Alarcon Proposed Bank Branch Incentive Program

0

Los Angeles City Councilmember Richard Alarc? introduced a motion Friday to create banking development districts across the city.

The initiative, modeled after a similar program in New York City, would encourage the construction of new bank branches by providing incentives such as property tax breaks and expedited land-use approval.

Alarc? said the proposal is a response to the proliferation of check-cashing outlets and payday lenders, which collectively outnumber bank and credit union branches roughly two to one and tend to be located in low-income neighborhoods.

?ur city is home to one of the largest unbanked populations in the United States,?Alarc? said in the motion. ?n estimated 300,000 Los Angeles households do not have a checking or a savings account at all. These families must continually rely on expensive alternative financial service providers ?such as check cashers and payday lenders ?to carry out their financial needs.?p>The chief legislative analyst will have 30 days to prepare a Council report in conjunction with the Department of Finance, the Community Redevelopment Agency and other departments.

No posts to display