Community and Economic Development Entities, Community Development Projects, and Other Public Welfare Investments

Interim final rule with request for comment. This interim final rule makes the following specific revisions to part 24 in order to implement the statutory changes to the public welfare test. Definition of ``Community and Economic Development Entity'' (CEDE) (Sec. 24.2(c)) The interim final rule amends the definition of a CEDE in Sec. 24.2(c) to implement the HERA change to the public welfare test. The revised paragraph (c) defines a CEDE as ``an entity that makes investments or conducts activities that primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a governmental entity for redevelopment, or would receive consideration as ``qualified investments'' under 12 CFR 25.23. ''Removing the Definition of ``Benefiting Primarily Low- and Moderate-Income Areas or Individuals'' (Sec. 24.2(g)) As indicated above, the FSRRA authorized a national bank and its subsidiaries to make investments that promote the public welfare by ``benefiting primarily'' low- and moderate-income areas or individuals. OCC's rule implementing the FSRRA added a definition for ``benefiting primarily low and moderate-income areas or individuals.'' The HERA revision removed the ``benefiting primarily'' language, thus, this definition is no longer needed and is removed by the interim final rule. Public Welfare Investments (Sec. 24.3) The interim final rule revises Sec. 24.3, which contains the authorization to make investments pursuant to section 24(Eleventh), to conform to the changes made by the HERA. Examples of Qualifying Public Welfare Investments (Sec. 24.6) Section 24.6 contains examples of qualifying public welfare investments. The interim final rule revises the introductory language in Sec. 24.6 to reflect the changes made by section 2503 of the HERA. The interim final rule also adds back, where appropriate, references to investments in ``targeted redevelopment areas.'' These references had been removed by the FSRRA implementing regulation. Revision to Appendix 1 to Part 24, the CD-1 National Bank Community Development (Part 24) Investments Form The interim final rule also revises Appendix 1 to part 24, the CD-1 National Bank Community Development (Part 24) Investments Form, to reflect the changes to the regulation.

Reconsideration of Waivers Granted to and Alternative Requirements for CDBG Disaster Recovery

This Notice reconsiders and generally affirms the waivers made under the three ``common'' Notices governing grant funds for Community Development Block Grant (CDBG) disaster recovery grants for the purpose of assisting in the recovery in the most impacted and distressed areas related to the consequences of Hurricanes Katrina, Rita, and Wilma in the Gulf of Mexico in 2005. These prior notices were published in the Federal Register on February 13, 2006, October 30, 2006, and August 24, 2007. The Notice published today addresses the purpose and use of these funds, while highlighting unique components of the three notices and noting any changes made by HUD as the result of the required reconsideration of the waivers. For the most part, HUD is repeating or restating the original explanatory text so that grantees and program administrators may continue to have the explanation of a changed requirement and the requirement itself in a single document.