CDFI News

 

 

Treasury Guarantees $245 Million in Bond Funding for Projects in Low-Income Communitieshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=272Treasury Guarantees $245 Million in Bond Funding for Projects in Low-Income Communities<p> <b>Washington, DC—</b>U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced today that Treasury issued two guarantees totaling $245 million under the Community Development Financial Institutions (CDFI) Bond Guarantee Program. The guarantees were issued on behalf of nine Eligible CDFIs under the fiscal year (FY) 2017 round of the program. Over $1.36 billion has been guaranteed since the inception of the CDFI Bond Guarantee Program, which provides long-term, fixed-rate capital for projects in low-income urban, rural, and Native communities.</p><p>“The CDFI Bond Guarantee Program is an effective tool for connecting distressed communities to the investment capital they need to grow and prosper. I am excited to announce the 2017 program participants,” said Director Donovan. </p><p>The FY 2017 program participants include:</p><p> <b>Community Reinvestment Fund, USA</b> issued a $100 million bond on behalf of Aura Mortgage Advisors, LLC (Aura), an affiliate of Boston Community Capital and part of its Stabilizing Urban Neighborhoods (SUN) Initiative. SUN helps low-income families facing foreclosure repurchase their homes with fixed rate mortgages they can afford, stabilizing families and communities.</p><p> <b>Opportunity Finance Network</b> issued $145 million in bonds on behalf of the following eight Eligible CDFIs:</p><ul><li><p>Building Hope, headquartered in Washington, DC, received a $25 million bond loan to finance charter schools in low-income communities.</p></li><li><p>Coastal Enterprises, Inc., headquartered in Brunswick, ME, received a $20 million bond loan to finance community and small business solar power generation projects that impact low income communities across the country, including rural communities.</p></li><li><p>Community First Fund, headquartered in Lancaster, PA, received a $10 million bond loan to provide financing for commercial real estate, not-for-profit organizations and affordable housing in underserved urban and rural communities. </p></li><li><p>Florida Community Loan Fund, headquartered in Orlando, FL, received a $30 million bond loan to finance affordable rental housing and commercial real estate projects in low-income communities. </p></li><li><p>Greater Minnesota Housing Fund, headquartered in St. Paul, MN, received a $10 million bond loan to finance affordable rental housing projects in Minnesota’s underserved communities. </p></li><li><p>Homewise, Inc., headquartered in Santa Fe, NM, received a $15 million bond loan to finance or refinance affordable single-family mortgages.</p></li><li><p>Housing Trust Silicon Valley, headquartered in San Jose, CA, received a $25 million bond loan to expand investment in and access to affordable multifamily rental housing.</p></li><li><p>Impact Seven, headquartered in Rice Lake, WI, received a $10 million bond loan to finance affordable rental housing, senior living facilities, small businesses, and commercial real estate projects.</p></li></ul><p>Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program responds to a critical market need—low-cost capital to spur economic growth and jump start community revitalization. Under the program, Qualified Issuers (CDFIs or their designees) apply to the CDFI Fund for authorization to issue guaranteed bonds worth a minimum of $100 million in total. The bonds provide CDFIs with access to substantial long-term, fixed-rate capital to reignite the economies of distressed communities. </p><p>The program enables CDFIs to execute large-scale projects, including the development of commercial real estate, housing units, charter schools, daycare or healthcare centers, and rural infrastructure projects, among other asset classes. As of August 31, 2017, $505 million in bond proceeds has been disbursed in 16 states and the District of Columbia.</p><p>For the first time, a private foundation provided a guarantee in support of an Eligible CDFI’s Bond Loan application, demonstrating strong collaboration between the public and private sector. The Kresge Foundation’s limited payment guarantee to Aura Mortgage Advisors showcases how CDFIs and foundations can leverage social investments to extend their impact through the CDFI Bond Guarantee Program. The Kresge Foundation has a $350 million commitment to social investing through 2020, including $150 million in guarantees.</p><p> <b>About the CDFI Fund </b></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2.3 billion to CDFIs, community development organizations, and financial institutions through the Community Development Financial Institutions Program, the Native American CDFI Assistance Program, and the BEA Program. In addition, the CDFI Fund has allocated $50.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, guaranteed $1.36 billion in bonds through the CDFI Bond Guarantee Program, and awarded more than $171 million through the Capital Magnet Fund. </p><p>To learn more about the CDFI Fund and its programs, please view the <a href="/Documents/CDFI_Brochure%20Updated%20Mar2017.pdf" target="_blank">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>. </p>2017-09-27T04:00:00ZPress Releases272
