Federal Home Loan Banks

How’s your banking legislation history? Don’t worry if it’s not worthy of an A+ because Brookings provides a history lesson and accessible description of Federal Home Loan Banks in their August 8th, 2024 commentary: “How to Fix Federal Home Loan Banks.”

Our community has talked a lot about the intended and unintended consequences of the New Deal, and the Federal Home Loan Bank Act of 1932 has a role in that conversation. The good news is that there is a restructuring in progress, Brookings submitted commentary, and we all can get up to speed.

Keep in mind that this is information for policy at the federal level, but we know the effects of federal policy cascades into more local settings like ours!

Curated Blog Post: Central New York Community Foundation

Our friends at the Central New York Community Foundation posted a blog on July 11th titled "Lending Tree Study Ranked Syracuse Second in Economic Disparity."

I know what you're thinking - where does Rochester rank? Fortunately, we did not make the bottom five. Unfortunately, we are bottom six.

I encourage you to read the CNY blog post for their insight, and to look at the lending tree study itself (linked directly here). We have more work to do!

Curated Podcast: Working together to create affordable housing that lasts

On July 11th, the Next City Podcast shared a case study from Richmond, Virginia that offers a possible permanent affordable housing solution that is worth considering for our community. The Maggie Walker Community Land Trust (MWCLT) is a unique non-profit that is both a land bank and a community land trust. This means that, as a land bank, MWCLT can acquire land for little to no cost from the city, and as a community land trust, the organization can develop that land and sell the home at a low cost, while keeping the land itself in their name. This creates affordable housing in Richmond that is permanent; homeowners who buy from MWCLT can keep the home for generations, or sell it, but they must sell it at a capped price to an income-eligible buyer.  

The dual role of MWCLT is especially beneficial as it limits competition between the public and private sectors. This case study emphasizes the power that collaboration can have in generating solutions, a lesson that is close to my heart. I have the privilege of working with three initiatives at the Community Foundation, one being Rochester ENergy Efficiency and Weatherization (RENEW). RENEW is another example of a unique effort to address access to housing; we work with numerous community partners in our region to braid resources to administer home repair and weatherization grants, with the mission of making homes more energy efficient, healthier, and safer. (If you’re interested in learning more about RENEW, there is a case study about the initiative in our Inclusive Recovery dashboard that I’d recommend checking out).  

What working with RENEW has emphasized to me, and what this example from Richmond only further demonstrates, is that collaboration between various partners across the community sparks creative solutions to important issues, including in the field of housing. This podcast is a quick, interesting episode, and I invite you to give it a listen, to learn more about the history of the MWCLT and to revel in their recent successes! 

Contributed by Madison Esposito, Program Administrator for RACF Initiatives and University of Rochester graduate. 

Curated Post: Next City Covers Rochester as featured case about banking efforts

On June 3rd, 2024, nonprofit resource Next City posted a story titled “Why a Rochester Credit Union Wants the Local Government to Create Its Own Bank” as a case study for lenders meeting residents’ and small business owners’ needs. The Genesee Co-op Federal Credit Union is featured as part of a push to create a Bank of Rochester, a “public bank” intended to hold only government deposits and partner with local private lenders. 

The article outlines how the idea of a public bank would work and makes the argument for the potential of such a program. This idea is also a spark for thinking about alternative lending, alternative banking options. 

As we learned in Dr. Matthew Desmond’s Poverty, by America, the banking industry is a particularly institutionalized impediment for upward mobility. Consider this alternative, or come up with your own ideas, as you engage in conversations about banking equity, and the potential of this community to encourage home ownership, small business development, and our general upward mobility efforts. 

New Jersey is Taking Bold Action against Exclusionary Zoning

Local planning boards do not tend to be a hot topic or trendy conversation starter, but they may be a key location for actual social change. 

The state of New Jersey has heard the call and, in March 2024, enacted legislation to require affordable housing in communities that have historically been exclusive. According to the write-up by NextCity, the new law will make it harder for wealthy towns in New Jersey to block new developments, and it provides incentives for building near transit, redeveloping underutilized structures, and targeting the neediest families (by income, IDEA requirements, etc.) in addition to tax incentives. 

Some Facts About Rental Housing

On the heels of sociologist Matthew Desmond’s visit to Rochester in March 2024, housing and renting circumstances are top of mind for poverty abolitionists. (See also Eviction Lab resources, but note that none of the counties in our region are included). 

In March 2024, the Brookings Institution published an article “Ten Economic Facts about Rental Housing” that provides important information about the average circumstances of renters. 

Reading articles like this provides some data about housing realities in Rochester, the full 8-county region, and nationwide. 

What story do you have about renters? What did you learn in this article that challenged your story?