1. • Rose A. Zitiello, Manager Bank Relations, City of Cleveland
How to use local Banking services Ordinances to increase
investment in your community

2. •,
Rose A. Zitiello, ESQ. Manager Bank Relations
City of Cleveland
Thursday April 19th-3:45-5:15 PM
How to use local Banking Services Ordinances
•To Increase Investment In Your community

3. How local Banking Services Ordinances can increase investment in your
community
The City of Cleveland’s CRA Program began with legislation in 1991, to address
the disinvestment of lending of financial institutions in the City of Cleveland.
Between 1991 and 2008 the City has negotiated more than 10 Billion Dollars in
CRA Agreements with Depository Banks.
In 2010 , the City of Cleveland’s CRA program and its banking services
ordinance was recognized & published by the National Community
Reinvestment Coalition as a national best practice for a local banking services
ordinance as it provides transparency in the award of municipal banking
services and deposits to banks that support CRA responsible lending, investment
& service practices to low moderate income residents.
Since 2010 the following cities have passed or introduced legislation similar to
the City of Cleveland’s ordinance and program, Philadelphia, Boston, Los
Angeles, New York, & Pittsburgh.

4. City Responsible Local Responsible Local
Banking Banking Services
Services Ordinance
Ordinance Pending
Passed
Boston
√
Chicago
√
Cleveland
√
LA
√
Philadelphia
√
Pittsburgh
√
New York
√

5.  Any depository desiring designation as an eligible depository shall submit
annually information needed for evaluation of policies and practices
regarding housing and economic development of such depository.
 Residential lending information; Home purchase, refinance, home
improvement,
 Commercial lending information; small business lending
 CD lending & CD investing
 Branch & ATM distribution
 A statement with timetable's describing current and proposed initiatives
to address the credit needs of the city, its residents and businesses,
including low and moderate income and minority residents.

6.  Section 178.05(a) (11) (b) provides that no
depository shall be eligible to be designated as
an eligible depository under this Chapter
unless it has executed a Community
Reinvestment Initiative (CRI) containing
provisions acceptable to the Director of
Community Development.

8.  Section 178.05, L (9) Requires all eligible depository institutions to
have a written initiative (“Community Reinvestment Initiative”)
regarding community reinvestment within the City containing
provisions that are acceptable to the Director of Community
Development”. These are essentially MOU’s that include (4) year
goals for:
 Residential lending information; Home purchase, refinance, home
improvement,
 Commercial lending information; small business lending
 CD lending & CD investing
 Branch & ATM distribution
 A statement with timetable's) describing current and proposed
initiatives to address the credit needs of the city, its residents and
businesses, including low and moderate income and minority
residents.

9.  Total reported CRA lending & Investing of all eligible
depository banks in 2010 totaled 639,102 MM.
 2011 marked the first time in 15 years that more bank
branches closed than opened across the United States.
 Between 2008 and 2011 the number of branches
among our local depository banks has remained stable.
 Since 2008, six new branches were opened in low or
moderate income census tracts in the City of Cleveland

10.  Between 2008-2010 individual bank
performance of (4) year goals ranged from
58.13% to 124.13%
 As a group, the aggregate percent of
reported lending for 2008-2010 represents
95. 22% of their aggregate (4) year lending
goals for 2008-2011

12.  FDIC reports that 7.2% of all US households are unbanked &
17.9% are under-banked:
 Cleveland 6.2% unbanked & 14.2% under banked
 Baltimore 6.9% unbanked & 21.2 under banked
 Chicago 7.4% unbanked & 13.8 under banked
 Philadelphia 7.5% unbanked & 18.4 under banked
 New York 9.6% unbanked & 14.8% under banked
 Los Angeles 9.2% unbanked & 14.4% under banked
 Results from 2009 FDIC national Survey of unbanked & under banked
Households, EconomicInclusion.gov

14.  1. % of their 4 year aggregate lending &
 investing goals met;
 2. % of their 4 year categorical lending &
 investing goals met for home purchase,
 refi, home improvement, small biz, CD
 loans & CD investments
 3. Branch distribution-branches opened & closed in
 L/M CTs4. Employment of minorities & women in
 executive level positions
 4. Bonus points for specific CRA activities & services

15. Participation in the City of Cleveland Consumer Mortgage & Repair
Bulletins see: http://www.livecleveland.org
Agreed to participate in the evaluation of developing a capital
investment pool with the goal to increase potential debt capital
investments in qualified community development financial institutions
(CDFI'S.
Provides more than 90 days notice of a branch closing or consolidation
Provides a senior level CRA staff that is responsible for CRA lending
and investing in the City of Cleveland.
Provides an REO staffer responsible for inquiries and or disposition of
vacant properties in the City of Cleveland.
Agreed to participate in supporting the City of Cleveland Department of
Aging’s Economic Senior Initiative Program- A national initiative co-
sponsored by the Cleveland & McGregor Foundations & provides
services to seniors by at or below 225% of poverty providing case
management services with a team of trusted NEO partner agencies.

16.  * What other government agencies, taxing authorities, state
 agencies, school boards could benefit from adopting CRA
 guidelines for awarding banking services?
 * Short of a municipal ordinance or a statute can the objectives
 be achieved voluntarily with local bank?
 * Allow for administrative flexibility in your ordinance or policies
 * Develop & Maintain internal staff capacity for administration
 and compliance of the ordinance and or policies adopted
 * Build partnerships with community development based
 organizations

17. THANK YOU!
To follow up with the speaker:
Insert contact information here
Rose a. Zitiello, Esq,
Manager Bank relations, City of Cleveland
rzitiello@city.cleveland.oh.us
Presentations will be available at www.ncrc.org/conference by
April 30, 2012