U.S. Treasury Awards $208 Million for Investment Nationwide in Low-Income Communitieshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=269U.S. Treasury Awards $208 Million for Investment Nationwide in Low-Income Communities<p><i>Funds Support Community Development and Revitalization Activity in Distressed Rural, Urban, and Native Communities</i></p><p><b>Washington -</b> The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded 303 Community Development Financial Institutions (CDFIs) $208.7 million in awards today. The awards, through the fiscal year (FY) 2017 round of the Community Development Financial Institutions Program (CDFI Program) and the Native American CDFI Assistance Program (NACA Program), will enable CDFIs to increase lending and investment activity in low-income and economically distressed communities across the nation.</p><p>“We are very pleased to announce the FY 2017 CDFI Program and NACA Program award recipients. This is the largest pool of awardees in the history of the CDFI Fund,” said CDFI Fund Director Annie Donovan. “These award recipients represent a diverse array of organization types and community investment strategies, serving a broad spectrum of communities. We are especially proud that one-third of the awardees have committed to investing in Persistent Poverty Counties.”</p><p>For the FY 2017 CDFI Program round, the CDFI Fund awarded $171.1 million in Financial Assistance and Technical Assistance to 265 organizations in 46 states and the District of Columbia. The CDFI Program invests in and builds the capacity of CDFIs to serve low-income people and communities lacking adequate access to affordable financial products and services. In addition, the CDFI Fund awarded $22 million to 13 CDFIs through the Healthy Food Financing Initiative Financial Assistance awards (HFFI-FA), a supplemental program designed to encourage investments in businesses that provide healthy food options for communities. For the FY 2017 round, the CDFI Fund received applications from 434 eligible organizations requesting more than $567 million through the CDFI Program and more than $112 million through the Healthy Food Financing Initiative. </p><p>The CDFI Fund also awarded $15.6 million in FY 2017 NACA Program Financial Assistance and Technical Assistance to 38 organizations in 21 states. The program facilitates the creation and advancement of Native CDFIs. Organizations funded through the NACA Program serve a wide range of Native American, Alaska Native, and Native Hawaiian communities, and reflect a diversity of institutions in various stages of development, including: organizations in the early planning stages of CDFI formation; tribal entities working to certify an existing lending program; and established Native CDFIs in need of further capacity building assistance. The CDFI Fund received 56 applications requesting $33 million for the FY 2017 round. </p><p>View more information about the FY 2017 CDFI Program and NACA Program awardees below. </p><p><b>2017 CDFI Program and NACA Program Award Resources </b></p><ul><li><p><a href="/Documents/FINAL%202017%20CDFI%20Award%20Book%20091817_for%20web.pdf" target="_blank">FY 2017 CDFI Program Award Book</a></p></li><li><p><a href="/Documents/FINAL%202017%20NACA%20Award%20Book%20091817_for%20web.pdf" target="_blank">FY 2017 NACA Program Award Book</a> </p></li><li><p><a href="/Documents/FY17%20Financial%20Assistance%20Evaluation%20Process%20Cleared%203.24.17.pdf" target="_blank">CDFI Program and NACA Program Financial Assistance Application Evaluation Process</a></p></li><li><p><a href="/Documents/FY17%20Technical%20Assistance%20Evaluation%20Process%20Cleared%203.24.17v2.pdf" target="_blank">CDFI Program and NACA Program Technical Assistance Application Evaluation Process</a></p></li></ul><p><b>About the CDFI Fund </b></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2.5 billion to CDFIs, community development organizations, and financial institutions through the Community Development Financial Institutions Program, the Native American CDFI Assistance Program, and the Bank Enterprise Award Program. In addition, the CDFI Fund has allocated $50.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, closed guaranteed bonds in the amount of $1.1 billion through the CDFI Bond Guarantee Program, and awarded more than $171 million through the Capital Magnet Fund.</p><p>To learn more about the CDFI Fund and its programs, please visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>.  </p> 2017-09-19T04:00:00ZPress Releases269
CDFI Fund Announces More Than $18.6 Million in Bank Enterprise Awards for Investment in Low-Income Communitieshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=268CDFI Fund Announces More Than $18.6 Million in Bank Enterprise Awards for Investment in Low-Income Communities<p> <b>Washington –</b> Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced more than $18.6 million in awards to 102 FDIC-insured financial institutions serving economically distressed communities across the nation. These funds, awarded under the fiscal year (FY) 2016 round of the Bank Enterprise Award Program (BEA Program), will support community and economic development activities in census tract areas where at least 30 percent of the population lives at or below the national poverty level and where the unemployment rate is at least 1.5 times the national average. The award recipients were selected after a comprehensive review of 116 applications requesting $145.6 million in funding.</p><p>“I applaud the banks and thrifts being awarded today for increasing their lending, investing and vital financial services in low-income communities across the nation,” said CDFI Fund Director Annie Donovan. "Through both direct investment and by supporting Community Development Financial Institution partners, these institutions are making a real difference in highly distressed communities across the nation.”