PART 1290—COMMUNITY SUPPORT REQUIREMENTS Authority: 12 U.S.C. 1430(g). Source: 80 FR 30342, May 28, 2015, unless otherwise noted. § 1290.1 Definitions. For purposes of this part: Advisory Council CDFI Fund Community development financial institution or CDFI et seq. CRA et seq. CRA evaluation Displaced homemaker First-time homebuyer (1) An individual and his or her spouse, if any, who has had no present ownership interest in a principal residence during the three-year period prior to purchase of a principal residence. (2) A displaced homemaker who, except for owning a residence with his or her spouse or residing in a residence owned by his or her spouse, meets the requirements of paragraph (1) of this definition. (3) A single parent who, except for owning a residence with his or her spouse or residing in a residence owned by his or her spouse, meets the requirements of paragraph (1) of this definition. Long-term advance Restriction on access to long-term advances Single parent Targeted community lending [80 FR 30342, May 28, 2015, as amended at 81 FR 76300, Nov. 2, 2016] § 1290.2 Community support requirements. (a) Bank notice to members. (b) Community Support Statement submission requirements. (c) Notice to public. By the Banks. (2) By FHFA. Federal Register (3) Consideration of comments. (d) Non-Depository Community Development Financial Institutions. (e) New Bank members. (f) Designation of submission and notice dates. [83 FR 52117, Oct. 16, 2018] § 1290.3 Community support standards. (a) In general. (b) CRA standard. (c) First-time homebuyer standard. (1) The member is subject to the requirements of the CRA and the rating in the member's most recent CRA evaluation is “Outstanding”; (2) The member has an established record of lending to first-time homebuyers; (3) The member has a program whereby it actively seeks to lend or support lending to first-time homebuyers, including, but not limited to, the following— (i) Providing special credit products with flexible underwriting standards for first-time homebuyers; (ii) Participating in Federal, State, or local government, or nationwide homeownership lending programs that benefit, serve, or are targeted to, first-time homebuyers; or (iii) Participating in loan consortia for first-time homebuyer loans or loans that serve predominantly low- or moderate-income borrowers; (4) The member has a program whereby it actively seeks to assist or support organizations that assist potential first-time homebuyers to qualify for mortgage loans, including, but not limited to, the following— (i) Providing, participating in, or supporting special counseling programs or other homeownership education activities that benefit, serve, or are targeted to, first-time homebuyers; (ii) Providing or participating in marketing plans and related outreach programs targeted to first-time homebuyers; (iii) Providing technical assistance or financial support to organizations that assist first-time homebuyers; (iv) Participating with or financially supporting community or nonprofit groups that assist first-time homebuyers; (v) Holding investments or making loans that support first-time homebuyer programs; (vi) Holding mortgage-backed securities that may include a pool of loans to low- and moderate-income homebuyers; (vii) Participating or investing in service organizations that assist credit unions in providing mortgages to first-time homebuyers or low- or moderate-income households; or (viii) Participating in a Bank Affordable Housing Program or other Bank targeted community investment or development program; (5) The member engages in other activities, not covered by paragraphs (c)(1) through (c)(4) of this section, that demonstrate to FHFA's satisfaction the member's support for first-time homebuyers financing; or (6) FHFA determines that mitigating factors affect the member's ability to engage in activities to assist first-time or potential first-time homebuyers as described in paragraphs (c)(1) through (c)(5) of this section. § 1290.4 FHFA review and decision on Community Support Statements. (a) Review by FHFA. (b) Complete Community Support Statements. (c) Decision on Community Support Statements. § 1290.5 Probation or restriction on member access to long-term Bank advances. (a) Probation. (b) Restriction. (1) The member failed to sign its Community Support Statement submitted to FHFA pursuant to § 1290.2(b), failed to include its CRA rating in its Community Support Statement submitted to FHFA if subject to the CRA, or failed to submit a Community Support Statement at all to FHFA; (2) The member is subject to the CRA and its most recent CRA rating was “Substantial Noncompliance”; (3) The member is subject to the CRA, its most recent CRA rating was “Needs to Improve,” and its second-most recent CRA rating was “Needs to Improve”; (4) The member is subject to the CRA, its most recent CRA rating was “Needs to Improve,” its second-most