[CircleUp] FW: News Alert: CDFI Fund Advisory Board Recommendations, FY 2009 Appropriation, Comment on the CDFI Program

Fri Mar 6 13:15:39 EST 2009

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News Alert
March 6, 2009

In This Issue:

    * CDFI Fund Advisory Board Recommendations

    * FY 2009 Appropriation Update

    * Request for Public Comment 

CDFI Fund Advisory Board Recommendations

The CDFI Fund's Community Development Advisory Board (the Advisory Board)
met Thursday, March 5, 2009 afternoon via conference call to hear a
presentation with recommendations by a Subcommittee of the Advisory Board
that was formed to better understand the impact of the financial crisis on
the institutions supported by the CDFI Fund and the communities that they
serve, and to also explore how the CDFI Fund might respond to the financial
crisis. The Subcommittee gathered information and put together its positions
and recommendations based on input from CDFIs, CDEs, and BEA-eligible
financial institutions; related trade industries and other stakeholders,
through formal written comments and presentations made to the Subcommittee
at a meeting held in Washington, DC on December 19, 2009.

The Subcommittee made a number of recommendations, including:

1.    Legislative enhancements to increase the capacity of CDFIs

- Work with the Administration and Congress to significantly increase
funding to a minimum of $250 million per fiscal year.

- Seek a statutory reauthorization.

- Capitalize the Capital Magnet at $100 million.

- $2 billion in TARP funds be utilized under the Term Sheet developed by the
Subcommittee.

- Investigate creating a Financial Assistance award category similar to the
Technical Assistance award category for utilization by organizations with
the potential to become certified CDFIs - known as Emerging CDFIs.

2.    Utilize the statutory provision to enhance the liquidity of CDFIs

- The CDFI Fund's statute contains a provision that would enable the CDFI
Fund to create a Liquidity Enhancement Program (LEP). The LEP would provide
financial assistance to CDFIs and other entities to increase liquidity for
CDFIs - whether through purchasing loans from CDFIs, making loans and
investments in CDFIs, or through other means.

3. The Subcommittee endorses making the NMTC permanent with new enhancements

- Make the New Markets Tax Credit permanent.

- Increase the annual New Markets Tax Credit allocation authority to $10
billion.

- Pursue statutory changes that would enable NMTC investments to be used for
home mortgages.

4.    Immediately develop and implement training and outreach initiatives

- The CDFI Fund should implement and fund sector-wide training and
professional development programs for current CDFIs, emerging CDFIs, and in
support of the creation of new CDFIs. At a minimum, the following four
training categories should be considered: Assistance for Specialized CDFIs,
Affordable Housing Lending, Business Lending, and CDFI Business Processes.

5. Reinstitute the recertification process, and strengthen the current
material events form

- To protect the CDFI brand and help maintain program integrity, the CDFI
Fund should take measures to further ensure that certified CDFIs continue to
adhere to the CDFI Certification criteria after initial certification.

- The CDFI Fund should endeavor to reduce the real and perceived cycle time
for processing new CDFI Certification applications.

6. Streamline the types of data collected and improve compliance reporting
mechanisms

- The CDFI Fund should develop and implement immediately an improvement plan
for the Community Investment Impact System (CIIS).

7. Ensure CDFI programs are being utilized in areas of high economic
distress

- Strategic research to analyze how changing economic and demographic
conditions have affected the operating environment of the CDFI Fund's
programs, and altered the supply and demand for capital, credit and
financial services in underserved communities.

- Develop a plan to utilize new housing foreclosure estimates to map more
contemporary measures of economic distress.

- An evaluation of the BEA Program for fiscal years 2004-2008.

- The development of performance metrics for the new Capital Magnet Fund.

For more information you can read the subcommittee recommendations here
(http://cdfi.org/uploads/other/Subcommittee%20Recommendations%20MASTER%20FIN
AL.pdf) and the TARP term sheet here
(http://cdfi.org/uploads/other/TARP%20CDFI%20Capital%20Purchase%20Program%20
MASTER%20FINAL.pdf). 

Omnibus Pushed to Next Week - FY 2009 CDFI Fund Appropriation Delayed

Congress expects to clear a short-term continuing resolution today after
Senate efforts to clear the fiscal 2009 omnibus failed. The current
continuing resolution (CR) expires midnight tonight. Senate Democrats on
Thursday night were unable to get the 60 votes needed to cut off amendments
and end debate on the bill, because of the desire of Republicans to consider
additional amendments.

The new CR is expected to run through midnight Tuesday, by which time
Democratic leaders now hope to clear the nine-bill, $410 billion package.
This appropriations omnibus includes $107 million for the CDFI Fund. This
represents the highest level for annual CDFI Fund support since FY 2001.

Request for Public Comment: CDFI Program Application

The U.S. Department of Treasury, as part of its continuing effort to reduce
paperwork and respondent burden, invites the general public and other
Federal agencies to take this opportunity to comment on proposed and/or
continuing information collections, as required by the Paperwork Reduction
Act of 1995, Pub. L. No. 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the
Community Development Financial Institutions (CDFI) Fund is soliciting
comments on the CDFI Program Application.

This application should be referenced for the purpose of providing comments
on the use of the application to collect information only; it should not be
completed and submitted as a request for funding. Written comments should be
received on or before May 4, 2009 to be assured of consideration. For more
information click here
(http://cdfifund.gov/news_events/CDFI-2009-10-Public-Comment-on-Program-Appl
ication.asp).

CDFI Coalition

www.cdfi.org <http://www.cdfi.org/>  

email: info at cdfi.org 

phone: 703-294-6970

The CDFI Coalition is the unified national voice of community development
financial institutions. Our mission is to encourage fair access to financial
resources for America's underserved people and communities.

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