This chapter may be cited as the "Community Development Act of 2000".
(June 9, 2001, D.C. Law 13-308, § 401, 48 DCR 3244.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
Law 13-308, the "21st Century Financial Modernization Act of 2000," was introduced in Council and assigned Bill No. 13-867, which was referred to the Committee on Economic Development. The Bill was adopted on first and second readings on November 8, 2000, and December 5, 2000, respectively. Signed by the Mayor on January 26, 2001, it was assigned Act No. 13-597 and transmitted to both Houses of Congress for its review. D.C. Law 13-308 became effective on June 9, 2001.
For the purposes of this chapter, the term:
(1) "Community development" means:
(A) Affordable housing (including single-family and multi-family rental housing and homeownership) for low-income or moderate-income individuals and families and related retail and community facilities development;
(B) Community services targeted to low-income or moderate-income individuals and families;
(C) Activities that promote economic development by financing businesses that meet the size eligibility standards of the Small Business Administration Certified Development Company Program or the Small Business Administration Small Business Investment Company Program or have gross annual revenues of $1 million or less;
(D) Activities that revitalize or stabilize low-income or moderate-income areas; or
(E) Activities that seek to prevent defaults or foreclosures on loans made for the purposes described in subparagraphs (A) and (C) of this paragraph.
(2) "Community Reinvestment Act" shall mean the Community Reinvestment Act of 1977, approved October 12, 1977 (91 Stat. 1147; 12 U.S.C. § 2901 et seq.).
(3) "Commissioner" shall have the same meaning as set forth in § 26- 551.02(7).
(4) "Department" shall have the same meaning as set forth in § 26-551.02(9).
(5) "Designated development areas" means any of the following located in the District:
(A) A low-income or moderate-income area;
(B) An area designated as underserved or economically disadvantaged by the Commissioner; or
(C) A commercial, industrial, residential, or other economic development project which the Commissioner determines will benefit the District.
(6) "Federal financial supervisory agency" means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision and any successor to any of the foregoing agencies, as applicable to the specific type of bank.
(7) "Financial institution" shall have the same meaning as in § 26- 551.02(18).
(8) "Low-income" shall have the same meaning as set forth in § 26- 1401.02(21).
(9) "Low-income area" means a census tract or block numbering area in which the median individual or family income does not exceed 65% of the median income of the Washington, D.C., metropolitan area as determined by the statistics of the United States Department of Housing and Urban Development.
(10) "Moderate-income" shall have the same meaning as set forth in § 26- 1401.02(22).
(11) "Moderate-income area" means a census tract or block numbering area in which the median individual or family income does not exceed 80% of the median income for the Washington, D.C. metropolitan area as determined by the statistics of the United States Department of Housing and Urban Development.
(12) "Minority group" means African-Americans, Hispanic-Americans, Latinos, Asian-Americans, Pacific Islander-Americans, American Indians, Native Americans, or Alaskan-Natives.
(13) "Minority-owned business" means a business in which:
(A) At least 51% ownership and control is held by individuals who are members of a minority group;
(B) At least 51% of the individuals that make policy decisions and actively manage day-to-day operations are members of a minority group; and
(C) More than 50% of the net profit or loss accrues to owners who are members of a minority group.
(14) "Mortgage loan" means a loan that is secured by residential real property.
(15) "Small business loan" means a small business loan as defined in Federal Reserve System Regulation BB, 12 C.F.R. Part 228.
(16) "Women-owned business" means a business in which:
(A) At least 51% of the ownership and control is held by a woman or women;
(B) A woman or women constitute at least 51% of the individuals that make policy decisions and actively manage day-to-day operations; and
(C) More than 50% of the net profit or loss accrues to a woman owner or women owners.
(June 9, 2001, D.C. Law 13-308, § 402, 48 DCR 3244; June 11, 2004, D.C. Law 15-166, § 2(k), 51 DCR 2817.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 15-166 rewrote pars. (3) and (4) which had read as follows:
"(3) 'Commissioner' means the Commissioner of the Department of Banking and Financial Institutions.
"(4) 'Department' means the Department of Banking and Financial Institutions."
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2(k) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
Legislative History of Laws
For Law 13-308, see notes following § 26-431.01.
For Law 15-166, see notes following § 26-131.02.
A financial institution shall have a continuing and affirmative obligation to meet the credit needs of its local communities, including low-income and moderate-income area, consistent with the safe and sound operation of the financial institution.
(June 9, 2001, D.C. Law 13-308, § 403, 48 DCR 3244.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 13-308, see notes following § 26-431.01.
(a)(1) A financial institution shall submit a community development plan stating the financial institution's plans for meeting the credit and financial services needs of the residents of the District, particularly in designated development areas. A financial institution shall submit a community development plan annually, when there is a revision to the plan, and at such times as the Commissioner, by rule, may require.
(2) The community development plan submitted under paragraph (1) of this subsection shall commit the financial institution and its subsidiaries to:
(A) Provide monitoring reports on forms designated by, and at intervals specified by, the Commissioner;
(B) Provide additional information as requested by the Commissioner to monitor compliance;
(C) Permit examinations of the records of the financial institution to the extent considered necessary by the Commissioner to monitor and enforce compliance with the community development plan;
(D) Participate in meetings on the community development performance of the financial institution at times designated by the Commissioner; and
(E) Provide that the commitment shall be a binding agreement on the financial institution and the financial institution's successors and assignees.
