERVE BANK Of BOSTON
homeowners, often poor and minority, whose homes were being foreclosed because they could not afford
the debt service on their second
mortgages. Cases were documented
that involved misleading and high
pressure sales tactics, exorbitant fees,
and very high interest rates.
The other two entities under the CIP
umbrella, the Massachusetts Housing Investment Corporation (MHIC)
and the Minority Enterprise Investment Corporation (MEIC), were
chartered to make debt and equity
investments in affordable housing
and minority businesses, respectively.
MCBC was created as a separate
entity to assist both corporations in
carrying out their programs and to
assist member banks in meeting their
CRA responsibilities, in addition to
providing a forum for bank and community concerns.
As part of their investigative efforts,
the media focused on the relationships between several second mortgage companies and area banks.
These companies, operating primarily in Boston's minority neighborhoods, have all been accused of
unscrupulous lending practices.
Although the banks' involvement
in these unethical and sometimes
illegal dealings is notyetclear, some
public officials and community advocates argue that underinvestment in
these neighborhoods by Boston
banks has provided an environment
where such companies can flourish.
Community and public representatives also charge that by extending
lines of credit and sometimes by
purchasing loans from these mortgage companies, the banks profit
from their questionable activities.
representatives from Boston, Springfield, and several other cities, the
Massachusetts Community and
DAREN LOPES, GENERAL ELECTRIC; BILL FULLER, VICE PRESIDENT,
SHAWMUT BANK; TOM SCHUMPERT, PRESIDENT, MASSACHUSETTS MINORITY ENTERPRISE INVESTMENT CORPORATION; RON
WALKER, FLEET BANK; WAYNE JOHNSON, STATE STREET BANK
Banking Council speaks for a wide
range of organizations. Joseph
Feaster, MCBC' s president, has been
coordinating the Council's efforts
to come up with a comprehensive
solution to the second mortgage
scam. MCBC has provided a forum
where community advocates have
presented proposals to the banking
community to set up a conciliation
process
to
aid
victimized
homeowners. The Massachusetts
Bankers Association also chose
MCBC to announce its support of a
moratorium on foreclosures.
While MCBC has been wrestling
with the issues behind the second
mortgage scam for several months, it
has been working on its long-term
goals for over a year. Following are
some of the programs and services
MCBC has determined will help
banks across the Commonwealth
better meet the needs of their communities.
A voluntary welfare check-cashing program was instituted last year, in which over 200
banks currently participate. In May
of this year a voluntary direct deposit
program for welfare recipients was
introduced as well. MCBC has also
undertaken research to design a low
or no cost checking account for lowerincome customers.
• BANKING SERVICES.
WILUEJONES, GREATER ROXBURY NEIGHBORHOOD AUTHORITY;
PAT MCGUIGAN, BOSTON PUBLIC FACILITIES DEPARTMENT;
SUNNY-BRENT HARDING, HARDING & HARDING, MCBC
BOARD
With a membership of over l 00
Massachusetts banks and a board of
nine bankers and nine community
2
Continued on page 8
BURLINGTON COMMUNITY BANKING COUNCIL
T
hree years ago Burlington, Vermont was declared the most
livable city in the country by the U.S.
Council of Mayors. Much of the
credit for this award must go to
the cooperation among the city's
various community, business, and
economic development agencies.
During the past decade, Burlington
has focused it~ energies on revitalizing the city from within. While other
city governments were attempting to
lure big business into their areas,
Burlington implemented programs
that promote and work with locally
owned businesses.
It was in keeping with this grow-yourown philosophy that the acquisition
of a local bank by an out-of-state
institution mobilized the city to
create the Community Banking
Council in early 1989. The Council,
representing the seven area banks,
the city's Community Economic
Development Office, and representatives from local nonprofit housing,
small business, and consumer advocacy organizations, was established
to ensure that banks not lose touch
with the communities they were
chartered to serve.