</p><p>Today’s awards will build on efforts to increase investments in underserved communities. Collectively, during the one-year assessment period, these 102 depository institutions increased their loans and investments in distressed communities by $285.5 million; increased their loans, deposits, and technical assistance to Community Development Financial Institutions (CDFIs) by $41 million; increased their equity and equity-like loans and grants to CDFIs by $8.8 million; and increased the provision of financial services in highly distressed communities by $3.5 million. </p><p>The more than $18.6 million awarded under the FY 2016 round of the BEA Program today will be re-invested into distressed communities and CDFIs by BEA Program award recipients. </p><p> <b>Related Materials</b></p><ul><li><p> <a href="/Documents/REVISED%20FINAL%202016%20BEA%20Award%20Book%20%20updated%20091817.pdf">2016 BEA Program Award Book</a></p></li><li><p> <a href="/awards/state-awards/Pages/default.aspx" target="_blank">Searchable Awards Database</a></p></li></ul><p> <b>About the BEA Program </b></p><p>The Bank Enterprise Award Program (BEA Program) rewards FDIC-insured depository institutions for making investments in certified CDFIs as well as in the most distressed communities in the country. In order to receive an award, these banks and thrifts must demonstrate an increase in their investments with at least 30% of their residents having incomes less than the national poverty level and 1.5 times the unemployment rate. The BEA awards help offset some of the risk associated with investing in these distressed communities and provide an incentive to invest. The greater the loan increase, the greater the award. Since its inception in 1994, the BEA Program has awarded grants totaling over $447 million. </p><p>For more information about the BEA Program, please view the <a href="/Documents/CDFI7205_FS_BEA_updatedJan2016.pdf">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/bea">www.cdfifund.gov/bea</a>.  </p><p> <b>About the CDFI Fund</b></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2.3 billion to CDFIs, community development organizations, and financial institutions through the Community Development Financial Institutions Program, the Native American CDFI Assistance Program, and the BEA Program. In addition, the CDFI Fund has allocated $50.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, closed guaranteed bonds in the amount of $1.1 billion through the CDFI Bond Guarantee Program, and awarded more than $171 million through the Capital Magnet Fund. </p><p>To learn more about the CDFI Fund and its programs, please view the <a href="/Documents/CDFI_Brochure%20Updated%20Mar2017.pdf">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.  </p> 2017-08-17T04:00:00ZPress Releases268
New Markets Tax Credit Program Compliance Report Releasedhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=265New Markets Tax Credit Program Compliance Report Released<p> <b>Washington –</b> A new, independent report on the federal New Markets Tax Credit Program (NMTC Program) was released today by Summit Consulting LLC (Summit). The Compliance Review of New Markets Tax Credit Program report (the NMTC Report) was commissioned by the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund). It examines whether the recipients of New Markets Tax Credits (NMTCs) have complied with NMTC Program requirements, and whether the recipients’ NMTC investment activities have aligned with the objectives of the NMTC Program, among other questions.</p><p>“The report released today demonstrates that New Markets Tax Credits are being used as Congress intended: to attract private investment into projects in economically distressed communities,” said Annie Donovan, Director of the CDFI Fund. “It also documents the ways that Community Development Entities (CDEs) that utilize the program are meeting and generally exceeding NMTC Program requirements.”</p><p>In addition, the NMTC Report addresses questions and recommendations posed by the Government Accountability Office (GAO) regarding the distribution of benefits among the NMTC Program’s stakeholders, investors’ rates of return, and the role that other public investments play in NMTC investments. The NMTC Report has four main sections, each examining a different topic and presenting the results of Summit’s quantitative analysis and its key findings and recommendations. Among the report’s key findings for each of the four sections are:</p><ol><li><p>CDE Compliance with NMTC Allocation Agreements</p><ul><li><p>All projects reviewed by Summit comply with the corresponding Allocation Agreement.</p></li><li><p>CDEs often go beyond compliance requirements, providing more flexible capital and investing in more highly distressed areas than the NMTC Program requires.</p></li></ul></li><li><p>Distribution of Overall NMTC Program Benefits</p><ul><li><p>The flexible financing provided by CDEs reduces the net cost of capital for borrowers.</p></li><li><p>Fees and other charges do not appear to significantly affect the cost of capital for low-income community businesses.</p></li><li><p>Investor returns appear to be driven more by a market for tax credits than by specific project risks, with median investor returns for the sample of 9.1 percent.</p></li></ul></li><li><p>Degree of Public Investment in NMTC Transactions</p><ul><li><p>In its evaluation of the depth of public investment in NMTC projects utilizing two methodologies it developed, Summit found that approximately two-thirds of the projects reviewed received public funding commensurate with financing gaps or industry benchmarks for capitalization rates.