NCUA's December 21, 2016 final rule removed eventual full occupancy as a requirement for federal credit unions' acquired premises. It did not remove occupancy requirements altogether. The replacement distinction was between a substantial level of present use and a plan to expand into all the space. The rule specified January 20, 2017 as its effective date. [2016-30657][2016-09867]

Partial occupancy was defined as full-time occupation and use of at least 50 percent of each premises. The federal credit union could meet that measure alone or in combination with a credit union service organization, known as a CUSO, in which it held a controlling interest under generally accepted accounting principles. An unrelated tenant's occupancy was not the stated substitute for that defined institutional use. [2016-30657][2016-09867]

Timing remained part of the test. Each acquired premises had to be partially occupied within a reasonable period and no later than six years after acquisition. NCUA could waive the requirement based on safety and soundness. The final rule separately permitted sale or lease of excess facilities capacity while retaining a future expansion-of-member-services condition for excess equipment or services. [2016-30657][2016-09867]

The April 27 proposal explained the balancing problem: compulsory full use could impede affordable office choices and growth, but removing reasonable occupancy limits could encourage property speculation. That earlier document contributes the rationale, not another independent finding about results. Read together, the same-chain records describe bounded flexibility for federal credit unions; they do not establish unlimited landlord authority or measured savings. [2016-30657][2016-09867]

Source documents

  1. Federal Credit Union Occupancy, Planning, and Disposal of Acquired and Abandoned Premises; Incidental Powershttps://www.govinfo.gov/content/pkg/FR-2016-12-21/html/2016-30657.htm
  2. Federal Credit Union Occupancy, Planning, and Disposal of Acquired and Abandoned Premises; Incidental Powershttps://www.govinfo.gov/content/pkg/FR-2016-04-27/html/2016-09867.htm