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Federal Register Publications

FDIC Federal Register Citations



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FDIC Federal Register Citations

COMMUNITY HOUSING IMPROVEMENT PROGRAM

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

RE: RIN 3064-AC50

Dear Mr. Feldman:

The Community Housing Improvement Program (CHIP) opposes the above-referenced changes to Community Reinvestment Act (CRA) regulations. The Community Reinvestment Act, as currently written, is crucial to the community development work that CHIP performs in rural Northern California.

Under the current CRA regulations, many banks in our service area of Butte, Glenn, Tehama, Shasta and Lassen Counties, those with assets of at least $250 million, are rated by performance evaluations that provides them with an incentive to provide lending, investing, and other services to low- and moderate-income households. The proposed changes will eliminate the incentive for state-charted banks with assets between $250 million and $1 billion. In place of the investment and service parts of the CRA exam, the FDIC proposes to add a community development criterion, which will reduce the banks' responsibilities to cover all service areas.

In rural California, nearly 90% of the financial institutions will no longer be required to be accountable under the current CRA regulations. This will make it difficult for groups like CHIP to provide affordable housing and community development services, particularly at a time when housing affordability in rural California is at historical low levels. Without a source of commercial capital, fewer housing units will be constructed.

I urge you to withdraw your proposed regulation changes.

David Ferrier
Executive Director
Community Housing Improvement Program
1001 Willow Street Chico, CA 95928

Cc: Senators Feinstein and Boxer
Congressman Herger

Last Updated 10/18/2004 regs@fdic.gov

Last Updated: August 4, 2024