</p></li><li><p>Summit’s analysis of the remaining one-third of the projects revealed that projects located in highly distressed areas may need more public funding to attract private investment, to enhance community benefits, or to support initial project operating costs.</p></li></ul></li><li><p>CDE Best Practices </p><ul><li><p>Many CDEs use a rigorous project selection process that includes a “but-for” analysis, community benefit considerations, and advisory board involvement.</p></li></ul></li></ol><p> <b>Related Links:</b></p><ul><li><p> <a href="/Documents/Summit%20-%20Compliance%20Review%20of%20New%20Markets%20Tax%20Credit%20Program%20-%20August%20Date%20-%20508%20Compliant.pdf" target="_blank">Compliance Review of New Markets Tax Credit Program – Full Report</a></p></li></ul><p>For more information about the CDFI Fund and its programs, please visit <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a> or view the CDFI Fund’s <a href="/Documents/CDFI_Brochure%20Updated%20Mar2017.pdf" target="_blank">Fact Sheet</a>.</p>2017-08-01T04:00:00ZPress Releases265
Treasury Announces $7 Billion Allocation of New Markets Tax Creditshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=234Treasury Announces $7 Billion Allocation of New Markets Tax Credits<p> <i>Largest single round in the history of the New Markets Tax Credit Program will spur economic, community development in nation’s distressed and low-income communities</i></p><p> <b>WASHINGTON</b>–Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced that 120 organizations nationwide will receive a total of $7 billion in New Markets Tax Credit awards. This is the largest single award round since the New Markets Tax Credit Program was created in 2001.</p><p>“The CDFI Fund programs, including the New Markets Tax Credit, address the needs and concerns of working Americans and help build an economy that delivers results that they can see,” said Treasury Secretary Jacob J. Lew. “By attracting private business and development to distressed communities, this tax credit spurs economic growth, creates jobs, and brings new services and opportunities where they are most needed.”</p><p>Secretary Lew announced the 2015-2016 awards at Educare DC, an innovative, state-of-the-art preschool offering early childhood educational programs in the Parkside Kenilworth community in Northeast DC. Educare DC benefited from an NMTC investment provided to DC Housing Enterprises in 2009.</p><p>The 120 organizations awarded today are headquartered in 36 states, the District of Columbia, and Puerto Rico. The scope of this NMTC award round means that more communities across the nation will have access to investments for local jobs, community facilities, and safe and affordable housing. It is estimated that more than $1.4 billion in New Markets Tax Credit investments will be made in non-metropolitan counties. The number of minority-owned or controlled organizations receiving awards also nearly tripled from the previous award round.</p><p>“For the past 15 years, we have seen how the New Markets Tax Credit program improves the quality of life and economic prospects for low-income Americans,” said CDFI Fund Director Annie Donovan. “The historic $7 billion in tax credits awarded through the 2015-2016 round will support many more community projects and businesses nationwide.” </p><p>Today’s awards bring the total amount awarded through the New Markets Tax Credit Program to $50.5 billion. Historically, NMTC awards have generated $8 of private investment for every dollar invested by the federal government. Since 2001, NMTCs have generated more than $42 billion in investments in low-income communities and businesses, resulting in the creation or retention of more than 500,000 jobs, and the construction or rehabilitation of more than 164 million square feet of commercial real estate. </p><p> <b>Related Documents</b></p><ul><li><p> <a href="/Documents/FINAL%202015%202016%20NMTC%20Award%20Book%20Nov2016.pdf" target="_blank">CY 2015-2016 NMTC Program Award Book</a></p></li><li><p> <a href="/Documents/2015-16%20NMTC%20Allocation%20Application%20Review%20Process%20and%20General%20Characteristics%20of%20a%20Highly%20Ranked%20Application%20for%20LEA.pdf" target="_blank">NMTC Program Awards Evaluation Process</a></p></li></ul><p> <b>About the New Markets Tax Credit Program</b></p><p>The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in vehicles known as Community Development Entities (CDEs). CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities. </p><p>CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority. The 120 organizations receiving awards were selected from a pool of 238 applicants that requested approximately $17.6 billion in allocation authority. </p><p>To learn more about the New Markets Tax Credit Program, please view the program <a href="/Documents/NMTC%20Fact%20Sheet_Jan2016v2.pdf" target="_blank">Fact Sheet </a>or visit <a href="http://www.cdfifund.gov/nmtc">www.cdfifund.gov/nmtc</a>.  </p><p> <b>About the CDFI Fund</b></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2.2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated $50.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and $1.1 billion has been guaranteed in bonds through the CDFI Bond Guarantee Program. </p><p>To learn more about the CDFI Fund and its programs, please view the <a href="/Documents/CDFI_Brochure%20Updated%20Jan2016.pdf" target="_blank">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>.</p>2016-11-17T05:00:00ZPress Releases234
