12 U.S.C. § 1834a : US Code - Section 1834A: Assessment credits for qualifying activities relating to distressed communities

Search 12 U.S.C. § 1834a : US Code - Section 1834A: Assessment credits for qualifying activities relating to distressed communities

(a) Determination of credits for increases in community enterprise
activities
(1) In general
The Community Enterprise Assessment Credit Board established
under subsection (d) of this section shall issue guidelines for
insured depository institutions eligible under this subsection
for any community enterprise assessment credit with respect to
any semiannual period. Such guidelines shall -
(A) designate the eligibility requirements for any
institution meeting applicable capital standards to receive an
assessment credit under section 1817(b)(7) of this title; and
(B) determine the community enterprise assessment credit
available to any eligible institution under paragraph (3).
(2) Qualifying activities
An insured depository institution may apply for for (!1) any
community enterprise assessment credit for any semiannual period
for -
(A) the amount, during such period, of new originations of
qualified loans and other assistance provided for low- and
moderate-income persons in distressed communities, or
enterprises integrally involved with such neighborhoods, which
the Board determines are qualified to be taken into account for
purposes of this subsection;
(B) the amount, during such period, of deposits accepted from
persons domiciled in the distressed community, at any office of
the institution (including any branch) located in any qualified
distressed community, and new originations of any loans and
other financial assistance made within that community, except
that in no case shall the credit for deposits at any
institution or branch exceed the credit for loans and other
financial assistance by the bank or branch in the distressed
community; and
(C) any increase during the period in the amount of new
equity investments in community development financial
institutions.
(3) Amount of assessment credit
The amount of any community enterprise assessment credit
available under section 1817(b)(7) of this title for any insured
depository institution, or a qualified portion thereof, shall be
the amount which is equal to 5 percent, in the case of an
institution which does not meet the community development
organization requirements under section 1834b of this title, and
15 percent, in the case of an institution, or a qualified portion
thereof, which meets such requirements (or any percentage
designated under paragraph (5)) of -
(A) for the first full semiannual period in which community
enterprise assessment credits are available, the sum of -
(i) the amounts of assets described in paragraph (2)(A);
and
(ii) the amounts of deposits, loans, and other financial
assistance described in paragraph (2)(B); and
(B) for any subsequent semiannual period, the sum of -
(i) any increase during such period in the amount of assets
described in paragraph (2)(A) that has been deemed eligible
for credit by the Board; and
(ii) any increase during such period in the amounts of
deposits, loans, and other financial assistance described in
paragraph (2)(B) that has been deemed eligible for credit by
the Board.
(4) Determination of qualified loans and other financial
assistance
Except as provided in paragraph (6), the types of loans and
other assistance which the Board may determine to be qualified to
be taken into account under paragraph (2)(A) for purposes of the
community enterprise assessment credit, may include the
following:
(A) Loans insured or guaranteed by the Secretary of Housing
and Urban Development, the Secretary of the Department of
Veterans Affairs, the Administrator of the Small Business
Administration, and the Secretary of Agriculture.
(B) Loans or financing provided in connection with activities
assisted by the Administrator of the Small Business
Administration or any small business investment company and
investments in small business investment companies.
(C) Loans or financing provided in connection with any
neighborhood housing service program assisted under the
Neighborhood Reinvestment Corporation Act [42 U.S.C. 8101 et
seq.].
(D) Loans or financing provided in connection with any
activities assisted under the community development block grant
program under title I of the Housing and Community Development
Act of 1974 [42 U.S.C. 5301 et seq.].
(E) Loans or financing provided in connection with activities
assisted under title II of the Cranston-Gonzalez National
Affordable Housing Act [42 U.S.C. 12721 et seq.].
(F) Loans or financing provided in connection with a
homeownership program assisted under title III of the United
States Housing Act of 1937 [42 U.S.C. 1437aaa et seq.] or
subtitle B or C of title IV of the Cranston-Gonzalez National
Affordable Housing Act [42 U.S.C. 12871 et seq., 12891 et
seq.].
(G) Financial assistance provided through community
development corporations.
(H) Federal and State programs providing interest rate
assistance for homeowners.
(I) Extensions of credit to nonprofit developers or
purchasers of low-income housing and small business
developments.
(J) In the case of members of any Federal home loan bank,
participation in the community investment fund program
established by the Federal home loan banks.
(K) Conventional mortgages targeted to low- or moderate-
income persons.
(L) Loans made for the purpose of developing or supporting -
(i) commercial facilities that enhance revitalization,
community stability, or job creation and retention efforts;
(ii) business creation and expansion efforts that -
(I) create or retain jobs for low-income people;
(II) enhance the availability of products and services to
low-income people; or
(III) create or retain businesses owned by low-income
people or residents of a targeted area;
(iii) community facilities that provide benefits to low-
income people or enhance community stability;
(iv) home ownership opportunities that are affordable to
low-income households;
(v) rental housing that is principally affordable to low-
income households; and
(vi) other activities deemed appropriate by the Board.
