Greater Sacramento Economic Council’s Newly Formed Community Reinvestment Coalition Commits $100 Million to Affordable Housing
Chief Public Affairs Officer
Committee will engage banks across Greater Sacramento region to invest in affordable housing initiatives
Sacramento, CA—The Greater Sacramento Economic Council announced it will formally launch the Community Reinvestment Coalition (CRC) with the primary goal of reinvesting in low- to moderate-income (LMI) communities. The first initiative of the CRC will be a commitment of $100 million in financing to address the affordable housing crisis in the Greater Sacramento region.
The CRC is comprised of regional community banking leaders including First Northern Bank’s Jeremiah Smith, Five Star Bank’s James Beckwith, River City Bank’s Stephen Fleming, Suncrest Bank’s Ciaran McMullan and Bank of the Sierra’s Michael Olague, with the opportunity for additional banks to join the committee in the future.
The CRC’s goal is to combine local community bank resources to bring solutions that will have positive and long-lasting impacts in our communities and LMI neighborhoods through collaboration. Senior Executive Vice President and Chief Operating Officer of First Northern Bank, Jeremiah Smith, will serve as the CRC Chair.
“We’re looking forward to building this coalition of banks to focus on the need for more affordable housing options for our residents,” Smith said. “This group will initially commit $100 million in affordable housing financing. The housing data shows us how vital and important this initiative is in the Sacramento region.”
The Greater Sacramento region needs around 154,000 housing units over the next eight years and roughly 62,000 for low- or very low-income families and individuals. For example, the City of Sacramento alone needs more than 45,000 housing units by 2029 with around 16,000 units needed for low- or very low-income levels. The rest of the Greater Sacramento region needs more than 100,000 units by 2029. In total, more than 150,000 housing units are needed over the next eight years, according to the Sacramento Area Council of Governments.
“The newly formed Community Reinvestment Coalition will address the region’s serious housing needs and lack of supply,” GSEC President & CEO Barry Broome said. “Around 90,000 Greater Sacramentans spend over 50% of their household income on gross rent. Residents with rent burdens over 50% of gross income are at high-risk for homelessness. Bottom line: we need more housing supply to meet our region’s demands to bring down cost. Our organization is excited to partner with our leading regional community banks to help move this initiative forward. We applaud Jeremiah for leading this important initiative and are grateful to all members of this coalition for working together to create real, lasting change in Greater Sacramento.”
Elected Official Quotes:
“Homelessness and our growing lack of housing affordability are the two gravest challenges facing Sacramento,” said Mayor Darrell Steinberg. “The city has so far committed tens of millions of dollars to step up production on affordable housing and is poised to spend $100 million on a master plan for short-term and transitional homeless housing options. I commend bank leaders for stepping up with such a sizable commitment to permanent affordable housing, which is a crucial component of making sure all of our people are housed safely and with dignity.”
“Roseville continues to be one of the fastest growing cities in California and the largest in Placer County,” Roseville Mayor Krista Bernasconi said. “As we continue to expand and build more housing, city leadership continues to work with developers to meet the supply and demand. Housing options for all income levels is imperative as we continue our growth and trajectory as a city.”
“I’m looking forward to working with GSEC’s Community Reinvestment Coalition as they look to address more affordable housing in Sacramento County,” Sacramento County Phil Serna said. “After the Great Recession— for over a decade, not enough affordable homes were being built across the state and throughout the county. We need to pivot and address this need to accommodate are growing population.”
About the Greater Sacramento Economic Council
The Greater Sacramento Economic Council is the catalyst for innovative growth strategies in the Capital Region of California. The organization spearheads community-led direction to retain, attract, grow and scale tradable sectors, develop advanced industries and create jobs and investment throughout a six-county region. Greater Sacramento represents a collaboration between local and state governments, market leaders, influencers and stakeholders, with the sole mission of driving inclusive economic growth. The Greater Sacramento region was founded on discovery, built on leadership and fueled by innovation.
The Greater Sacramento Economic Council (GSEC) business development team traveled to Washington D.C. to attend the international SelectUSA investment summit as part of a record-sized California delegation led by the state’s Lieutenant Governor Eleni Kounalakis.
The Greater Sacramento Economic Council attended the Bio International Convention in San Diego this week to meet with emerging biotech companies to share about the Greater Sacramento market.
New data from the Federal Reserve Bank of St. Louis shows that the Greater Sacramento region has recovered all the jobs that it lost during the COVID-19 pandemic. For the first time in 20 years, the region recovered faster than California.