I am considering establishing a CRA Investment goal of 5% of Tier 1 capital.

This would be "total" CRA Investment including; contributions, MBS, LIHTC equity funds, etc, that have occured between examination cycles,or as in the case of LIHTC are still outstanding.

I am curious if other institutions have established a similar CRA Investment goal methodology?

How did you come up with 5%?

At our last examination, we received a Low Satisfactory on the Investment Test and at that time, we were at about 3% of Tier 1. I understand the qualitative aspects of the Investment Test rating; I am jut trying to get some ballpark info on the quantitative side.

Have you done a comparison of your bank to other banks in your AA to see where they stood?
We looked at them as a percentage of assets and earnings to set our goals