CityLab Daily: Could Public Banks Help Fund Affordable Housing?

Bank shot: When cities collect tax revenue, they put it into commercial banks that then decide how to make that money grow. But what if cities could make those investments by themselves—in their own communities—and control the banks that manage their money? That’s the idea behind local public banks, and a bill in California proposes letting cities give it a try.

After a Los Angeles campaign pushed for public banking that would support cannabis businesses, a coalition of 10 cities adopted the idea with an emphasis on how it could fund efforts to address affordable housing, inequality, and climate change. “The city is identifying the needs for the community, and they’re turning to the bank to finance those needs,” says one of the legal architects of the legislation. CityLab’s Sarah Holder has the story: Could Public Banks Help California Fund Affordable Housing?