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#2213430 - 05/13/19 03:29 PM CRA Newbie Confused: Distressed/Underserved change
ScoutLaRue Offline
Member
Joined: Jul 2016
Posts: 72
Hello! When I reviewed the list of Distressed or Underserved Nonmetropolitan Middle-Income Geographies report released June 2018 my tracts that were listed previously as Distressed/Underserved are no longer designated (and shows which in previous designation column)...however then when I pull a GEOCODE Census Report for a location in one of those tracts, in the Summary Census Demographic Information it still lists a YES next to Underserved Distress Tract....I am confused...is there just a lag when pulling the geocoded report?

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#2213613 - 05/15/19 01:36 PM Re: CRA Newbie Confused: Distressed/Underserved change ScoutLaRue
Tennismom Offline
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Tennismom
Joined: Jan 2004
Posts: 762
Yes

Per the Joint Press Release: https://www.ffiec.gov/press/pr062518.htm

"....the agencies apply a one-year lag period for geographies that were listed in 2017 but are no longer designated as distressed or underserved in the current release. Revitalization or stabilization activities in these geographies are eligible to receive CRA consideration under the community development definition for 12 months after publication of the current list."

If you use the FFIEC geocoding tool https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx, it will indicate that the geography is distressed/underserved during the following 12 months after release (2017), even if it is not designated as such in the current year (2018).

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#2213782 - 05/16/19 04:03 PM Re: CRA Newbie Confused: Distressed/Underserved change ScoutLaRue
ScoutLaRue Offline
Member
Joined: Jul 2016
Posts: 72
Thanks Tennismom.

So can I trust that the other information on the geocoding is correct, as far as the Low or Moderate income designation? Where else can I cross check this?
The county was designated distressed prior to the June 2018 list was released..

And what exactly does this mean for investments, loans, etc in the area. Will it be impossible to claim cra for revitalization or stabilization in these communities?

Thank you for your help!

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#2215952 - 06/18/19 06:32 PM Re: CRA Newbie Confused: Distressed/Underserved change ScoutLaRue
ScoutLaRue Offline
Member
Joined: Jul 2016
Posts: 72
bump---I am still confused on this part of it:

What exactly does this mean for investments, loans, etc in the area since it is no longer distressed/underserved. Will it be impossible to claim cra for revitalization or stabilization in these communities--even though there are still LMI tracts?

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#2216562 - 06/26/19 07:44 PM Re: CRA Newbie Confused: Distressed/Underserved change ScoutLaRue
mrogersfib Offline
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Joined: Aug 2018
Posts: 116
If a tract was previously distressed or under-served you can still treat it as such up to 12 months from the previous release of FFIEC data. So if a tract is now upper-income, but was previously a distressed or under-served tract within the last 12 months you can still qualify the loan based on that information. If it is now an LMI tract you can still claim credit for the loan, investment, or service because the activity is about responding to the community credit needs.

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