Chicago, IL – Today, the following housing, community development, neighborhood and civil rights groups commended the $16.1 billion Community Development Plan announced by Huntington Bancshares. The plan was developed in an agreement between Huntington Bancshares and the undersigned local members and allies of the National Community Reinvestment Coalition (NCRC). Chicago and the surrounding area are expected to benefit substantially from the loans and investments included in this agreement.
Huntington’s Community Development Plan, set to begin in 2017, includes mortgage and small business lending in low- and moderate-income (LMI) communities, community development lending and investments, a philanthropy program, and other services to increase access to financial services in LMI communities and communities of color, such as 10 new branch locations in these areas – 2 of which will be located in Chicago.
“Far too often mergers and acquisitions result in less community investment and philanthropy in low- to moderate-income neighborhoods,” said Calvin L. Holmes, President of Chicago Community Loan Fund. “With this merger, Chicago residents will see an increase in investments and grants above what the two institutions were providing. This is a big win for Chicago and a clear demonstration of Huntington’s commitment to LMI neighborhoods.”
“You never know how large financial institutions will respond when you are seeking their commitment to help turn around communities in persistent poverty,” Holmes continued. “Stephen Steinour came to the table as a clear partner to help these communities and with an impressive track record of investment in community development.”
“This plan is a testament to the positive results that can be achieved when the financial sector works collaboratively with community organizations. We are particularly pleased with how this plan will provide tangible benefits to Chicago’s lower-income communities, communities of color, and small businesses,” said Brent Adams, Vice President of Policy of Woodstock Institute.
“We commend Huntington for working with local community advocates to reach an agreement that will help many people in working class communities and communities of color build wealth,” said NCRC President and CEO John Taylor. “This plan lays out activities that will produce the kind of significant public benefit that needs to be created when banking institutions merge. Commitments like this are only possible with strong leadership from the highest levels of institutions, and we applaud Huntington Chairman, President and CEO Stephen Steinour for his leadership in this process.”
The Community Development Plan was developed through meetings with NCRC and over 100 community-based organizations across Huntington’s footprint, including the community organizations from Chicago and other parts of Illinois listed below.
The Community Development Plan will:
· Fund $5.7 billion in single-family mortgage lending in low- to moderate-income areas.
· Fund $6.6 billion in small business lending including within low- to moderate-income areas.
· Fund $3.7 billion in community development lending and investment targeting affordable housing access and community-based loan funds.
· Fund $25 million of additional grants and philanthropy primarily targeting housing and small business credit service access.
· Create $30 million in further economic impact through support including new branch locations within low- to moderate-income areas and/or majority minority areas; the addition of dedicated community mortgage loan officers; and the formation of a dedicated mortgage processing team to handle unique underwriting opportunities.
The following local organizations participated in meetings with Huntington to develop the community development plan:
Chicago Community Loan Fund
Chicago Rehab Network
Community Service Council of Northern Will County
Northwest Side Housing Center
Oak Park Regional Housing Center
The Chicago Urban League
The Resurrection Project
Vision of Restoration
NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business development.
About Woodstock Institute
Woodstock Institute is a leading nonprofit research and policy organization in the areas of fair lending, wealth creation, and financial systems reform. Woodstock Institute works locally and nationally to create a financial system in which lower-wealth persons and communities of color can safely borrow, save, and build wealth so that they can achieve economic security and community prosperity. Our key tools include: applied research; policy development; coalition building; and technical assistance. Woodstock Institute has been a recognized economic justice leader and bridge-builder between communities and policymakers in this field since it was founded in 1973 near Woodstock, Illinois. Now based in Chicago, we work with community and philanthropic groups, financial institutions, and policymakers. Funded by foundation grants, consulting fees, and charitable donations, we conduct research on financial products and practices, promote effective state and federal policies, convene a coalition of community investment stakeholders working to improve access to credit, and help people use our work to understand the issues and develop and implement solutions.