---
kind: "section"
citation: "12 U.S.C. § 4705"
title: "12"
title_heading: "Banks and Banking"
number: "4705"
heading: "Community partnerships"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4705"
units:
  - "Chapter 47 — Community Development Banking"
  - "Subchapter I — Community Development Banking and Financial Institutions"
---

# §4705. Community partnerships

- (a) **Application—** An application for assistance may be filed jointly by a [community development financial institution](/usc/12/4702.md?p=5-A) and a [community partner](/usc/12/4702.md?p=6) to carry out a [community partnership](/usc/12/4702.md?p=7).
- (b) **Application requirements—** The [Fund](/usc/12/4702.md?p=10) shall require a [community partnership](/usc/12/4702.md?p=7) application—
  - (1) to meet the minimum requirements established for [community development financial institutions](/usc/12/4702.md?p=5-A) under [section 4704(b) of this title](/usc/12/4704.md?p=b), except that the criteria specified in paragraphs (1) and (2)(A) of [section 4704(b) of this title](/usc/12/4704.md?p=b) shall not apply to the [community partner](/usc/12/4702.md?p=6);
  - (2) to describe how each coapplicant will participate in carrying out the [community partnership](/usc/12/4702.md?p=7) and how the partnership will enhance activities serving the [investment area](/usc/12/4702.md?p=16) or [targeted population](/usc/12/4702.md?p=20); and
  - (3) to demonstrate that the [community partnership](/usc/12/4702.md?p=7) activities are consistent with the strategic plan submitted by the [community development financial institution](/usc/12/4702.md?p=5-A) coapplicant.
- (c) **Selection criteria—** The [Fund](/usc/12/4702.md?p=10) shall consider a [community partnership](/usc/12/4702.md?p=7) application based on—
  - (1) the [community development financial institution](/usc/12/4702.md?p=5-A) coapplicant—
    - (A) meeting the minimum selection criteria described in [section 4704 of this title](/usc/12/4704.md); and
    - (B) satisfying the selection criteria of [section 4706 of this title](/usc/12/4706.md);
  - (2) the extent to which the [community partner](/usc/12/4702.md?p=6) coapplicant will participate in carrying out the partnership;
  - (3) the extent to which the [community partnership](/usc/12/4702.md?p=7) will enhance the likelihood of success of the [community development financial institution](/usc/12/4702.md?p=5-A) coapplicant’s strategic plan; and
  - (4) the extent to which service to the [investment area](/usc/12/4702.md?p=16) or [targeted population](/usc/12/4702.md?p=20) will be better performed by a partnership as opposed to the individual [community development financial institution](/usc/12/4702.md?p=5-A) coapplicant.
- (d) **Limitation on distribution of assistance—** Assistance provided upon approval of an application under this section shall be distributed only to the [community development financial institution](/usc/12/4702.md?p=5-A) coapplicant, and shall not be used to [fund](/usc/12/4702.md?p=10) any activities carried out directly by the [community partner](/usc/12/4702.md?p=6) or an [affiliate](/usc/12/4702.md?p=3) or [subsidiary](/usc/12/4702.md?p=19) thereof.
- (e) **Other requirements and limitations—** All other requirements and limitations imposed by this subchapter on a [community development financial institution](/usc/12/4702.md?p=5-A) assisted under this subchapter shall apply (in the manner that the [Fund](/usc/12/4702.md?p=10) determines to be appropriate) to assistance provided to carry out [community partnerships](/usc/12/4702.md?p=7). The [Fund](/usc/12/4702.md?p=10) may establish additional guidelines and restrictions on the use of Federal [funds](/usc/12/4702.md?p=10) to carry out [community partnerships](/usc/12/4702.md?p=7).

## Source credit

(Pub. L. 103–325, title I, § 106, Sept. 23, 1994, 108 Stat. 2171.)