National banks may make investments that are primarily designed to promote the public welfare under the investment authority in 12 USC 24 (Eleventh) and the implementing regulation, 12 CFR 24. This authority allows banks to make investments that primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a government entity for redevelopment, or if the investment would receive consideration under 12 CFR 25.23 (the Community Reinvestment Act regulation) as a "qualified investment." Examples of these investments include supporting affordable housing and other real estate development, providing equity for start-up and small business expansion, and revitalizing or stabilizing a government-designated area (see the Public Welfare Investments Fact Sheet (PDF) for details).

Federal savings associations may make similar public welfare investments under 12 CFR 560.36.

If you need additional assistance, please call the Community Affairs Department at (202) 649-6420 or contact your District Community Affairs Officer.

Public Welfare Investments Authority and Regulation

• 12 USC 24 (Eleventh)
• 12 CFR 24 Regulation
• OCC 2009-14
• CD-1 Investment Submission Form for 12 CFR 24
• Investments Requiring Prior OCC Approval Under 12 CFR 24

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Part 24 Procedures, Guides and Publications Index

• CD-1 Investment Submission Form for 12 CFR 24
• Common 12 CFR 24 Questions and Answers
• Compendium of National Bank Public Welfare Investments (1997 to 2011)
• Investments Requiring Prior OCC Approval Under 12 CFR 24
• National Bank Public Welfare Investment "At - A - Glance" Charts Listing Investments by Year
• Community Development Investment Precedent Letters
• Public Welfare Investments Publications
• Quick Reference Guide to Public Welfare Investments
• Regulation W Special Analysis: Impact on Community Development Corporations

Common 12 CFR 24 Questions and Answers are listed here to provide guidance on national bank investments using the public welfare authority or other appropriate national bank authority.

• After-the-Fact Notification
• Calculating Aggregate Outstanding Investments When Determining 12 CFR 24 Investment Limits
• Calculating Capital and Surplus When Determining 12 CFR 24 Investment Limits
• CRA Regulation and Public Welfare Investments
• Direct Versus Indirect Investments in CEDEs
• Formation of Subsidiary CDCs
• Government Targeted Areas
• Legal Authority for Community Development Investments
• Legal Authority for Investments in Subsidiary Community Development Entities and New Markets Tax Credits
• Legal Lending Limits and Public Welfare Investments
• Maintaining Investment Files
• Minority- and Women-Owned Banks and Thrifts
• Requesting an Increase in 12 CFR 24 Investment Limits

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Compendium of National Bank Public Welfare Investments (1997 to 2011)  is an alphabetic listing of investments made using the public welfare investment authority of 12 CFR 24.

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Investments Requiring Prior OCC Approval Under 12 CFR 24 (PDF)
OCC publishes this list of investments which have been determined to be inappropriate for banks' self-certification.

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National Bank Public Welfare Investment "At - A - Glance" Charts  lists national bank investments made under the 12 CFR 24 authority.

• 2nd Quarter 2012 (April 1 - June 30, 2012) (PDF) and Excel Spreadsheet
• 1st Quarter 2012 (January 1 - March 31, 2011) (PDF) and Excel Spreadsheet
• Annual 2011 (January 1, 2011 - December 31, 2011) (PDF) and Excel Spreadsheet
• Annual 2010 (January 1, 2010 - December 31, 2010) (PDF) and Excel Spreadsheet
• Annual 2009 (January 1, 2009 - December 31, 2009) (PDF) and Excel Spreadsheet
• Annual 2008 (January 1, 2008 - December 31, 2008) (PDF) and Excel Spreadsheet
• Annual 2007 (January 1, 2007 - December 31, 2007) (PDF) and Excel Spreadsheet
• Annual 2006 (January 1, 2006 - December 31, 2006) (PDF) and Excel Spreadsheet
• Annual 2005 (January 1, 2005 - December 31, 2005) (PDF) and Excel Spreadsheet
• Annual 2004 (January 1, 2004 - December 31, 2004) (PDF) and Excel Spreadsheet
• Annual 2003 (January 1, 2003 - December 31, 2003) (PDF) and Excel Spreadsheet
• Annual 2002 (January 1, 2002 - December 31, 2002) (PDF) and Excel Spreadsheet
• Annual 2001 (January 1, 2001 - December 31, 2001) (PDF) and Excel Spreadsheet
• Annual 2000 (January 1, 2000 - December 31, 2000) (PDF) and Excel Spreadsheet
• Annual 1999 (January 1, 1999 - December 31, 1999) (PDF) and Excel Spreadsheet
• Annual 1998 (January 1, 1998 - December 31, 1998) (PDF) and Excel Spreadsheet
• Annual 1997 (January 1, 1997 - December 31, 1997) (PDF) and Excel Spreadsheet

