§__.12(g) Community Development Applicability
§__.12(g) – 4 Q: Can examples of community development activities discussed in a particular Q&A also apply to other types of community development activities not specifically discussed in that Q&A if they have a similar community development purpose? A4: Yes. The Interagency Question and Answers Regarding Community Reinvestment (Questions and Answers) provide examples of particular activities that may…
§__.12(g)(1) Affordable Housing Determination
§__.12(g)(1) – 1 Q: When determining whether a project is “affordable housing for low- or moderate-income individuals,” thereby meeting the definition of “community development,” will it be sufficient to use a formula that relates the cost of ownership, rental, or borrowing to the income levels in the area as the only factor, regardless of whether the…
§__.12(g)(2) Community Service Examples
§__.12(g)(2) – 1 Q: Community development includes community services targeted to low- or moderate-income individuals. What are examples of ways that an institution could determine that community services are offered to low- or moderate-income individuals? A1: Examples of ways in which an institution could determine that community services are targeted to low- or moderate-income persons include, but…
§__.12(g)(3) Economic Development Financing
§__.12(g)(3) – 1 Q: ‘”Community development” includes activities that promote economic development by financing businesses or farms that meet certain size eligibility standards. Are all activities that finance businesses and farms that meet size eligibility standards considered to be community development? A1: No. The concept of “community development” under 12 CFR __.12(g)(3) involves both a “size” test…
§__.12(g)(4) Community Development Institution Applicability
§__.12(g)(4) – 1 Q: Is the definition of “community development” applicable to all institutions? A1: The definition of “community development” is applicable to all institutions, regardless of a particular institution’s size of the performance criteria under which it is evaluated. Source: Interagency Questions & Answers Regarding Community Reinvestment | July 2016
§__.12(g)(4) Revitalization and Stabilization Housing Activities
§__.12(g)(4) – 2 Q: Will activities that provide housing for middle-income and upper-income persons qualify for favorable consideration as community development activities when they help to revitalize or stabilize a distressed or underserved nonmetropolitan middle-income geography or designated disaster areas? A2: An activity that provides housing for middle- or upper-income individuals qualifies as an activity that…
§__.12(g)(4)(i) Revitalization and Stabilization Activites
§__.12(g)(4)(i) – 1 Q: What activities are considered to “revitalize or stabilize” a low- or moderate-income geography, and how are those activities considered? A1: Activities that revitalize or stabilize a low- or moderate-income geography are activities that help to attract new, or retain existing, businesses or residents. Examiners will presume that an activity revitalizes or stabilizes a…
§__.12(g)(4)(ii) Designated Disaster Areas
§__.12(g)(4)(ii) – 1 Q: What is a “designated disaster area” and how long does it last? A1: A “designated disaster area” is a major disaster area designated by the Federal government. Such disaster designations include, in particular, Major Disaster Declarations administered by the Federal Emergency Management Agency (FEMA) (https://www.fema.gov), but excludes counties designated to receive only FEMA Public…
§__.12(g)(4)(ii) Designated Disaster Area Activities
§__.12(g)(4)(ii) – 2 Q: What activities are considered to “revitalize or stabilize” a designated disaster area, and how are those activities considered? A2: The Agencies generally will consider an activity to revitalize or stabilize a designated disaster area if it helps to attract new, or retain existing, businesses or residents and is related to disaster recovery. An…
§__.12(g)(4)(iii) Distressed and Underserved Geographies
§__.12(g)(4)(iii) – 1 Q: What criteria are used to identify distressed or underserved nonmetropolitan, middle-income geographies? A1: Eligible nonmetropolitan middle-income geographies are those designated by the Agencies as being in distress or that could have difficulty meeting essential community needs (underserved). A particular geography could be designated as both distressed and underserved. As defined in 12 CFR__.12(k), a…