(M) The provision of technical assistance to residents of
qualified distressed communities in managing their personal
finances through consumer education programs either sponsored
or offered by insured depository institutions.
(N) The provision of technical assistance and consulting
services to newly formed small businesses located in qualified
distressed communities.
(O) The provision of technical assistance to, or servicing
the loans of low- or moderate-income homeowners and homeowners
located in qualified distressed communities.
(5) Adjustment of percentage
The Board may increase or decrease the percentage referred to
in paragraph (3)(A) for determining the amount of any community
enterprise assessment credit pursuant to such paragraph, except
that the percentage established for insured depository
institutions which meet the community development organization
requirements under section 1834b of this title shall not be less
than 3 times the amount of the percentage applicable for insured
depository institutions which do not meet such requirements.
(6) Certain investments not eligible to be taken into account
Loans, financial assistance, and equity investments made by any
insured depository institution that are not the result of
originations by the institution shall not be taken into account
for purposes of determining the amount of any credit pursuant to
this subsection.
(7) Quantitative analysis of technical assistance
The Board may establish guidelines for analyzing the technical
assistance described in subparagraphs (M), (N), and (O) of
paragraph (4) for the purpose of quantifying the results of such
assistance in determining the amount of any community assessment
credit under this subsection.
(b) "Qualified distressed community" defined
(1) In general
For purposes of this section, the term "qualified distressed
community" means any neighborhood or community which -
(A) meets the minimum area requirements under paragraph (3)
and the eligibility requirements of paragraph (4); and
(B) is designated as a distressed community by any insured
depository institution in accordance with paragraph (2) and
such designation is not disapproved under such paragraph.
(2) Designation requirements
(A) Notice of designation
(i) Notice to agency
Upon designating an area as a qualified distressed
community, an insured depository institution shall notify the
appropriate Federal banking agency of the designation.
(ii) Public notice
Upon the effective date of any designation of an area as a
qualified distressed community, an insured depository
institution shall publish a notice of such designation in
major newspapers and other community publications which serve
such area.
(B) Agency duties relating to designations
(i) Providing information
At the request of any insured depository institution, the
appropriate Federal banking agency shall provide to the
institution appropriate information to assist the institution
to identify and designate a qualified distressed community.
(ii) Period for disapproval
Any notice received by the appropriate Federal banking
agency from any insured depository institution under
subparagraph (A)(i) shall take effect at the end of the 90-
day period beginning on the date such notice is received
unless written notice of the approval or disapproval of the
application by the agency is provided to the institution
before the end of such period.
(3) Minimum area requirements
For purposes of this subsection, an area meets the requirements
of this paragraph if -
(A) the area is within the jurisdiction of 1 unit of general
local government;
(B) the boundary of the area is contiguous; and
(C) the area -
(i) has a population, as determined by the most recent
census data available, of not less than -
(I) 4,000, if any portion of such area is located within
a metropolitan statistical area (as designated by the
Director of the Office of Management and Budget) with a
population of 50,000 or more; or
(II) 1,000, in any other case; or
(ii) is entirely within an Indian reservation (as
determined by the Secretary of the Interior).
(4) Eligibility requirements
For purposes of this subsection, an area meets the requirements
of this paragraph if the following criteria are met:
(A) At least 30 percent of the residents residing in the area
have incomes which are less than the national poverty level.
(B) The unemployment rate for the area is 1 1/2 times
greater than the national average (as determined by the Bureau
of Labor Statistics' most recent figures).
(C) Such additional eligibility requirements as the Board
may, in its discretion, deem necessary to carry out the
provisions of this subtitle.
(c) Omitted
(d) Community Enterprise Assessment Credit Board
(1) Establishment
There is hereby established the "Community Enterprise
Assessment Credit Board".
(2) Number and appointment
The Board shall be composed of 5 members as follows:
(A) The Secretary of the Treasury or a designee of the
Secretary.
(B) The Secretary of Housing and Urban Development or a
designee of the Secretary.
(C) The Chairperson of the Federal Deposit Insurance
Corporation or a designee of the Chairperson.
(D) 2 individuals appointed by the President from among
individuals who represent community organizations.
(3) Terms
(A) Appointed members
Each appointed member shall be appointed for a term of 5
years.
(B) Interim appointment
Any member appointed to fill a vacancy occurring before the
expiration of the term to which such member's predecessor was
appointed shall be appointed only for the remainder of such
term.
(C) Continuation of service
Each appointed member may continue to serve after the
expiration of the period to which such member was appointed
until a successor has been appointed.
