Rise Economy

Housing JusticeRise Economy advances campaigns that will increase BIPOC communities access to low-cost capital for affordable housing, hold corporate landlords accountable for tenant protections, and address the growing insurability crisis that threatens to derail progress on affordable housing throughout the state. Rise Economys current work boldly shifts the narrative - centering corporate accountability in tackling Californias housing and climate crises, and advancing policy strategies to increase banking sector investment in affordable housing and BIPOC homeownership. These strategies, described below, can generate significant resources and data to address the state's affordable housing crisis, stabilize neighborhoods, and build climate resilience. Rise Economys current affordable housing-related campaigns and projects include:- State Community Reinvestment Act (CA CRA): Rise Economy and its members are leading a statewide organizing effort to establish a California Community Reinvestment Act. We estimate that the financial institutions not currently subject to federal CRA obligations have the potential to reinvest upwards of $15.3 billion per year for affordable housing and economic development in California. In 2024 Rise published a policy brief and is currently building support for a policy campaign for the California CRA.- LLC Owner Transparency: Increasing consolidation of rental property ownership in shell companies is creating regional real estate monopolies. Investors with all-cash offers outbid first-time homebuyers and small landlords, robbing families of opportunities to build intergenerational wealth. Large entities are worse landlords and aggressive evictors of tenants, and their business model disincentivizes upkeep of properties - allowing the already limited affordable housing stock to fall into disrepair and code violations. Without requiring disclosure of the name of the company owner, California inadvertently shields powerful bad actors in the rental market. Rise Economy is building a strong coalition of allies to join the push for LLC ownership transparency. - Financing for Community Land Trusts: In recent years we have partnered with the California Community Land Trust Network to negotiate $65M in bank commitments to CLTs. A current priority is partnering with the Community Ownership for Community Power Fund, brokering conversations with banks to invest some of these CLT commitments through COCPs Integrated Capital Fund.

Small Business & JobsRise Economy leverages the Community Reinvestment Act (CRA), bank merger processes, and relationships with banks to harness more capital for communities historically excluded from wealth building through Community Benefit Agreements (CBAs). For example, in some CBAs banks have committed resources to Special Purpose Credit Programs that create loan opportunities for BIPOC small business owners. We also work with banks to encourage them to make smaller loans - under $250K in order to serve more people in low-income communities of color seeking loans for businesses; and encourage banks to invest in Community Development Finance Institutions (CDFIs) that can make even smaller loans in low-income communities.

Family Economic Security (Economic Wellness Promoters)Recognizing that financial education programs are often inaccessible to low-income groups, Rise Economy developed an innovative trauma-informed approach to financial wellness that is based on the Promotores peer-to-peer community health education model. Rise Economys Promotores are frontline workers who have received specialized training on increasing peoples' financial capability and share the lived experience of people in the communities they serve. Through creating a trusted relationship, Promotores help low-income families and individuals improve their understanding of and access to safe, affordable financial products while sharing strategies that build and sustain household economic security. Instead of presenting cookie-cutter informational events, Promotores function more as small team leaders who can pace workshops to focus on individuals, answer specific questions, and provide information tailored to the participants needs. They are also bilingual, facilitating effective communication with Spanish-speaking participants. This highly empathetic approach to financial counseling is often lacking in "one-size-fits-all" financial literacy programs.This program started in Los Angeles then expanded to the Bay Area, Sacramento and Central Valleys. From 2020-2024, Promotores provided online workshops and training to over 1900 individuals throughout California. Eighty percent of individuals participating in the workshops were women and 83% identify as Hispanic/Latino. Promotores started workshops by addressing the inherent stigma and shame people experience when faced with financial stress through a trauma-informed approach. From there, they helped participants develop household budgets, learn about various safe and affordable financial products, gain a deeper understanding of the impacts of payday lenders, and develop plans to get out of debt cycles. This program was primarily funded by a 3-year grant, and was phased out at the end of 2024.

Program GeneralProgram General captures Rise Economys ongoing mission-focused policy advocacy activities, including annual meetings in Sacramento with lawmakers and their staff. Each year we organize a large group of member organizations to participate in these meetings, educate policy makers about the economic needs of communities around the state, and advocate for solutions to the racial wealth gap. Program General also includes expenses for emerging programmatic work of Rise Economy that may or may not grow into a new program with project-restricted funding.

Alternative FinanceA vibrant public banking movement has been sweeping across the U.S. Public banks aim to democratize financial systems, ensuring that a community's money serves the public good. Unlike their Wall Street counterparts, public banks enable local governments to divest from institutions that do not align with their values and instead invest in initiatives promoting equity, health, prosperity, and well-being for individuals, families, and communities. These investments will include affordable housing, infrastructure, green energy, and small businesses - all contributing to sustainable local economies. Rise has been a key partner in the development of the Public Bank East Bay (PBEB), a community-governed public bank that will lend, invest, and leverage public funds to meet and address underserved public needs. It will serve Alameda County, the city of Richmond, and other cities in both Alameda and Contra Costa Counties. Rise Economy is also in the early stages of research and organizing for a State Public Bank, with the vision of supporting municipalities by lowering borrowing costs, increasing credit, and helping fund key projects in infrastructure, affordable housing, and renewable energy. This is particularly important for rural and tribal areas that are banking deserts and have historically struggled to access investment dollars for community economic development and infrastructure. A public bank could tackle Californias housing crisis and safeguard local economies during downturns and disaster recovery by keeping resources within our communities instead of with Wall Street banks.

Corporate Accountability/Climate ActionIn 2024, Rise Economys Corporate Accountability program became more focused on the climate crisis and the insurance industry. California has been increasingly plagued by extreme weather events, including wildfires, extreme heat, flooding, and drought. Bluelining is an emerging practice in which financial institutions increase prices of or withdraw services (such as insurance, credit, and banking) from regions they perceive to be at high environmental risk. Bluelining is often discussed as the new redlining because neighborhoods with a legacy of redlining face growing exposure to climate-related damage that leaves them vulnerable to other financial risks. Currently, major insurers like State Farm and Allstate have stopped offering new homeowners insurance policies in California, citing the growing risks and financial untenability of providing coverage in the state.Many of Rise Economys members are affordable housing developers facing unprecedented challenges due to the skyrocketing cost of insurance. The staggering rate increases add to the mounting costs faced by affordable housing developers in California, many of whom are Rise Economy members. To address this growing crisis, in 2024 we began a statewide research, advocacy, and media strategy or campaign for Rise Economy and its members to amplify low-income community voices regarding the need for financial institutions and regulators to consider climate risk a systemic risk and take action accordingly so that homeowners, renters, and low-wealth communities in particular aren't left holding the bag.

Access to Capital A new program established in late 2024 called Access to Capital will strengthen our statewide network and increase local community engagement with future CBA processes, especially in underinvested areas in Californias Central Valley and tribal areas. By increasing the negotiating skills and power of local groups, there is potential to leverage more sizable community reinvestment commitments in underserved parts of the state for years to come. Working with trusted local partners, Rise Economy will organize and deliver CRA trainings to local member organizations in the Central Valley and other rural and tribal areas of the state. Through this work, Rise Economy will also expand its membership of community-based organizations throughout the state.