New Jersey Citizen Action and the Housing & Community Development Network of New Jersey announced a three-year, $2 billion Community Reinvestment Act Agreement with TD Bank during an Aug. 14 news conference in Highland Park.
Under the terms of the agreement, TD Bank has voluntarily committed to invest more than $2 billion between 2023 and 2025 in affordable mortgage, community development, small business lending, as well as affordable consumer products and services across New Jersey, particularly in underserved communities, including low- and moderate-incomes and communities of color.
“The agreement we’re here to sign today with TD and the Network is critical to ensuring that all New Jersey communities have fair and equal access to affordable housing, credit, and basic financial products and services,” said Leila Amirhamzeh, director of community reinvestment at NJCA. “Unfortunately, in this post-pandemic environment, as New Jersey families and small business owners continue to struggle to regain their economic security, they are facing higher-than-average cost-of-living, an unstable financial market with increasing costs of credit, and a severe shortage of affordable housing. Compounding these conditions are increased instances of fair lending violations and redlining, which have further widened the already large racial wealth gap here in the Garden State.
Amirhamzeh said that is why state-specific voluntary commitments like the one TD Bank signed is so important – adding that it should be used as a model for other banks to follow.
“As a lifelong resident of New Jersey, I’m especially proud of what we’re accomplishing today,” said Robert Curley, regional president of Pennsylvania/New Jersey Metro for TD Bank. “At TD Bank, we believe we have a responsibility to give back to the communities we serve and to make sure that when we give back, our efforts create a real impact for all communities.”
Curley said that TD Bank shares similar goals with NJCA and HCDNNJ to increase access for small businesses and consumers to financial services and products that are fair and reasonable.
“I am happy to share that TD will provide $2 billion in loans, services, supplier diversity and more within the State of New Jersey over the course of 2023, 2024 and 2025,” said Curley.
Some topline numbers over the course of the agreement include:
- TD aims to issue approximately $505 million in affordable home loans that support LMI individuals and communities.
- The bank aims to generate roughly $600 million in Community Reinvestment Act qualified loans and invest a minimum of $210 million in CRA qualified investments.
- TD commits to lend to approximately $700 million to small businesses.
“TD will also continue to provide consumer products and services that promote financial capability and education among LMI communities,” said Curley. “These focus areas of our agreement support TD’s work to align our business, philanthropy and human capital for addressing social inequities.”
Amirhamzeh noted that these type of agreements are becoming more difficult to reach, which is why this signing was an achievement – and pointed to the critical partnership they have forged over the years with HCDNNJ, as well as a productive and ongoing relationship with TD Bank, to negotiate and coordinate such an agreement.
The agreement we’re here to sign today with TD and the Network is critical to ensuring that all New Jersey communities have fair and equal access to affordable housing, credit, and basic financial products and services.
– Leila Amirhamzeh, New Jersey Citizen Action
“We’ve signed a lot of agreements. I’m pretty sure this is the largest single agreement that we have participated in with our partners at New Jersey Citizen Action, and certainly with our colleagues and friends at TD Bank,” said Staci Berger, HCDNNJ president and CEO. “We are thrilled to support this agreement. We know from prior research that every single dollar invested in community development efforts results in an additional $6 to $7 in return on investment. So, TD is not just committing $2 billion – it’s committing literally more than $10 billion or close to $14 billion in results for New Jersey.”
Berger said that this agreement will have a huge impact, noting that it is a step in the right direction to address the state’s racial wealth gap.
“We want to be part of the solution to that problem,” said Berger. “And we know it’s going to take government. It’s going to take private sector lenders. It’s going to take non-profits like our members working together to close that racial wealth gap and to make sure that everyone can afford to call New Jersey home.”
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Source: njbiz.com