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Community Development Investment Precedent Letters 
The OCC posts its precedent setting community development investment letters in the Electronic Interpretations and Actions section of OCC's Web site. These investments were made consistent with the 12 CFR 24 authority and reflect precedent setting actions that are consistent with the public welfare and other requirements of the regulation. Browse index of Community Development Precedent Letters

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Public Welfare Investments Publications 

Community Development Investment Articles 

OCC highlights examples of 12 CFR 24 investments and other CD best practices related to investments in both the Community Development Investments e-zine and the Community Developments newsletter. Articles are listed by topic:

• Affordable Housing — Multi-Family
• Bank Community Development Corporations
• Community Development Banks/Community Development Financial Institutions
• Community Development Investment Funds
• Community Development Venture Capital
• Historic Redevelopment
• Low Income Housing Tax Credits

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Community Developments Investments E-Zines and Newsletters

Investing in Solar Energy Using the Public Welfare Investment Authority (July 2011): This issue highlights the innovative investments national banks have made in solar energy-producing facilities using their public welfare investment authority.

Public Welfare Investments: A Catalyst for Community Development (Fall 2010) The articles in this issue highlight community development investing in the common types of public welfare investments; compare the public welfare investment authority provisions with CRA; and explain the public welfare investment submission process, as well as documentation requirements for public welfare investments. Click here for PDF version (PDF 2MB)

Multibank CDCs: Pooling Resources to Strengthen Communities (Fall 2008) The E-zine focuses on multibank community development corporations (MBCDCs) and features guidance for establishing a MBCDC. Additionally, it details three existing MBCDCs, and describes how MBCDCs use gap financing to complement bank loans. Click here for PDF version (PDF 880KB)

Community Development Venture Capital: A Catalyst for Double-Bottom Line Results (Spring 2007) focuses on community development venture capital (CDVC) including descriptions of investments and due diligence advice.

Investing in Low-Income Housing Tax Credits: A Sound Opportunity for Community Banks (Spring 2006) describes the fundamentals of low-income housing tax credits, with a particular focus on topics of interest to community bankers new to this product. Click here for PDF version (PDF 6.7MB)

Investment Intermediaries: Helping Banks Achieve a Double Bottom Line (Summer 2005) provides a look at two community development finance providers. These investment intermediaries offer banks the ability to earn a double bottom line return - of both economic earnings for the investing bank and social gain for the communities they serve. Click here for PDF version (PDF 6.3MB)

Growing Markets with Bank-Owned Community Development Corporations (Spring 2006) describes the fundamentals of low-income housing tax credits, with a particular focus on topics of interest to community bankers new to this product. Click here for PDF version (PDF 1.9MB)

New Markets Tax Credits — Bridging Financing Gaps (Summer 2004) focuses on how banks are leveraging these tax credits to revitalize economically distressed communities. Click here for PDF version (PDF 6MB)

Community Development Financial Institutions and CD Banks - Natural Partners for Traditional Lenders (PDF 541KB) (Summer 2002)

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Fact Sheets on Public Welfare Investment and Related Investment Topics

• Bank-Owned Community Development Corporations
• CRA: Community Development Loans Investments and Services
• Historic Tax Credits
• Low Income Tax Credits
• Multi-Bank Partnerships for Community Development Finance
• New Markets Tax Credits
• Public Welfare Investments Filings on E-Corp
• Public Welfare Investments Fact Sheet
• Solar Energy Investment Tax Credits and Grants

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Insights Reports on Public Welfare Investment Topics

• Historic Tax Credits: Affordable Housing Investment Opportunities for Banks
• Low-Income Housing Tax Credits: Affordable Housing Investment Opportunities for Banks
• New Markets Tax Credits: Unlocking Investment Potential
• Property Disposition: Exploring Different Approaches for Preserving Affordable Housing Opportunities

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Quick Reference Guide to Public Welfare Investments  (PDF) describes the guidelines for community development investments covered by 12 CFR 24. It gives an easy-to-follow list of requirements and examples of how banks make investments.

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Regulation W Special Analysis: Impact on Community Development Corporations (CDC)  (PDF) provides guidance for 12 CFR 24 investment proposals that: (1) present issues under sections 23A and 23B of the Federal Reserve Act, and (2) involve a holding company's transfer of an interest in its CDC to one or more subsidiary banks.

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