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2005 CRA Changes and the Intermediate Small Bank in Review
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Contents

A Look Inside

Is the ISB Exam Right for Your Bank?

FAQ About the ISB Exam

New CRA Help for Rural Communities

Rebuilding Communities After a Disaster

ISB Exam Links

Locating Eligible Distressed or Underserved Areas Links

2005 CRA Regulation Revision

2005 CRA Regulation Revision Q's and A's

CRA Consultations Available

This Just In…OCC’s Districts Report on New Investment Opportunities for Banks

CD Topics of Interest

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Investment Resources for Part 24 Authority

Part 24 Resources on the Web

Common Part 24 Questions

Part 24 Embraces CRA Changes

CD Investment Precedent Letters

Investments in National/Regional Funds

Second Quarter 2006
Part 24 Investments

Regulation and CD-1 Form

This Just In... OCC's Districts Report on Investment Opportunities for Banks

Looking for new investment ideas? In this article, OCC's District Community Affairs Officers (DCAOs) report on financing initiatives and partnership opportunities in each of the OCC's four districts. While not endorsing specific organizations or programs, DCAOs can provide more information about these and other community development investment opportunities. DCAOs can also consult with national banks in developing successful approaches to community development lending and service delivery approaches.

Click on the map below for the DCAOs in your district

Image map of the four districts

Northeastern District

_Northern District Stamp

Denise Kirk-Murray (212) 790-4053

New Empire Zone Designations

New York State Empire Zones have been created in three new areas across the state. The Chinatown/Lower Manhattan section of New York City and the counties of Nassau and Livingston each received the Empire Zone designation recently. This designation will encourage rebuilding in Lower Manhattan, create opportunities and jobs for underserved communities in Nassau County, and promote manufacturing in Livingston County.

The Empire Zone program was created as a community development tool to stimulate economic growth through tax credits and incentives, investment opportunities, new business attraction, and job creation and retention. It focuses on target areas in need of economic revitalization.  Empire Zone designations are made under legislation enacted in 2005 that authorized the creation of 12 new Empire Zones over the next four years. These new zones will be in addition to the 72 areas previously designated throughout the state.

For further information on New York State’s Empire Zones, contact Empire State Development at (800) 782-8369 or go online at http://www.ny.gov.

New Markets Venture Capital Fund

CEI Community Ventures Inc. (CCVI) was formed to direct equity investments and management assistance funds to qualifying businesses located or willing to locate in low-income communities in Maine, Vermont, and New Hampshire. CCVI's mission is to realize a triple bottom line by supporting companies that demonstrate an ability to meet or exceed stated financial, social, and environmental aims. CCVI investments generally range between $100,000 and $500,000.  CCVI is a for-profit subsidiary of Coastal Enterprises Inc., a nonprofit community and economic development organization based in Maine, and is a licensed New Markets Venture Capital (NMVC) company under the Small Business Administration’s NMVC program.

For more information, visit http://ceicommunityventures.com or contact CEI at (207) 882-7552.

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Central District

_Central District Stamp

Paul Ginger (312) 360-8876
Norma Polanco-Boyd (216) 447-8866

Community Development Financing in Wisconsin

Forward Community Investments (FCI) is a 12-year-old nonprofit organization that makes loans and provides technical assistance to nonprofit organizations that develop affordable housing and community facilities and promote economic development. Formerly known as The Dane Fund, FCI recently began offering its services throughout Wisconsin.  Since 1994, FCI has disbursed more than $5.7 million in loans.  And in each of the past several years, FCI has disbursed virtually every dollar of investment capital it has had available.  Since 1994, FCI loans have resulted in more than 300 units of affordable housing, 485 new jobs, and the extension of social services to 21,000 low-income persons.  Also since 1994, FCI reports no defaults in its portfolio and has experienced “a handful” of short-term delinquencies.  In 2005, FCI provided training and technical assistance to 95 staff and board members from 50 nonprofit organizations that are new to affordable housing and real estate development.  Beginning in 2006, FCI will provide real estate development planning and project management services to nonprofits on a fee-for-service basis.  FCI is a certified community development financial institution by the Department of the Treasury.  Banks can be involved by investing in FCI, by referring to FCI prospective borrowers that do not meet conventional credit criteria, by structuring FCI into financing packages in which the banks would like to participate, and by providing grants and in-kind donations to FCI.  

For more information, visit http://www.forwardci.org or contact Salli Martyniak at (608) 257-3863.

Expanding Access to Health Care in Rural Kentucky

The Kentucky Highlands Investment Corporation (KHIC) was recently awarded $22 million in new markets tax credits (NMTC) to finance the development of medical facilities.  These facilities will expand access to health care in rural Kentucky.  Equity obtained from the sale of NMTCs will be used to provide low-interest loans to healthcare-related businesses.  KHIC, a Community Development Entity, is currently seeking investors to purchase NMTCs, a qualified CRA investment.  KHIC’s first project, a $4 million development, is in partnership with a local hospital.  Plans are underway to identify other projects and secure financial partners. 

