Introduction In the December 20, 2011 issue of the Federal Register, the following federal agencies – Office of the Comptroller of the Currency (OCC); Board of Governors of the Federal Reserve System (FRB); Federal Deposit Insurance Corporation (FDIC); Office of Thrift Supervision (OTS) – published a joint final rule to revise the definition of “community development” in their respective Community Reinvestment Act (CRA) rules. These rules may be found in the Code of Federal Regulations, respectively, at 12 CFR Part 25 (OCC), Part 228 (FRB), Part 345 (FDIC), and Part 563e (OTS). Definition Revision The final rule revises the definition of “community development” by adding a new paragraph (g)(5), which states: §___.12(g) Community development means: … (5) Loans, investments, and services that- (i) Support, enable or facilitate projects or activities that meet the ”eligible uses” criteria described in Section 2301(c) of the Housing and Economic Recovery Act of 2008 (HERA), Public Law 110-289, 122 Stat. 2654, as amended, and are conducted in designated target areas identified in plans approved by the United States Department of Housing and Urban Development in accordance with the Neighborhood Stabilization Program (NSP); (ii) Are provided no later than two years after the last date funds appropriated for the NSP are required to be spent by grantees; and (iii) Benefit low-, moderate-, and middle-income individuals and geographies in the [financial institution’s] assessment area(s) or areas outside the [financial institution’s] assessment area(s) provided the [financial institution] has adequately addressed the community development needs of its assessment area(s). (the generic word “financial institution” inserted in place of name of specific entity type)

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