The beginnings of the Council were
bumpy, by all accounts. The city,
known for its progressive community
development programs, faced representatives of an industry whose
lending policies it felt were overly
conservative. Conversely, the bankers initially felt that the non bankers in
the group were not appreciative of
the regulatory and financial constraints unique to their industry. Yet
both sides agree that the Council has
helped clear the air. As Council
member Jane Knodell, President of
Vermont CRA, a consumer advocacy organization, put it, "Both sides
had preconceptions, and the Council is very good at breaking down
those preconceptions." John Ewing,
President of Bank of Vermont and
one of the Council's original cochairs, echoed that sentiment. "We
services to low-income people, ties
directly into the Council's goals. By
providing a less intimidating environment to people unfamiliar and
uncomfortable with banks, VDCU
has found a great demand for its
services in low-income neighborhoods. By depositing funds in the
credit union, local banks have enabled VDCU to increase the number
of loans it can make. Bank personnel, from tellers to marketing experts,
volunteer time to help VDCU, and
gain a different perspective on the
financial services market. The combined deposits of area banks, totaling $200,000 in below-market CDs,
and other organizations have
reached over $1,000,000. VDCU
has been able to use these funds to
spent the first year getting to know
each other, and, in the process, got
rid of a lot of webs of mistrust."
The majority of the Council's activities have been developed and implemented by its three subcommittees:
Small Business, Housing, and Consumer. Below is a brief overview of
several of the programs in progress.
• AFFORDABLE MORTGAGE PRODUCTS. The
Council has approached the problem of affordable housing from
several directions. It is working with
the Greater Burlington Industrial
Council to create a central information bank of the types of affordable
mortgage products currently available. The Council also plans to write
an article for the local newspaper on
various homeownership products for
people with low and moderate incomes. In addition, the Council
intends to explore nontraditional
home financing options, and will be
inviting various housing experts to
speak with local bankers.
make loans to date of $400,000.
SMALL BUSINESS SURVEY. Burlington was
recently chosen by Inc. Magazine
as the best place in New England to
grow a business. City officials contend that Burlington's businessfriendly environment is due in large
part to public initiatives, and argue
that banks could do more than they
are to encourage small business
growth. lnordertodeterminewhether
local banks are meeting the credit
needs of small businesses, the Council has decided to conduct a survey
of all small business loan applicants
for a two-quarter period. Once the
survey results are in, Council members will have a common ground on
which to debate future small business lending policies.
11
VDCLJ BOARD MEMBER CHRISTINE JONES RECEIVED A $7 50
LOAN FROM VDCLJ TO ESTABLISH HER DAYCARE CENTER. JONES
IS A FORMER WELFARE RECIPIENT.
• EDUCATION AND OUTREACH. The Council
also supports the Burlington Ecumenical Action Ministry (BEAM),
which created VDCU, in establishing educational outreach programs
for the Credit Union. BEAM is well
known in the Burlington area for its
innovative educational, community
development, and social service programs. Vermont Federal Bank is
helping BEAM start a banking program for fourth and fifth graders at
Champlain Elementary School.
Howard Bank is involved in developing a Counseling and Advocacy
Program. As part of the program,
the first of several focus group meetings was held in June with members
of Northgate Tenants Association,
the largest low-income housing
• VERMONT DEVELOPMENT CREDIT UNION. The
Council's work with VDCU, the first
community development credit union
in Northern New England, has become the focal point of its program.
VDCU' s mission, to bring financial
3
Continued on poge 4
project in Burlington. As Cheryl
Fatnassi, Chair of the Consumer subcommittee and Vice President at
Howard Bank, explained, "Focus
groups will help us determine what
level of financial service assistance
people need."
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•
SEACOAST COMMUNITY
BANKING COUNCIL
T
Caryl Stewart, VDCU President and
Executive Director of BEAM, sum marized the overall progress. "Here in
Vermont, we have set a new standard for commit~ent by banks to the
success of a community development credit union. The Banking
Council has helped us do that, and
everyone benefits."