(b) The Commissioner shall assess the record of a financial institution, determine whether the financial institution is satisfying its continuing and affirmative obligation to meet the credit needs of its local communities, including low-income and moderate-income areas, consistent with the safe and sound operation of the financial institution, and shall prepare a report on the assessment and determination:
(1) In connection with an application for a certificate of authority under the District of Columbia Banking Code;
(2) In connection with the acquisition of a bank, savings institution, or holding company located in the District under the Regional Interstate Banking Act of 1985; and
(3) As required under § 26-431.05.
(c) In determining whether the financial institution is satisfying its continuing and affirmative obligation to meet the credit needs of its local communities, including low-income and moderate-income neighborhoods, the Commission shall consider:
(1) The financial institution's Community Reinvestment Act rating and prior evaluations and any community development evaluations from the 3 prior years;
(2) Plans of the financial institution to make mortgage loans in the District and in designated development areas;
(3) Plans of the financial institution to make consumer loans, other than mortgage loans, in the District and in designated development areas;
(4) Plans of the financial institution to:
(A) Open or close branches in the District and in designated development areas;
(B) Provide basic deposit and checking accounts, such as lifeline accounts, and electronic transfer accounts designed for low-income persons; and
(C) Provide check-cashing services to non-account holders;
(5) Plans of the financial institution to:
(A) Procure services or supplies from District businesses, including minority-owned and women-owned District businesses; and
(B) Hire District residents;
(6) Plans of the financial institution to seek and place District residents, including women and members of minority groups, on the board of directors of the financial institution, subsidiaries or affiliates of the financial institution, and the holding company of the financial institution;
(7) Plans of the financial institution to:
(A) Provide seminars and individualized counseling on consumer and commercial lending in the District and in designated development areas; and
(B) Establish and maintain flexible credit terms and underwriting guidelines;
(8) Plans of the financial institution regarding the marketing of, and marketing budget for, the community development plan in the District, including plans to market the community development plan in the designated development areas as well as the types of media to be used;
(9) Plans of the financial institution to:
(A) Enter into partnerships with nonprofit and community groups, for-profit developers, District agencies, and colleges and universities and other proposed activities that promote public/private partnerships and lending programs with community-based development organizations; and
(B) Participate in other community programs that foster community development in the District;
(10) Designation of a senior lending officer responsible for implementing and overseeing the community development plan; and
(11) If the determination is in connection with the acquisition of a bank, savings institution, or holding company:
(A) The status of the prior community development commitments of the financial institution to be acquired; and
(B) Plans of the acquiring entity to continue the prior commitments.
(d) A report prepared under subsection (b) of this section shall include the assessment factors utilized to determine the financial institution's descriptive rating, the financial institution's descriptive rating, and the basis for the Commissioner's determination of the financial institution's descriptive rating.
(e) A report prepared under subsection (b) of this section shall be available to the public upon request.
(June 9, 2001, D.C. Law 13-308, § 404, 48 DCR 3244.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 13-308, see notes following § 26-431.01.
(a) The Commissioner shall monitor whether a financial institution is satisfying its continuing and affirmative obligation to meet the credit needs of its local communities, including low-income and moderate-income areas, consistent with safe and sound operation of the financial institution.
(b) The Commissioner shall issue an annual report to the Mayor and the Council on each financial institution's compliance with its community development plan. In the annual report, the Commissioner shall include an assessment of the community reinvestment performance of each financial institution using the applicable methodology set forth in the Community Reinvestment Act and shall include the rating for each financial institution under the system developed under § 26-431.06.
(June 9, 2001, D.C. Law 13-308, § 405, 48 DCR 3244.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 13-308, see notes following § 26-431.01.
(a) The Commissioner shall establish, by regulation, a system to rate the community development performance of a financial institution. The system shall include the following rating categories:
(1) Outstanding record of performance in meeting the credit needs of its local communities;
(2) Highly satisfactory record of performance in meeting the credit needs of its local communities;
(3) Satisfactory record of performance in meeting the credit needs of its local communities;
(4) Needs to improve record of performance in meeting the credit needs of its local communities; and
(5) Substantial noncompliance in meeting the credit needs of its local communities.
(b) The Commissioner shall consider the compliance of the financial institution with the community development plan submitted under § 26-431.03 in assessing and rating the community development performance of the financial institution.
(June 9, 2001, D.C. Law 13-308, § 406, 48 DCR 3244.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 13-308, see notes following § 26-431.01.
(a) The Commissioner may enter into cooperative agreements with financial institutions regulators in jurisdictions other than the District, including federal regulators, for the coordination of, or joint participation, in a community performance evaluation and the amount and assessment of fees for the examination or actions related to the examination.
(b) The Commissioner may accept evaluations performed under the agreements described in subsection (a) of this section.
(June 9, 2001, D.C. Law 13-308, § 407, 48 DCR 3244.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 13-308, see notes following § 26-431.01.
The Commissioner may promulgate rules and regulations to implement the provisions of this chapter pursuant to subchapter I to Chapter 5 of Title 2.
(June 9, 2001, D.C. Law 13-308, § 408, 48 DCR 3244.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 13-308, see notes following § 26-431.01.
