The CRA was established in 1977 as a means of ensuring that deposit-taking institutions offer equal access to lending, investment ,and services. NAHB supports efforts to ensure that CRA credit is provided for residential and multifamily mortgages, housing production and community development lending.

The proposed revised Q&A would allow an institution to receive pro rata Community Reinvestment Act (CRA) consideration for the portion of an activity such as mixed-income housing, if it helps to provide affordable housing to low- or moderate-income individuals.

The proposed revised Q&A gives as an example a $10 million loan to finance a mixed-income housing development in which 10% of the units will be set aside as affordable housing for low-and moderate-income individuals and 10% of the funds will be used for the cost of constructing those units. Under the proposed revised Q&A, the institution may elect to treat one million dollars of the loan as a community development loan.

NAHB strongly supports the proposed revision and encourages its adoption as final. View the complete letter here.

For more information, e-mail David Ledford or call him at 800-368-5242 x8265. [return to top]