Financial institutions comply with CRA requirements by making loans to low- and moderate-income borrowers for homes, home-improvement projects and small business ventures. Banks and savings and loans receive favorable credit toward CRA examination ratings by extending loans to and making investments in Community Development Corporations (CDCs).
CDCs provide affordable housing loans for low-income borrowers, manage loan funds for housing development and help residents plan and track new investments. These organizations also find and evaluate home purchase financing and deliver financial literacy, tenant counseling, senior citizen programs and community organizing activities to Texas communities in need.
In 2006, the Texas Association of Community Development Corporations (TACDC) conducted a survey of Community Development Corporations and Community Development Financial Institutions (CDFIs) in Texas assessing affordable housing and loan production information. The survey results are distributed in a biennial publication produced by TACDC, Building a Future, Contributions of Community Development Corporations in Texas. This year's publication marks the fifth volume of the survey and builds upon data collected since 1998.
A cumulative total of 259 CDCs and CDFIs responded to the TACDC's Accomplishments Survey in 2000, 2002, 2004 and 2006. Respondents reported producing a total of more than $216 million in loans to community businesses and residents statewide through 2005. Of the 259 survey respondents, 210 reported producing affordable housing or are planning to pursue housing production in 2006-07. Thirty-nine organizations completed or planned to complete commercial or industrial projects, including office space, commercial kitchens and a medical complex, while 25 CDFIs provided housing or business loans through 2005 or planned to do so in 2006-07.
The CDCs indicated in the survey that they built 53,045 affordable housing units through 2005. The housing includes units built in the five principal Texas metropolitan areas-Dallas, Houston, San Antonio, Fort Worth-Arlington and Austin-Round Rock and along the Texas-Mexico border. These CDCs plan to construct an additional 5,089 units between 2006 and 2007. Of the units built between 2004 and 2005, 65 percent were available to those earning between 31 percent and 80 percent of the average median family income (AMFI), and approximately 32 percent are affordable to the lowest income households in Texas earning less than 30 percent AMFI.