§__.12(t) Qualified Investment Examples

§__.12(t) – 4

Q: What are examples of qualified investments?

A4. Examples of qualified investments include, but are not limited to, investments, grants, deposits, or shares in or to:

  • Financial intermediaries (including CDFIs, New Markets Tax Credit-eligible Community Development Entities, CDCs, minority- and women-owned financial institutions, community loan funds, and low-income or community development credit unions) that primarily lend or facilitate lending in low- and moderate-income areas or to low- and moderate-income individuals in order to promote community development, such as a CDFI that promotes economic development on an Indian reservation;
  • Organizations engaged in affordable housing rehabilitation and construction, including multifamily rental housing;
  • Organizations, including, for example, SBICs, specialized SBICs, and Rural Business Investment Companies (RBIC) that promote economic development by financing small businesses;
  • Community development venture capital companies that promote economic development by financing small businesses;
  • Facilities that promote community development by providing community services for low- and moderate-income individuals, such as youth programs, homeless centers, soup kitchens, health care facilities, battered women’s centers, and alcohol and drug recovery centers;
  • Projects eligible for low-income housing tax credits;
  • State and municipal obligations, such as revenue bonds, that specifically support affordable housing or other community development;
  • Not-for-profit organizations serving low- and moderate-income housing or other community development needs, such as counseling for credit, home-ownership, home maintenance, and other financial literacy programs; and
  • Organizations supporting activities essential to the capacity of low- and moderate- income individuals or geographies to utilize credit or to sustain economic development, such as, for example, day care operations and job training programs or workforce development programs that enable low- or moderate-income individuals to

See also Q&As §__.12(g)(4)(ii) – 2; §__.12(g)(4)(iii) – 3; §__.12(g)(4)(iii) – 4.

 

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

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