Community Affairs:
Part 24 Community Development Investments
National banks may make investments that are primarily designed to promote the
public welfare under the investment authority in
12 USC 24 (Eleventh) and the implementing regulation, 12 CFR 24 (Part 24) . This authority allows banks to
make investments that primarily benefit low- and moderate-income individuals,
low- and moderate-income areas, or other areas targeted by a government entity
for redevelopment, or if the investment would receive consideration under
12 CFR 25.23 (the Community Reinvestment Act regulation) as a "qualified
investment." 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 area (see
the Part 24 Fact Sheet for details
).
If you need additional assistance, please call the Community Affairs Department
at (202) 874-4930 or contact your District Community
Affairs Officer.
Part 24 Authority and Regulation
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Part 24 Procedures, Guides and Publications Index
Common Part 24 Questions and
Answers 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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Compendium of National Bank Part 24 Investments (1997 to 2009) is an alphabetic listing of investments made using the Part 24 community development investment authority.
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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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National Bank Part 24 Community Development Investment "At - A - Glance" Charts lists national bank investments made under the 12 CFR Part 24 authority.
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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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Part 24 Publications
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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Community Developments Investments E-Zines and Newsletters
Multibank CDCs:
Pooling Resources to Strengthen Communities (Fall 2008) The E-zine
focuses on multibank community development corporations (MBCDCs) and features
guidance for establishing a MBCDC. Additionally, it details three existing
MBCDCs, and describes how MBCDCs use gap financing to complement bank loans.
Click here for PDF version
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.
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 (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
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
Community Development Financial
Institutions and CD Banks - Natural Partners for Traditional Lenders
Focus on Part 24 Community Development
Investments
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Fact Sheets on Part 24 and Related Investment Topics
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Insights Reports on Part 24 Investment Topics
Historic Tax Credits: Affordable
Housing Investment Opportunities for Banks
Low-Income Housing Tax Credits:
Affordable Housing Investment Opportunities for Banks
New Markets Tax Credits: Unlocking
Investment Potential
Property
Disposition: Exploring Different Approaches for Preserving Affordable Housing
Opportunities
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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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