Community development investments are designed to create new opportunities--primarily related to affordable housing, small businesses, and jobs--that specifically benefit lower-income neighborhoods and populations.

Such efforts are typically conducted through community development corporations (CDCs) and other organizations whose primary purpose is to help meet the credit, housing, and economic development needs of low- and moderate-income communities. Because CDCs are mission-driven organizations created to promote community revitalization, they are often well positioned to engage in development activities in the absence of private investment. Great diversity exists in CDC ownership affiliations, ranging from banks to faith-based entities.

This web page provides guidance on Federal Reserve policies and guidelines governing bank investments for community development. Groups interested in understanding the type of community development investment that financial institutions regulated by the Federal Reserve System can make will find links to sites that describe the steps required to pursue such investments.

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Last Update: May 12, 2014