(4) Chairperson
The Secretary of the Treasury shall serve as the Chairperson of
the Board.
(5) No pay
No members of the Commission may receive any pay for service on
the Board.
(6) Travel expenses
Each member shall receive travel expenses, including per diem
in lieu of subsistence, in accordance with sections 5702 and 5703
of title 5.
(7) Meetings
The Board shall meet at the call of the Chairperson or a
majority of the Board's members.
(e) Duties of Board
(1) Procedure for determining community enterprise assessment
credits
The Board shall establish procedures for accepting and
considering applications by insured depository institutions under
subsection (a)(1) of this section for community enterprise
assessment credits and making determinations with respect to such
applications.
(2) Notice to FDIC
The Board shall notify the applicant and the Federal Deposit
Insurance Corporation of any determination of the Board with
respect to any application referred to in paragraph (1) in
sufficient time for the Corporation to include the amount of such
credit in the computation of the semiannual assessment to which
such credit is applicable.
(f) Availability of funds
The provisions of this section shall not take effect until
appropriations are specifically provided in advance. There are
hereby authorized to be appropriated such sums as may be necessary
to carry out the provisions of this section.
(g) Prohibition on double funding for same activities
No community development financial institution may receive a
community enterprise assessment credit if such institution, either
directly or through a community partnership -
(1) has received assistance within the preceding 12-month
period, or has an application for assistance pending, under
section 4704 of this title; or
(2) has ever received assistance, under section 4707 of this
title, for the same activity during the same semiannual period
for which the institution seeks a community enterprise assessment
credit under this section.
(h) Priority of awards
(1) Qualifying loans and services
(A) In general
If the amount of funds appropriated for purposes of carrying
out this section for any fiscal year are insufficient to award
the amount of assessment credits for which insured depository
institutions have applied and are eligible under this section,
the Board shall, in awarding community enterprise assessment
credits for qualifying activities under subparagraphs (A) and
(B) of subsection (a)(2) of this section for any semiannual
period for which such appropriation is available, determine
which institutions shall receive an award.
(B) Priority for support of efforts of CDFI
The Board shall give priority to institutions that have
supported the efforts of community development financial
institutions in the qualified distressed community.
(C) Other factors
The Board may also consider the following factors:
(i) Degree of difficulty
The degree of difficulty in carrying out the activities
that form the basis for the institution's application.
(ii) Community impact
The extent to which the activities that form the basis for
the institution's application have benefited the qualified
distressed community.
(iii) Innovation
The degree to which the activities that form the basis for
the institution's application have incorporated innovative
methods for meeting community needs.
(iv) Leverage
The leverage ratio between the dollar amount of the
activities that form the basis for the institution's
application and the amount of the assessment credit
calculated in accordance with this section for such
activities.
(v) Size
The amount of total assets of the institution.
(vi) New entry
Whether the institution had provided financial services in
the designated distressed community before such semiannual
period.
(vii) Need for subsidy
The degree to which the qualified activity which forms the
basis for the application needs enhancement through an
assessment credit.
(viii) Extent of distress in community
The degree of poverty and unemployment in the designated
distressed community, the proportion of the total population
of the community which are low-income families and unrelated
individuals, and the extent of other adverse economic
conditions in such community.
(2) Qualifying investments
If the amount of funds appropriated for purposes of carrying
out this section for any fiscal year are insufficient to award
the amount of assessment credits for which insured depository
institutions have applied and are eligible under this section,
the Board shall, in awarding community enterprise assessment
credits for qualifying activities under subsection (a)(2)(C) of
this section for any semiannual period for which such
appropriation is available, determine which institutions shall
receive an award based on the leverage ratio between the dollar
amount of the activities that form the basis for the
institution's application and the amount of the assessment credit
calculated in accordance with this section for such activities.
(i) Determination of amount of assessment credit
Notwithstanding any other provision of this section, the
determination of the amount of any community enterprise assessment
credit under subsection (a)(3) of this section for any insured
depository institution for any semiannual period shall be made
solely at the discretion of the Board. No insured depository
institution shall be awarded community enterprise assessment
credits for any semiannual period in excess of an amount determined
by the Board.
(j) Definitions
For purposes of this section -
(1) Appropriate Federal banking agency
The term "appropriate Federal banking agency" has the meaning
given to such term in section 1813(q) of this title.
(2) Board
The term "Board" means the Community Enterprise Assessment
Credit Board established under the amendment made (!2) by
subsection (d) of this section.
(3) Insured depository institution
The term "insured depository institution" has the meaning given
to such term in section 1813(c)(2) of this title.
(4) Community development financial institution
The term "community development financial institution" has the
same meaning as in section 4702(5) of this title.
(5) Affiliate
The term "affiliate" has the same meaning as in section 1841 of
this title.