The Office of the Comptroller of the Currency (OCC) announced it will propose rescinding the Community Reinvestment Act (CRA) rule issued in May 2020. This decision follows the completion of a review initiated by Acting Comptroller of the Currency Michael Hsu shortly after he took office. The OCC also announced that it will work with the Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) to put forward a joint rulemaking that strengthens and modernizes the CRA.
The previous rule would have taken effect in 2023 or 2024, depending on the size of the institution. The rule was problematic for the LIHTC community in several ways, including the elimination of the investment test, the use of a ratio evaluation and the lack of a community development minimum. NH&RA looks forward to working with the OCC, FDIC and Board to craft a new proposed rule that better incentivizes LIHTC investment.
NH&RA looks forward to working with the OCC, FDIC and Board to craft a new proposed rule that better incentivizes LIHTC investment.