Federal Agencies Unveil Distressed Communities List, No Defendant F…

Federal bank regulatory agencies have unveiled the latest list of distressed or underserved nonmetropolitan middle-income geographies, aiming to direct much-needed attention and resources towards these areas. The Community Reinvestment Act (CRA) mandates that banks assist in meeting the credit needs of their local communities, including low- and moderate-income neighborhoods, through safe and sound practices.

This year’s list identifies census tracts where revitalization or stabilization activities are eligible for CRA consideration due to factors such as high unemployment rates, widespread poverty, and shifting population dynamics. These designations reflect the agencies’ ongoing efforts to support local economic recovery.

Under the community development definition of the CRA, revitalization or stabilization activities in these designated geographies will be eligible for consideration for a full year following the publication of this list. The agencies have also applied a one-year lag period for those areas previously designated as distressed or underserved but no longer meeting the criteria in the current list.

The 2023 List of Distressed or Underserved Nonmetropolitan Middle-Income Geographies is now available for review, providing valuable insights into the economic challenges faced by many communities across the country. This comprehensive resource will assist banks and other financial institutions in identifying opportunities to support community development initiatives.

For more information on this year’s list and the criteria used for designation, visit the official website.

The agencies involved in compiling this list include the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency. For further inquiries, please contact LaJuan Williams-Young at (703) 470-0201.

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