Treasury Guarantees $265 Million in Bond Funding for Projects in Low-Income Communitieshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=232Treasury Guarantees $265 Million in Bond Funding for Projects in Low-Income Communities<p><strong>Washington, DC</strong>—the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced today that two bonds, totaling $265 million, were issued on behalf of four CDFIs in fiscal year (FY) 2016. A total of $1.11 billion has been guaranteed since the inception of the CDFI Bond Guarantee Program, which provides long-term, fixed-rate capital for projects in low-income urban, rural, and Native communities.</p><p>“Reaching the $1 billion mark in program commitments demonstrates how valuable the CDFI Bond Guarantee Program has become to communities in need of access to long-term capital,” said CDFI Fund Director Annie Donovan. “CDFIs are proving to be adept at utilizing this important financing tool.”</p><p>The FY 2016 program participants include:</p><ul><li><p><b>Community Reinvestment Fund, USA</b> issued a $165 million bond on behalf of three Eligible CDFIs:</p><ul><li><p><i>Capital Impact Partners,</i> headquartered in Arlington, VA, received a $40 million bond loan to finance licensed senior living and long-term care facilities, commercial real estate, rental housing, healthcare facilities, and charter schools.</p></li><li><p><i>Low Income Investment Fund</i>, headquartered in San Francisco, CA, received a $50 million bond loan to finance daycare centers, licensed senior living and long term care facilities, commercial real estate, rental housing, healthcare facilities, and charter schools.</p></li><li><p><i>The Reinvestment Fund</i>, headquartered in Philadelphia, PA, received a $75 million bond loan to finance small businesses, daycare centers, commercial real estate, rental housing, and healthcare facilities.</p></li></ul></li><li><p><b>Bank of America</b> issued a $100 million bond on behalf of <i>Self-Help Ventures Fund.</i> Self-Help Ventures Fund is headquartered in Durham, NC, and will use the bond loan to finance commercial real estate and charter schools.</p></li></ul><p>Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program responds to a critical market need—low-cost capital to spur economic growth and jump start community revitalization. Under the program, Qualified Issuers (CDFIs or their designees) apply to the CDFI Fund for authorization to issue bonds worth a minimum of $100 million in total. The bonds provide CDFIs with access to substantial long-term, fixed-rate capital to reignite the economies of distressed communities. </p><p>The program enables CDFIs to execute large-scale projects, including the development of commercial real estate, housing units, charter schools, daycare or healthcare centers, and rural infrastructure projects. </p><p><b>About the CDFI Fund </b></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2.2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated $43.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and $1.1 billion has been guaranteed in bonds through the CDFI Bond Guarantee Program. </p><p>To learn more about the CDFI Fund and its programs, please view the <a href="/Documents/CDFI_Brochure%20Updated%20Jan2016.pdf" target="_blank">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>.  </p> 2016-09-28T04:00:00ZPress Releases232
U.S. Treasury Awards $185 Million for Community Development in Low-Income Communitieshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=231U.S. Treasury Awards $185 Million for Community Development in Low-Income Communities<p> <i>Funds Support CDFI Investment and Revitalization Activity in Distressed Urban, Rural and Native Communities</i></p><p> <b>Washington-</b>The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded 196 Community Development Financial Institutions (CDFIs) $185.7 million in grants and loans today. The awards, through the fiscal year (FY) 2016 rounds of the Community Development Financial Institutions Program (CDFI Program) and the Native American CDFI Assistance Program (NACA Program), will enable CDFIs and Native CDFIs to increase lending and investment activity in low-income and economically distressed communities across the nation.</p><p>“With today’s awards, the CDFI Fund has crossed the $2 billion threshold in collective investments to CDFIs and Native CDFIs through the CDFI and NACA Programs,” said CDFI Fund Director Annie Donovan. “This milestone underscores the transformative impact CDFIs are having in low-income, distressed, and underserved communities and areas of persistent poverty. In businesses financed, real estate developed, affordable housing constructed and improved access to the financial system, CDFIs are empowering change and revitalization in their communities.”