§ 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—
(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
(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—
(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.].
(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.
(L)
Loans made for the purpose of developing or supporting—
(i)
commercial facilities that enhance revitalization, community stability, or job creation and retention efforts;
(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.
(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—
(2)
Designation requirements
(A)
Notice of designation
(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—
(C)
the area—
(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.
(d)
Community Enterprise Assessment Credit Board
(3)
Terms
(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.
(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—
(2)
Board
The term “Board” means the Community Enterprise Assessment Credit Board established under the amendment made [2] by subsection (d) of this section.
[1] So in original.
[2] So in original. The words “under the amendment made” probably should not appear.