I am trying to find way to qualify a loan for community development. It is a $47M construction loan to build a multi-family property (not affordable housing). This property is not located in a low-or moderate income tract nor a distressed or underserved middle-income tract but is located next to a moderate income tract but not "surrounded by LMI tracts". The property is located within a Enterprise Zone and in a redevelopment area as well as within a Transit-Oriented Development plan. The borrower has qualified to receive TIF financing from the city's Urban Renewal Authority. The complex will be located next to a new light-rail stop (the last stop in this NW area).This development is in close proximity to a major highway providing residents easy access to the mountains or downtown. I think this would definitely meet revitalize/stabilize except that it is not in an appropriate tract. Any suggestions for how I might qualify this under economic development? The borrower has revenues over $1M and I'm confirming with the lending officer what revenues they considered in making this credit decision to see if I can base this on the SBA NAICS revenue maximums; however, I am not sure they necessarily considered revenue as this is a long-term customer that we've done other loans for. A new entity was formed to hold the property (revenues = $0) but I wouldn't want to say this is a "small business" based on this new entity. Is there any way to qualify as revitalize/stabilize?

Sorry this is so long! It would be great to qualify this large loan. Thank you!

Economic Development is supposed to apply to permanent job creation, preservation, or improvement, so I don't see this qualifying under that definition since the construction jobs are not permanent.

Areas targeted by Federal, state, local or tribal government are considered as areas that are eligible for CD credit. You would enhance the likelihood of examiner acceptance if you can document that the project are financing has been approved by the governing board of the Enterprise Zone. So get that document and have a map showing the Enterprize Zone and you will have a good basis for claiming CD credit. It also appears that the nearby LMI tracts and the residents of those tracts will benefit from the TOD, so that's another argument in your favor.

Thanks, Len. I'm not sure that our borrower applied for enterprise zone credit for this project but I will check with our loan officer. So it wouldn't be enough to show the EZ map and supporting information that this area is in a redevelopment/Urban Renewal area as well as discuss more about the benefits of the TOD project?

The Q&A's state that a copy of the Zone's Board minutes approving the project as consistent with the plans to develop the EZone are sufficient. See quote below from Q&A:

§ __.12(g)(4)(i) Activities that revitalize or stabilize low- or moderate-income geographies
Examiners will presume that an activity revitalizes or stabilizes a low- or moderate-income geography if the activity has been approved by the governing board of an Enterprise Community or Empowerment Zone (designated pursuant to 26 U.S.C.
§ 1391) and is consistent with the board’s strategic plan

I am aware of this Q & A; however, the project itself is not located in a LMI or underserved census tract. Could this still be qualified as revitalization/stabilization if the project was approved by the Enterprise Zone? Is it enough that there are some LMI tracts in the area and that this is in a TOD project area as well? The borrower was approved for TIF credit also through an Urban Renewal Authority. I think in the past our examiners disallowed a similar argument because the project itself was not located in a LMI or underserved tract regardless of benefitting any surrounding LMI tracts. I just want to "dot my i's and cross my t's" on this loan. Thanks for your input!

§ __.12(g) – 2: Must a community development activity occur inside a low- or moderate-income area, designated disaster area, or underserved or distressed nonmetropolitan middle-income area in order for an institution to receive CRA consideration for the activity?

A2. No. Community development includes . . . Activities that stabilize or revitalize particular low- or moderate-income areas, designated disaster areas, or underserved or distressed nonmetropolitan middle-income areas (including by creating, retaining, or improving jobs for low- or moderate-income persons) also qualify as community development, even if the activities are not located in these areas (emphasis added). One example is financing a supermarket that serves as an anchor store in a small strip mall located at the edge of a middle-income area if the mall stabilizes the adjacent low-income community by providing needed shopping services that are not otherwise available in the low-income