The 2023 list of distressed or underserved nonmetropolitan middle-income geographies – which assists banks in determining where revitalization or stabilization activities are eligible to receive anti-redlining consideration – was released Friday by the federal banking agencies.
According to the agencies, the Community Reinvestment Act (CRA) encourages banks to help meet the credit needs of their local communities, including low- and moderate-income communities, in a safe and sound manner.
The census tracts released Friday are those reflecting local economic conditions, including unemployment, poverty, and population changes. Banks and other institutions subject to the CRA use the tracts to determine where their investments will return to them recognition for complying with the rules developed under the law.
The agencies noted that revitalization or stabilization activities in the geographies are eligible to receive CRA consideration under the community development definition for 12 months after publication of the current list. “As with past lists, the agencies apply a one-year lag period for geographies that were included in 2022 but are no longer designated as distressed or underserved in the current list,” the agencies said in a release.
Agencies release list of distressed or underserved nonmetropolitan middle-income geographies