CA 23-6

The Board of Governors of the Federal Reserve System (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) have announced an extension of the Community Reinvestment Act (CRA) consideration period for bank activities aimed at revitalizing or stabilizing Puerto Rico and the U.S. Virgin Islands following Hurricane Maria in 2017. Under the CRA, such activities may include loans, investments, and other services that aid specified regions following a corresponding designation as major disaster areas. The regulators are now granting a second 36-month extension for the consideration of any activities aiding Puerto Rico and the U.S. Virgin Islands in accordance with the Interagency Questions and Answers Regarding Community Reinvestment guidance which specifies that financial institutions can receive favorable consideration for such activities within a qualifying disaster area for 36 months following federal designation, with the possibility of extension in response to demonstrated community need. In this case, the agencies have determined that ongoing community need exists in these designated areas.
Consequently, the agencies are extending the CRA evaluation consideration period for disaster recovery-related revitalization or stabilization activities in Puerto Rico and the U.S. Virgin Islands until September 20, 2026. To conclude, the agencies note that although all activities in this context will be considered for CRA purposes, they may give greater weight to activities that are most responsive to community needs, including the needs of low- and moderate-income areas and individuals.