Comptroller of the
Currency Tours East D.C.
Market Opportunities
WASHINGTON
- Comptroller of the Currency John C. Dugan led a delegation of bankers,
community representatives, and staff on a tour of community development
projects in Wards 7 and 8 of Washington
D.C.
The tour showed
participants a variety of projects focusing on affordable housing, small
business finance, and financial literacy that were created by collaborations
among lenders, non-profit organizations, and government partners. The tour included stops at the Operation HOPE
Center and the Marshall Heights Community Development
Organization as well as projects sponsored by the Local Initiatives Support
Corporation and local community development organizations.
After the tour, the
Comptroller issued the following statement:
Today,
we had the privilege of visiting projects that represent the best of
public-private partnerships. Through
such partnerships, we can rebuild communities and offer hope and opportunity to
our citizens. That is why these projects
have my strong support.
I
was impressed by the testimonials from people at the Operation HOPE
Center and how the Center
supports community needs through financial literacy workshops, loan packaging,
and funding for mortgages, business, and commercial loans.
I
was equally impressed by the Washington View Redevelopment, just a short walk
from the Anacostia metro that has turned abandoned structures into 353 units of
affordable rental housing that includes an educational and activity center, 77
for-sale mid-rise condominiums, and 66 market rate for-sale town homes, all
with a view of the U.S. Capitol.
And
we also saw great work at the Marshall Heights Community Development
Organizations Willis Paul Greene Manor transitional housing facility. The organization there helps residents with
job searches, small business development, emergency food services, and youth
development programs.
Several
of these projects are the results of national bank financing through federal
Low-Income Housing Tax Credits and New Markets Tax Credits using the public
welfare investment authority commonly referred to as Part 24. Over the past decade, national banks have invested
more than $16 billion in community redevelopment under part 24 and have
invested $638 million in the second quarter of 2006 alone. These investments support critically needed
urban revitalization, rural redevelopment, and job creation. They do so in a manner that not only benefits
the communities served, but also enjoys a solid track record of profitability
and safety and soundness. Current law
caps national banks Part 24 investment authority at 10 percent of their
capital.
Part
24 has been remarkably successful in encouraging commercial investment that
rebuilds and strengthens our communities, which is why I believe that the Part
24 limit should be raised to encourage more investment. I therefore applaud House Financial Services
Committee Chairman Mike Oxley and Ranking Member Barney Frank for introducing a
bill that would raise the limit from 10 to 15 percent -- a change that could generate
$30 billion in additional investment from national banks alone. I encourage Congress to act swiftly on this
legislation as a way to encourage more community revitalization throughout the
country through projects like the ones weve seen today.
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The
Office of the Comptroller of the Currency was created by Congress to charter
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assure that national banks are safe and sound, competitive and profitable, and
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