2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 4A - Community Development by Financial Institutions › § 26–431.04. Community development plan requirement

§ 26–431.04. Community development plan requirement.
(a)(1) A financial institution shall submit a community development plan stating the financial institution’s plans for meeting the credit and financial services needs of the residents of the District, particularly in designated development areas. A financial institution shall submit a community development plan annually, when there is a revision to the plan, and at such times as the Commissioner, by rule, may require.
(2) The community development plan submitted under paragraph (1) of this subsection shall commit the financial institution and its subsidiaries to:
(A) Provide monitoring reports on forms designated by, and at intervals specified by, the Commissioner;
(B) Provide additional information as requested by the Commissioner to monitor compliance;
(C) Permit examinations of the records of the financial institution to the extent considered necessary by the Commissioner to monitor and enforce compliance with the community development plan;
(D) Participate in meetings on the community development performance of the financial institution at times designated by the Commissioner; and
(E) Provide that the commitment shall be a binding agreement on the financial institution and the financial institution’s successors and assignees.
(3)(A) The Department shall provide a public comment period, the start of which shall be posted on its website, and receive public comments for a period of 30 days on a draft community development plan of a District chartered bank. The Department shall share these comments with the deposit-receiving institution for it to consider in revising its draft community development plan before submitting the plan to the Commissioner.
(B) The Commissioner shall:
(i) Consider the responsiveness of the deposit-receiving institution to these comments when preparing findings;
(ii) Report the final findings, accompanied by the final community development plan, to the CFO; and
(iii) Submit any subsequent changes to the findings or plan to the CFO.
(b) The Commissioner shall assess the record of a financial institution, determine whether the financial institution is satisfying its continuing and affirmative obligation to meet the credit needs of its local communities, including low-income and moderate-income areas, consistent with the safe and sound operation of the financial institution, and shall prepare a report on the assessment and determination:
(1) In connection with an application for a certificate of authority under the District of Columbia Banking Code;
(2) In connection with the acquisition of a bank, savings institution, or holding company located in the District under the Regional Interstate Banking Act of 1985; and
(3) As required under § 26-431.05.
(c) In determining whether the financial institution is satisfying its continuing and affirmative obligation to meet the credit needs of its local communities, including low-income and moderate-income neighborhoods, the Commission shall consider:
(1) The financial institution’s Community Reinvestment Act rating and prior evaluations and any community development evaluations from the 3 prior years;
(2) Plans of the financial institution to make mortgage loans in the District, in designated development areas, and to minority residents, low-income and moderate-income residents, and elderly residents;
(3) Plans of the financial institution to make consumer loans, other than mortgage loans, in the District, in designated development areas, and to minority residents, low-income and moderate-income residents, and elderly residents;
(4) Plans of the financial institution to:
(A) Open or close branches in the District and in designated development areas;
(B) Provide basic deposit and checking accounts, such as lifeline accounts, and electronic transfer accounts designed for low-income persons; and
(C) Provide check-cashing services to non-account holders;
(5) Plans of the financial institution to:
(A) Procure services or supplies from District businesses, including minority-owned and women-owned District businesses; and
(B) Hire District residents;
(6) Plans of the financial institution to seek and place District residents, including women and members of minority groups, on the board of directors of the financial institution, subsidiaries or affiliates of the financial institution, and the holding company of the financial institution;
(7) Plans of the financial institution to:
(A) Provide seminars and individualized counseling on consumer and commercial lending in the District and in designated development areas; and
(B) Establish and maintain flexible credit terms and underwriting guidelines;
(8) Plans of the financial institution regarding the marketing of, and marketing budget for, the community development plan in the District, including plans to market the community development plan in the designated development areas as well as the types of media to be used;
(9) Plans of the financial institution to:
(A) Enter into partnerships with nonprofit and community groups, for-profit developers, District agencies, and colleges and universities and other proposed activities that promote public/private partnerships and lending programs with community-based development organizations; and
(B) Participate in other community programs that foster community development in the District;
(10) Designation of a senior lending officer responsible for implementing and overseeing the community development plan;
(11) If the determination is in connection with the acquisition of a bank, savings institution, or holding company:
(A) The status of the prior community development commitments of the financial institution to be acquired; and
(B) Plans of the acquiring entity to continue the prior commitments;
(12) Plans of a District chartered deposit-receiving institution to:
(A) Make community development loans and qualified investments;
(B) Engage in foreclosure prevention and mitigation activities, including loan modifications and reclamation of real estate properties for affordable housing;
(C) Make small business loans, including loans to minority-owned and women-owned small businesses; and
(D) Locate retail loan officers and community development loan officers in the District and to facilitate contact with these officers by listing phone numbers on the Department’s website and making their contact information widely and easily accessible.
(d) A report prepared under subsection (b) of this section shall include the assessment factors utilized to determine the financial institution’s descriptive rating, the financial institution’s descriptive rating, and the basis for the Commissioner’s determination of the financial institution’s descriptive rating.
(e) A report prepared under subsection (b) of this section shall be available to the public upon request.
(f) An informational copy of the final deposit services contract between a deposit-receiving institution and the CFO under §§ 47-351.09(e), 47- 351.10(b), and 47-351.11 shall be provided to the Commissioner and may serve as an amendment to a community development plan.
(g)(1) As a part of the deposit-receiving institution’s response to a request for proposals by the CFO to provide deposit or other financial services to the District government issued after March 11, 2015, a deposit-receiving institution shall submit its community development plan to the CFO. The CFO shall consider the community development plan, or the lack of approval by the applicable regulatory authority of the community development plan, in its evaluation of the deposit-receiving institution’s response to the request for proposals.
(2) Any community development plan submitted in the request for proposals process shall contain, at a minimum, the deposit-receiving institution’s plans for meeting the credit and financial services needs of District residents, particularly those of minority residents, low-income and moderate-income residents, elderly residents, and residents in designated development areas.
(3) As long as a contract for deposit or other financial services with the District is in effect, a deposit-receiving institution that has been awarded a deposit services contract by the District government shall submit an updated community development plan every 2 years after contracting with the District government or when there is a revision to the community development plan.
(June 9, 2001, D.C. Law 13-308, § 404, 48 DCR 3244; Mar. 11, 2015, D.C. Law 20-226, § 2(b), 62 DCR 255.)
Effect of Amendments
The 2015 amendment by D.C. Law 20-226 added (a)(3); substituted “District, in designated development areas, and to minority residents, low-income and moderate-income residents, and elderly residents” for “District and in designated development areas” in (c)(2) and (c)(3); added (c)(12); added (f) and (g); and made related changes.