</p><p>For the FY 2016 CDFI Program round, the CDFI Fund awarded $170.2 million in Financial Assistance and Technical Assistance to 158 organizations in 48 states, including the District of Columbia. This also includes $22 million awarded to nine CDFIs through the Healthy Food Financing Initiative Financial Assistance awards (HFFI-FA). A total of 457 applications were received requesting more than $675 million under this round of the CDFI program. </p><p>The CDFI Fund awarded $15.5 million in FY 2016 NACA Program Financial Assistance and Technical Assistance to 38 organizations. The program facilitates the creation and advancement of Native CDFIs. Organizations funded through the NACA Program serve a wide range of Native American, Alaska Native, and Native Hawaiian communities (Native Communities), and reflect a diversity of institutions in various stages of development, including: organizations in the early planning stages of CDFI formation; tribal entities working to certify an existing lending program; and established Native CDFIs in need of further capacity building assistance. A total of 61 applications were received requesting $38 million for the FY 2016 round, which was the CDFI Fund’s 15th round of funding with awards specifically for Native Communities. </p><p>View the full lists of FY 2016 CDFI Program and NACA Program awardees below. Additional information about the awardees will be released on the CDFI Fund’s website in the coming days. The CDFI Fund anticipates opening the FY 2017 round of the programs in early 2017. </p><p> <b>2016 CDFI Program and NACA Program Award Resources </b></p><ul><li><p>CDFI Program Award List: <a href="/Documents/FY%202016%20CDFI%20Program%20Award%20List.pdf" target="_blank">View the full group of awardees</a></p></li></ul><ul><li><p>NACA Program Award List: <a href="/Documents/FY%202016%20NACA%20Program%20Award%20List.pdf" target="_blank">View the full group of awardees</a> </p></li><li><p>CDFI Program and NACA Program Application Evaluation Process: <a href="/Documents/FY2016%20CDFI%20and%20NACA%20Application%20Evaluation%20Process%20Document.pdf" target="_blank">Learn how the awards were determined</a>. </p></li></ul><p> <b>About the CDFI Fund </b></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2.2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated $43.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and $852 million has been guaranteed in bonds through the CDFI Bond Guarantee Program. </p><p>To learn more about the CDFI Fund and its programs, please view the <a href="/Documents/CDFI_Brochure%20Updated%20Jan2016.pdf" target="_blank">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>.  </p>2016-09-27T04:00:00ZPress Releases231
CDFI Fund Announces Winners of the 2016 CDFI Prize Competitionhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=230CDFI Fund Announces Winners of the 2016 CDFI Prize Competition<p>Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) is pleased to announce the winners of its <a href="/news-events/news/Pages/news-detail.aspx?NewsID=218&Category=Updates"> 2016 CDFI Prize Competition</a>. Eight organizations will receive an aggregate total of $1 million to reward innovative ideas and approaches to increasing CDFI investment and access to capital in underserved rural areas, particularly those characterized by persistent poverty. </p><p>“The CDFI Fund is excited to showcase and support Prize winners that are working across the breadth of underserved rural communities to develop breakthrough solutions to attracting capital investment and enhancing credit access,” said CDFI Fund Director Annie Donovan. “These are areas in deep need of innovations that combat persistent poverty, and we laud the entrepreneurial efforts of this year’s Prize Competition applicants.”</p><p>Winners of the 2016 CDFI Fund Prize Competition were selected based on their submission of innovative proposals that: (1) identify and promote new ideas and practices for implementation by CDFIs that serve rural areas, and/or (2) create value during and after the competition by encouraging CDFIs serving rural areas to develop new skills or practices that may have beneficial effects on the communities they serve. </p><p>From the 60 applications submitted for consideration, four winners were selected and an additional four applications were provided with honorable mentions. Winners and honorable mentions were selected from among the top applications by a panel of judges with a diverse array of experience in serving the capital and credit needs of rural communities. 2016 CDFI Prize Competition awardees include: </p><p> <b>Winners</b></p><ul><li><p> <b>1st Place:</b> Virginia Community Capital—$300,000</p></li><li><p> <b>1st Place:</b> National Federation of Community Development Credit Unions—$300,000</p></li><li><p> <b>2nd Place:</b> First Nations Oweesta—$200,000</p></li><li><p> <b>3rd Place:</b> Community Ventures—$100,000</p></li></ul><p> <b>Honorable Mentions</b></p><ul><li><p>Appalachian Community Federal Credit Union—$25,000</p></li><li><p>Community Development Corporation of Brownsville—$25,000</p></li><li><p>Craft3—$25,000</p></li><li><p>Hope Credit Union—$25,000</p></li></ul><p>View more details on the 2016 CDFI Prize Competition winners below. </p> <br> <h3>2016 CDFI Fund Prize Competition Awardee Summaries</h3> <br> <p> <b>1st Place Winner: Virginia Community Capital—$300,000</b> To address a lack of banking or financial knowledge and expertise among foundations that are interested in impact investing, VCC has created a social enterprise called Direct Investing for Good, a service providing fund aggregation, underwriting, investment servicing, and monitoring/tracking services to foundations so they can invest directly in CDFIs or co-invest with local CDFIs in community development projects. VCC intends to pilot the proposal to serve nine foundations that are members of the Appalachian Funders Network (AFN) and eventually scale the program to include all 80 members of the AFN to increase access to new capital for CDFIs and rural communities throughout Appalachia. </p><p> <b>1st Place Winner: National Federation of Community Development Credit Unions (Federation)—$300,000</b></p><p>To enable CDFI credit unions to extend their reach and provide access to secure, affordable financial services and products in underserved rural communities, the Federation is building CU Impact—“the first and only core system created specifically for CDFIs.” CU Impact will enable CDFI credit unions to interact with customers through smart phones as well as share standardized products and services designed for low-income communities with other credit unions enrolled in the system. The initiative will be piloted with Red River Mill Federal Credit Union and Shreveport Federal Credit Union, two CDFIs serving persistent poverty counties in Louisiana and Mississippi, and the Federation anticipates expanding to 30 CDFI credit unions within five years.