Historical May 1977 housing-finance report. Proposed legislation and institutions are described as they stood then; mortgage terms are not current offers.
The financial, lending climate has been vastly improved recently in the west end, particularly the Skinker-DeBaliviere area with the entrance of the Federal National Mortgage Association (Fannie Mae) into this community where it is launching a pilot project to stimulate inner-city lending, especially for rehabilitation of existing housing. The FNMA task force chose two neighborhoods, Shaw and SkinkerDeBaliviere to concentrate on. These areas are characterized by architecturally important brick housing, dating from the turn of the century. There is also a noticeable movement of people back into these areas.
The revitalization of an urban area was given national impetus when Senator William Proxmire (D. Wisc.), introducted a bill this past January, to encourage financial institutions to more effectively meet the credit needs of the localities they are chartered to serve, consistent with sound lending practices. This bill, The Community Reinvestment Act (S.406), does not inject any new element for a lending institution to follow, but makes more explicit that the community need criteria already contained in existing law and regulation, also includes credit needs. This is what has frustrated a new or exisiting urban homeowner when he applies for mortgage or home improvement credit loans. Credit needs have been denied in the past. This bill also encourages testimony from community organizations at deposit facility application hearings. A lending institution can play a substantial role and prosper while helping to rebuild and revitalize communities that have been threatened by decline.
Four of the incorporators of the proposed Central West End Savings and Loan Assoc., David Allen,
Kathleen Hamilton,
Tom Scatizzi, Gary Werths, went to Washington last month to support the Community Reinvestment Act.
Tom Scatizzi and
Kathleen Hamilton were invited to testify on behalf of this bill before the Senate Committee on Banking, Housing, and Urban Affairs.
Tom Scatizzi, a central west end resident, testified that the type of instituton envisioned in the proposed Central West End Savings and Loand Association, exactly matches the provisions a lending institution is encouraged to follow as outlined in the Community Reinvestment Act. It is to be communityoriented and supported, and controlled by area residents and businessmen who have commitments to the neighborhood and understand its needs.
Such an institution would be operated in an urban neighborhood, draw its resources from the neighborhood, and reinvest them back into the neighborhood.
Kathleen Hamilton, a resident of the Parkview-Skinker-DeBaliviere area, testified as to the critical importance of community support for a community oriented financial institution, stressing that community groups are a major cornerstone of the life of an urban neighborhood. Such groups are an invaluable resource for a lending institution with particular community commitments such as are outlined in the Community Reinvestment Act. Ms. Hamilton illustrated this statement by a brief recounting of the revitalization of the specific Skinker-DeBaliviere neighborhood, whose rebirth is largely due to the dedicated involvement and spirit engendered by the formulation of community groups to buttress and promote the area.
The Washington testimony of the St. Louis west end residents also stressed that city savers should deposit in institutions sensitive to their needs. The Community Reinvestment Act specifically stresses this point. Such positive reinforcing of an urban area’s financial needs as has been demonstrated by FHMA, and the introduction of a bill such as the Community Reinvestment Act, are major contributions to the continued growth of healthy urban neighborhoods.
Originally published in The Paper, May 1977.
Read this article in the original newspaper issue.
Archival transcription note: Printed exisiting, Loand and FHMA retained.
Original source: SD_Times1977_05.pdf, printed page(s) 3; PDF page(s) 3.
