Floyd Flake's CRA Wisdom

Floyd Flake has an admirable success record in CRA related work. He was the luncheon speaker at the BAI/FDIC Community Development Lending Conference. Mr. Flake shared his philosophy with the audience which included some wise observations that are important to remember in CRA - especially when things are not going as planned.

For starters, don't take the first "no" as the last answer. He offers this advice to community organizers, but it is equally important for bankers to remember. CRA is all about causing change. People tend to resist change - and say "no." To effect change, follow Mr. Flake's advice, and don't accept the first no as the final answer.

Much of the challenge in redeveloping a community is getting people to believe that they can actually do it. People tend to be ready with all the reasons why something won't work. Mr. Flake's work has been to get people to believe that they can get a job done. Success with the first project becomes potent fuel for the next project.

Some of his advice was totally practical. For example, he has learned that in order to control the community development you have to own the land. You won't win the effort to clean up a community - especially to drive out drug dealing - unless you own the land.

Communities need economic diversity - both rental and ownership housing - as well as certain core elements such as schools. When, asked Mr. Flake, did you last see a real estate listing for an urban area that named the local public school as a draw? He believes that charter schools are a strong viable alternative to the failing public school system, and urged financial institutions to support charter schools. Charter schools, according to Mr. Flake, "offer hope and possibilities.

Copyright © 2000 Compliance Action. Originally appeared in Compliance Action, Vol. 5, No. 7, 7/00