How can I determine what is a qualified investment under CRA? During our exam they stated that we had some qualified investments that we didn't realize qualified so I would like to give our CFO a list of what would qualify so that he can be looking for those types of investments.

A qualified investment is a lawful investment, deposit, membership share, or grant that has as its primary purpose community development.

Community development means: (1) affordable housing (including
multifamily rental housing) for lowor moderate-income individuals; (2) community services targeted to low- or moderate-income individuals; (3) activities that promote economic development by financing businesses or farms that meet the size eligibility standards of the Small Business Administration’s Development Company or Small Business Investment Company programs (13 CFR 121.301) or have gross annual revenues of $1 million or less; or (4) activities that revitalize or stabilize low- or moderate-income geographies.

So, any investment that meets at least one of these hooks could be a qualified investment.

Mortgage-Backed Securities
Low-Income Housing Tax Credits (LIHTC)
New Markets Tax Credits (NMTC)
State/Municipal Bonds
Small Business Investment Companies (SBICs)
Loan Funds
CDFIs
Community Development Venture Capital & Equity Equivalent Investments
Charitable Contributions

I have a matrix with investment guidance on each of these along with Data Collection recommendations.

If you are interested, PM me your email address.

You can also click here for the March 11, 2010 Q& A on CRA: Federal Register page