What banking regulations pertain to CDC formation?
OCC permits national bank subsidiary CDCs to be formed under 12 CFR 24. National bank subsidiary CDCs are permitted to engage in activities that primarily promote the public welfare. Permissible activities primarily benefit: • Low- and moderate-income persons; • Low- and moderate-income areas; or • Areas targeted for redevelopment by a government entity (12 CFR 24.3). In addition, investments that would receive qualified investment consideration under 12 CFR 25.23 (implementing the Community Reinvestment Act) are also permissible activities. For example, bank CDCs that support the purchase, rehabilitation, and sale of single-family homes, or the purchase, development, rehabilitation, sale, or rental of multifamily housing, would meet the public welfare standard if the majority of the housing units will be owned or rented by low- and moderate-income families. Also, CDCs that invest in, or otherwise help finance businesses or ventures located in low- and moderate-income areas or other ta
