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FOS Blog

20 Aug

Get the Credit You Deserve – Part I

Get the Credit You Deserve – Part I

An important component of the Community Reinvestment Act (CRA) Examination is Community Development.  We are completing a 3 part mini-series on Community Development to ensure that you are receiving the credit that you deserve for qualified community development activities within your assessment area.

First, we must familiarize ourselves with the definition of community development activities.

Community development is defined in Regulation BB Section 228.12(g). Community development activities are as follows:

  • Affordable housing including multifamily rental housing for low- and moderate-income (LMI) individuals;
  • Community services targeted to LMI individuals;
  • Activities that promote economic development by financing businesses or farms that have gross annual revenues of $1 million or less or that meet the size eligibility requirements of the Small Business Administration’s (SBA) Small Business Development Company or Small Business Investment Company (SBIC) programs;
  • Activities that revitalize or stabilize LMI geographies, designated disaster areas, or distressed or underserved nonmetropolitan middle- income geographies designated by the Board, FDIC, and the OCC; and
  • Activities that support the Neighborhood Stabilization Program.

Additional guidance is included in the Interagency Questions and Answers Regarding Community Reinvestment.

We will discuss Community Development Loans in Part II and Community Development Investments and Services in Part III.