Community Reinvestment Act

Congress passed the Community Reinvestment Act (CRA) in response to concerns over discriminatory lending practices The primary objective of the CRA was to encourage financial institutions to begin operating in low- and moderate-income neighborhoods that were banking deserts. The CRA had a profound impact on community development and urban design by holding financial institutions accountable for equitably serving their communities. It facilitated increased investment in historically underserved areas. This influx of capital led to the creation or rehabilitation of housing, commercial enterprises, and community facilities fostering economic growth and job opportunities in areas that were previously neglected. Furthermore, the CRA catalyzed partnerships between banks, local governments, and community-based organizations, leading to collaborative efforts in planning and implementation.