Investment Resources for Part 24 Authority

Part 24 Resources on the Web

Common Part 24 Questions

CD Investment Precedent Letters

Investments in National/Regional Funds

First Quarter 2004
Part 24 Investments

Regulation and CD-1 Form

New Markets Tax Credit Resources

Legal Authority for National Bank Investments in Community Development Entities and NMTCs

OCC Guidance on CRA Consideration for NMTCs

CDFI Fund NMTC Guidance

OCC's Community Affairs Department
(202) 874-5556
CommunityAffairs
@occ.treas.gov

A look inside...

A photo of Camden Commons

In addition to New Markets Tax Credits, national banks can make investments in historic and low-income housing tax credits using the Part 24 authority. Camden Commons, in Preble County, Ohio, is an old schoolhouse converted into older housing which received funding from the Ohio Capital Corporation through the syndication of tax credits to banks and other investors.

Welcome to the first on-line Investments edition of Community Developments. National banks are continuing to recognize CD investing as a way to remain financially and socially responsible to their customers and communities, and the OCC strongly supports these efforts. Banks find these investments add to their bottom lines, expand their market reach, support the development of new products, and leverage matching funds from partnering sources. All in all, CD investing is an exciting opportunity.

This electronic magazine focuses on examples of national bank investments in community development activities. In particular, we will illustrate the investment opportunities available under OCC's national bank public welfare investment authority ( 12 CFR 24 or "Part 24"). Each quarter we will bring you stories of diverse investments that help communities stabilize, revitalize, or grow. The articles will describe the investments and their value to the banks, and how each investment helped the community or neighborhood. In addition, each quarterly E-zine will contain resources that can help you:

• find CD investment opportunities in each OCC district;

• learn about CD investments made by other banks;

• find an OCC contact for guidance or assistance on CD investing;

• retrieve OCC regulations, forms, and guidance on CD investments;

• link to other federal Web pages that may have useful information.

Bank Participation in NMTC Program

Depository institutions have shown considerable interest in the NMTC program - 31 banks received $1.2 billion of NMTCs in the first two rounds of funding. The CDFI Fund will conduct a competition for $2.0 billion in NMTCs later this year, and those interested in applying can visit the CDFI Fund Web Site now to begin the process of forming a CDE. Banks interested in investing in CDEs or funds created by NMTC awardees are encouraged to review the CDFI Fund's list of awardees.

In addition, we will provide you with a listing of Part 24 investments approved during the previous quarter of 2004 as well as access to precedent-setting opinion letters.

This edition also examines bank investments that have been made in conjunction with the New Markets Tax Credit (NMTC), a program designed to help spur growth in distressed communities. Last fall, the OCC revised Part 24 to explicitly identify NMTCs as an eligible investment. In addition, the OCC issued an Interpretive Letter clarifying that NMTCs are an eligible CRA investment. In the past few months, the CDFI Fund has signed agreements with awardees of the first $2.5 billion of the $15 billion total to be made available over the next four years. In addition, the fund as allocated $3.5 billion of the second round of NMTCs. This edition describes transactions by two awardees: Key Bank Community Development Corporation and Oklahoma Metafund.

We hope this E-zine contains information about CD investing that can help your bank expand or target its investing efforts. I would like to hear your thoughts about this edition and any community development investment topics we might cover in future editions.

Barry Wides

Acting Deputy Comptroller
Community Affairs