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Federal Reserve Board Issues Advance Notice of Proposed Rulemaking on Modernizing CRA Regulations that Support CDFIs
The Federal Reserve Board today unanimously approved an advance notice of proposed rulemaking (ANPR) and published a press release on an approach to modernize Community Reinvestment Act (CRA) regulations. The ANPR seeks public comment on ways to evaluate how banks meet the needs of low- and moderate-income communities. Federal Reserve Board Gov. Lael Brainard said in a webcast speech for the Urban Institute today that the ANPR proposes to expand and clarify CRA-eligible activities. In some ways, these proposed changes differ significantly from the final CRA regulations published by the Office of the Comptroller of the Currency (OCC), but Gov. Brainard also asserted the Federal Reserve’s significant overlap with the OCC CRA regulations. Gov. Brainard expressed hope that the ANPR could lead to a unified set of CRA final regulations among all three federal banking regulators–OCC, Federal Insurance Deposition Corporation (FDIC), and Federal Reserve. The LIHTC Working Group, NMTC Working Group and Opportunity Zones Working Group plan to submit comments by the Jan. 19, 2021, comment deadline.
CRA news will be discussed at the Novogradac 2020 Credit and Bond Financing for Affordable Housing Virtual Conference on Oct. 1-2, the Novogradac 2020 Opportunity Zones Fall Virtual Conference on Oct. 22-23 and the Novogradac 2020 New Markets Tax Credit Fall Conference on Oct. 29-20.