Statement of Committee on Jobs 

Federal Reserve Bank Hearing on Bank of AmericaINationsBank Merger 

July 10,199s 

Good morning, my name is Mark Mosher. I am Executive Director of the Committee on 

Jobs, a coalition of 33 of San Francisco’s largest private sector employers. 

Our organization focuses on public policy issues affecting the City’s economic vitality 

and quality-of-life. During its eight-year history, Jobs has organized corporate 

community involvement in a few key areas, including major youth hiring and welfare-towork initiatives. It is in this context that I would like to address the proposed merger and 

what we believe to be Bank of America’s post-merger commitment to San Francisco. 

In every initiative Committee on Jobs has undertaken, whether it was our effort to replace 

cuts in the federal Summer Youth Employment Training Program or the organization of 

hundreds of business volunteers through Christmas in April, Bank of America has taken a 

leadership role. The Bank has demonstrated to us that this leadership role will not 

decline in the wake of the merger. 

When the local business community came together to address the challenge of welfare 

reform, Bank of America led the way. Last year, the Bank contributed $250,000 to found 

San Francisco Works, an effort to help transition 2,000 public assistance recipients into 

self-sufficiency over the next three years. Bank of America’s involvement in this effort 

transcends checkbook philanthropy. Bank Chairman David Coulter has personally 

involved himself in the organization, participating in board meetings, loaning his staff to 

counsel San Francisco Works in current training methods and committing employment 

opportunities to program graduates. The Bank has communicated to us that its 

commitment in each of these areas will not decline after the merger. 

I value Bank of America’s role in San Francisco, and I was surprised and disappointed 

when I heard the headquarters would be moved to Charlotte. The move is definitely a 

blow to the City’s prestige. However, in practical terms, David Coulter and half of the 

merged Bank’s executive management team will remain in San Francisco, several key 

operations will remain headquartered in the City, and the deep spirit of community 

involvement fostered by the Bank’s current leadership will continue. 

We urge approval of the merger. Thank you 

ONE MARITIME PLAZA, SUITE 1201 *SAN KiANCISCO, CA 94111 telephone 4151956.9966 lax 4151956.9989 * 
United Heustntt 8 Educational Uevelettmant Ctwn 

161Y)NCkaclcRd 

T!Jcsm , AZ 85739 

July IO, 1998 

Federal Reserve Bank 

Good afternoon My name is Edward Esquibel . I Am The Executive director of Untied Housing & 

Educational Development Corporation. United housing is a non profit SOIC-3 organization Formed in 1990 in the 

state of Arizona that provides affordable housing in the Rural areas of Pima And Pinal Counties United housing is 

currently under contract with the United states Dept. ofagriculture, Rural Housing services, to operate and provide 

technical assistance under their 523 self help program This program targets families in need of safe , decent 

affordable homes Families’qualify for a housing loan from Rural Development.called the 502 direct loan program 

based on their income and need The families income cannot exceed SC% of the areas median income. Subsidy is 

awarded to families based on family size and income These families are considered low and very low based on the 

income standards 

United Housing and Educational Development Corporation (JJHEDC) is pleased to be a pannsr nith Bank of 

America’s Community Development Bank Bank of America has already established an effective partnership which 

has enabled local self-help housing organizations like ours to expand the opponunity for self-help families to achieve 

homeownership Bank of America in 1997 established It s Rural 20G0 Initiative which is addressing wral 

concerns of reaching out to markets that either no service is available or is unda served Bank of America’s rural 

2000 initiative will make available funds , to provide mortgage loens by partnering with department of agriculture, 

as well with Fannie Mae to start the 502 direct blended loan program which is being piloted through the rural 2000 

initiative The 502 direct loan program current Funding level is I billion dollars this fiscal year This Rural Initiative 

is assisting Non protit organizations with Lines ofCredit for construction loans and Infrastructure loans that will 

provide critical resources to facilitate the development ofbuilding sites for low-income families who, are willing to 

commit the time , and energy to build homes for themselves and their neighbors 

United Housing has demonstrated success in the development ofself-help housing. In Fact, since 1990, UHEDC 

has assisted I02 families in the successfUl construction oftheir homes through mutual self-help .The state of Arizona 

is currently Rank number two in the United States for providing selfhelp homeownership Under the department of 

agriculture National self help program United Housing was Natioinlly Recognized in 1996 by the Fannie Mae 

Foundation as the recipient of the Maxwell award of Excellence for the production of low income housing. At the 

same time , there are many families who are waiting for the opportunity to join with their neighbors to build better 

homes for themselves and their children One ofthe continuing obstacles we face is the difficulty of acquiring 

affordable building sites Bank of Ametica funds through the Community Development Bank has assisted UHEDC 

in the development of suitable building sites 

The opportunity of this merger can provide greater resorces to nonprofits like ourselves in partnering with the 

federal resource dollars that had been available in the past to operated programs such as the self help program The 

Bank of America / Nations bank , 350 billion dollars commitment to provide Funding resorces as I have discuss 

earlier will have a impact on rural areas markets that has been undeserved and misunderstood for years. 

