§__.41(c)(1) – 2
Q: Are wards, school districts, voting districts, and water districts political subdivisions for CRA purposes?
A2. No. However, an institution that determines that it predominantly serves an area that is smaller than a city, town, or other political subdivision may delineate as its assessment area the larger political subdivision and then, in accordance with 12 CFR .41(d), adjust the boundaries of the assessment area to include only the portion of the political subdivision that it reasonably can be expected to serve. The smaller area that the institution delineates must consist of entire geographies, may not reflect illegal discrimination, and may not arbitrarily exclude low- or moderate-income geographies.
Source: Interagency Questions & Answers Regarding Community Reinvestment | July 2016