What the Update to NCUA’s LID Workbook Could Mean for Your CU

In April, the NCUA updated its Low-Income Designation (LID) Area Workbook, an overview of all geographic areas in the United States and Puerto Rico classified as “low-income,” a criteria met when a majority of an area’s residents fall below the agency’s low-income threshold. These determinations are based on data from the US Census Bureau’s American Community Survey, which collects “detailed population and housing information” across the country, and the changes to the workbook are the result of moving from the 2019 numbers to the most-recently available survey from 2020.

The revised data has led to some major changes to qualifying areas that credit unions either already holding a LID or considering applying for the designation should be aware of. Since NCUA regulations state that to both attain and retain a LID, more than 50% of a credit union’s membership must reside in a low-income area, even the smallest variations in the data can play a big role in eligibility.

Broadly speaking, the new workbook reveals the number of LID-eligible individuals across the country has decreased by 6.3 million, with 55.17% of the total population eligible today compared with 57.39% a year ago. And while this naturally means several credit unions’ current or perspective designations could be affected, the trend was not entirely negative, with certain new opportunities also being created in the process.

A more in-depth analysis on the state and even county level is therefore necessary to truly understand the shifting terrain.