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Look here for Wells Fargo's definitions of some common community development terms.

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A
Affordable Limited Development
A planning strategy that attempts to balance affordable housing development with land conservation.
Assessment Area
The area surrounding each office or group of offices, including low- and moderate-income areas, that comprises a bank's "effective lending territory."
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B
BIA
Bureau of Indian Affairs
BNA
Block Numbering Area (rural equivalent of a census tract)
Business Incubator
A facility that provides below market rents, shared services and technical assistance to new businesses. Tenants typically include manufacturing, service, and technology firms. Sponsors may be private developers, CDCs, public agencies or universities.
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C
CCCS
Consumer Credit Counseling Service
CDBG
Community Development Block Grant
CDC
Community Development Corporation
CDFI
Community Development Financial Institution
CDB
Community Development Banking
CHDO
Community Housing Development Organization
CIFI
Community Investment Financial Institutions
CRA
Community Reinvestment Act
CSMA
Consolidated Metropolitan Statistical Area
Community Development Block Grant Program (CDBG)
A Federal program that grants funds to local and state governments to be used to develop viable urban communities. Funds may be used for housing, infrastructure and economic development activities.
Community Development Corporation (CDC)
The Wells Fargo CDC is a for-profit development company that makes capital investments in low- and moderate-income communities and focuses on neighborhood revitalization by investing in low- and moderate income housing and by supporting non-profit community-based organizations.
Community Development Credit Union
A nonprofit credit union which is chartered to serve the members of a lower-income community. The structure is similar to a regular credit union, although as a nonprofit, it is tax exempt. Federally-chartered CDCU's are regulated by the state. CDCU services vary depending on their level of capitalization. In general, they offer services not provided by mainstream financial institutions, such as small loans at below-market rates to individuals who might not otherwise qualify for bank loans. CDCUs rely heavily on banks, foundations, and other investors for deposits to support their work.
Community Development Financial Institutions Act (CDFI)
Signed into law on September 23, 1994, the act provided $382 million over four years to fund banks, credit unions and other lending institutions whose primary mission is to provide loans to underserved communities.
Community Development Loan
Loans that have as their primary purpose one of the following:

  • Affordable housing
  • Community Services targeted to LMI individuals
  • Activities that revitalize or stabilize LMI geographies
  • Activities that promote economic development
Community Housing Development Organization (CHDO)
A federally defined type of non-profit low-income housing provider eligible to receive 15 percent of all federal HOME Investment Partnership funds for housing development and 5 percent of HOME funds for operating costs.
Community Reinvestment Act (CRA)
A 1977 law that requires regulating agencies to examine banks and savings and loans to ensure that they take affirmative steps to help meet the credit needs of the communities they are chartered to serve, especially low- and moderate-income communities. 1995 CRA Reform further strengthened the lending requirements of the act.
Comprehensive Housing Affordability Strategy (CHAS)
A document written by the state or local government describing the housing needs of the low- and moderate-income residents, outlining strategies to meet the needs and listing all resources available to implement the strategies.
CRA Disclosure Statement
Under CRA Reform, the federal banking agencies will annually prepare CRA Disclosure Statements for each bank, and Aggregate Disclosure Statements for each MSA and non-MSA area in each state. These statements will principally consist of data related to small business and small farm lending, and must be included in a bank's Public File.
CRA Notice
Mandatory legal signage that identifies where the Bank's CRA Statement and Public Comment File can be located, and where the public may write to comment of the Bank's CRA performance.
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D
DAP
Downpayment Assistance Program
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E
ECOA
Equal Credit Opportunity Act
EOF
Employment Opportunity Fund
ESIC
Enterprise Social Investment Corporation
EZ/EC
Empowerment Zone/Enterprise Community
Enterprise Zone
An economically depressed area that has been targeted for revitalization by a city of state through tax and other incentives given to companies that locate or expand their operations within the zone.
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F-J

