(a) Requirement. FHFA will restrict a member's access to long-term advances if the member:
(1) Failed to comply with the requirements of this part;
(2) Submitted a community support statement that was not approved by FHFA;
(3) Did not receive a rating in a CRA evaluation of ``outstanding'' or ``satisfactory'' at the end of the probationary period described in Sec. 1290.3(b)(2); or
(4) Failed to provide evidence satisfactory to FHFA of its first-time homebuyer performance before the end of the probationary period described in Sec. 1290.3(c)(2).
(b) Notice. FHFA will provide written notice to a member and the member's Bank of its determination to restrict the member's access to long-term advances.
(c) Effective date. Restrictions on access to long-term advances will take effect 30 days after the date the notices required under paragraph (b) of this section are sent unless the member complies with the requirements of this part before the end of the 30-day period.
(d) Removing restrictions. (1) FHFA may remove restrictions on a member's access to long-term advances imposed under this section:
(1) FHFA may remove restrictions on a member's access to long-term advances imposed under this section:
(i) If FHFA determines that application of the restriction may adversely affect the safety and soundness of the member. A member may submit a written request to FHFA to remove a restriction on access to long-term advances under this paragraph (d)(1)(i). The written request must include a clear and concise statement of the basis for the request, and a statement that application of the restriction may adversely affect the safety and soundness of the member from the member's appropriate Federal banking agency, or the member's appropriate State regulator for a member that is not subject to regulation or supervision by a Federal regulator. FHFA will consider each written request within 30 calendar days of receipt.
(ii) If FHFA determines that the member subsequently has complied with the requirements of this part. A member may submit a written request to FHFA to remove a restriction on access to long-term advances under this paragraph (d)(1)(ii). The written request must state with specificity how the member has complied with the requirements of this part. FHFA will consider each written request within 30 calendar days of receipt.
(2) FHFA will place a member on probation in accordance with Sec. 1290.3(b)(2), if--
(i) The member's access to long-term advances was restricted on the basis of the member's inadequate performance under the CRA standard, as described in Sec. 1290.3(b)(3);
(ii) The rating in the member's subsequent CRA evaluation is ``Needs to Improve;'' and
(iii) The member did not receive either a ``Substantial Non-Compliance'' CRA rating or a ``Needs to Improve'' CRA rating immediately preceding the CRA rating on which the member's inadequate performance under the CRA standard was based.
(3) FHFA will provide written notice to the member and the member's Bank of its determination under this paragraph (d). FHFA's determination takes effect on the date the notices are sent.
(e) Community Investment Cash Advance (CICA) Programs. A member that is subject to a restriction on access to long-term advances under this part is not eligible to participate in a CICA program offered under part 952 of this title and 1291 of this chapter. The restriction in this paragraph (e), does not apply to CICA applications or funding approved before the date the restriction is imposed.