Bank of America has a proven track record in effectively managing The Community Development Bank by providing 

fimds , which has created homeownership opportunities for hardworking, low-income families within OUT service 

area and throughout rural America 
< S’ 

. . . 

? : 

United housing supports the Merger between Bank of America and Nations Bank 

Thank you for the opportunity to speak on behalf ofthe fa@lies that we have sewed and United Housing 

Sincerely. 

Edward Esquibel 

Executive Director 
Good morning, 

d I am from Beaumont, Texas. I am a retired Captain for 

21 % years, I have served the citizens of Southeast Texas as 

their representative in the Texas House of Representatives. Today, I represent the Southeast 

Texas Community Development Corporation, Inc., which I serve as President. We are a 

. 01(c) (3) orgamzauon, founded in 1993. 

SETCDC currently serves the City of Beaumont, City of Port Arthur, City of Orange 

in addition to Jefferson and Hardin counties. 

SETCDC is certified as a CHDO by the Texas Department of Housing and 

Community -airs to serve rural Texas and certified as a CHDO by the Cities of 

Bbeaumont, Port Arthur, and Orange. 

In the past fide years SETCDC has completed new construction and rehab 

construction in excess of $2.2 million. SETCDC anticipates new construction of 250 new 

homes and 100 rehabs over the next three j&&s. We plan ro expand SETCDC in 

developing afFordable housing in rural Easr Texas. 

Some eight years ago, when we were reviewing the lending practices of banks in our 

community, I met Ms. Cathy Bessant of NationsBank. She came to Beaumont to work with 

us to achieve the aims of the Community Reinvestment Act. She was very cooperative and 

helpful and I am pleased to know that she will be involved in this great effort. 

Our organization has developed a business relationship with iY:ationsBank which 

includes the arrangement of permanent financing of loans for our homeowners and builders 

In this manner, we have been successful in addressing the housing and banking needs of a 

clientele that is traditionally below the regular commercial banking floor. Through our 

Homebuyer Education Program, we work with persons who are currently renters. We 

inform them, encourage them, cajole them--if necessary --spurring them to dare achieve the 

dream of homeownership. 

Virtually every one of our clients utters in disbelief at closing, “I never thought I’ll 

ever own my own home.” 

These are new homeowners. These are first- time homebuyers. These are new 

mortgages. This is new money bemg generated in our community This is private enterprise 

doing what it can do best and do much better than the government. This is removing 

people from the public dole. This is putting housing and economic development in the 
private sector-- without dependency on public funds. 

Upon learning of the proposal of NationsBank to make $350 billion available to 

address the needs of low-income and rural areas, I contacted NationsBank to discuss ways 

that we and they could partner with local officials and community leaders to plan and execute 

locally-conceived programs that will benefit the community as a whole, while concurrently 

achieving the goals of NationsBank and the Southeast Texas CDC. 

This $350 billion dollar infusion represents a pool of resources that will allow 

communities to do housing and economic development on a scale that will be both trendSetting and transforming--and if done correctly will allow a level of efficiency that can stretch 

these dollars farther. 

I have submitted a proposal to NationsBank to establish a pilot program in a small 

county in Southeast Texas. This proposal, which could be quickly implemented, calls for our 

convening the county commissioners plus the mayors and council members of each city (with 

a population of at less than lO,OOO), along with officials of HUD, the state of Texas, local 

non-profit groups and the private sector for the purpose of assisting local communities in the 

creation of a plan for housing and economic development. 

Such a procedure could be replicated anywhere and at >vill. Through SETCDC and 

other non-profits, NationsBank nil1 be able to extend its financial tentacles into hamlets 

which are presently inaccessible, thereby transforming whole communities. 

Homeownership is the cornerstone of safe, desirable neighborhoods, and therefore is 

essential to any plan to revitalize communities. People who own their own homes care about 

their streets, their properry values and their schools. They generate business, they pay taxes, 

and more often than not, they vote. By providing safe, sanitary, desirable homes to low-tomoderate income families, CHDOs work to fend off the “renter’s mentality”--with its 

emphasis on dependency, consumership and apathy-- and replace it with the “homeowner’s 

mentality” with its emphasis on independence, productivity, and involvement. 

Ladies and gentlemen, because I am so pleased to see this expression of corporate 

responsibility and goodwill and because I view this as a definitive measure to put affordable 

housing and community development firmly into the private sector-- and alvay from 

dependency on governmental handouts-- I am very pleased to support the proposal by 

NationsBanks Corporation, Charlotte, North Carolina, to acquire BankAmerica 

Corporation, San Francisco, California. 

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