Assemblymember Mia Bonta Introduces the California Community Reinvestment Act of 2025 to Support Historically Neglected and Wildfire-Impacted Communities

SACRAMENTO – Assemblymember Mia Bonta (D – Oakland) has introduced AB 801, the California Community Reinvestment Act of 2025, to align leading modern mortgage lenders, state‑chartered banks, credit unions, and fintech firms to reinvest in the neighborhoods they serve as traditional banks have for half a century. Designed to narrow the racial wealth gap, address statewide funding gaps, and expand access to affordable housing, the legislation sets clear accountability measures for financial institutions.

"California has an opportunity to ensure that leading mortgage lenders are reinvesting into the communities they serve, including low-income communities, communities of color, and wildfire-impacted communities,” said Assemblymember Mia Bonta (D – Oakland). “I'm proud to lead this California Legislative Black Caucus priority bill, recognizing that the mortgage lending landscape has changed significantly in the last 50 years. AB 801 seeks to combat the racial wealth gap, expand access to affordable housing, and focus on accountability of our financial institutions to ensure they are investing in communities and community programs to help Californians. It is time for California to prioritize our historically neglected communities. I'm grateful for the far-reaching support AB 801 has received so far."

AB 801 would bring California among the ranks of states like New York, Massachusetts, and most recently, Illinois, which have built upon the federal Community Reinvestment Act of 1977 to address its race-neutral limitations and inconsistent enforcement, particularly under the Trump administrations. Since 1977 ‘nonbank’ mortgage lending has boomed and they now comprise a majority of US mortgage lending, this bill would broaden Community Reinvestment Act requirements to better reflect our modern financial institution landscape.

Additionally, recognizing the urgency of recovery in communities hit hard by recent wildfires, the bill also includes measures to stabilize these in-need communities. This is of increased significance for communities such as Altadena which have been hit by both historic redlining and recent wildfires.

“California has a chance to set a new standard in financial equity. With attacks and cuts by the Trump administration on the Department of Housing and Urban Development, potential weakening enforcement of the federal Community Reinvestment Act, and the gutting of the Consumer Financial Protection Bureau, state-level action is essential,” said Paulina Gonzalez‑Brito, CEO of Rise Economy, a co-sponsor of the bill. “AB 801 not only holds financial institutions accountable, it will also drive billions of dollars into areas that need it most, creating jobs, expanding affordable housing, supporting homeownership and fostering economic equity.”

California is confronting a series of urgent crises, many of which disproportionately affect Black and Latino families, veterans, and low-to-moderate-income households. Rising costs, predatory lending practices, and chronic underinvestment have left too many Californians locked out of homeownership and financial stability and in dire need of bold solutions. Additionally, as the federal administration advertises its intention to rescind the 2023 final rule of the federal CRA, which called for a more robust evaluation process for banks as well as provisions that would combat displacement, the need for innovative solutions and state-level protections has never been greater.

“We're proud to stand with other Community Development Financial Institutions in support of AB 801 to hold traditional banking institutions accountable for reinvesting in the communities they profit from,” said Luz Castro, Associate Director of Policy at Inclusive Action for the City. “This bill will expand opportunities for entrepreneurs, strengthen local businesses, and bolster the Community Development Financial Institutions’ capacity to increase access to capital and financial services in historically underserved communities. It represents a critical step toward a more just financial system in California.”

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Assemblymember Mia Bonta represents California’s 18^th Assembly District encompassing the East Bay including Oakland, Alameda, and Emeryville. She also chairs the Assembly Health Committee.

Courtesy photos can be found HERE.