Tuesday, March 20, 2012

Government Intervention


In our last discussion, we discussed that more than 85% of the homes within the Fair Park Corridor were built between 1939 and 19701.  These homes were constructed using wood, donned with lead-based paints, installed with lead pipes, insulated with asbestos, in addition to requiring gas as a utility for heating. Both awareness and solutions were provided on how to combat the environmental hazards that have inadvertently harmed the people and the environment; socially, psychologically, and economically.  Throughout this discussion, we’ll address what’s being done corporately and governmentally to improve the harmful effects of the built environment within the Fair Park Corridor.

Within 75210, 75215, and the 75223 zip codes lie two banking institutions, Bank of America® and Chase®.  According to the Modern Real Estate Practice in Texas text, in 1977, Congress passed the Community Reinvestment Act (CRA) which requires lenders to “participate and invest in local community development and rehabilitation projects, and participate in loan programs for housing.2  
Though the Community Reinvestment Act appears to be working, as we will see throughout our study, it is not doing what the legislature intended.
 
Solutions:
1.      Re-enact the bill with an addendum for oversight of the Act to ensure bank participation by the municipalities with members of the community serving on the committees.
2.      Set an actual figure that each bank has to reinvest based upon the indexes and bank performances.
3.      Require banks to sponsor a minimum of one multi-family and single family housing new construction project within the community they serve bi-annually.
4.      Require banks to annually publish the project, dates, and community specifics of the development and rehabilitation projects they contributed to.

1 "Fair Park Neighborhood in Dallas, Texas (TX), 75210, 75215, 75223, Subdivision Profile - Real Estate, Apartments, Condos, Homes, Community, Population, Jobs, Income, Streets." Stats about All US Cities - Real Estate, House Prices, Crime, Race, Income, Education, Maps, Schools, Neighborhoods, and More. Advameg Inc. Web. 26 Jan. 2012. <http://www.city-data.com/neighborhood/Fair-Park-Dallas-TX.html>. Note: Not credible source

2 Nance, Cheryl Peat. "Chapter 6/Fair Housing and Ethical Practices." Modern Real Estate Practice in Texas. Chicago: Real Estate Education, 1998. 86. Print.

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