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tion 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
(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 the following criteria are met:
(A) At least 30 percent of the residents residing in the area have incomes which are less than the national poverty level.
(B) The unemployment rate for the area is 192 times greater than the national average (as determined by the Bureau of Labor Statistics' most recent figures).
(C) Such additional eligibility requirements as the Board may, in its discretion, deem necessary to carry out
the provisions of this subtitle. (Subsection (c) amended other provisions of law.] (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.
(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 of the semiannual assessment to which such credit is applicable.
(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) PROHIBITION ON DOUBLE FUNDING FOR SAME ACTIVITIES.No community development financial institution may receive community enterprise assessment credit if such institution, eithe directly or through a community partnership
(1) has received assistance within the preceding 12-mos:
(2) has ever received assistance, under secuid:53
period for which the institution seeks a community enterprise assessment credit under this section. (h) PRIORITY OF AWARDS.— (1) QUALIFYING LOANS AND SERVICES.
(A) IN GENERAL.-If the amount of funds appropriated for purposes of carrying out this section for any fiscal year are insufficient to award the amount of assessment credits for which insured depository institutions have applied and are eligible under this section, the Board shall, in awarding community enterprise assessment credits for qualifying activities under subparagraphs (A) and (B) of subsection (a)(2) for any semiannual period for which such appropriation is available, determine which institutions shall receive an award.
(B) PRIORITY FOR SUPPORT OF EFFORTS OF CDFI.—The Board shall give priority to institutions that have supported the efforts of community development financial institutions in the qualified distressed community.
(C) OTHER FACTORS.—The Board may also consider the following factors:
(i) DEGREE OF DIFFICULTY.—The degree of difficulty in carrying out the activities that form the basis for the institution's application.
(ii) COMMUNITY IMPACT.-The extent to which the activities that form the basis for the institution's application have benefited the qualified distressed community.
(iii) INNOVATION.—The degree to which the activities that form the basis for the institution's application have incorporated innovative methods for meeting community needs.
(iv) LEVERAGE.-The leverage ratio between the dollar amount of the activities that form the basis for the institution's application and the amount of the assessment credit calculated in accordance with this section for such activities.
(v) SIZE.—The amount of total assets of the insti. tution.
(vi) NEW ENTRY. Whether the institution had provided financial services in the designated distressed community before such semiannual period.
(vii) NEED FOR SUBSIDY.—The degree to which the qualified activity which forms the basis for the application needs enhancement through an assessment credit.
(viii) EXTENT OF DISTRESS IN COMMUNITY.—The degree of poverty and unemployment in the designated distressed community, the proportion of the total population of the community which are low-income families and unrelated individuals, and the extent of other
adverse economic conditions in such community. (2) QUALIFYING INVESTMENTS.-If the amount of funds appropriated for purposes of carrying out this section for any fiscal year are insufficient to award the amount of assessment
credits for which insured depository institutions have applied and are eligible under this section, the Board shall, in awarding community enterprise assessment credits for qualifying activities under subsection (a/2)(C) for any semiannual period for which such appropriation is available, determine which institutions shall receive an award based on the leverage ratio between the dollar amount of the activities that form the basis for the institution's application and the amount of the assessment credit calculated in accordance with this section for such activities.
(i) DETERMINATION OF AMOUNT OF ASSESSMENT CREDIT.-Notwithstanding any other provision of this section, the determination of the amount of any community enterprise assessment credit under subsection (a)(3) for any insured depository institution for any semiannual period shall be made solely at the discretion of the Board. No insured depository institution shall be awarded community enterprise assessment credits for any semiannual period in excess of an amount determined by the Board. 6) 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.
(4) COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.The term "community development financial institution” has the same meaning as in section 103(5) of the Community Development Banking and Financial Institutions Act of 1994.
(5) AFFILIATE.—The term “affiliate” has the same meaning as in section 2 of the Bank Holding Company Act of 1956. SEC. 234. (12 U.S.C. 1834b) COMMUNITY DEVELOPMENT ORGANIZA.
TIONS. (a) COMMUNITY DEVELOPMENT ORGANIZATIONS DESCRIBED.For purposes of this subtitle, any insured depository institution, or a qualified portion thereof, shall be treated as meeting the community development organization requirements of this section if
(1) the institution
(A) is a community development bank, or controls any community development bank, which meets the requirements of subsection (b);
(B) controls any community development corporation, or maintains any community development unit within the institution, which meets the requirements of subsection (c);
(C) invests in accounts in any community development credit union designated as a low-income credit union, subject to restrictions established for such credit unions by the National Credit Union Administration Board; or
(D) invests in a community development organization jointly controlled by two or more institutions;
(2) except in the case of an institution which is a community development bank, the amount of the capital invested, in the form of debt or equity, by the institution in the community development organization referred to in paragraph (1) (or, in the case of any community development unit, the amount which the institution irrevocably makes available to such unit for the purposes described in paragraph (3)) is not less than the greater of
(A) 1/2 of 1 percent of the capital, as defined by generally accepted accounting principles, of the institution; or
(B) the sum of the amounts invested in such community development organization, and
(3) the community development organization provides loans for residential mortgages, home improvement, and community development and other financial services, other than financing for the purchase of automobiles or extension of credit under any open-end credit plan (as defined in section 103(i) of the Truth in Lending Act), to low- and moderate-income persons, nonprofit organizations, and small businesses located in qualified distressed communities in a manner consistent with the intent of this subtitle.
(b) COMMUNITY DEVELOPMENT BANK REQUIREMENTS.-A community development bank meets the requirements of this subsection if
(1) the community development bank has a 15-member advisory board designated as the “Community Investment Board” and consisting entirely of community leaders whom
(A) shall be appointed initially by the board of directors of the community development bank and thereafter by the Community Investment Board from nominations received from the community; and
(B) are appointed for a single term of 2 years, except that, of the initial members appointed to the Community Investment Board, 1/3 shall be appointed for a term of 8 months, 43 shall be appointed for a term of 16 months, and 1/3 shall be appointed for a term of 24 months, as designated by the board of directors of the community development bank at the time of the appointment;
(2) 13 of the members of the community development bank's board of directors are appointed from among individuals nominated by the Community Investment Board; and
(3) the bylaws of the community development bank require that the board of directors of the bank meet with the Community Investment Board at least once every 3 months.
(c) COMMUNITY DEVELOPMENT CORPORATION REQUIREMENTS.Any community development corporation, or community development unit within any insured depository institution meets the requirements of this subsection if the corporation or unit provides the same or greater, as determined by the appropriate Federal banking agency, community participation in the activities of such corporation or unit as would be provided by a Community Investment Board under subsection (b) if such corporation or unit were a community development bank.