Agencies Extend Period for CRA Consideration Given to Community Development Activities in Response to Hurricane Maria Disaster in Puerto Rico and the U.S. Virgin Islands
May 27, 2021 / Source: FDIC
Financial Institution Letter
FIL-37-2021
Summary:
The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System (Board), and the Office of the Comptroller of the Currency (OCC) (collectively, the agencies) are granting a 36–month extension to the original period provided in the January 2018 Interagency Statement on CRA Consideration for Community Development Activities in Puerto Rico and the U.S. Virgin Islands Following Hurricane Maria (Interagency Statement) for recognizing activities that help to revitalize or stabilize Puerto Rico and the U.S. Virgin Islands.
A copy of the Interagency Statement can be found on the FDIC’s website.
Statement of Applicability: This Financial Institution Letter (FIL) applies to all FDIC-supervised financial institutions.
Highlights:
- Puerto Rico and the U.S. Virgin Islands were designated as major disaster areas on September 20, 2017, as a result of the devastation caused by Hurricane Maria.
- Pursuant to their CRA regulations, the agencies give favorable consideration to a financial institution’s activities that meet the definition of “community development” or the criteria for qualifying activities, as applicable.
- The agencies have determined that the ongoing impact of Hurricane Maria in Puerto Rico and the U.S. Virgin Islands warrants an extension through September 20, 2023.
- The agencies’ Interagency Questions and Answers Regarding Community Reinvestment (Questions and Answers) guidance further explains that financial institutions may receive favorable consideration for such activities in a qualifying disaster area for 36 months following the date of designation by the federal government and that the agencies may extend this time period when there is a demonstrable community need.
- Activities conducted by state nonmember banks receive consideration provided these institutions have been responsive to the community development needs and opportunities of their own assessment area(s). Activities conducted by savings associations receive credit as provided for in question 7 of OCC Bulletin 2020–99.
- Consideration will be given for all activities that assist the designated disaster areas or affected individuals, regardless of income. However, the agencies may give greater weight to activities that are most responsive to community needs, including the needs of low– and moderate–income areas and individuals.
Interagency Statement extending Hurricane Maria Designation
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer
Compliance Officer
Chief Lending Officer
Related Topics:
Community Reinvestment Act
Contacts:
Patience Singleton
Senior Policy Analyst
Richard Schwartz
Counsel
Notes:
Access FDIC Financial Institution Letters (FILs) on the FDIC’s website.
Subscribe to receive FILs electronically.
About the FDIC:
The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system. The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.