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As the Council matures and its programs are implemented, better relationships are being forged among
its members. "Tension among different groups has lessened," noted
Ewing. "The Council has provided a
tremendous benefit in promoting
understanding between banks and
community groups," he said. Yet its
members recognize that tension is
an integral part of the collaborative
process. "Part of the success of the
Council is that there is an undercurrent of discord," explained Bruce
Seifer, Council member and Assistant
Director for Economic Development
ofthecity'sCommunityand Economic
Development Office. Disagreement
forces everyone to define and defend their positions, he noted, "and
this makes for a better product." The
city, meanwhile, will continue to prod
its banks to create new products and
services, and extend more credit to
the community. As Seifer put it,
"There's always more we could do."
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he 1980s were boom years for
the Seacoast area of New
Hampshire. As in most other areas
of New England, this twenty-town
region in the southeastern part of the
state saw its unemployment rate drop
and its housing prices rise. As one of
the two largest employers in the
area, Pease Airforce Base, located
in Portsmouth, helped support the
thousands of jobs and hundreds of
millions of dollars in wages that local
businesses generated.
So when it was announced in 1987
that the airforce base would be closing within the next two years, the
local economy, pushed along by the
general economic slowdown, went
into a tailspin. To make matters
worse, both the federal and state
governments adopted an ambivalent approach to recruiting new
businesses into the area. Several
companies have expressed interest
in locating on the base, which closed
in September of 1990, but issues
over leasing and hazardous waste
cleanup have substantially delayed
negotiations.
This gloomy picture is what Seacoast
area banks were facing in late 1989
when their chief executive officers
were invited to a meeting hosted by
Fleet Bank- NH to discuss affordable
For more information about the ·
Burlington Community Banking :
Council contact Larry Kupferman, •
Business Development Specialist, ·
Champlain Valley Office of Economic :
Opportunity, at (802) 863-6248 or .
Bill George, Senior Vice President ·
and Regional Manager, Vermont :
National Bank, at (802) 863-8900 ..
They are the Council's current Co- ·
Chairs. CB
·
housing. Fleet had been approached
by a local nonprofit developer, the
Housing Partnership, with the request
to convene the meeting. Anne
Meadows, Executive Director of HP,
borrowed the idea from the Massachusetts Bankers Association, which
was then going through its own series
of negotiations with local community
organizations.
Meadows met with more than twenty
local banks that November to talk
about the crisis in affordable housing and her organization's work as
a nonprofit developer. Her statements, however, were greeted with
a great deal of skepticism from the
attendees. How could there be an
affordable housing crisis when rents
were dropping rapidly and vacancies were on the rise? Meadows saw
that it would take more than one
organization's voice for these bankers to realize the magnitude of the
crisis.
With the prodding of Clarke Chandler, then Senior Vice President of
Fleet, these banks agreed to
explore the issue further. During the
next nine months, they met with
representatives from city planning
departments, human service agencies, and housing authorities to discuss the social and economic problems facing the area.
These agencies described
a scenario in which families were seeing their
wages drop even faster
than area rents. During
the boom, they noted, the
concern was escalating
home prices.
Today,
many families that had
relied on two incomes to
pay the rent must now
squeak by with only one
familymemberemployed.
ARBOR fAllS, RECENTLY PURCHASED BY THE HOUSING PARTNERSHIP, Will PROVIDE
AFFORDABLE RENTAL UNITS IN ROCHESTER, N.H.
$434,QQQ
4
LOAN TO HP FOR THE PURCHASE.
24
THE COUNCIL PROVIDED A
to increase the pool of affordable
housing in the area.
Chandler acknowledged
that CRA compliance was
the initiative in getting
banks to participate in the
meetings initially. Within
a few months, though, it
became clear to local
banks that discussions
weren't enough; a program was needed to help
solve the affordable housing problem. ,
The Community Banking Council
recognizes that it does not have the
support of public agencies as similar
councils do in Vermont or Massachusetts, and this is reflected in their
agenda. "We can't rely on the
government to do our work for us,"
Tierney noted, "If there is a problem
in the community, it's up to the
community to do something about
it." Their hope is that by demonstrating the commitment of banks to increasing the amount of affordable
housing in the Seacoast area, the
local, state and federal governments
will begin to put more resources into
revitalizing the area.
