CRA Summary

The purpose of the Community Reinvestment Act (CRA) is to encourage depository institutions to provide credit to the communities in which they operate, including low-income and moderate-income neighborhoods. Banks can receive favorable CRA consideration for community development activities, including ones related to the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), historic rehabilitation tax credit and renewable energy tax credits. The CRA was enacted by Congress in 1977 (12 U.S.C. 2901) and is implemented by regulations of the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation in 12 Code of Federal Regulations parts 25, 228, 345 and 195.