The federal bank and thrift regulatory agencies have announced changes to Community Reinvestment Act (CRA) regulations to support stabilization of communities affected by high foreclosure levels.
The final rule is substantially the same as the proposal published for comment on June 24, 2010. It encourages depository institutions to support eligible development activities in areas designated under the Neighborhood Stabilization Program (NSP) administered by the U.S. Department of Housing and Urban Development (HUD).
The final rule reflects the broad support expressed by public comments for the agencies’ proposal to expand existing CRA consideration for neighborhood stabilization activities. NSP-eligible activities will receive favorable consideration under the new rule if conducted within two years after the date when NSP program funds are required to be spent.
See press release for full details.