recent CRA rating was “Substantial Noncompliance,” and its third-most recent CRA rating was “Needs to Improve” or “Substantial Noncompliance”; or (5) The member has not demonstrated compliance with the first-time homebuyer standard. (c) Effective dates. Probation. (2) Restriction. (d) Removing a restriction. (2) FHFA may remove a restriction on a member's access to long-term advances imposed under this section if FHFA determines that the member subsequently has complied with the requirements of this part. A member may submit a written request to FHFA to remove a restriction on access to long-term advances under this paragraph (d)(2). The written request must state with specificity how the member has complied with the requirements of this part. FHFA will consider each written request within 30 calendar days of receipt. (3) FHFA may remove a restriction on a member's access to long-term advances imposed under this section and place the member on probation if the member is subject to the CRA, its most recent CRA rating was “Needs to Improve,” its second-most recent CRA rating was “Substantial Noncompliance,” and either the member has not received any other CRA rating or its third-most recent CRA rating was “Outstanding” or “Satisfactory.” (4) FHFA will provide written notice to the member's Bank of any determination to remove a restriction under this paragraph (d). The Bank shall promptly notify the member of FHFA's determination to remove a restriction. FHFA's determination shall take effect on the date the notice is sent by FHFA to the Bank. (e) Bank Affordable Housing Programs and other Bank Community Investment Cash Advance Programs. [80 FR 30342, May 28, 2015, as amended at 83 FR 52118, Oct. 16, 2018] § 1290.6 Bank community support programs. (a) Requirement. (1) Provide technical assistance to members; (2) Promote and expand affordable housing finance; (3) Identify opportunities for members to expand financial and credit services in underserved neighborhoods and communities; (4) Encourage members to increase their targeted community lending and affordable housing finance activities by providing incentives such as awards or technical assistance to nonprofit housing developers or community groups with outstanding records of participation in targeted community lending or affordable housing finance partnerships with members; and (5) Include an annual Targeted Community Lending Plan approved by the Bank's board of directors and subject to modification. The Bank's board of directors shall not delegate to a committee of the board, Bank officers, or other Bank employees the responsibility to adopt or amend the Targeted Community Lending Plan. The Targeted Community Lending Plan shall: (i) Reflect market research conducted in the Bank's district; (ii) Describe how the Bank will address identified credit needs and market opportunities in the Bank's district for targeted community lending; (iii) Be developed in consultation with (and may only be amended after consultation with) its Advisory Council and with members, housing associates, and public and private economic development organizations in the Bank's district; (iv) Establish quantitative targeted community lending performance goals; (v) Identify and assess significant affordable housing needs in its district that will be addressed through its Affordable Housing Program under 12 CFR part 1291, reflecting market research conducted or obtained by the Bank; and (vi) For any Targeted Funds established by the Bank under its Affordable Housing Program, specify, from among the identified affordable housing needs, the particular affordable housing needs the Bank plans to address through such Targeted Funds. (b) Notice. (1) Identifying CICA programs and other Bank activities that may provide opportunities for a member to meet the community support requirements and to engage in targeted community lending; and (2) Summarizing targeted community lending and affordable housing activities undertaken by members, housing associates, nonprofit housing developers, community groups, or other entities in the Bank's district that may provide opportunities for a member to meet the community support requirements and to engage in targeted community lending. (c) Public access. [80 FR 30342, May 28, 2015, as amended at 83 FR 61231, Nov. 28, 2018; 87 FR 32969, June 1, 2022] § 1290.7 Bank Advisory Council Annual Reports. Each Annual Report submitted by a Bank's Advisory Council to FHFA pursuant to section 10(j)(11) of the Bank Act (12 U.S.C. 1430(j)(11)) must include an analysis of the Bank's targeted community lending and affordable housing activities. § 1290.8 Compliance dates. From December 28, 2018 to December 31, 2020, a Bank shall comply with either prior part 1290 (in 12 CFR part 1290 (January 1, 2018 edition)) or this part 1290. On and after January 1, 2021, a Bank shall comply with this part 1290. [83 FR 61231, Nov. 28, 2018]