§ 1834a.
(a)
Determination of credits for increases in community enterprise activities
(1)
In general
The Community Enterprise Assessment Credit Board established under subsection (d) 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
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 [
(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
(6)
Certain investments not eligible to be taken into account
(7)
Quantitative analysis of technical assistance
(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
(B)
Agency duties relating to designations
(i)
Providing information
(ii)
Period for disapproval
(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 1½ 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.
(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.
(j)
Definitions
For purposes of this section—
(1)
Appropriate Federal banking agency
(3)
Insured depository institution
(4)
Community development financial institution
([Pub. L. 102–242, title II, § 233], Dec. 19, 1991, [105 Stat. 2311]; [Pub. L. 102–550, title IX, § 931(c)]–(e), title XVI, §§ 1604(b)(2), 1605(a)(7), Oct. 28, 1992, [106 Stat. 3888], 3889, 4083, 4086; [Pub. L. 102–558, title III], §§ 303(b)(2), (9), 305, Oct. 28, 1992, [106 Stat. 4224], 4226; [Pub. L. 103–325, title I, § 114(c)], Sept. 23, 1994, [108 Stat. 2181].)