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Recent News
The board of governors of the Federal Reserve System (Fed) and Federal Deposit Insurance Corporation (FDIC) released the list of distressed or underserved nonmetropolitan middle-income geographies for 2021, which makes revitalization or stabilization activities in those areas eligible for Community Reinvestment Act (CRA) consideration. The designations reflect local economic conditions, including unemployment, poverty and population changes. The Fed and FDIC continue to apply a one-year lag period for areas listed in 2020 that are no longer designated as distressed or underserved, making revitalization or stabilization activities in those geographies eligible for CRA condensation for 12 months after the publication of the current list.
Legislation in California would create a state-level new markets tax credit (NMTC) incentive. A.B. 1572, introduced in March, would create a state credit with an annual $100 million cap, for taxable years beginning on or after Jan. 1, 2023, and before Jan. 1, 2028.
The U.S. Department of the Treasury today awarded $1.25 billion COVID-19 relief funding to community development financial institutions (CDFIs) through the CDFI Rapid Response Program (RRP). The awards go to 863 CDFIs to provide necessary capital for CDFIs to respond to the economic challenges from the pandemic, particularly in underserved communities. The CDFI RRP funds will support activities such as financial products, financial services, development services and certain operational activities. The recipients are in 48 states, the District of Columbia, Puerto Rico and Guam.
Nebraska Gov. Pete Ricketts signed legislation that extends the Nebraska New Markets Job Growth Investment Act by allowing a 2021 allocation of $15 million. L.B. 682 authorizes the state credits for properties that receive federal new markets tax credits (NMTCs). The state credits are redeemed by community development entities in Year 3 through Year 7 and qualifying small business may receive a maximum investment of $10 million.
The Community Development Financial Institutions (CDFI) Fund has updated its CDFI transactional level report (TLR) data point guidance, revising select provisions from the September 2020 guidance. The specific revisions relate to CDFI loan participations, which no longer preclude loan participations made on different dates. The CDFI Fund updated the guidance, based on the possibility that the “same date” instruction could lead to confusion.