</p><p> <b>2nd Place Winner: First Nations Oweesta—$200,000</b></p><p>To address the lack of experience and staff resources among many Native CDFIs to collect and analyze data, First Nations Oweesta has begun developing Opportunities Through Impact System (OTIS), an impact tracking platform designed specifically for Native CDFIs. The goal of the OTIS platform is to provide the technological resources—combined with the technical assistance of First Nations Oweesta—to help Native CDFIs demonstrate their impact in their communities. The initiative will be piloted with five Native CDFIs serving American Indian, Alaska Native, and Native Hawaiian communities.</p><p> <b>3rd Place Winner: Community Ventures—$100,000</b></p><p>Community Ventures proposes to create a “Build Appalachia” community facilities loan fund, an innovative new capitalization approach to attack the loss of coal-related jobs in Central Appalachia. The loan fund will target academic programs designed to prepare Appalachian residents who have lost jobs in the coal industry for new careers in high-paying, economically stable sectors, especially the healthcare sector. Much of the Central Appalachian region is medically underserved, and there is a strong demand for qualified professionals. The loan fund will also address a lack of lending capital in the region for non-business essential community facilities.</p><p> <b>Honorable Mention: Appalachian Community Federal Credit Union (ACFCU)—$25,000</b></p><p>Through new technology and innovative products and services, ACFCU is protecting underserved communities in eastern Kentucky from predatory lenders while providing access to banking services to remote customers. To reach those customers who lack proximity to a credit union branch, ACFCU will be installing three Virtual Teller Machines (VTMs) – ATM-like machines with a video screen and microphone that allow the customer to video chat with a credit union employee – in strategic locations in rural eastern Kentucky. In addition, the credit union has developed “myMoneyTrackSolutions,” a “stair step” series of services and products that can build credit, consolidate debt, and provide affordable alternatives to predatory loan products. </p><p> <b>Honorable Mention: Community Development Corporation of Brownsville (CDCB)—$25,000</b></p><p>Working with the CDFI Rio Grande Valley Multibank, CDCB has created a loan program to address the lack of access to both safe and affordable housing and financing in rural and colonia areas of South Texas. The loan program provides a phased financing and construction solution that meets the immediate housing needs of residents and can ‘grow’ or expand as the family’s financial situation improves and/or as their housing size needs increase.</p><p> <b>Honorable Mention: Craft3—$25,000</b></p><p>With widespread need to finance the replacement of failing septic systems in rural areas in Washington State, Craft3 is maximizing the reach of their Clean Water Loan product, previously implemented on the county level, through a new regional strategy. By standardizing their loan program and offering it at a regional level, they are able to enable scale, streamline county-level reporting, and create a single-administering entity. The regional approach also allows on-site sewage systems professionals who work in multiple counties to discuss the same financing option with potential borrowers regardless of physical location.</p><p> <b>Honorable Mention: Hope Credit Union—$25,000</b></p><p>To address the lack of access to capital in rural areas, Hope Credit Union has developed a strategy of taking over donated bank branches in persistent poverty counties and offering products and services appropriate to the community. HOPE’s strategy combines the donated physical infrastructure with its own robust products and services, user friendly mobile technology, and a clear commitment to community development to attract previously unbanked and underbanked rural residents into the financial mainstream.</p><p> <i>About the CDFI Fund</i></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated $43.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and $852 million has been guaranteed in bonds through the CDFI Bond Guarantee Program. </p><p>To learn more about the CDFI Fund and its programs, please view the<a href="/Documents/CDFI_Brochure.pdf"> Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.  </p>2016-09-23T04:00:00ZPress Releases230
