§__.12(g) Community Development Location

§__.12(g) – 2

Q: Must a community development activity occur inside a low- or moderate-income area, designated disaster area, or underserve or distressed nonmetropolitan middle-income area in order for an institution to receive CRA consideration for the activity?

A2: No. Community development include activities, regardless of their location, that provide affordable housing for, or community services targeted to low- or moderate-income individuals and activities that promote economic development by financing small businesses and farms. Activities that stabilize or revitalize particular low- or moderate-income areas, designated disaster areas, or underserved or distressed nonmetropolitan middle-income areas (including by creating, retaining, or improving jobs for low- or moderate-income persons) also qualify as community development, even if the activities are not located in those areas. One example is financing a supermarket that serves as an anchor store in a small strip mall located at the edge of a middle-income area, if the mall stabilizes the adjacent low-income community by providing need shopping services that are not otherwise available in the low-income community.

 

Source: Interagency Questions & Answers Regarding Community Reinvestment | July 2016

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