Federal Deposit Insurance Corporation

Federal Reserve Board of Governors 

 Office of the Comptroller of the Currency

 

Interagency Statement on CRA Consideration for Community Development Activities

in the U.S. Virgin Islands and Puerto Rico Following Hurricane Maria

This statement addresses the availability of Community Reinvestment Act (CRA) consideration 

for bank activities that help revitalize or stabilize the U.S. Virgin Islands and Puerto Rico, which 

were designated as major disaster areas by the President because of Hurricane Maria1 (the 

"Hurricane"). Specifically, financial institutions have asked whether their community 

development activities assisting with the aftermath of the hurricane are eligible for CRA 

consideration even though the disaster areas are outside the institutions’ assessment areas. The 

Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board of Governors (FRB) 

and the Office of the Comptroller of the Currency (OCC) (collectively, the “Agencies”), are 

issuing this statement to clarify that financial institutions located outside these disaster areas will 

receive consideration for community development activities that resulted from the hurricane as 

long as the institution has been responsive to the community development needs and 

opportunities of its own assessment areas.

The CRA regulations encourage financial institutions to help meet the credit and community 

development needs of their local communities. The regulations give CRA consideration to banks' 

community development activities, which are loans, investments, or services with a primary 

purpose of community development. The term "community development" and the loans, 

services, and investments that qualify as community development activities are defined in the 

CRA regulations.2 The definition of "community development" includes activities that revitalize 

or stabilize designated disaster areas.3

A financial institution’s CRA performance is evaluated primarily on the basis of how it helps to 

meet the credit and community development needs of its local community, or assessment area(s). 

The CRA regulations and the Interagency Questions and Answers Regarding Community 

Reinvestment,

4

 which describe how the agencies implement CRA, recognize that a bank may be 

able to meet community development needs of its assessment area(s) through activities that 

benefit a broader statewide or regional area that includes the bank's assessment areas(s), even 

when the benefit to the assessment area(s) is not direct or immediate. Moreover, if an institution 

has been responsive to the needs of its assessment area(s), then it will receive consideration for a 

community development activity in the broader statewide or regional area that includes the 

bank's assessment area(s) regardless of whether the activity benefits the assessment area.5 A 

 

1 U.S. Virgin Islands Hurricane Maria (DR 4340) and Puerto Rico Hurricane Maria (DR 4339), respectively. 2

 12 CFR 25.12 (OCC specific to national banks); 12 CFR 195.12 (OCC and FDIC specific to savings associations); 

 12 CFR 228.12 (FRB specific to state member banks); 12 CFR 345.12 (FDIC specific to state nonmember banks). 3 12 CFR 25.12(g)(4)(ii); 12 CFR 195.12(g)(4)(ii); 12 CFR 228.12(g)(4)(ii); 12 CFR 345.12(g)(4)(ii). 4

 81 FR 48506 (July 25, 2016), available at https://www.gpo.gov/fdsys/pkg/FR-2016-07-25/pdf/2016-16693.pdf. 5 Q&A § __.12(h)-6, 81 FR 48529 (July 25, 2016).
“regional area” may be an intrastate or multistate area that includes the financial institution’s

assessment area(s) that typically has some geographic, demographic, or economic 

interdependencies.6 Under these rules and interpretations, a financial institution will receive 

consideration for activities that help to revitalize or stabilize a designated disaster area that 

includes one or more of the bank’s delineated assessment areas. 

In the limited and specific case of Hurricane Maria, the Hurricane caused widespread devastation

in areas that are not connected to the mainland, but have had economic impact and other effects 

that may extend to other parts of the nation. Therefore, the agencies have determined that it is 

appropriate to give favorable consideration to community development activities that help to 

revitalize or stabilize the impact from the hurricane by financial institutions located anywhere in 

the nation, provided that they have been responsive to the community development needs and 

opportunities of their own assessment area(s). Such activities may include assistance to people 

displaced by the Hurricane, including evacuees relocated to other states.

CRA consideration for activities that assist the disaster areas or affected individuals will be given 

regardless of the median income of the census tract or the personal income of the individual. 

However, the agencies may give greater weight to activities that are most responsive to 

community needs, including the needs of low- and-moderate-income areas and individuals.7

 

6 Q&A §__.12(h)-7, 81 FR 48430 (July 25, 2016). 7 Q&A § __.12(g)(4)(ii) 2, 81 FR 48427 (July 25, 2016).