99-035 RESOLUTION NO. 99-35
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF AVENTURA, FLORIDA URGING CONGRESS TO
INCLUDE MODERNIZATION OF THE COMMUNITY
REINVESTMENT ACT (CRA) IN ANY FINAL FINANCIAL
SERVICES LEGISLATION; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, since the Community Reinvestment Act (CRA) passed in 1977, it
has produced more than $1.4 billion in lending in underserved communities by FDIC-
insured banks; and
WHEREAS, the CRA should continue to be an important economic development
tool to increase homeownership and economic development in Iow-income urban and
rural communities; and
WHEREAS, H.R.10, the Financial Services Modernization Act, should include
modernization of the CRA so that it continues to cover lending and traditional banking
services whether performed by a bank or one of the new affiliates of the bank holding
companies which will be allowed to form with passage of HR. 10; and
WHEREAS, if CRA is not modernized to cover traditional lending and banking
services performed in the past only by banks, the new affiliates of bank holding
companies will not be covered by the CRA and could fail to provide services to Iow-
income communities; and
WHEREAS, banks that merge with insurance, securities and mortgage banking
entities will be permitted to shift their assets to their new affiliates, thus reducing the
amount of capital covered by the CRA.
Resolution No. 99-35
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF AVENTURA, FLORIDA, THAT:
Section 1. The City of Aventura strongly urges the members of the House
Commerce Committee and the U.S. House of Representatives to amend H.R. 10 to
modernize the CRA by requiring all affiliates of the new bank holding companies that
perform lending and banking services to be covered by the CRA.
Section 2. To increase access to credit for homeownership, automobile
ownership and small business insurance products for underserved people, H.R. 10 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 Iow-income working class communities
Section 3. The City Clerk is directed to provide a copy of this Resolution to the
House Commerce Committee and House of Representatives Leadership.
The foregoing Resolution was offered by Vice Mayor Rogers-Libert, who moved
its adoption. The motion was seconded by Commissioner Holzberg, and upon being put
to a vote, the vote was as follows:
Commissioner Arthur Berger absent
Commissioner Jay Beskin yes
Commissioner Ken Cohen yes
Commissioner Harry Holzberg yes
Commissioner Jeffrey Perlow yes
Vice Mayor Patricia Rogers-Libert yes
Mayor Arthur I. Snyder yes
Resolution No. 99- 3___5
Page 3
ATTEST:
T.E~i.' ",
SOR~;)KA, (~MC/AAE, CITY CLERK
APPROVED AS TO LEGAL SUFFICIENCY:
CITY ATTORNEY