ASSESSMENT CREDITS FOR QUALIFYING ACTIVITIES RELATING TO DISTRESSED COMMUNITIES.

SEC. 233. ASSESSMENT CREDITS FOR QUALIFYING ACTIVITIES RELATING TO DISTRESSED COMMUNITIES. (a) Determination of Credits for Increases in Community Enterprise Activities.— (1) In general.— The Community Enterprise Assessment Credit Board established under subsection (d) shall issue guidelines for insured depository institutions eligible under this subsection for any community enterprise assessment credit with respect to any semiannual period. Such guidelines shall— (A) designate the eligibility requirements for any institution meeting applicable capital standards to receive an assessment credit under section 7(d)(4) of the Federal Deposit Insurance Act; and (B) determine the community enterprise assessment credit available to any eligible institution under paragraph (3). (2) Qualifying activities.— An insured depository institution shall be eligible for any community enterprise assessment credit for any semiannual period for— (A) any increase during such period in the amount of new originations of qualified loans and other financial assistance provided for low- and moderate-income persons in distressed communities, or enterprises integrally involved with such neighborhoods, which the Board determines are qualified to be taken into account for purposes of this subsection; and (B) any increase during such period in the amount of deposits accepted from persons domiciled in the distressed community, at any office of the institution (including any branch) located in any qualified distressed community, and any increase during such period in the amount of new originations of loans and other financial assistance made within that community, except that in no case shall the credit for increased deposits at any institution or branch exceed the credit for increased loan and other financial assistance by the bank or branch in the distressed community. (3) Amount of assessment credit.— The amount of any community enterprise assessment credit available under section 7(d)(4) for any insured depository institution, or a qualified portion thereof, for any semiannual period shall be the amount which is equal to 5 percent, in the case of an institution which does not meet the community development organization requirements under section 235, and 15 percent, in the case of an institution, or a qualified portion thereof, which meets such requirements (or any percentage designated under paragraph (5)) of the sum of— (A) the amounts of assets described in paragraph (2)(A); and (B) the amounts of deposits, loans, and other extensions of credit described in paragraph (2)(B). (4) Determination of qualified loans and other financial assistance.— Except as provided in paragraph (6), the types of loans and other financial assistance which the Board may determine to be qualified to be taken into account under para-105 STAT. 2312graph (2)(A) for purposes of the community enterprise assessment credit, may include the following: (A) Loans insured or guaranteed by the Secretary of Housing and Urban Development, the Secretary of the Department of Veterans Affairs, the Administrator of the Small Business Administration, and the Secretary of Agriculture. (B) Loans or financing provided in connection with activities assisted by the Administrator of the Small Business Administration or any small business investment company and investments in small business investment companies. (C) Loans or financing provided in connection with any neighborhood housing service program assisted under the Neighborhood Reinvestment Corporation Act. (D) Loans or financing provided in connection with any activities assisted under the community development block grant program under title I of the Housing and Community Development Act of 1974. (E) Loans or financing provided in connection with activities assisted under title II of the Cranston-Gonzalez National Affordable Housing Act. (F) Loans or financing provided in connection with a homeownership program assisted under title III of the United States Housing Act of 1937 or subtitle B or C of title IV of the Cranston-Gonzalez National Affordable Housing Act. (G) Financial assistance provided through community development corporations. (H) Federal and State programs providing interest rate assistance for homeowners. (I) Extensions of credit to nonprofit developers or purchasers of low-income housing and small business developments. (J) In the case of members of any Federal home loan bank, participation in the community investment fund program established by the Federal home loan banks. (K) Conventional mortgages targeted to low- or moderate-income persons. (5) Adjustment of percentage.— The Board may increase or decrease the percentage referred to in paragraph (3) for determining the amount of any community enterprise assessment credit pursuant to such paragraph, except that the percentage established for insured depository institutions which meet the community development organization requirements under section 235 shall not be less than 3 times the amount of the percentage applicable for insured depository institutions which do not meet such requirements. (6) Certain investments not eligible to be taken into account.— Investments by any insured depository institution in loans and securities that are not the result of originations by the institution shall not be taken into account for purposes of determining the amount of any credit pursuant to this subsection. (b) Qualified Distressed Community Defined.— (1) In general.— For purposes of this section, the term “qualified distressed community” means any neighborhood or community which— 105 STAT. 2313 (A) meets the minimum area requirements under paragraph (3) and the eligibility requirements of paragraph (4); and (B) is designated as a distressed community by any insured depository institution in accordance with paragraph (2) and such designation is not disapproved under such paragraph. (2) Designation requirements.— (A) Notice of designation.— (i) Notice to agency.— Upon designating an area as a qualified distressed community, an insured depository institution shall notify the appropriate Federal banking agency of the designation. (ii) Public notice.— Upon the effective date of any designation of an area as a qualified distressed community, an insured depository institution shall publish a notice of such designation in major newspapers and other community publications which serve such area. (B) Agency duties relating to designations.— (i) Providing information.— At the request of any insured depository institution, the appropriate Federal banking agency shall provide to the institution appropriate information to assist the institution to identify and designate a qualified distressed community. (ii) Period for disapproval.