FDIC Federal Register Citations

Attention: Comments/Legal ESS
Federal Deposit Insurance Corporation
550 17th St. NW 20429

RE: RN 3064-AC50

I writing to express my sincere concern regarding the proposal to increase the threshold definition of small banks. The Community Reinvestment Act (CRA) has been instrumental in increasing homeownership, boosting economic development, and expanding small businesses in the nation's minority, immigrant, and low- and moderate-income communities. The proposed changes are contrary to the CRA statute and Congress' intent because they will slow down, if not halt, the progress made in community reinvestment.

The proposal will drastically reduce, by hundreds of billions of dollars, the bank assets available for community development lending, investing, and services. More specifically, the proposal will reduce the number of participating institutions in Pennsylvania by 75%. Notably, nearly one in four Pennsylvanians lives in a rural area. In 2000, the rural poverty rate was 9 percent. In Pennsylvania, an extremely Iow income household (earning $17,407, 30% of the Area Median Income of $58,022) can afford monthly rent of no more than $435, while the Fair Market Rent for a two bedroom unit is $681.

I strongly urge the reconsideration of the proposal. The impact is detrimental to the quality of life for those we serve.

Sincerely,

Theodore R. Dreisbach
Executive Director
Schuylkill Community Action
206 North Second St.
Pottsville, PA 17901