F
FANNIE MAE
Federal National Mortgage Association
FHA
Federal Housing Administration
FHLB
Federal Home Loan Bank System
FHLMC
Federal Home Loan Mortgage Corporation (a.k.a. FreddieMac)
FmHA
Farmers Home Administration
FMR
Fair Market Rent
FRB
Federal Reserve Board
FREDDIE MAC
Federal Home Loan Mortgage Corporation
FSA
Farm Services Agency
Fair Lending
Four major federal regulations govern fair lending. They are the Equal Credit Opportunity (ECOA or Regulation B), Fair Housing Act, Home Mortgage Disclosure Act (HMDA or Regulation C) and Community Reinvestment Act (CRA or Regulation BB). These regulations, among other things, prohibit lenders from discriminating against anyone on the basis of race, color, religion, national origin, age, sex, marital status, family status, handicap, receipt of public assistance and good faith exercise of rights under the Consumer Protection Act.
Farmers Home Administration (FmHA)
An agency of the U.S. department of Agriculture that makes loans, grants, and loan guarantees in rural areas for housing, farming, business, industry and community facilities.
Federal Emergency Management Agency (FEMA)
The Flood Disaster Protection Act was passed in 1973 and responsibility for management of flood control was given to HUD. Then in 1979, the Federal Emergency Management Agency was established. This agency became responsible for the platting and mapping of the flood zones within the United States.
Federal Home Loan Mortgage Corporation (Freddie Mac)
A congressionally chartered private agency that purchases home mortgage loans not insured by the FHA or guaranteed by the VA from originating financial institutions. The loans are either kept in portfolio or packaged and sold as securities. Freddie Mac also offers programs for lower income home buyers that have more flexible underwriting guidelines.
Federal Housing Administration (FHA)
A federal agency within the Department of Housing and Urban Development (HUD) that provides mortgage insurance for residential mortgages and sets standards for construction and underwriting.
Federal National Mortgage Association (FNMA or FannieMae)
A congressionally chartered private corporation (since 1938) that specializes in buying and packaging mortgage loans (mostly from mortgage bankers and commercial banks) and selling them as securities to investors. Is also responsible for the guidelines that a majority of lenders use to qualify applicants for conventional loans.
The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)
The Financial Institutions Reform, Recovery and Enforcement Act of 1989 is a very extensive and comprehensive lending reform bill. It established new rules and regulations governing banks and savings and loan institutions in response to the failed savings and loan crisis of the 1980s.
501 (c)(3)
Internal Revenue Service status as a nonprofit corporation. Entitles organizations to receive tax-exempt status and tax-deductible donations.
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G
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H
HOPE
Housing Opportunities for Persons Everywhere
HMDA
Home Mortgage Disclosure Act
HUD
U. S. Department of Housing and Urban Development
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I
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K-O

K
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L
LICT
Low-Income Census Tract
LIHF
Low Income Housing Fund
LIHTC
Low Income Housing Tax Credit
LISC
Local Initiatives Support Corporation
LMI
Low- and moderate-income
Loan Guarantee
A program offered by state and federal agencies which decreases a lender's risk by guaranteeing a portion of a debt against default. Loan Guarantees apply to both business and housing loans, and target projects which offer a public benefit, but are too risky to finance privately without the guarantee.
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M
MSA
Metropolitan Statistical Area
Microenterprise
A business with five or fewer employees and little working capital.
Microenterprise Loan Fund
A nonprofit revolving loan fund that provides small, short term loans and technical assistance to very small businesses for working capital, Loan sizes may range from fifty to several thousand dollars. Terms are more flexible than available conventional financing.
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N
NCLR
National Council of La Raza
NCIF
National Community Investment Fund
NCRC
National Community Reinvestment Coalition
NHS
Neighborhood Housing Services
NUL
National Urban League
Neighborhood Housing Services (NHS)
A National network of neighborhood based service organizations that are locally operated and funded. NHS focuses on a specific community or communities to increase the supply of affordable housing and promote neighborhood stability by providing below-market construction and rehabilitation financing, technical assistance, and support for resident activism. Board members include local residents, business leaders, public officials and community representatives. All NHSs receive assistance from, and are monitored by, the Neighborhood Reinvestment Corporation.
Neighborhood Reinvestment Corporation
A congressionally chartered, federally funded, public nonprofit corporation established in 1978 whose mission is to assist in the revitalization of lower-income neighborhoods. NRC works mainly though local NHSs, providing training, operational grants and technical assistance.
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P-T

