A letter from one of the WCRA's founding board members...

Eighteen years ago, like many others, my bank was seeking more innovative ways to meet the CRA challenge in our communities in a manner that would really make a difference.  And like many others, we were alarmed at a growing crisis: the lack of decent, safe and affordable housing for low income residents in our communities.

That was why, in October 1990, we answered a call from the Federal Reserve Bank of San Francisco. The Federal Reserve extended an invitation to us, along with many other institutions, to investigate the feasibility of establishing a lending consortium devoted to financing affordable housing for low income residents in Washington State.

Nineteen Washington institutions signed on to create a Task Force, and in 1990 we went to work.  We elected to fund the initial pool at $75 million, and members agreed to not only capitalize the initial operation, but subsidize its operations for a maximum of three years.  We also established the organization’s product: Permanent financing for the development, refinance and preservation, and acquisition & rehabilitation of affordable multi-family housing.

Under the leadership of Judy Reed, our first President, the Washington Community Reinvestment Association opened its doors in February of 1992, with 37 member institutions and a $75 million dollar loan pool. One year later, WCRA was expanding its staff, and operating in the black. Under Judy’s leadership, we were off to a tremendous start.

Here are some of our accomplishments since that time:  

• WCRA aggressively sought a secondary market outlet for its loans, and succeeded – often breaking new ground along the way.
• We were instrumental in creating the Washington Community Development Loan Fund.
• We expanded our reach to all corners of our state, and everywhere in-between.
• Along the way, we created two new loan pools.
• Recognizing the evolution in products and services offered by our partner banks, we introduced new products and services that addressed emerging needs.
• We developed a new Tax-Exempt Bond Pilot Program, and
• We introduced our own in-house program offering small grants and direct loans in support of our mission.

 In addition to our role in direct financing, WCRA has been very effective in working with public sector housing lenders and advocates. Those public sector partners include:

• The Washington State Department of Community, Trade & Economic Development
• The Housing Finance Commission
• The Washington Low Income Housing Alliance
• The Washington Financial League and the Washington Bankers Association, and others.

WCRA has also worked with both non-profit and for-profit housing developers all across the State to bring our mission to life.

Our effectiveness in these partnerships is due in no small part to the contributions of our non-banking-industry board members who bring invaluable awareness and perspective to us. We’ve had board representation from:

• Washington State Housing Finance Commission
• Washington State Department of Community, Trade & Economic Development
• Impact Capital
• National Equity Fund

…and we are stronger because of what they have brought to us.

Since its inception in 1992 through January 2007, WCRA has funded and approved over $313 million in loans, bonds, and reserves, and over $5.4 million under the Capital Plus program that we administer on behalf of the Housing Finance Commission. As of April 2008 we’ve created over 8,200 units of affordable rental housing and over 101,000 square feet of economic development property.

Have we succeeded? There is no doubt in my mind...the answer is a resounding YES. We have proven conclusively that the concept of lending consortia does indeed work. WCRA is recognized nationally as a leader in these efforts, and has been used as a model for the creation of other, similar programs.

In my years of association with WCRA, I’ve noted two key factors that set WCRA apart.  First, WCRA has been instrumental in breaking negative stereotypes of affordable housing, and its residents. WCRA has proven that affordable housing is an investment, not a burden.  It is an investment in our communities, our economic vibrancy, and our families.   Second – and most important – our people make it work. WCRA’s board, management and staff, under the leadership of our new President, Susan Duren, is passionate about WCRA’s mission. Most important – it is our partners – You – the members of WCRA – who make us what we are today. Through your contributions of time and talent, we have proven that fierce competitors can "leave their lapel pins at the door” and pool their skills for a common purpose – to support WCRA’s mission. Not always easy to do, as it sometimes means stepping outside of our known comfort zone - but what a wonderful experience that has been for us, and what a difference it has made! Our WCRA partners can be rightfully proud of what we have accomplished through our commitment to WCRA.

Karen McCormick
WCRA Board Member
President and CEO, First Federal S&L Association of Port Angeles

If You Choose to Become a Member...
 ...of the WCRA, the following information should help explain how our lending pools operate, what fees are required and what is necessary to proceed:

 MEMBERSHIP FEE

You pay a fee to join of $2,500.00 (this fee can be considered as an equity investment in the WCRA and qualifies under the CRA "investment test".

 POOL #1 (THE PRIMARY WCRA POOL)

All members are required to participate in Pool #1. In order to determine the amount of your participation, we will need your 9/30 Call Report. Your share is based on the amount of your deposits in Washington, with a minimum participation amount of $100,000.

Pool #1 is limited to $74,900,000. This pool is revolving and lending capacity is renewed through loan sales and amortizing loan principal payments. When you join WCRA, your portion of Pool #1 will be drawn on as we fund new loans committed to this pool.

 POOL #2 (VOLUNTARY COMMITMENT)

You may participate in Pool #2 at any amount of $200,000 or more. This pool was put in place in 1997 to increase the WCRA lending capacity and revolves in the same manner as Pool #1. WCRA alternates loan commitments between these two housing Loan Pools.

 POOL #3 (VOLUNTARY COMMITMENT)

Pool #3 provides financing for (non-housing) real estate economic development projects. Examples could include: child care centers, community service office buildings, health clinics, etc. This pool operates in the same way as the housing pools and has a $200,000 minimum.
 In order to participate in either Pool #2 or Pool #3,
    you must also participate in Pool #1.

 

 OTHER THINGS TO BE AWARE OF

 Your membership in WCRA runs 2 years at a time. If you wish to withdraw from membership, you must notify us well in advance of the end of each 2 year period. If you withdraw membership, you are responsible for funding the loans that were committed to pools in which you participated during the term of your membership.

 Please note that WCRA is a permanent lender. We finance a great many new construction projects. These projects must be completed and stabilized before WCRA funds the loan. This can mean we do not fund for 12 to 24 months after commitment.

 You should check with your Regulators to determine if you will be able to gain credit (in the CRA lending test) for your "line of credit" commitments to WCRA. We do understand you can count your portion of the funded loans even if they are outside your lending area.

 In addition to the lending pools, we also have opportunities for CRA qualified investments through a Tax Exempt Bond Program. If you decide to join WCRA, we can make this opportunity available to you.

 If everything required for membership is received by December 1, your membership request will be on the agenda of the following Annual Meeting, which is held the first part of February.

Download sample membership application documents:

A sample of a Board Resolution and a Membership Request Letter are available in a single Microsoft Word file. Please click here to download the file (25K).