The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation announced a new proposed rule for the Community Reinvestment Act (CRA). The CRA requires the agencies to assess a bank’s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operations. According to a recent study by CohnReznik, an estimated 80 percent of Housing Credit investment is generated by banks motivated by CRA investments.
The new rule modifies banking categories according to new asset levels. These changes also modify the testing requirements. Some of these changes could reduce incentives for Housing Credit development investments. For example, banks with assets between $1.649B and $10 B would no longer be subject to an investment test. Instead, they would receive more flexible supervision. The rulemaking would also streamline other requirements and increase the clarity, transparency, and objectivity associated with CRA evaluations for banks of all sizes.
See this list of banks from the Federal Reserve for reference of bank size.
Also included in these changes is increased eligibility for Naturally Occurring Affordable Housing (NOAH) as affordable housing investments. If banks are allowed to increase investments in NOAH to satisfy their CRA requirements, there could be less motivation for investments in new affordable housing developments — reducing the overall availability of safe, high-quality affordable housing.
While these new rules fundamentally would keep the key elements of the regulatory framework that has been in place since 1995, its changes may have widespread impacts. CRA rules were last modified on October 24, 2023.
The rule opened for comment on August 12, 2026 and will remain open for 60 days.