After several months of N1cH0Ls Ave. 1N NEWMARKET, N.H. w1LL BE coNvERTED 1NTO A 6 uNrr AFFORDABLE
tw ty RENTAL BUILDING THE COUNCIL HAS COMMITTED $125 000 TO THE PROJECT.
.
regu Iar meetings,
en
totaling $715,000, with five more
two area banks decided to formalize
under review.
their group by creating the Community Banking Council, with Chandler
as Chair. Though their title is gen"We are encouraged," said Meaderal, their mission is focused on proows, "that the banking community
has developed a better understandmoting affordable housing. Mark
ing of the economic and social need
Tierney, Executive Vice President of
Fleet· NH and the Council's current
for affordable housing." Chandler,
Chair, noted that the Council chose
though, is concerned about the
program's flexibility.
As fundto focus its energy on one issue,
raising chairman for the Housing
rather than getting sidetracked by
Partnership in 1991, he cautions
the myriad of other problems facing
the local economy.
banks against applying standard
commercial underwriting criteria to
In that vein, the Council set up a
each loan application they receive,
direct working relationship with the
disregarding the unique aspects of
Housing Partnership by establishing
affordable housing. "This hampers
a $5.65 million below-market loan
the agency's negotiating capabilipool. The pool, formalized this
ties and eliminates some potentially
rewarding opportunities," he noted.
spring, is structured so that HP
applies directly to the Council with a
The Council has also established
loan request to purchase an existing
several committees to explore rebuilding. A loan origination committee reviews the application before
lated issues. The Secondary Market
Committee
was created to ensure
the Council meets and recommends
approval or denial of the loan. HP
that the loans are structured so that
they can be sold on the secondary
assumes sole responsibility for manmarket, thus ensuring a perpetual
aging the property if it is used as lowsupply of affordable housing funds.
income rental units, or for selling the
The Education Committee has held
property to lower-income families.
one open house so far on first time
The rate of interest charged HP, from
homebuyer programs. The Outreach
7 to 8 percent depending on the
Committee has developed and disproject, is low enough to ensure the
tributed questionnaires to local
long-term affordability of its rental
businesses, schools, and public
properties.
agencies to help determine the credit
needs of the community.
Although total dollar commitment is
binding, the participation of every
Local banks are also working through
bank in each project is not required.
the Council to encourage the federal
Member banks decide, as each loan
government to sell off the housing on
application is reviewed, whether or
the airforce base. HP is willing to
not they wish to participate. Three
purchase some of the 400 or so units
projects have been approved so far,
For more information on the Community Banking Council, contact Mark
Tierney, Fleet Bank - NH, at (603)
594-5884.CB
F
ree subscriptions and additional
copies are available upon request
to the Community Affairs Department,
Federal Reserve Bonk of Boston,
P.O. Box 2076, Boston, MA021062076, or call Sheryl Snowden at
{617) 973-3097.
The views expressed in Communities
& Banking are not necessarily those
of the Federal Reserve Bank of Boston
or the Federal Reserve System. Information provided on upcoming events
and other organizations should be
viewed os strictly informational and
not os on endorsement of their
activities.
Financial institutions, communitybased organizations and other organizations. involved in community development that hove interesting
projects, programs or ideas that they
would like to have mentioned in the
next issue of Communities & Banking
should contact:
Elizabeth McMurtrie
Editor, Communities & Banking
Community Affairs Department
f ederoi Reserve Bank of Boston
P.O. Box 2076
Boston, MA 02 l 06-2076
5
PUBLICATIONS
Microenterprise
of Atlanta, Community Affairs, Dept.
of Supervision and Regulation, 104
CRA Compliance
"' The Hidden Beast: Delinquency
in Microenterprise Credit Programs, Katherine E. Stearns,
Community Relations
Action Guide, Michael P.
ACCION International ( 1991). The
costs and causes of delinquency
are examined, as are successful
strategies for controlling delinquency.
