CRA and Rural Development

CRA has historically been oriented toward urban issues. The design of the program, such as using census tracts to measure income levels, has the effect of excluding low- and moderate-income needs in rural areas. The agencies have proposed a revision to the definition of community development that would include affordable housing in undeserved rural areas or for individuals in disaster areas. The definition would also include activities to revitalize or stabilize undeserved rural areas or designated disaster areas. The open issue is how to define rural areas. One approach would be to borrow definitions from the USDA programs.

Copyright © 2005 Compliance Action. Originally appeared in Compliance Action, Vol. 9, No. 3, 3/05