Community Reinvestment Act: Bridging Communities with Physical and Fiscal Stewardship
The social justice movement for community investment in Chicago was a movement demanding systems to increase the physical and fiscal stewardship of its citizens.
This movement was not a mere historical event but a living testament to the power of collective action in the face of injustice. It was a multifaceted and transformative initiative that sought to address a series of dynamics that had contributed to housing disparities and economic inequality.
This case study aims to comprehensively examine these elements and the resultant enactment of the Community Reinvestment Act of 1977 (CRA), firmly rooted in a political theology that underscores community, justice, and the principles of stewardship.
The dynamics that propelled the social justice movement in Chicago were multifaceted and profound. According to Westgate (2011: 270), the following key dynamics were in play:
Tax Shelters for the Rich: Tax policies that favored the wealthy created income disparities, widening the gap between the affluent and the marginalized.
Lack of Incentives for Quality Housing: The absence of incentives to build quality housing for the poor exacerbated housing inequality, leaving many in substandard living conditions.
Downtown Development vs. Neighborhood Reinvestment: The prioritization of downtown development over reinvestment in neighborhoods exacerbated disparities, concentrating resources in the city center while neglecting communities on the outskirts.
Bulldozing of Vacant Homes: The demolition of vacant homes and housing starts that were unaffordable for most Americans were stark indicators of housing injustices. This led to the destruction of housing options, leaving many with no place to call home.
These dynamics, combined, created a perfect storm of housing disparities, highlighting the urgent need for a social justice movement that would address these issues and advocate for equitable investment in communities.
Several factors contributed to the success of coalitions advancing the social justice movement. These factors included:
Articulated, Strategic Work: Organizations and individuals, like Gale Cincotta and Shel Trapp, engaged in strategic and well-coordinated efforts. Their work was characterized by meticulous planning and a clear vision for change.
Relationship Building: Relationships were the cornerstone of this movement. The focus was not just on issues, but on building meaningful connections. As Trapp emphasized, "You work on building relationships. Once you work on relationships and people are empowered, then you get on the issues" (Westgate 2011: 79). This approach echoes the principles of stewardship, where individuals are entrusted with resources and called to use them for the common good.
Strategic Scaffolding: Shel Trapp highlighted the importance of a structured approach to mobilization. He advocated that neighbors first identify a local problem and express a desire to address it. This problem would then be brought to the attention of individuals who could see it as part of a broader picture. This process ensured that community changes were aligned with the community's actual desires, avoiding the imposition of unwanted solutions (Westgate 2011: 86).
Social Changes: The changing social landscape, particularly women's rights, played a pivotal role. As the text reveals, "The income of women was discounted up to 100% until the 1960s," which resulted in housing prices skyrocketing to adjust for women's newfound rights. This unjust adjustment expanded the gender-wealth gap but also ignited a fire within women to mobilize. Even though this demand caused women to lose time to work that they would have otherwise committed to neighborhood movements, these social conditions seemed to ignite the underdog, encouraging more strategic planning and volunteer gatherings (Westgate 2011).
Belief in the Gospel and Stewardship: A deep belief in the Gospel and its principles of stewardship was a driving force in leadership. As Shel Trapp once said, "I still believe the Gospel…[that] it’s a revolutionary doctrine that the Church has totally screwed up" (Westgate 2011: 91). This liberation theology and Gospel-based worldview influenced Shel's leadership style and the coalitions' approach. The principles of stewardship, justice, compassion, and care for the marginalized were at the core of this movement.
Faith communities played a significant role in advancing this social justice movement. While the provided text doesn't explicitly address this, it's clear that the beliefs and convictions of leaders like Shel Trapp were rooted in their faith. It's safe to assume that these faith communities provided a moral compass and a sense of purpose in advocating for social justice. The core principles of stewardship, justice, compassion, and care for the marginalized, which are often found in faith traditions, likely underpin the values of these leaders and the coalitions they fostered.
