In the past we have received credit for any multi-family properties in a low or moderate area, but now I learn we still need to provide documentation the properties target LMI. Do we need to prove both? Thanks for you help!

If by "credit" you mean "affordable housing" you need to substantiate the rent is "affordable" and the beneficiaries are mostly low or moderate-income tenants. If you don't have the rent roll, proxies can be used to establish the likelihood that the occupants are LMI people. All this has to be documented or you will lose CD credit.

At a recent conference (October 08), regulators also stated they are also looking for "intent" of the borrower to provide LMI housing and intent to continue with the property as LMI housing; they want documentation of this intent. AND, some want to see this information in the loan write up. They just make it harder and harder.

Since we followed what the last examiner instructed us to look at to list them as community development loans, I need to get documentation they have low rent rolls or we will be cited for reporting them on the LAR? What happened to community development for low and moderate income areas?

You don't get "cited" for reporting them if they do not allow as CD loans. They simply do not "give credit".

I was just going to add to my post, when I saw your new one, that I would go ahead with the best I had and make my case. The worst that happens is they do not count that loan.

One difficulty with CRA is individual examiners have wide latitude in what they allow. So get the best data that you can and present it for consideration.

The "intent" is to prevent getting credit for loans where the owner has no intention of maintaining low/moderate income housing but happens, for example, to have purchased a building which has low rents but is going to turn around and increase them.

If the building is in a redevelopment or revitalization area and the loan funded improvements, you can also add that information to support CD credit, regardless of rents.

If you feel the loan qualifies, provide the best documentation you have to support your case. As long as you are not presenting air on a lot of loans, wasting time, there is no downside.

If you read the Q & A's you will find that every community development activity must have as its "primary purpose" community development. The Q & A's go on to state that "primary purpose" can be established in one of two ways.
First, if a majority of the loan dollars or beneficiaries qualify under one of the definitions of community development under the Regulation, it is prima facia evidence that the loan passes the primary purpose test.
But if your loan doesn't have more than 50% of its dollars applied to a community development activity such as affordable housing you can still get CD credit if you can show 3 things: (1) the intent of the borrower as evidenced in a loan application, prospectus or other written document is community development (e.g., affordable housing), (2) the financing is structured to attain the community development purpose and (3) the activity is reasonably certain to achieve the intended CD purpose. So, in the second instance you need something in writing from the borrower explicitly stating the CD intent of the activity. But you don't necessarily need it for the first method of fulfilling "primary purpose". See the Q & A's for more details.

If the property is actually providing affordable housing to the tenants, many times there is a written agreement with the city and you can get a copy to evidence your claim.

Not that this necessarily applies in this case, it's just something else to think about when trying to document your CD loans.

I deal with both the FED and OCC and as long as you can prove the rents are at or below the median rental rates for the low or mod tracts you will get credit ( affordable housing). I found a website called Rentometer.com which will give you the median and a sample of other properties in the area as a comparison. The site will actually give you a map with points of the properties.

You can also take the tact that you are helping to stabalize a low or moderate tract by maintaining the median rental rates in the area.

You also might want to check and see if they received LIHTC (low income housing tax credits) for the properties. If so, then they are required to keep a certain number of the units for LMI renters. If they are in compliance then they should have whatever documentation they provide to the state that would prove your status.