P
Predominately Minority Census Tract
A tract with a minority population of greater than 50%. Statistics are obtained from U.S. Census data.
Public Comment File
A collection of CRA information that Wells Fargo is required to make available to the general public. The public file is maintained at the main office of each state in which Wells Fargo has offices. Contents of the public file include:

  • Comment Letters from the public on performance in regard to CRA or extension of credit within the community
  • Most Current CRA Evaluation(s)
  • Assessment Area Identification Maps
  • List of Operating Banking Centers
  • List of Opened/Closed Banking Centers
  • List of Services which is the Schedule of Fees for Personal and Business
  • HMDA Disclosure Statements — Current Year plus 4 years
  • CRA Disclosure Statements — Small Business/Small Farm Reporting/Community Development Loans
Q
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R
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S
SBA
U.S. Small Business Administration
SBIC
Small Business Investment Company
SHP
Supportive Housing Program
SRO
Single Room Occupancy Housing
Section 8
This program gives rental assistance for low- and very low-income households by providing direct payments of rent through public housing authorities to landlords. The payments cover the difference between 30 percent of a family's adjusted gross income and the HUD approved or fair market rent for the geographic area where the housing is located.
Small Business Administration (SBA)
Federal Government agency that administers loan guarantee and related small business development programs:
SBA 7(a)
Standard SBA program for term loans over $100,000. SBA guarantees up to 75% of the loan amount ($750,000 maximum). Generally, this program allows for more flexible terms and collateral requirements than our conventional small business loan products
7(a) Low-Doc - SBA program specifically for term loans $100,000 or less. SBA guarantees up to 80% of the loan amount. Less paperwork required than the standard 7(a) program.
7(a) Fa$Trak - SBA program for term loans or lines of credit $100,000 or less. SBA guarantees up to 50% of the loan amount. Significantly less paperwork required than the standard 7(a) program or Low-Doc program.
SBA 504
Program specifically for financing the acquisition of long term fixed assets (e.g., real estate). Loan is made in conjunction with a Certified Development Corporation Loan. Generally, allows for extended terms and a reduced equity investment by the borrower.
Small Business Development Center (SBDC)
A technical service provider to small business, usually located and managed by a college or university. SBA funds the operation of these providers.
Small Business Investment Corporation (SBIC)
A venture capital firm licensed and regulated by the SBA that provides debt and equity financing to small businesses that are at least fifty percent owned and operated by socially or economically disadvantaged persons.
Small Business Loan
Small business loans are defined by the dollar amount of the loan and the revenue size of the business:

  • Any business loan up to $1 million
  • Any loan to a business with revenues less than $1 million
Small Farm Loan
Small farm loans are defined by the dollar amount of the loan and the revenue size of the business:

  • Any farm loan up to $500,000 loan amount
  • Any loan to a farm with revenues less than $1 million
Supportive Housing Program (SHP)
Authorized under the Stewart B. McKinney Homeless Assistance Act of 1987, Title VI. This is a federal program that provides financial assistance toward the development and operating cost of transitional housing for the homeless and permanent housing for the homeless and disabled.
Sweat Equity
Labor performed and/or materials contributed by an applicant, on property the applicant is purchasing, in lieu of cash. Credit (up to a maximum of 2% of the lesser of the sale price or appraised value) is given toward the purchase price for the labor and/or materials supplied.
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U-Z

U
U. S. Department of Housing and Urban Development (HUD)
A government entity responsible for the implementation and administration of housing and urban development program. HUD was established by the Housing and Urban Development Act of 1965 to supersede the Housing and Home Finance Agency.
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V
VA
Veterans Administration
Department of Veteran's Affairs (VA)
The Department of Veteran's Affairs is a cabinet-level agency of the federal government. The Servicemen's Readjustment Act of 1944 authorized the agency to administer a variety of benefits designed to facilitate the adjustment of returning veterans to civilian life. Among the benefit programs is the VA Home Loan Guaranty program, which encourages mortgage lenders to offer long-term, and low-downpayment financing to eligible veterans by partially guaranteeing the lender against loss.
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W
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X
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Y
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Z
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Miscellaneous
203K
FHA purchase/rehabilitation housing product
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