Council to vote on proposed laws targeting banks - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Council to vote on proposed laws targeting banks

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SAN DIEGO (CNS) - A pair of proposed laws targeting banks, one to force them to clean up foreclosed properties and the other to have them file reports on neighborhood lending practices, will be taken up by the San Diego City Council Tuesday.

The first proposed ordinance would result in the creation of a registry of homes that have gone through the foreclosure process that would be inspected by code compliance officers. Banks that own blighted properties could then be fined.

Supporters have long complained that the yards and facades of abandoned homes have deteriorated, causing blight in their neighborhoods. The problem is especially acute in the district of Councilman David Alvarez, who introduced the proposal.

The other proposed law, the Responsible Banking Ordinance, would have banks with which the city of San Diego does business file reports on neighborhood lending practices.

The plan by council President Tony Young would have banks submit annual data on their home and small business lending, modifications of distressed loans, foreclosure information, community investment, employment diversity and their number of jobs.

Young also wants two-year community reinvestment plans to be submitted for residential and small business lending in low- and moderate-income neighborhoods.

His proposed ordinance also calls for the city to establish a Community Reinvestment Review Committee made up of council members and mayoral staff to recommend which banks should receive city deposits and handle financial transactions.

Several other large cities have similar requirements, and Los Angeles adopted a similar law earlier this year, Young said.

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