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FDIC Federal Register Citations

NEW YORK HOUSING CONFERENCE

From: Clara Fox [mailto:cfox@shfinc.org]
Sent: Tuesday, September 28, 2004 3:06 PM
To: Comments
Subject: RIN number 3064-AC50 CRA Regulations

New York Housing Conference
1780 Broadway, Suite 600
New York, NY 10010
(212) 265-6530

September 29, 2004

Robert E. Feldman
Executive Secretary
Attention: Comments/Legal ESS
Federal Deposit Insurance Corporation
550 17th Street, NW, Washington, DC 20429

RE: RIN 3064-AC50 Community Reinvestment Act proposed rule revision

Dear Mr. Feldman:

We are writing on behalf of the New York Housing Conference to urge FDIC towithdraw its proposed changes to the Community Reinvestment Act (CRA)regulations.

Established in 1973, the conference is a broad-based coalition of the major not-for-profit and for-profit developers, owners and managers of affordable housing in New York City. Our board members include leaders in the financial, legal and investment fields as well as noted technical housing consultants, architects and policy analysts who are actively involved in the affordable housing community.

As currently administered, CRA has been the key to providing affordable housing, revitalizing distressed communities, and fostering economic development in New York City and State. We concur with the assessment in Congressman James Walsh’s September 15th letter to Chairman Powell that FDIC ’s proposed changes in the CRA regulations will cause grave harm to our communities.

We are particularly concerned that, as Congressman Walsh wrote, “if this proposal were to be adopted, CRA reviews would not hold banks accountable for investing in Low Income Housing Tax Credits, a major source of affordable rental housing for low-income working families.” Indeed, 24,146 apartments in projects financed with investments generated by the Low Income Housing Tax Credit accounted for fully one-fourth of New York City’s increase in renter-occupied housing during the last decade.

Raising the small bank threshold from $250 million to $1 billion would exempt thousands of FDIC-insured banks from meeting the current CRA standard that requires them to demonstrate investments and services in low- to moderate-income areas.

As Congressman Walsh noted, “under the FDIC’s proposal, only two rural New York FDIC-regulated banks would continue to be subject to the three-part CRA examination” creating a “serious threat to much-needed community development efforts in rural areas.” And, as he concluded, FDIC’s proposal “to allow any community development activities in rural areas - regardless of scope or populations served - to fulfill CRA requirements ... undermines the statutory intent of CRA to require banks to engage in community development activities that benefit low- and moderate-income families in the areas they serve.”

Thank you for considering our comments.

Sincerely yours,

Clara Fox John Kelly Carol Lamberg
Co-Chair Co-Chair Staff  Director

Last Updated 10/07/2004 regs@fdic.gov

Last Updated: August 4, 2024