September 30, 2006
Comptroller Salutes Legislation to Raise Part 24 Community Development Investment Limit
WASHINGTON - Comptroller of the Currency John C. Dugan released the following statement in response to passage of legislation raising the cap on the public welfare investment authority for financial institutions, known as Part 24.
I want to thank the Members of Congress for taking action to raise the limit on community development investment from 10 to 15 percent of a financial institution's capital and surplus. This increase has the potential to generate an additional $30 billion in private investment from national banks that will go toward strengthening our communities without one penny of taxpayer money.
In the last decade, national banks have made $16 billion in community development investments under Part 24 to fund projects in every one of the 50 states. Many of the investments made under this authority involve the use of Low Income Housing Tax Credits, New Market Tax Credits, and other community development-related credit and funds. These investments have been so successful that some banks are approaching the current cap of 10 percent. Financial institutions recognize the value of strengthening our communities through these types of investments, and they want to do more. When the President signs this bill into law, they will have that opportunity.
These investments support critically needed urban revitalization, rural redevelopment, and job creation. They do so in a manner that not only benefits the communities served, but also enjoys a solid track record of profitability and safety and soundness. These investments are good for our neighborhoods, good for citizens, and good for business.
That is why the OCC proposed expanding Part 24 authority when regulatory relief legislation was first being formulated in the House and Senate. That is why I have pressed for its adoption in meetings over the last year with Members of Congress, banker groups and community groups, and have visited Part 24 projects to draw attention to the benefits of this important program. And that's why I am grateful to Members of Congress for bringing this legislative effort to a successful conclusion.