period for which the institution seeks a community enterprise assessment credit under this section.

(h) PRIORITY OF AWARDS.—

(1) QUALIFYING LOANS AND SERVICES.—

(A) IN GENERAL.-If the amount of funds appropriated for purposes of carrying out this section for any fiscal year are insufficient to award the amount of assessment credits for which insured depository institutions have applied and are eligible under this section, the Board shall, in awarding community enterprise assessment credits for qualifying activities under subparagraphs (A) and (B) of subsection (a)(2) for any semiannual period for which such appropriation is available, determine which institutions shall receive an award.

(B) PRIORITY FOR SUPPORT OF EFFORTS OF CDFI.-The Board shall give priority to institutions that have supported the efforts of community development financial institutions in the qualified distressed community.

(C) OTHER FACTORS.-The Board may also consider the following factors:

(i) DEGREE OF DIFFICULTY.-The degree of difficulty in carrying out the activities that form the basis for the institution's application.

(ii) COMMUNITY IMPACT.-The extent to which the activities that form the basis for the institution's application have benefited the qualified distressed community.

(iii) INNOVATION.-The degree to which the activities that form the basis for the institution's application have incorporated innovative methods for meeting community needs.

(iv) LEVERAGE.-The leverage ratio between the dollar amount of the activities that form the basis for the institution's application and the amount of the assessment credit calculated in accordance with this section for such activities.

(v) SIZE. The amount of total assets of the institution.

(vi) NEW ENTRY.-Whether the institution had provided financial services in the designated distressed community before such semiannual period.

(vii) NEED FOR SUBSIDY.-The degree to which the qualified activity which forms the basis for the application needs enhancement through an assessment credit.

(viii) EXTENT OF DISTRESS IN COMMUNITY.-The degree of poverty and unemployment in the designated distressed community, the proportion of the total population of the community which are low-income families and unrelated individuals, and the extent of other adverse economic conditions in such community. (2) QUALIFYING INVESTMENTS.-If the amount of funds appropriated for purposes of carrying out this section for any fiscal year are insufficient to award the amount of assessment

credits for which insured depository institutions have applied and are eligible under this section, the Board shall, in awarding community enterprise assessment credits for qualifying activities under subsection (a)(2)(C) for any semiannual period for which such appropriation is available, determine which institutions shall receive an award based on the leverage ratio between the dollar amount of the activities that form the basis for the institution's application and the amount of the assessment credit calculated in accordance with this section for such activities.

(i) DETERMINATION OF AMOUNT OF ASSESSMENT CREDIT.-Notwithstanding any other provision of this section, the determination of the amount of any community enterprise assessment credit under subsection (a)(3) for any insured depository institution for any semiannual period shall be made solely at the discretion of the Board. No insured depository institution shall be awarded community enterprise assessment credits for any semiannual period in excess of an amount determined by the Board.

(j) DEFINITIONS.-For purposes of this section

(1) APPROPRIATE FEDERAL BANKING AGENCY.-The term "appropriate Federal banking agency" has the meaning given to such term in section 3(q) of the Federal Deposit Insurance Act.

(2) BOARD.-The term "Board" means the Community Enterprise Assessment Credit Board established under the amendment made by subsection (d).

(3) INSURED DEPOSITORY INSTITUTION.-The term "insured depository institution" has the meaning given to such term in section 3(c)(2) of the Federal Deposit Insurance Act.

(4) COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.— The term "community development financial institution" has the same meaning as in section 103(5) of the Community Development Banking and Financial Institutions Act of 1994.

(5) AFFILIATE.-The term "affiliate" has the same meaning as in section 2 of the Bank Holding Company Act of 1956. SEC. 234. [12 U.S.C. 1834b] COMMUNITY DEVELOPMENT ORGANIZATIONS.

(a) COMMUNITY DEVELOPMENT ORGANIZATIONS DESCRIBED.— For purposes of this subtitle, any insured depository institution, or a qualified portion thereof, shall be treated as meeting the community development organization requirements of this section if

(1) the institution

(A) is a community development bank, or controls any community development bank, which meets the requirements of subsection (b);

(B) controls any community development corporation, or maintains any community development unit within the institution, which meets the requirements of subsection (c);

(C) invests in accounts in any community development credit union designated as a low-income credit union, subject to restrictions established for such credit unions by the National Credit Union Administration Board; or

(D) invests in a community development organization jointly controlled by two or more institutions;

(2) except in the case of an institution which is a community development bank, the amount of the capital invested, in the form of debt or equity, by the institution in the community development organization referred to in paragraph (1) (or, in the case of any community development unit, the amount which the institution irrevocably makes available to such unit for the purposes described in paragraph (3)) is not less than the greater of

(A) 1⁄2 of 1 percent of the capital, as defined by generally accepted accounting principles, of the institution; or (B) the sum of the amounts invested in such community development organization; and

(3) the community development organization provides loans for residential mortgages, home improvement, and community development and other financial services, other than financing for the purchase of automobiles or extension of credit under any open-end credit plan (as defined in section 103(i) of the Truth in Lending Act), to low- and moderate-income persons, nonprofit organizations, and small businesses located in qualified distressed communities in a manner consistent with

the intent of this subtitle.

(b) COMMUNITY DEVELOPMENT BANK REQUIREMENTS.-A community development bank meets the requirements of this subsection if

(1) the community development bank has a 15-member advisory board designated as the "Community Investment Board" and consisting entirely of community leaders who

(A) shall be appointed initially by the board of directors of the community development bank and thereafter by the Community Investment Board from nominations received from the community; and

(B) are appointed for a single term of 2 years, except that, of the initial members appointed to the Community Investment Board, 3 shall be appointed for a term of 8 months, 3 shall be appointed for a term of 16 months, and 3 shall be appointed for a term of 24 months, as designated by the board of directors of the community development bank at the time of the appointment;

(2) 3 of the members of the community development bank's board of directors are appointed from among individuals nominated by the Community Investment Board; and

(3) the bylaws of the community development bank require that the board of directors of the bank meet with the Community Investment Board at least once every 3 months.

(c) COMMUNITY DEVELOPMENT CORPORATION REQUIREMENTS.— Any community development corporation, or community development unit within any insured depository institution meets the requirements of this subsection if the corporation or unit provides the same or greater, as determined by the appropriate Federal banking agency, community participation in the activities of such corporation or unit as would be provided by a Community Investment Board under subsection (b) if such corporation or unit were a community development bank.

(d) ADEQUATE DISPERSAL REQUIREMENT.-The appropriate Federal banking agency may approve the establishment of a community development organization under this subtitle only upon finding that the distressed community is not adequately served by an existing community development organization.

(e) DEFINITIONS.-For purposes of this section

(1) COMMUNITY DEVELOPMENT BANK.-The term "community development bank" means any depository institution (as defined in section 3(c)(1) of the Federal Deposit Insurance Act).

(2) COMMUNITY DEVELOPMENT ORGANIZATION.-The term "community development organization" means any community development bank, community development corporation, community development unit within any insured depository institution, or community development credit union.

(3) LOW- AND MODERATE-INCOME PERSONS.-The term "lowand moderate-income persons" has the meaning given such term in section 102(a)(20) of the Housing and Community Development Act of 1974.

(4) NONPROFIT ORGANIZATION; SMALL BUSINESS.-The terms "nonprofit organization" and "small business" have the meanings given to such terms by regulations which the appropriate Federal banking agency shall prescribe for purposes of this section.

(5) QUALIFIED DISTRESSED COMMUNITY.-The term "qualified distressed community" has the meaning given to such term in section 233(b).