Economic Development & Trade

Community Reinvestment Programs

Posted November 24, 2003

Community reinvestment policies encourage financial institutions to meet the credit needs of all the communities they serve, including low- and moderate-income areas. They were originally enacted by the federal government during the 1970s in an effort to curtail the practice of "redlining," in which citizens of poor communities were denied access to credit for home mortgages and small business loans. Since the 1970s, both federal and state governments have strengthened community reinvestment laws.

Increased commitment by financial institutions in distressed communities can be influenced by state policies. These policies could expand the institution and substantive scope of federal law. They could also reduce risks to financial institutions so that they have an incentive to engage in community lending. Finally, they can increase the technical expertise and financial solvency of non-profit community based development organizations.

Go to our publications catalog to order a copy of Investing in Change: Community Reinvestment.

The following states have Community Reinvestment Programs:

State	Acts or Laws Concerning Reinvestment
Arkansas	Ark. Stat. Ann. §23-32-1804 (a) (1990 upp.)
Connecticut	1989 Conn. Acts, P.A. 295
D.C.	D.C. Code Ann. §26-804 (Michie 1981, Supp. 1987)
Illinois	Ill. Ann. Stat. Ch. 17, §2501 et seq. (Smith-Hurd 1981, Supp. 1987)
Indiana	Ind. Code Ann. §28-2-15-1 et seq. (West, Supp. 1987)
Iowa	Iowa Code Ann. §§524.1854 and 535A.1 et seq. (West 1987)
Maine	Me. Rev. Stat. Ann. tit. 10, §1011 et seq. (1974, Supp. 1987); Regs., Dept. of Business Reg., Bureau of Banking, ch. 120, reg. 20 (1987)
Maryland	Md. Fin. Inst. Code Ann. §§5-206.1; 5-901 et seq.; 5-903(d)(e); 5-1003(f)(g)(1986); 1988 Md. Laws, ch.662
Massachusetts	Mass. Gen. Laws ch. 167, §14 et seq. (West 1984)
Michigan	Mich. Comp. Laws Ann. §§445.1601 et seq. Amd 487.430b (West 1969, Supp. 1986)
Minnesota	Minn. Stat. Ann. §48.90 et seq. (West 1974, Supp. 1987)
Missouri	Mo. Rev. Stat. §408.575 et seq. (Vernon 1978, Supp. 1987)
Nevada	Nev. Rev. Stat. §666.305 et seq. (1985)
New Hampshire	N.H. Rev. Stat. Ann. §384-47 et seq. (1983, Supp. 1987)
New York	N.Y. Banking Law §§28-b and 142b (McKinney 1985, Supp. 1987); N.Y. Comp.Codes R. & Regs. tit. 3, part 76 (1984), part 88 (1984), and part 18 (1987)
Ohio	Ohio Rev. Code Ann. Ch. 1111 (Baldwin 1978, Supp. 1987); Ohio Admin. Code §1301:1:5 (1985)
Oklahoma	Okla. Stat. Ann. tit. 6, §506 (West 1986, Supp. 1987)
Pennsylvania	7 Pa. Cons. Stat. Ann. §116 (Purdon 1965, Supp. 1987)
Utah	Utah Code Ann. §§7-1-702 et seq. And 7-19-1 et seq. (1982, Supp. 1987)
Vermont	Vt. Stat. Ann. tit. 8, §1051 et seq. (Supp. 1987)
Washington	Wash. Rev. Code Ann., §§30.04.010 et seq., 30.04.212 et seq., 30.04.230 (West 1985, Supp. 1986); Wash. Admin. Code §50-48 (1986)
West Virginia	W. Va. Code §§31A-8A-1 et seq. (1982, Supp. 1987)
Wyoming	Wyo. Stat. §13-9-3-1 et seq. (Michie 1977, Supp. 1987)

Visitor counts for this page.