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OCC Announces it Will Reconsider Final Rule on CRA Regulations
The Office of the Comptroller of the Currency (OCC) today announced that it will reconsider its final rule to modernize the agency’s regulations for the Community Reinvestment Act (CRA) and will not implement much of the evaluation criteria in the May 2020 rule. The announcement, in OCC Bulletin 2021-24, says the OCC will continue to implement certain provisions that had a compliance date of Oct. 1, 2020. OCC issued the final rule after stakeholders provided more than 7,500 comments–most of them in opposition to the final rule. The final rule included an emphasis on the dollar volume of loans and repealed the separate investment test, which raised concerns it could de-emphasize equity investment in low-income housing tax credits (LIHTCs) and new markets tax credits (NMTCs). The Federal Reserve Board later issued a separate advanced notice of proposed rulemaking for CRA regulations.
How the OCC’s change might affect investment in NMTCs will be one of many timely topics at the Novogradac 2021 Spring New Markets Tax Credit Virtual Conference, June 10-11.