U.S. Treasury Announces Over $90 Million in Awards for Affordable Housinghttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=228U.S. Treasury Announces Over $90 Million in Awards for Affordable Housing<p> <i>Over $900 Million in Private Sector Investment to be Leveraged by Capital Magnet Awards</i></p><p>The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) awarded 32 organizations nearly $91.5 million in grants today for the development of affordable housing and community facilities in low-income communities. These awards were made through the fiscal year 2016 round of the Capital Magnet Fund and will support financing for the preservation, rehabilitation, development or purchase of affordable housing for low-income communities as well as related economic development and community service facilities such as day care centers, workforce development centers and health care clinics.</p><p>“Affordable housing remains out of reach for far too many Americans," said Antonio Weiss, Counselor to Treasury Secretary Jacob J. Lew. “This funding will enable organizations across the country‎ to expand access to affordable housing and help meet the critical needs of thousands of families.”</p><p>The 32 awardees will collectively serve 37 states and the District of Columbia. Nine of these awardees will invest 50 percent or more of their awards in non-metropolitan areas. Of the 32 awardees, 23 are Community Development Financial Institutions (CDFIs) and nine are non-profit housing organizations. The 32 awardees were selected after a merit-based competitive review of applications submitted from 125 organizations for awards in this round of the Capital Magnet Fund. </p><p>"The impact of this program will be tremendous,” said CDFI Fund Director Annie Donovan. “The program requires recipients to leverage $10 of housing and economic development investments for every $1 of federal funds meaning today’s awards will support over $900 million of investment in low-income communities.” </p><p> <b>2016 Capital Magnet Fund Award Resources</b></p><ul><li><p> <a href="/Documents/FINAL%202016%20CMF%20Award%20Book%20091916.pdf" target="_blank">Capital Magnet Fund Award Book</a></p></li><li><p> <a href="/Documents/FY2016%20Capital%20Magnet%20Fund%20Program%20Application%20Evaluation%20Process_9-13-2016.pdf" target="_blank">Capital Magnet Fund Application Review Process</a></p></li></ul><p> <b>About the CDFI Fund </b></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated $43.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and $852 million has been guaranteed in bonds through the CDFI Bond Guarantee Program. </p><p>To learn more about the CDFI Fund and its programs, please view the <a href="/Documents/CDFI_Brochure.pdf" target="_blank">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>.  For more information about the Capital Magnet Fund, please view the <a href="/Documents/CMF%20Fact%20Sheet_JAN2016.pdf" target="_blank">Program Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/cmf" target="_blank">www.cdfifund.gov/cmf</a>.  </p>2016-09-22T04:00:00ZPress Releases228
CDFI Fund's Lisa Jones Wins Service To America Medalhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=229CDFI Fund's Lisa Jones Wins Service To America Medal<p> <i>Ceremony Honoring Ms. Jones and Other Outstanding Federal Workers Tonight</i></p><p>The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) is extremely proud to share with you that Lisa M. Jones will receive one of eight Samuel J. Heyman Service to America Medals for her pioneering work to launch the CDFI Bond Guarantee Program. </p><p>The Service to America Medals – also known as “the Sammies” – are highly respected awards presented by the non-profit, non-partisan Partnership for Public Service after a rigorous selection process. Often called “the Oscars of government service,” the Sammies are one of the most prestigious awards honoring our nation’s civil servants. Ms. Jones was one of 32 exceptional federal employees named as finalists for the 2016 Sammies. </p><p>The CDFI Bond Guarantee Program is a government innovation that injects new and substantial investment into our nation’s most distressed low-income communities. The program makes long-term, low-cost capital available to Community Development Financial Institutions (CDFIs) at no cost to taxpayers. As a result of the $852 million in bonds Treasury has issued since 2013, CDFIs have financed small businesses, affordable rental housing, day care centers, senior living facilities, charter schools, and health care facilities.</p><p>“The CDFI Bond Guarantee Program is a game changer for the CDFI industry,” said CDFI Fund Director Annie Donovan. “The program is a gateway to the capital markets for CDFIs, who are proving that low-income communities are credit-worthy. In the not-too-distant future, we expect the CDFIs who use this program to be attractive to a larger universe of institutional investors as bridges between distressed communities and the capital markets.”</p><p>The 32 Sammie finalists competed for eight medals in the following categories: Science and Environment; Homeland Security and Law Enforcement; National Security and International Affairs; Citizen Services; Management Excellence; and the Federal Employee of the Year. Ms. Jones is the Service to America medal winner in the Citizen Services category.</p><p>The 2016 Service to America medal winners will be honored tonight, September 20, 2016, at an award ceremony in Washington, D.C. Watch the ceremony live at <a href="http://www.servicetoamericamedals.org/" target="_blank">www.servicetoamericamedals.org</a>.  </p><p> <b>Related Links:</b></p><ul><li><p><a href="http://servicetoamericamedals.org/honorees/view_profile.php?profile=452" target="_blank">Sammie Profile for Lisa Jones</a></p></li><li><p> <a href="https://ourpublicservice.org/publications/viewcontentdetails.php?id=1299" target="_blank">Partnership for Public Service’s press release</a></p></li><li><p> <a href="http://servicetoamericamedals.org/" target="_blank">Samuel J. Heyman Service to America Medals website</a></p></li><li><p> <a href="/bond" target="_blank">CDFI Bond Guarantee Program webpage</a></p></li></ul>2016-09-20T04:00:00ZPress Releases229

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