Community Affairs:
Part 24 Community Development Investments
National banks may make investments primarily designed to promote the public
welfare under the community development investment authority in 12 USC 24
(Eleventh) and its implementing regulation,
12 CFR 24 (Part 24). This authority allows banks to make investments
that primarily benefit low- and moderate-income individuals or low- and
moderate-income areas. Examples of these investments include supporting
affordable housing and other real estate development, providing equity for
start-up and small business expansion, and revitalizing or stabilizing a
government-designated areas (see the
Part 24 Fact Sheet for details
). The provisions of Part 24 were recently changed by Public Law
110-289 enacted July 30, 2008.
These changes are outlined in Bulletin 2008-22. The 2006 amendment makes changes to the provisions adopted in Public Law 109-351 enacted October 13, 2006, which are described in Bulletin 2006-44. The regulation issued on August 11, 2008 implements the 2008 amendment to Part 24.
If you need
additional assistance, please call the Community Affairs Department at (202)
874-4930 or contact your District
Community Affairs Officer.
2008 Changes to Part 24 Regulation: Bulletin 2008-22
The provisions of Part 24 were changed by Public Law 110-289 enacted July 30, 2008 and are outlined in this bulletin.
2006 Changes to Part 24 Regulation: Bulletin 2008-44
The provisions of Part 24 were changed by Public Law 109-351 enacted October 13, 2006 and are outlined in this bulletin.
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CD-1 Investment Submission
Form for Part 24
A bank must submit a completed and signed National Bank Community Development (Part 24) CD-1 form in order to provide after-the-fact notice or to request prior OCC approval of a community development investment under Part 24. OCC Bulletin 2008-22 contains information on the CD-1 form, the revised Part 24 regulation, and its effective date. Filing information can be inputted into the
PDF version of the CD-1 form .
The signed and completed form can be sent to the OCC via fax to (301) 433-9062. Scanned copies of the form can also be sent via e-mail to CommunityAffairs@occ.treas.gov, or printed forms can be mailed to: Community Affairs Department, Office of the Comptroller of the Currency, 250 E St SW, Washington, DC 20219. A national bank can submit this form online through the E Corp filing system on NationalBanknet. Instructions on using the E-Corp to file a CD-1 form are available on the Part 24 Filings on E-Corp Fact Sheet .
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on E-Corp
National banks have the option of submitting their part 24 applications to the OCC
through the National BankNet Web
site. This fact sheet provides information about how banks can access the e-Corp
tool and submit both its Part 24 after-the-fact notices and prior approval
requests, electronically.
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Community Developments Investments E-zine focuses
on community development investment topics of interest to bankers. The e-zine
shares the perspective of bankers and community development practitioners on
topics that illustrate the creative side of community development investing and
identifies common features that can be applied to other investments.
Community Development Venture Capital: A Catalyst for Double-Bottom Line Results (Spring
2007) focuses on community development venture capital (CDVC) including descriptions of investments and due diligence advice.
2005 CRA Revisions: How Banks and Examiners Are Implementing the New Rules (Summer 2006) discusses changes to CRA regulations promulgated in 2005, including the creation of a new Intermediate Small Bank test and an expanded definition of community development.
Investing in Low-Income Housing
Tax Credits: A Sound Opportunity for Community Banks (Spring 2006)
describes the fundamentals of low-income housing tax credits, with a particular
focus on topics of interest to community bankers new to this product.
Click here for PDF version
Investment Intermediaries:
Helping Banks Achieve a Double Bottom Line (Summer 2005) provides a
look at two community development finance providers. These investment
intermediaries offer banks the ability to earn a double bottom line return - of
both economic earnings for the investing bank and social gain for the
communities they serve.
Click here for PDF version
Growing Markets with
Bank-Owned Community Development Corporations (Winter 2004/2005)
provides a guide for creating and managing bank subsidiary CDCs. It also
contains case studies of bank CDCs as well as a discussion of how these
entities are treated for CRA purposes.
Click here for PDF version
New Markets Tax Credits -- Bridging
Financing Gaps (Summer 2004) focuses on how banks are leveraging these
tax credits to revitalize economically distressed communities.
Click here for PDF version
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Investments
Requiring Prior OCC Approval Under Part 24.
OCC publishes this list of investments which have been determined to be
inappropriate for banks' self-certification.
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Part 24
Community Development Investment Precedent Letters.
The OCC posts its precedent setting community development investment letters in
the Electronic Interpretations and Actions section of OCC's Web site. These
investments were made consistent with the 12 CFR 24 authority and reflect
precedent setting actions that are consistent with the public welfare and other
requirements of the regulation. Browse
index of Community Development Precedent Letters
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Common Part
24 Questions are listed here to provide guidance on national
bank investments using 12 CFR 24 authority or other appropriate national bank
authority.
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Quick
Reference Guide to Part 24 Investments
describes the guidelines for community development investments covered by 12
CFR 24. It gives an easy-to-follow list of requirements and examples of how
banks make investments.
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Regulation
W Special Analysis: Impact on Community Development Corporations (CDC)
provides guidance for 12 CFR 24 investment proposals that: (1) present issues
under sections 23A and 23B of the Federal Reserve Act, and (2) involve a
holding company's transfer of an interest in its CDC to one or more subsidiary
banks.
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Directory of National Bank Part 24 Community Development
Investments (1994-2002) provides a summary listing of national and
regional funds in which banks invested as well as and geographic listings of
investments with contact information. The
2002
,
2001
,
2000
,
1999
,
1998
,
1997
editions of the directory are available on-line. Please contact the Community
Affairs Department if you would like to obtain the 1994, 1995 or 1996 editions.
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National Bank Part 24 Community Development Investment
Summaries (2003 to present) lists national bank investments made under
the 12 CFR Part 24 authority.
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Compendium of
National Bank Part 24 Investments in National and Regional Funds
is an alphabetic listing of nationwide and regional funds in which national
banks have made investments using the Part 24 community development investment
authority.
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Community Development Investment Articles
OCC highlights examples of Part 24 investments and other CD best practices related to investments in both the Community Development Investments e-zine and the Community Developments newsletter. Articles are listed by topic:
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