Monday, November 7, 2011

Using PolicyMap to Model Your Institution’s CRA Policy Objective

Ira Goldstein, Ph.D., Director, Policy Solutions, The Reinvestment Fund

PolicyMap is a tool practitioners and policymakers can use to make data-based decisions with a spatial reference

•National data mapping and analysis tool

•Easy, online access to data and analytical tools in a sophisticated yet user-friendly web platform

•Over 10,000 data indicators as well as proprietary TRF analytics, with frequent additions (e.g., Census, ACS, home sales and vacancies).

•Thematic data ranging from home sale data to unemployment

•Point data

•Flexible Search Options

•Custom Region feature

•Edit Break Points feature

•Map Options for displaying boundaries

•Tables

•Analytics

•Bar Charts

•Trend (line) Graphs

•Data Upload & Download (coming soon!)

Using Data to Effectuate a CRA Objective

Hypothetical:

Your institution would like to fashion its CRA lending program so that it may be supportive of Baltimore’s federal

Neighborhood Stabilization Program [NSP] activities (consistent with December, 2010 changes to the CRA).

1.What are the “areas of greatest need” in Baltimore?2.What areas have income levels consistent with NSP eligibility?3.Given that NSP is a program designed to stabilize not rebuild areas, what areas have had reasonably stable residential real estate markets in Baltimore?4.Lastly, where has there been some investment in the housing market that CRA-related NSP lending might bolster?

CRA Exercise: Step 1 – Find areas that have high(er) NSP scores

CRA Exercise: Step 2 – …and also have low/mod income families

CRA Exercise: Step 3 – …and home prices are reasonably stable

CRA Exercise: Step 4 – …LIHTC investments are often stabilizing

CRA Exercise: Step 5 – …Zoom in on a region of interest

SummaryCRA Exercise: Step 6 – Generate timely and objective demographic data on the market area

SummaryCRA Exercise: Step 6 – Generate housing market data on the market area

Summary

PolicyMap is a powerful tool that, used properly, gives organizations an opportunity to develop community -reinvestment policies and programs that are both consistent with the lending and risk objectives of the organization and the Community Reinvestment Act.

Such data-based decisions will enhance the likelihood that the CRA investments are sound and impactful for the organizations and the communities for which CRA was established.