The Office of the Comptroller of the Currency (OCC) along with the Federal Deposit Insurance Corporation (FDIC) released proposed regulations on December 13, 2019 which would institute significant changes to the implementation of the Community Reinvestment Act (CRA) if implemented.
https://www.occ.treas.gov/news-issuances/federal-register/2019/nr-ia-2019-147-federal-register.pdf
The new regulations include guidance on many topics, including how CRA performance is measured, transparency of CRA reporting, the definition of assessment areas, and what activities qualify for CRA credit.
Interestingly, the draft guidance includes community development activity that “provides financing for or supports” Qualified Opportunity Funds (QOFs) that benefit Opportunity Zones communities as a qualifying activity for CRA credit.
There is a 60-day comment period from the date the proposed regulations post on the Federal Register.
If passed, this may spur additional lender interest in lending into Opportunity Zones and into OZ deals given the expansion of where these lenders will get CRA credit. Stay tuned for more information as it becomes available.
-Brad A. Molotsky, Esq., Duane Morris, LLP