This is the fifth in a series of discussion papers on topics related
to program implementation of
microenterprise projects.
Call
ACCION at (617) 492-4930. Each
discussion paper is $6.00 in English,
$3.00 in Spanish.
Sullivan and Nancy B.
Greenspan, American
Bankers
Association
(1989). A guide for bankers on developing a strong
commun-ity relations program. Includes "how to"
sections, tables, charts, and
sample documents from
some of the top-rated ban ks
in the country. Call the
ABA at (800) 338-0626.
$198 members, $297
nonmembers.
Software Programs
"' First Step Review, National
Business Association and U.S. Small
Business Administration (1989). A
business loan review software program designed to help potential
borrowers understand the types
of financial information required by
lenders. Call the NBA at (800) 4560440. Free.
* Fair Lending and Community
Investment Compliance Manual,
American Bankers Association
(1991 ) . Provides specific tactics
and action plans to help financial
institutions comply with the Equal
Credit Opportunity Act, the Fair
Housing Act, the Home Mortgage
Disclosure Act, and the Community
Reinvestment Act. Includes a computer-based tutorial which presents
over 200 situations based on realworld circumstances involving these
regulations. Call the ABA at (800)
338-0626. $169 members, $254
nonmembers.
* A Public/Private Partnership
Model for Home Mortgage Lending, Federal Reserve Bank of Atlanta
(1990). Designed for organizations
looking to create a program for lowerincome borrowers. The model demonstrates how various financial factors affect affordability. Includes
Lotus 1-2-3 spreadsheets on diskette.
Write to Federal Reserve Bank of
Atlanta, Community Affairs, Dept. of
Supervision and Regulation, 104
Marietta Street NW, Atlanta, GA
30303-2713. Or call Dianne Rawls
at (404) 589-7307. Free.
Community Reinvestment Act
ADVISOR, Carras/Newkirk Publications. A new periodical designed
to help financial institutions improve
their CRA programs. Call Carras/
Newkirk at (800) 525-4237. $195
for six issues.
Housing
*
A Banker's Guide to the
Community Reinvestment Act:
Case Studies ol 33 Institutions,
Kevin Kane, Esq. and Robert E.
Mannion (1991 ). Provides history
and requirements of CRA, along with
the community reinvestment strategies of various banks. Also includes
commentary on the future of CRA.
Call the Bureau of National Affairs,
Inc. at (800) 372-1033. $95.00.
*
Lessons Learned from the
Atlanta Mortgage Consortium,
Ronald N. Zimmerman, Federal
Reserve Bank of Atlanta (1990). Reviews the results of a loan consortium
geared toward residents of Atlanta's
lower-income minority neighborhoods. Also discusses the causes of
denial under traditional lending criteria and their public policy implications. Write to Federal Reserve Bank
6
Marietta Street NW, Atlanta, GA
30303-2713. Or call Dianne Rawls
at (404) 589-7307. Free.
* The Housing Ladder: A Steeper
Climb for American Households,
National Association of Realtors
(1990). Discusses the changes in
the housing market which have made
the transition from rental to
homeownership more difficult for
people with lower incomes. Also
documents the role of public and
private agencies in providing affordable housing. Write to National
Association of Realtors, Products and
Services, 777 14th Street NW,
Washington, D.C. 20005. Or call
(800) 874-6500. (Item number 186210.) $30.00.
* Making Housing Set-Aside
Funds Work, The Development Fund
(1991). A three-volume report
that describes how community developers can access capital from redevelopment agencies. Write to The
Development Fund, 1107 Oak Street,
San Francisco, CA 94117. Or call
(413) 863-7800.
$25.00 for
nonprofits. Free executive summary.
* Who Can Afford to Buy a
House?, U.S. Bureau of the Census
(1991). This report compares the
financial situation of homeowners
and renters to home costs in the
areas where they live. It finds that only
9 percent of all renters are able to
afford homeownership. Write to
Superintendent of Documents, DPD
Publications Unit, 1201 E. 10th
Street, Jeffersonville, IN 47132.
