Hello.

When a bank buys an affordable property and rents it out, does the bank get credit for each year the bank owns the property or is the credit given only in the year it was purchased?

Along the same lines...if a bank purchased mutual funds that invests in mortgage-backed securities, is credit given only in the year they were purchased or every year the bank holds the securities?

Thank you.

In this case the price of the property (affordable) has no bearing. If the property is rented to a verified Low or Moderate Income Borrower? Then IMO you could take Community Development credit each year.

Depending on how its structured it may qualify as a CRA Investment.But not sure we have enough information.

You would have to support that the MBSs meet the qualifications of a CRA investment.

Thank you.