§__.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…
§__.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…