(Document number H 121-91-1 .)
Enclose a check for $2.50.
The Massachusetts Housing Partnership offers over 35 technical publications designed to assist communities
developing local housing strategies.
Subjects range from affordable
housing design to alternative financing mechanisms. For a complete list
ofavailable publications contact Tara
Murphy at (617) 338-7868.
Community Development
CONFERENCES
"' Regional and Local Economic
Analysis for Practitioners, Praeger
September 1()a 11
Publishers ( 1991). A review of stateof-the-art regional and local economic
development initiatives. Write to
Praeger Publishers, 88 Post Road
W., Box 5007, Westport, CT0688 l.
Or call (203) 226-3571. (ISBN number 0275937518.) $17.95.
"' Partnerships for Success: A
Mentoring Program Manual,
Enterprise Foundation and United
Way of America ( 1989). A manual
for developing partnerships among
public, private, and nonprofit organizations. Includes information on
planning, marketing, volunteer training, and program operations. Call
the Enterprise Foundation at (30 l)
964-1230. $20.00.
"' Banking Services for the Poor:
Community Development Credit
Unions, Woodstock Institute ( 1991).
An overview of credit unions across
the United States that offer credit and
financial services to lower-income
communities. Includes recommendations on how public and private
agencies can support the work of
these credit unions.
Write to
Woodstock Institute, 407 S
Dearborn, Suite 550, Chicago, IL
60605. Or call (312) 427-8070.
$16.00 for-profit, $8.00 other.
"' Mentoring Program Design
Manual, Women's Business Development Corporation ( 1991 ). Covers all steps in developing a business
mentoring program, including program organization, recruitment,
screening, orientation and training,
and evaluation. Also includes sample
questionnaires, application forms,
and brochures on diskette. Technical assistance from WBDC staff
also provided. Write to WBDC,
P.O. Box 5347, Augusta, ME 043325347. Or call (207) 623-0065.
$375.00.
* Denotes publications that have been ordered by
the Community Affairs Department and are available for public use.
more information, contact Coastal
Enterprises at (207) 882-7552.
October 1-3
"Developing Affordable Rural Housing," Housing Assistance Council.
Burlington, VT. A series of workshops which will provide intensive
training on Farmers Home Administration programs, multi- and singlefamily programs and other resources
for developing affordable rural
housing. Designed for nonprofits,
community development corporations, private builders, public agencies and other professionals involved
in affordable housing development.
For more information, contact Luz
Rosas of HAC at (202) 842-8600.
"Preserving Affordable Housing: An
Introduction to Community Land
Trusts," Institute for Community Economics. Washington, D.C. Training
opportunities for individuals, community organizations, religious
groups, and public agencies interested in starting new community land
trusts to create and preserve permanently affordable housing. Case
studies and caucuses with experienced CLT leaders. Workshop topics include CLT l~gal structure, organizing and outreach, fundraising,
and project development. For more
information, contact Carrie Nobel of
ICE at (413) 7 46-8660.
September 12
"Massachusetts Association of CDCs
l 0th Anniversary Annual Meeting,"
MACDC. Boston, MA. Meeting will
include nominations to the executive
committee with reception following.
For more information, contact Gwen
Reeves of MACDC at (617) 5237002. MACDC is also planning a
Lead Awareness Day sometime in
October. Call for details.
October 23=26
"199 l Public Policy Conference:
Developing an Action Plan for
Community Economic Development,"
National Congress for Community
Economic Development. Washington, D.C. For community development corporations and other
nonprofits. Session topics include
national legislative strategies, community economic development partnerships, and local coalition strategies. For more information, contact
NCCED at (202) 659-84 l l .
September 16a 18
"Creating New Partnerships for
Community Economic Development,"
Community Information Exchange.
Washington, D.C. For grantees of
HUD' s Neighborhood Development
Demonstration Program, other community-based organizations, and
others .working to revitalize lowincome communities. Conference
will explore federal legislation affecting our neighborhoods and stateof-the-art trends in affordable housing and business development. For
more information, contact Ernestine
Jackson of CIE at (202) 628-2981.