For further information, contact Brenda McDaniel, vice president and chief financial officer at (606) 864-5175 or email her at bmcdaniel@khic.org

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Southern District

_Southern District Stamp

Karol Klim (678) 731-9723 x252
David Lewis (214) 720-7027
Scarlett Duplechain (504) 828-6555

Arkansas Employer–Assisted Housing

Jefferson County Community Development Corporation (JCCDC), a not-for-profit housing development company in Pine Bluff, Arkansas, has announced the completion of plans to build an initial 80 units of new, single-family homes.  University of Arkansas at Pine Bluff (UAPB) and local companies including Tyson Foods Inc. and Central Maloney Inc., each of whom has more than four hundred employees, have agreed to support an employer-assisted housing approach. The homes will be built on 176 plotted lots and will feature low-to-moderate income and market-rate housing. The development is adjacent to the UAPB, a historically black land-grant college located in Pine Bluff, Arkansas. This development is in a deteriorating part of the city known for its need for housing and neighborhood revitalization. The project is part of the original UAPB master plan and is under the current master plan for North Pine Bluff for residential housing.  This development is a coordinated effort between UAPB, the City of Pine Bluff, United Water, Entergy, Pine Bluff Water and Sewer, Reliant Gas, Arkansas Development Finance Authority and ACORN. 

National banks interested in providing support for the project, including construction and permanent financing, are encouraged to contact Bob Francis at (501) 224-6511 or e-mail Bob at caridc@swbell.net.

Access Capital Strategies, LLC

Access Capital Strategies Community Investment Fund, LLC is a double-bottom line oriented fund available to socially conscious investors.  The fund was created in 1998 to serve as a vehicle to pool and manage community development investment opportunities while providing investors with competitive, risk-adjusted returns.  The fund has assisted in the financing of affordable homeownership units, affordable rental units, SBA loans, and economic development loans in 44 states.  Investors in the fund can geographically target their investments on a regional basis.

For further information, contact dsand@accesscapitalfunds.com or call (617) 236-7274.

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Western District

_Southern District Stamp

Susan Howard (818) 240-5175
Dave Miller (720) 475-7670

The Idaho Housing and Finance Association

The Idaho Housing and Finance Association (IHFA) provides high-quality bank investment opportunities to support affordable housing for low- and moderate-income families in many urban and rural Idaho communities.  IHFA is a not-for-profit, self-supporting housing finance association incorporated in 1974. With assets of more than $2 billion and a statewide scope of operations, IHFA has provided funding for the purchase of more than 46,500 homes for Idaho families.

As a state-authorized affordable housing bonding authority, IHFA receives funding from many sources including funds provided by private investors, funds derived from the sale of tax-exempt mortgage revenue bonds, federal housing funds provided through the HOME Program, the Low Income Housing Tax Credit Program, the Stewart B. McKinney Homeless Assistance Act, and Section 8 Rental Assistance contracts.  IHFA raises millions of dollars in the U.S. capital markets and has formed partnerships with banking and lending institutions throughout the state of Idaho.

For investor information, contact John Sager, IHFA’s vice president for administration and chief financial officer at (208) 331-4889, or by email at JohnS@ihfa.org.  Additional information is also available on IHFA’s Web site at www.ihfa.org.

Utah Community Reinvestment Corporation

The Utah Community Reinvestment Corporation (UCRC) is a multibank affordable housing consortium established in 1998.  UCRC is one of several funds chartered during the 1990s to provide long-term financing for multi-family housing developments for low-and moderate-income individuals and families.  UCRC is a membership organization with 34 member banks.  The organization provides loans and equity capital for multifamily rental projects throughout the state.  Since its inception, UCRC’s loan pool has grown from $40 million to $70 million.  More than $50 million has financed more than 2,240 affordable units.  Another $6 to $8 million has been committed for an additional 437 units.  The greatest number of projects are low-income housing tax credit investments.  In addition to loans, the organization issues tax-exempt bonds and provides equity capital for projects.  Most of UCRC’s transactions range between $200,000 and $3 million, although the organization is authorized to provide up to $7 million in financing.  Transactions are available to both for-profit and non-profit developers. 

UCRC is continually seeking new member banks to participate in the loan pools.  Currently, the organization is considering several new loan pools including a tax-exempt bond pool, an equity investment pool, a workforce housing pool, and an agricultural housing pool.  The establishment of any or all of the pools will require additional capital from member banks. 

For additional information contact Executive Director Stephen Graham at (801) 366-0400 or e-mail him at sgraham@ucrc.biz.

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