(2) CONTENTS.-The report under paragraph (1) shall contain a summary of the activities carried out under this section during the preceding fiscal year, and findings and conclusions drawn from such activities. Res. 5, 107th Congress, agreed to on January 3, 2001, abolished the Committee on Banking and Financial Services and established the Committee on Financial Services, which has jurisdiction over many of the areas previously under the jurisdiction of the Committee on Banking and Financial Services. COMMUNITY INVESTMENT CORPORATION EXCERPT FROM HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992 [Public Law 102-550; 106 Stat. 3859; 42 U.S.C. 5305 note] SEC. 853. [42 U.S.C. 5305 note] COMMUNITY INVESTMENT CORPORATION DEMONSTRATION. (a) SHORT TITLE.-This section may be cited as the "Community Investment Corporation Demonstration Act". (b) COMMUNITY INVESTMENT CORPORATION DEMONSTRATION. (1) FINDINGS.-The Congress finds that (A) the Nation's urban and rural communities face critical social and economic problems arising from lack of growth; growing numbers of low-income persons and persons living in poverty; lack of employment and other opportunities to improve the quality of life of these residents; and lack of capital for business located in, or seeking to locate in these communities; (B) the future well-being of the United States and its residents depends on the restoration and maintenance of viable local economies, and will require increased public and private investment in low-income housing, business development, and economic and community development activities, and technical assistance to local organizations carrying out revitalization strategies; (C) lack of expertise and technical capacity can significantly limit the ability of residents and local institutions to effectively carry out revitalization strategies; (D) the Federal Government needs to develop new models for facilitating local revitalization activities; (E) indigenous community-based financial institutions. play a significant role in identifying and responding to community needs; and (F) institutions, such as South Shore Bank (Chicago, Illinois), Southern Development Bancorporation (Arkadelphia, Arkansas), Center for Community Self Help (Durham, North Carolina), and Community Capital Bank (Brooklyn, New York), with a primary mission of promoting community development have proven their ability to promote revitalization and are appropriate models for restoring economic stability and growth in distressed communities and neighborhoods. (2) PURPOSES.-The demonstration program carried out under this section shall (A) improve access to capital for initiatives which benefit residents and businesses in targeted geographic areas; and (B) test new models for bringing credit and investment capital to targeted geographic areas and low-income persons in such areas through the provision of assistance for capital, development services, and technical assistance. (3) DEFINITIONS.-As used in this section (A) the term "Federal financial supervisory agency" means (i) the Comptroller of the Currency with respect to national banks; (ii) the Board of Governors of the Federal Reserve System with respect to State-chartered banks which are members of the Federal Reserve System and bank holding companies; (iii) the Federal Deposit Insurance Corporation with respect to State-chartered banks and savings banks which are not members of the Federal Reserve System and the deposits of which are insured by the Federal Deposit Insurance Corporation; (iv) the National Credit Union Administration Board with respect to insured credit union associations; and (v) the Office of Thrift Supervision with respect to insured savings associations and savings and loan holding companies that are not bank holding companies; (B) the term "community investment corporation" means an eligible organization selected by the Secretary to receive assistance pursuant to this section; (C) the term "development services" means activities. that are consistent with the purposes of this section and which support and strengthen the lending and investment activities undertaken by eligible organizations including(i) the development of real estate; (ii) administrative activities associated with the extension of credit or necessary to make an investment; and (iii) marketing and management assistance; (v) other capacity building activities which enable borrowers, prospective borrowers, or entities in which eligible organizations have invested, or expect to invest, to improve the likelihood of success of their activities; (D) the term "eligible organization" means an entity(i) that is organized as (I) a depository institution holding company as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); or (II) a nonprofit organization— (aa) that is organized under State law; (bb) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or other person; (cc) complies with standards of financial accountability acceptable to the Secretary; and (dd) is affiliated with a nondepository lending institution; or is affiliated with a regulated financial institution but is not a subsidiary thereof; (ii) that has as its primary mission the revitalization of a targeted geographic area; (iii) that maintains, through significant representation on its governing board and otherwise, accountability to community residents; (iv) that has principals active in the implementation of its programs who possess significant experience in lending and the development of affordable housing, small business development, or community revitalization; (v) that directly or through a subsidiary or affiliate carries out development services; and (vi) that will match any assistance received dollarfor-dollar with non-Federal sources of funds; (E) the term "equity investment" means a capital contribution through the purchase of nonvoting common stock or through equity grants or contributions to capital reserves or surplus, subject to terms and conditions satisfactory to the Secretary; (F) the term "low-income person" means a person in a family whose income does not exceed 80 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families; (G) the term "regulated financial institution" means an insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), or an insured credit union as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)); (H) the term "Secretary" means the Secretary of Housing and Urban Development; (I) the term "targeted geographic area" means a geographically contiguous area of chronic economic distress, as measured by unemployment, growth lag, poverty, lag in growth of per capita income, extent of blight and disinvestment, fiscal distress, or other indicators deemed appropriate by the Secretary, that has been identified by an eligible organization as the area to be served by it; and (J) an entity is an "affiliate" of another entity if the first entity controls, is controlled by, or is under common control with the other entity. (4) SELECTION CRITERIA.-The Secretary shall select eligible organizations from among applications submitted to participate in the demonstration program, using selection criteria based on (A) the capacity of the eligible organizations to carry out the purposes of this section; (B) the range and comprehensiveness of lending, investment strategies, and development services to be offered by the organizations directly or through subsidiaries and affiliates thereof; (C) the types of activities to be pursued, including lending and development of small business, agriculture, industrial, commercial, or residential projects; (D) the extent of need in the targeted geographic area to be served; (E) the experience and background of the principals at each eligible organization responsible for carrying out the purposes of this section; (F) the extent to which the eligible organizations directly or through subsidiaries and affiliates has successfully implemented other revitalization activities; (G) an appropriate distribution of eligible organizations among regions of the United States; and (H) other criteria determined to be appropriate by the Secretary and consistent with the purposes of this section. (5) PROGRAM ASSISTANCE.-The Secretary shall (A) carry out, in accordance with this section, a program to improve access to capital and demonstrate the feasibility of facilitating the revitalization of targeted geographic areas by providing assistance to eligible organizations; (B) accept applications from eligible organizations; and (C) select eligible organizations to receive assistance pursuant to this section. (6) ACTIVITIES REQUIRED.-All eligible organizations receiving assistance pursuant to this section are required to engage in activities that provide access to capital for initiatives which benefit residents and businesses in targeted geographic areas. (7) CAPITAL ASSISTANCE. (A) IN GENERAL. (i) IN GENERAL.-The Secretary shall make grants and loans to eligible organizations. (ii) LOANS.-Assistance provided to a depository institution holding company that is an eligible organization as defined in paragraph (3)(D)(i)(I) shall be in the form of a loan to be repaid to the Secretary. The terms and conditions of each loan shall be determined by the Secretary based on the ability of such entity to repay, except that interest shall accrue at the current Treasury rate for obligations of comparable maturity. (iii) GRANTS OR LOANS.-Assistance provided to an eligible organization that is a nonprofit organization, as defined in paragraph (3)(D)(i)(II), may be in the form of a grant or a loan. If an eligible organization that is a nonprofit organization uses assistance that it received under this section to provide assistance to a for-profit entity, the assistance provided by the nonprofit organization must be in the form of a loan with |