§__.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…
§__.12(g)(4)(iii) Distressed and Underserved Area Updates
§__.12(g)(4)(iii) – 2 Q: How often will the Agencies update the list of designated distressed and underserved nonmetropolitan middle-income geographies? A2: The Agencies will review and update the list annually. The list is published on the FFIEC Web site (https://www.ffiec.gov). To the extent that changes to the designated census tracts occur, the Agencies have determined to adopt…
§__.12(g)(4)(iii) Distressed Revitalization and Stabilization Activities
§__.12(g)(4)(iii) – 3 Q: What activities are considered to “revitalize and stabilize” a distressed nonmetropolitan middle-income geography, and how are those activities evaluated? A3: An activity revitalizes or stabilizes a distressed nonmetropolitan middle-income geography if it helps to attract new, or retain existing, businesses or residents. An activity will be presumed to revitalize or stabilize the area…
§__.12(g)(4)(iii) Underserved Revitalization and Stabilization Activities
§__.12(g)(4)(iii) – 4 Q: What activities are considered to “revitalize or stabilize” an underserved nonmetropolitan middle-income geography, and how are those activities evaluated? A2: The regulation provides that activities revitalize or stabilize an underserved nonmetropolitan middle-income geography if they help to meet essential community needs, including needs of low- or moderate-income individuals. Activities, such as financing for…
§__.12(h) Community Development Loan Examples
§__.12(h)-1 Q: What are examples of community development loans? A1: Examples of community development loans include, but are not limited to, loans to borrowers for affordable housing rehabilitation and construction, including construction and permanent financing of multifamily rental property serving low- and moderate-income persons; not-for-profit organizations serving primarily low- and moderate-income housing or other community development needs; borrowers…
§__.12(h) Community Development Lending for non-HMDA Reporters
§__.12(h) – 2 Q: If a retail institution that is not required to report under the Home Mortgage Disclosure Act (HMDA) makes affordable home mortgage loans that would be HMDA-reportable home mortgage loans if it were a reporting institution, or if a small institution that is not required to collect and report loan data under the CRA makes small business…
§__.12(h) Community Development Lending for Intermediate Small Institutions
§__.12(h) – 3 Q: May an intermediate small institution that is not subject to HMDA reporting have home mortgage loans considered as community development loans? Similarly, may an intermediate small institution have small business and small farm loans and consumer loans considered as community development loans? A3: Yes. In instances where intermediate small institutions are not required to…
§__.12(h) Credit Cards and Community Development Lending
§__.12(h) – 4 Q: Do secured credit cards or other credit card programs targeted to low- or moderate-income individuals qualify as community development loans? A4: No. Credit cards issued to low- or moderate-income individuals for household, family, or other personal expenditures, whether as part of a program targeted to such individuals or otherwise, do not qualify as community…
§__.12(h) Stabilizing Effect of LMI Loans
§__.12(h) – 5 Q: The regulation indicates that community development includes “activities that revitalize or stabilize low- or moderate-income geographies.” Do all loans in a low- to moderate-income geography have a stabilizing effect? A5: No. Some loans may provide only indirect or short-term benefits to low- or moderate-income individuals in a low- or moderate-income geography. These loans are not…