FOR IMMEDIATE RELEASEMarch 7, 2012CONTACTDavid Graham-Caso(cell) 213.393.9196Councilmember Alarcón Acts to Support Attorney General Kamala Harris’ “California Homeowner’s Bill of Rights” Legislation
Resolution Would Offer City of Los Angeles’ Support to Important Bill Package
(Los Angeles, CA) – Los Angeles City Councilmember Richard Alarcón today took action to support the “California Homeowner Bill of Rights” legislation recently announced by Attorney General Kamala Harris. The package of six pieces of legislation, which was introduced by a coalition of State Legislators including Assembly Speaker John A. Perez and Senate President Pro Tem Darrell Steinberg, includes measures to reduce the number of foreclosures in California and to protect homeowners from unfair banking practices. The legislation builds on the recent California commitment announced by the Attorney General, which is expected to provide $18 million in benefits for California homeowners.“Families, communities and the City’s budget in Los Angeles all suffered the damage done by the foreclosure crisis,” said Councilmember Alarcón. “We need measures like those introduced in this legislative package to protect people statewide, just like we need to hold banks accountable here in Los Angeles in order to make sure this never happens again.”While Attorney General Harris has been working to hold banks accountable throughout California, Councilmember Alarcón has been leading the charge for increased banking accountability in Los Angeles. Last week, Councilmember Alarcón’s Responsible Banking Ordinance moved a significant step closer to becoming law in Los Angeles, when the City Council unanimously voted to support the proposal. Once formally adopted, Councilmember Alarcón’s Responsible Banking Ordinance will create a public, transparent process for gathering information about banks’ history of service in communities in Los Angeles when considering which financial institutions to award future City contracts. The Ordinance would not preclude any financial institutions from doing business with the City of Los Angeles, but would rather require banks interested in doing business with the City to provide specific information about their work in Los Angeles.“The Responsible Banking Ordinance is a common-sense way to reward the banks that are good members of our communities,” said Councilmember Alarcón. “Banks are now on notice – if they want to do business with the City of Los Angeles, they need to demonstrate that they are reinvesting in communities in Los Angeles.”For more information about Councilmember Alarcón’s Responsible Banking Ordinance, please visitwww.responsiblebankingLA.blogspot.com.- # # # -
RBO is a step toward letting the City of Los Angeles influence the behavior of commercial banks. Any bank that wants city business will have to provide a full report on its community performance. This would include small business loans, home mortgages, home improvement loans, community development loans, investments and other financial and charitable activities.This law increases transparency and sheds light on the way banks do business.