Boston, MA-The Community Advisory Committee for Corporate Mergers, convened by Senator Dianne Wilkerson (D-Boston), signed a Community Investment Agreement with John Hamill, Chairman and CEO of Sovereign Bank New England on Monday, March 20, 2000.

"We hope that this agreement is just the beginning of Sovereign’s acknowledgement that banks can do business in our communities and do well at the same time," stated Senator Dianne Wilkerson. "The CAC was formed to insure that low-income, moderate income communities and communities of color continue to have access to traditional capital."

After weeks of negotiation with the bank, the Committee, which is made up of community leaders, housing development experts, business owners and legislators, signed an agreement that provides for community reinvestment programs at the bank for the years 2000, 2001 and 2002. The agreement also calls for reassessment and renegotiation of the plan for the years 2003 and 2004. Wilkerson made special acknowledgment of the support and assistance of Senator John Kerry, Senator Ted Kennedy, Congressman Barney Frank and Congressman Michael Capuano.

The bank has also made plans to create goals for a diversity plan to cover hiring and procurement of vendors. The planning will begin immediately.

"Sovereign Bank New England prides itself on our CRA history in the community. A large part of our commitment has always been to make a difference in the lives of the citizens and communities we serve. Proof of our commitment is in the three-year program we’ve provided for Massachusetts," stated John P. Hamill, Chairman and CEO, Sovereign Bank New England. "We are proud of this agreement and appreciate the opportunity to work with the Community Advisory Committee because together, we can make a difference."

The Agreement provides $641,250,000 in loans and grants in the following categories through the year 2002:

• $336 million in small business loans, 25% of which will be targeted to borrowers in low and moderate income areas;
• $162 million in mortgages for low and moderate income homebuyers of which $75 million will be administered through the popular and successful ACORN and Soft Second mortgage programs;
• $2 million in investments for community based, small business equity and loan providers such as CDFIs, CDCs, loan pools and various collaborative that serve at least 75% of minority and women-owned businesses;
• $5 million in loans and investment in the Boston Empowerment Zone;
• A commitment to keep all branches in low and moderate income areas open for at least one year after acquiring them in mid 2000, and to seek input from the CAC before considering any future closings;
• 10,000 new free or low cost Basic Banking savings and checking accounts by 2002;
• $97 million in loans to develop affordable housing and commercial real estate;
• $28 million in discounted loans for the development of affordable rental housing through the Massachusetts Housing Partnership Fund;
• A commitment to invest in low income housing tax credits; and,
• Grants to support community development and civil rights advocacy at the level of $250,000 in 2000, and $500,000 in 2001 and 2002.

"It bodes well that Sovereign, as an unknown bank seeking to make significant inroads into Massachusetts, is signing this agreement as one of their first major actions in the new market," Marc Draisen, President, Massachusetts Association of Community Development Corporations commented. "By doing so, Sovereign is sending a strong signal that they intend to do business with the families and entrepreneurs of Roxbury, Lawrence and New Bedford as well as those in Beacon Hill, Acton, and Lincoln."

"The Fair Housing Center of Greater Boston firmly believes that banking institutions have a critical role to play in ensuring equal housing access for all people throughout the greater Boston area," affirmed David Harris, Executive Director of the Fair Housing Center and member of the CAC. "The Center looks forward to working with Sovereign to meet its obligations to affirmatively further fair housing and fair lending as committed to in this agreement."

Senator Wilkerson convened The Community Advisory Committee for Corporate Mergers (CAC), originally The Community Advisory Committee for Fleet Bank /Bank Boston Merger, as a direct response to constituents’ concerns on the implications of Fleet Bank/ BankBoston Merger on the community. The CAC is made up of 48 groups from across the Commonwealth. The CAC’s objective is to negotiate on behalf of the community to ensure that its needs are not negatively impacted as a result of a corporate merger.