— Any notice received by the appropriate Federal banking agency from any insured depository institution under subparagraph (A)(i) shall take effect at the end of the 90-day period beginning on the date such notice is received unless written notice of the approval or disapproval of the application by the agency is provided to the institution before the end of such period. (3) Minimum area requirements.— For purposes of this subsection, an area meets the requirements of this paragraph if— (A) the area is within the jurisdiction of 1 unit of general local government; (B) the boundary of the area is contiguous; and (C) the area— (i) has a population, as determined by the most recent census data available, of not less than— (I) 4,000, if any portion of such area is located within a metropolitan statistical area (as designated by the Director of the Office of Management and Budget) with a population of 50,000 or more; or (II) 1,000, in any other case; or (ii) is entirely within an Indian reservation (as determined by the Secretary of the Interior). (4) Eligibility requirements.— For purposes of this subsection, an area meets the requirements of this paragraph if at least 2 of the following criteria are met: (A) Income.— At least 70 percent of the families and unrelated individuals residing in the area have incomes of less than 80 percent of the median income of the area. (B) Poverty.— At least 20 percent of the residents residing in the area have incomes which are less than the 105 STAT. 2314national poverty level (as determined pursuant to criteria established by the Director of the Office of Management and Budget). (C) Unemployment.— The unemployment rate for the area is one and one-half times greater than the national average (as determined by the Bureau of Labor Statistic’s most recent figures). (c) Assessment Credit Provided.— (1) In general.— Section 7(d) of the Federal Deposit Insurance Act (12 U.S.C. 1817(d)) is amended— (A) by redesignating paragraphs (4) and (5) as paragraphs (6) and (7), respectively; and (B) by inserting after paragraph (3) the following new paragraphs: “(4) Community enterprise assessment credits.— Notwithstanding paragraphs (2)(A) and (3)(A) and in addition to any assessment credit authorized under paragraph (2)(B) or (3)(B), the Corporation shall allow an assessment credit for any semi-annual assessment period to any Bank Insurance Fund member or Savings Association Insurance Fund member satisfying the requirements of the Community Enterprise Assessment Credit Board under section 233(a)(1) of the Bank Enterprise Act of 1991 in the amount determined by such Board through regulation for such period pursuant to such section. “(5) Maximum amount of credit.— The total amount of assessment credits allowed under this subsection (including community enterprise assessment credits pursuant to paragraph (4)) for any insured depository institution for any semi-annual period shall not exceed the amount which is equal to 20 percent, in the case of an institution which does not meet the community development organization requirements under section 235 of the Bank Enterprise Act of 1991, and 50 percent, in the case of an institution which meets such requirements, of the assessment imposed on such institution for the semiannual period.”. (2) Technical and conforming amendments.— (A) Subparagraph (A) of section 7(d)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1817(d)(1)) is amended by inserting “(other than credits allowed pursuant to paragraph (4))” after “amount to be credited”. (B) Subparagraph (B) of section 7(d)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1817(d)(1)) is amended by inserting “(taking into account any assessment credit allowed pursuant to paragraph (4))” after “should be reduced”. (d) Community Enterprise Assessment Credit Board.— (1) Establishment.— There is hereby established the “Community Enterprise Assessment Credit Board”. (2) Number and appointment.— The Board shall be composed of 5 members as follows: (A) The Secretary of the Treasury or a designee of the Secretary. (B) The Secretary of Housing and Urban Development or a designee of the Secretary. (C) The Chairperson of the Federal Deposit Insurance Corporation or a designee of the Chairperson. 105 STAT. 2315 (D) 2 individuals appointed by the President from among individuals who represent community organizations. (3) Terms.— (A) Appointed members.— Each appointed member shall be appointed for a term of 5 years. (B) Interim appointment.— Any member appointed to fill a vacancy occurring before the expiration of the term to which such member’s predecessor was appointed shall be appointed only for the remainder of such term. (C) Continuation of service.— Each appointed member may continue to serve after the expiration of the period to which such member was appointed until a successor has been appointed. (4) Chairperson.— The Secretary of the Treasury shall serve as the Chairperson of the Board. (5) No pay.— No members of the Commission may receive any pay for service on the Board. (6) Travel expenses.— Each member shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code. (7) Meetings.— The Board shall meet at the call of the Chairperson or a majority of the Board’s members. (e) Duties of the Board.— (1) Procedure for determining community enterprise assessment credits.— The Board shall establish procedures for accepting and considering applications by insured depository institutions under subsection (a)(1) for community enterprise assessment credits and making determinations with respect to such applications. (2) Notice to fdic.— The Board shall notify the applicant and the Federal Deposit Insurance Corporation of any determination of the Board with respect to any application referred to in paragraph (1) in sufficient time for the Corporation to include the amount of such credit in the computation made for purposes of the notification required under section 7(d)(1)(B). (f) Availability of Funds.— The provisions of this section shall not take effect until appropriations are specifically provided in advance. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this section. (g) Definitions.— For purposes of this section— (1) Appropriate federal banking agency.— The term “appropriate Federal banking agency” has the meaning given to such term in section 3(q) of the Federal Deposit Insurance Act. (2) Board.— The term “Board” means the Community Enterprise Assessment Credit Board established under the amendment made by subsection (d). (3) Insured depository institution.— The term “insured depository institution” has the meaning given to such term in section 3(c)(2) of the Federal Deposit Insurance Act.