Your institution would like to fashion its CRA lending program so that it may be supportive of Baltimore’s federal Neighborhood Stabilization Program [NSP] activities (consistent with December, 2010 changes to the CRA).
What are the “areas of greatest need” in Baltimore?
What areas have income levels consistent with NSP eligibility?
Given that NSP is a program designed to stabilize not rebuild areas, what areas have had reasonably stable residential real estate markets in Baltimore?
Lastly, where has there been some investment in the housing market that CRA-related NSP lending might bolster?
CRA Exercise: Step 1 – Find areas that have high(er) NSP scores
CRA Exercise: Step 2 – …and also have low/mod income families
CRA Exercise: Step 3 – …and home prices are reasonably stable
CRA Exercise: Step 4 – …LIHTC investments are often stabilizing
CRA Exercise: Step 5 – …Zoom in on a region of interest
Summary CRA Exercise: Step 6 – Generate timely and objective demographic data on the market area
Summary CRA Exercise: Step 6 – Generate housing market data on the market area
Summary PolicyMap is a powerful tool that, used properly, gives organizations an opportunity to develop community -reinvestment policies and programs that are both consistent with the lending and risk objectives of the organization and the Community Reinvestment Act. Such data-based decisions will enhance the likelihood that the CRA investments are sound and impactful for the organizations and the communities for which CRA was established.