OCC REPORT DESCRIBES THE LIHTC FOR BANK INVESTORS

Thursday, February 7, 2008 - 7:00am

The Office of the Comptroller of the Currency (OCC) today published a Community Developments Insights report that describes how the low-income housing tax credit (LIHTC) program is used to develop affordable rental housing and the major considerations facing bank investors who invest in these credits. The Insights report describes the fundamentals of LIHTCs with a particular focus on topics of interest to community bankers new to the program. The report examines the primary risks and regulatory considerations associated with investments in individual projects receiving LIHTCs as well as investments in funds comprising multiple projects. It also describes how such investments would be considered in a bank’s Community Reinvestment Act (CRA) examination. The OCC says that during the past decade, national banks have invested more than $15 billion in affordable housing projects under the “Part 24” community development investment authority which encourages bank equity investments in activities that primarily promote the public welfare in a safe and sound manner.