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Highlights:
The CRA definition of community development is revised to include loans, services
and investments to support, enable or facilitate NSP eligible activities in
areas with HUD-approved NSP plans.
NSP eligible activities will receive favorable consideration only if conducted
within two years after the date when NSP program funds are required to be spent.
NSP eligible activities in NSP plan areas outside the institution's assessment
areas, will receive consideration, provided that an institution has adequately
addressed the community development needs of its assessment area(s).
As explained in the preamble, a financial institution will receive favorable CRA
consideration for activities in NSP areas including, for example:
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Loans, investments, and services to redevelop demolished or vacant
properties in such areas, consistent with eligible uses for NSP funds and
including projects that are not directly receiving NSP funds.
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A donation of OREO properties to non-profit housing organizations in
eligible areas designated in NSP plans.
The HUD web site identifies NSP areas at http://www.hud.gov/nspmaps and a
grantee search may be conducted at http://hudnsphelp.info.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officers
CRA Officers
Compliance Officers
Related
Topics:
Community Reinvestment Act
Neighborhood Stabilization Program
Attachment:
Joint Final Rule
- PDF (PDF Help)
Contact:
Janet Gordon, Senior Policy Analyst, Compliance Policy Section, jagordon@fdic.gov or (202) 898-3850; or
Richard M. Schwartz, Counsel, rischwartz@fdic.gov or (202) 898-7424
Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web
site at www.fdic.gov/news/news/financial/2010/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained through the
FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA
22226 (1-877-275-3342 or 703-562-2200).
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