Community Reinvestment Act Consideration for Gulf Coast Disaster Area Activities

Feb 23 - The areas designated major disaster areas by the Federal Emergency Management Agency in 2005 following Hurricanes Katrina and Rita continue to be so designated and to demonstrate significant revitalization and recovery needs. To continue to support community development, the FDIC, along with the other federal banking agencies, is extending CRA consideration for community development loans, investments and services that help revitalize or stabilize those disaster areas through 2014.

Highlights:

• The federal banking agencies, including the FDIC, encourage continued support for disaster-recovery activities in the areas devastated by Hurricanes Katrina and Rita. The agencies will continue to provide CRA consideration for community development loans, investments, and services that help revitalize or stabilize those areas through 2014.
• The FEMA designation of Hurricanes Katrina and Rita disaster areas continues to remain in effect. Coverage information is available at www.fema.gov/news/disasters.fema?year=2005.
• Consistent with earlier 2005 and 2008 guidance, significant consideration will be given to activities that benefit low- and moderate-income individuals or areas, including activities aimed at benefiting displaced individuals.
• Given the impact of these disasters, banks may receive CRA consideration for activities that help to revitalize or stabilize these designated areas, even if the activities are outside their assessment areas (or the broader statewide or regional areas), if they have adequately met assessment area CRA-related needs.
• The Interagency Questions and Answers regarding Community Reinvestment at 75 FR 11647 §__.12(g)(4)(ii)–1 dated March 11, 2010, further explain how banks may receive consideration for qualified activities in a major disaster area, generally for 36 months after designation. They indicate that the federal banking agencies may extend the time period.

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