From:
Felicity Lyons
Sent: Monday, August 23, 2004 6:56 PM
To: Comments
Subject: RIN 3064-AC50
To whom it may concern:
I am writing to express my concern regarding the proposed rules regarding
the Community Redevelopment Act. The new rules proposed by the
FDIC relieve at least 2000 insured depository institutions of half
their current CRA responsibilities.
As a concerned citizen I believe that the proposed rule will harm affodable
housing, and community and economic development, particularly in rural areas.
Having worked in rural affordable housing, I am aware that the private market
without regulatory incentives would not reach many rural and impoverished areas.
By making the threshold three times higher the amount of investment in such
areas is guaranteed to decline. This decline threatens to return certain areas
to the blight and disinvestment experienced during the days of redlining.
CRA has been a powerful impetus for community development loans, investments
and services, benefitting low- and moderate-income persons. With government
subsidies drying up, now is not the time to decrease regulations for private
capital to leverage scarce subsidy dollars.
Please consider my comments as the FDIC prepares to drastically decrease the
effectiveness of the CRA.
Sincerely,
Felicity Lyons
Holy Cross Associate
Coachella Valley Housing Coalition