The Community Reinvestment Act of 1977 (CRA) responded directly to the issues that had fueled the social justice movement in Chicago:
Anti-Predatory Lending: The CRA aimed to encourage banks to make sound, non-discriminatory lending decisions, countering predatory lending practices. It sought to ensure that financial institutions acted ethically and fairly in their lending practices, thus addressing the discrepancy in intentions and reflecting the stewardship principle of responsible resource management.
Community-Bank Engagement: It mandated that financial institutions actively engage with their communities, particularly in low- and moderate-income areas. This requirement echoed the stewardship principle of responsible resource allocation for the benefit of the common good.
Equitable Prosperity: The CRA sought to increase lending to underserved segments of local economies and populations, addressing disparities that had long existed in lending practices. This shift in lending practices aligned with the principles of stewardship, as it aimed to ensure that resources were allocated fairly and justly.
The theological foundation of the social justice movement in Chicago was firmly grounded in the political theology of fiscal stewardship and the obligation stewards have towards their fellow human beings. Proverbs 22:9 served as an unwavering beacon, proclaiming, "Those who are generous are blessed, for they share their bread with the poor." This verse illuminated the essence of generosity and the act of sharing one's resources, particularly with those less fortunate, as acts of blessing and instruments of social justice. It underlined the concept that generosity was not merely a virtue but a divine pathway to social equity.
Complementing this divine wisdom, 1 Peter 4:10 chimed in, urging individuals to be "Like good stewards of the manifold grace of God, serve one another with whatever gift each of you has received." This scripture resonated with the core concept of stewardship, emphasizing the duty of each person to employ their unique gifts and resources for the service and support of one another.
It affirmed the belief that we are all stewards of God's grace and blessings, thus entrusting us with the responsibility to be responsible stewards, particularly in the service of our communities, especially those in need.
This foundational belief inspired leaders like Shel Trapp and Gale Cincotta to advocate for community investment and economic justice, as it underscored the idea that justice, compassion, and care for the marginalized were not just moral imperatives but also divine mandates. The political theology of the social justice movement was firmly rooted in fiscal stewardship, as encapsulated by Proverbs 22:9 and 1 Peter 4:10. These verses highlighted the blessings of generosity and the responsibility of serving with one's gifts, fostering a theology inspired by stewardship principles that emphasized responsible resource management. This theology aligns with Luke Bretherton's insights from "Christianity and Contemporary Politics”. Bretherton argues that Scripture encourages us to integrate our story within God's story, guiding us to organize as a community for a better society that uplifts the underprivileged (2010: 98). He calls for the mobilization of means to extend concern, and care for others, build bonds of friendship, and pursue justice (2010: 183).
Guided by Jeremiah 29:7, the movement contended that corporations and governments had exploited communities at the expense of minority populations, necessitating genuine and intentional investment for equitable prosperity. Jeremiah 29:7 underscored the imperative to work for the well-being of the entire community, aligning perfectly with the movement's political theology rooted in stewardship and resource use for the common good. In conclusion, the Chicago social justice movement for community investment was not just a chapter in history; it was a transformative force that addressed complex dynamics and harnessed the power of relationships, social changes, and deeply held beliefs rooted in a political theology of stewardship. The passage of the Community Reinvestment Act of 1977 was a landmark achievement that reflected the core principle of stewardship, leaving an enduring legacy in the pursuit of a more just and compassionate society.
References:
Bretherton, Luke. Christianity and Contemporary Politics: The Conditions and Possibilities of Faithful Witness. 1st ed. Wiley, 2010. https://doi.org/10.1002/9781444317824.
Community Reinvestment Act of 1977, Pub. L. No. 95-128, 91 Stat. 1147 (1977). https://www.federalreserve.gov/consumerscommunities/cra_about.htm.
Westgate, Michael, et al. Gale Force: Gale Cincotta, the Battles for Disclosure and Community Investment. Second edition. Cambridge, MA: Harvard Book Store, 2011.
Originally written October 20, 2023 for Social Justice, Public Policy and Political Theology taught by Professor Raymond Pierce.