Rhode Island Housing and Mortgage
Finance Corporation is sponsoring a
series of Homeownership Opportunity Fairs in various locations around
the state this fall. Realtors, lenders,
attorneys, and RIHMFC representatives will present various housing
finance options for first-time
homebuyers and be on hand to
answer questions and prequalify
potential homebuyers. For more
information on dates and locations,
contact Helen King of RIHMFC at
(401) 751-5566, ext. 218.
September 17
"CRA Roundtable," Coastal Enterprises. Wiscasset, ME. A follow-up
to June CRA workshop. Will focus
on what has been accomplished
under CRA and strategize for future
collaboration. All interested bankers, community leaders, and housing providers are welcome. For
1
COMMUNITIES &BANKING
• CRA ASSESSMENT AND PLANNING PROGRAM.
This newly developed CRA program
is designed to take banks beyond
basic CRA compliance elements. The
program includes guidebooks focusing on self-assessment, community
credit needs, and development of a
CRA plan.
• EDUCATION. A two-day Home Buyers
Fair held in Roxbury last year attracted thousands of people looking
to learn more about buying a home.
Banker training seminars, designed
to encourage bankers and community representatives to discuss local
credit needs, have been held in Boston and Springfield, with more
planned.
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• MONITORING. The Monitoring Committee has developed a standardized reporting form to enable banks
to respond effectively to inquiries
about their community development
lending practices from community
groups, municipalities, and regulatory agencies. The form, designed to
be used in conjunction with HMDA
reports, CRA statements, and other
related documentation, covers five
areas: mortgages, affordable housing development and rehabilitation,
small business and other credit products, low-cost checking and savings,
and bank facilities.
Discussions are underway with the
City of Boston to use the form as part
of its linked deposit program. If
adopted by the city, and possibly by
the state, which has its own CRA
law, this standardized form would
enable public agencies and community organizations to compare and
aggregate data provided by Massachusetts banks much more effectively
than is currently possible.
In developing its mission, its focus,
and its programs, MCBC has its
share of challenges. Because the
Council intends to serve the needs of
banks and bank customers throughout the state, it must be careful to
design products and services that
are relevant to rural, urban, and
suburban banks of all sizes. Also, its
8
board members must ensure that
they speak for community interests
across the Commonwealth, both rural and urban.
According to Tom Callahan, a board
member and Assistant Director of
Massachusetts Affordable Housing
Alliance, the Council's future success
will also depend on bank regulators.
"The changes in the laws [CRA and
HMDA] made the formation of MCBC
possible," he said. If regulators are
lax in grading CRA exams, he believes that banks could lose interest
in the activities of the Council.
Kathy Tullberg, Vice President of
Shawmut Bank and also a board
member, has a different perspective.
"Bankers go to a lot of meetings and
have people talk to us," she noted.
"My sense is that banks appreciate
having a vehicle where they can talk
with community folks." She noted,
too, that while banks based farther
from Boston have legitimate concerns about seeing any local payoff
from contributing to the MHIC and
MEIC loan pools, the Council's products have a broader appeal and can
be adapted to local needs.
"In less than a year," Feaster noted,
"the Massachusetts Community and
Banking Council has positioned itself as a forum for bankers and
community leaders to discuss issues
of mutual concern. We will continue
to strengthen our ties in the cities and
towns outside of Boston, and to develop effective programs and services for our members. Because we
represent both bank and community
interests, we have the opportunity to
become a powerful and unique voice
within the Commonwealth. We intend to make the most of this collaborative process."
For more information about the Massachusetts
Community and Banking Council, contact Joe
Feaster, President, at (617) 423-4449. For information about the Massachusetts Housing lnvestmentCorporation, contactJoseph Flatley, President,
at (617) 338-6886. For information about the
Minority Enterprise Investment Corporation, contact Tom Schumpert, Jr., President, at (617) 338-
0425.CB
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