Kentucky Association for Community Action

From: Kip Bowmar
Sent: Friday, August 20, 2004 5:15 PM
To: Comments
Subject: Community Reinvestment -- RIN 3064-AC50

August 20, 2004

Dear FDIC,

I am very concerned about the potential raising of the threshold for full CRA compliance from $250 million to $1billion. Presently there are three states and the District of Columbia that have no banks with over $1 billion in assets. In addition, there are 13 states that have four or fewer banks or financial institutions with over $1billion in assets.

The cumulative effect of such a changes is that there would be far fewer CRA assets available to the developers of affordable housing, particularly in rural areas across the U.S. If you combine that with the fact that we are likely to see an increase in interest and mortgage costs in the next few years, the American dream of affordable housing will be that much more unattainable for thousands of families.

Thank you for your consideration on this very important matter.

Sincerely,

Kip Bowmar
Executive Director
Kentucky Association for Community Action