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In return for the privilege of safeguarding and investing the community's wealth and doing business with the city, financial institutions have a continuing and affirmative obligation to serve the credit and other financial needs of all communities, including and especially minority and low- and moderate-income communities and older adults, consistent with applicable laws and safety and soundness. The city shall assess financial institutions' performance in meeting community needs and use this assessment as a factor in its decision to place municipal deposits in and conduct other business with financial institutions. (Ord. 32211)
(a) Powers and duties of the city treasurer.
(1) In selecting and monitoring qualified depositories for city moneys in accordance with Dallas City Charter, Chapter III, Section 20, the city treasurer shall have the power and duty to:
(A) require that prospective bidders provide the city with data on their socially responsible banking practices;
(B) use socially responsible banking performance as a factor in determining the winning bid;
(C) accept bids for depository services only from financial institutions that have received a rating of "satisfactory" or "outstanding" in their most recent Community Reinvestment Act review by the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, or the Federal Reserve Board;
(D) include in contracts for depository services a statement of work in accordance with Section 2-78(a) that provides a framework for socially responsible banking; and
(E) gather an annual report required to be submitted by city depositories by May 1 or the first business day following May 1 if May 1 falls on a non-business day in accordance with Section 2-78. The city treasurer may accept an annual Environmental, Social, and Governance (ESG) report (or other similar document) produced in the ordinary course of business by the financial institution, provided it substantially addresses the requirements set forth in this Section 2-78. If the financial institution does not produce an annual ESG report or the annual ESG report does not substantially address the requirements in this subparagraph, the city treasurer shall require delivery of an annual report in accordance with Section 2-78.
(2) With written notice to the city council, the city treasurer may waive the requirement in Section 2-77(a)(1)(C):
(A) if no qualified bidders apply;
(B) if the federal program is no longer applicable; or
(C) to satisfy a compelling city need.
(3) The city treasurer shall provide an annual briefing to the appropriate city council committee. The committee shall review the implementation, effectiveness, and enforcement of Section 2-77(a)(1)(E) and make recommendations to city council regarding the authorization of city depositories.
(4) The city treasurer may request a voluntary report, consistent with that required by Section 2-77(a)(1)(E), from other financial institutions with which the city does business.
(b) Disqualification from contracting. Any depository that fails to submit to the city the required reporting information in accordance with Section 2-77
(a)(1)(E) may be prohibited from entering into any contract with the city as a qualified depository for city moneys for a period of five years. (Ord. 32211
)
(a) Statement of work. The statement of work for financial institutions in which the city places municipal deposits must include factors related to socially responsible banking that comply with this subsection. With written notice to the city council, the city treasurer may deviate from this subsection to make necessary updates to reflect new devices, products, or technology to this scope of work. The statement of work must include:
(1) a statement of the bank's commitment to implementing a long-term community reinvestment strategic plan to address disparities in its lending and investment activities in the City of Dallas, including how the depository will match or exceed peer lending performance in targeting capital access and credit needs, and a copy of the bank's existing long-term community reinvestment strategic plan, with appropriate redactions for proprietary information;
(2) a statement certifying that the depository institution has policies and procedures in place to prevent it and its affiliates from becoming a high-cost lender or a predatory lender consistent with Office of the Comptroller of the Currency regulations, the Consumer Financial Protection Bureau (CFPB) regulations, or, for state-chartered institutions, practices defined by the FDIC's Supervisory Policy on Predatory Lending; and
(3) a comprehensive analysis of community banking needs and the depository's community involvement and reinvestment, small business lending and community development, home ownership and consumer credit programs, distressed homeowners programs; products and services that are advantageous for the city and its residents, and other ESG practices in accordance with this paragraph.
(A) Community involvement and reinvestment.
(i) The bank shall report to the city on its efforts to invest in low and moderate income areas and minority census tracts.
(ii) The bank shall report if it is collaborating with and supporting any non-profit organizations focused on providing financial services, education, and asset building for low-income people in the city.
(iii) The bank shall report if it is collaborating with and supporting any organization that provides free tax preparation services in the city that target lower-income workers to help them take advantage of the Earned Income Tax Credit and other tax credits.
(iv) The bank shall report on its community development activities (such as investments, lending, and services) to demonstrate the bank's response to the credit, financial, and banking needs of low to moderate income individuals in the city, based on census tracts or zip codes provided by the city.
(B) Community banking needs.
(i) The bank shall support and participate in programs that strive to reach traditionally underserved populations as described in the Community Reinvestment Act. These may include unbanked, under banked, and low-income populations.
(ii) The bank shall provide easy-to-understand fee schedules and make a reasonable effort to offer fair, responsible, and affordable small-dollar loans.
(C) Home ownership and consumer credit.
(i) The bank shall participate in outreach and educational opportunities aimed at providing information on loan modifications and alternatives to foreclosures for borrowers experiencing financial hardship; and
(ii) The bank shall collaborate with HUD-certified housing counseling services.
(D) ESG practices. The bank shall participate in community-based causes and activities established to create responsible lending and reinvestment in moderate- to low-income neighborhoods and communities of color.
(b) Reporting. Any banking contract must include a requirement that the bank provide information to the city in accordance with this subsection.
(1) Residential lending information.
(A) The bank shall provide the total number and the total dollar amount of residential loans for one- to four-family dwellings applied for and originated during the previous calendar year in each of the following categories:
(i) Home purchase loans, both federally insured and conventional loans.
(ii) Refinancings of home loans.
(iii) Home improvement loans.
(iv) Home equity loans.
(v) Loans for second residences and investment properties.
(B) The bank shall report the number and percentage of loans to low- and moderate-income borrowers and by race and ethnicity.
(C) The bank shall provide peer comparisons for the percent of all loans made by all lenders to borrowers.
(D) The data gathered in accordance with this paragraph must be for the entire city by census tract or zip code. The city shall provide the census tract or zip code data. For home loans, fixed-rate loans must be reported separately from adjustable-rate loans.
(2) Small business lending information.
(A) The city shall assess a bank's small business lending practices based upon data published by the Consumer Financial Protection Bureau (CFPB). The bank shall provide the city a copy of the most recently available Dallas data published by the CFPB.
(B) The bank shall provide the number and dollar amount of small business loans originated during the previous calendar year for the entire city by zip code or census tract and for minority- and women-owned business enterprises in the entire city. Loans to small businesses with annual revenues above $1 million must be reported separately from loans to small businesses with annual revenues under $1 million consistent with CFPB reporting requirements. The bank may use data reporting procedures mandated by the federal Community Reinvestment Act for reporting small business loans with peer comparisons.
(3) Community development loans and investments. The bank shall provide the number and dollar amount of community development loans and investments including loans and investments for affordable housing, small business development, economic development, and community facilities for the entire city by census tract or zip code. The bank may use definitions of community development found in federal Community Reinvestment Act regulations. For each loan and investment, the bank shall indicate if the loan or investment was for affordable housing, small business development, economic development, community facilities, and other such categories requested by the city treasurer.
(4) Checking, savings, and loan products. Information on selected checking, savings, prepaid card, small dollar loan, and other products marketed to Dallas residents, including information on fees, interest, and features.
(5) Branch closures. The bank shall provide the city with at least 30 days advance written notice of branch closures within the city or at the same time as the notice to customers consistent with Section 42, "Notice of Branch Closure," of the Federal Deposit Insurance Act (FDIC).
(Repealed by Ord. Nos. 17226; 17393; 31049)