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CDFI Fund Releases Two Independent Reports on the CDFI Programhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=101CDFI Fund Releases Two Independent Reports on the CDFI Program<p> <em>New academic research provides significant insight into the impact and resiliency of Community Development Financial Institutions</em></p><p> <strong>WASHINGTON </strong>— The U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) today issued two independent reports that provide the first-ever comparative analysis and evaluation of the effectiveness of Community Development Financial Institutions (CDFIs) as compared to mainstream lenders. The findings confirm that CDFIs are resilient and a reliable resource for capital in areas that need it the most. </p><p> “The reports released today demonstrate that CDFIs that receive financial assistance from the CDFI Fund are meeting their mission to promote economic growth by providing access to credit, capital, and financial services to underserved populations and distressed communities,” said Annie Donovan, Director of the CDFI Fund. “These reports demonstrate that CDFIs are a vibrant and essential part of the financial services industry and that institutions can successfully and responsibly lend to low-income people and in low-income communities.” </p><p> These reports found that CDFIs have no more risk than conventional lenders and that they perform nearly just as well as mainstream financial institutions. The first report, <em>CDFIs Stepping Into the Breach: An Impact Evaluation Summary Report</em>, undertaken by Michael Swack, Eric Hangen and Jack Northrup from the Carsey School of Public Policy at the University of New Hampshire, is an analysis of the impact of financial assistance awards from the CDFI Program on CDFI loan fund recipients. The second report, <em>Introduction to Risk and Efficiency among CDFIs: A Statistical Evaluation using Multiple Methods</em>, conducted by Gregory Fairchild from the Darden School of Business at the University of Virginia and Ruo Jia from the Stanford Graduate School of Business, is an analysis of CDFI banks and credit unions to assess their risk of failure and their operational efficiency relative to mainstream financial institutions. </p><p> Key highlights from the Carsey School report include: </p><ul><li>CDFI loan fund lending fills market gaps for key underserved low-income populations;</li><li>CDFI loan funds deliver between roughly two-thirds to over ninety percent of all loan volume to borrowers living in a CDFI Fund-designated Investment Area;</li><li>From 2005 through 2012, CRA reported lending decreased while CDFI loan fund reported lending more than tripled, and during the recession this activity provided a counter-cyclical boost to the economy;</li><li>CDFI loan funds provide borrowers that may not qualify for loans from mainstream sources with loan terms and interest rates that are still comparable to mainstream products; and</li><li>The CDFI Fund is the second largest-source of equity to CDFI loan funds after internally-generated funds. </li></ul><p> Key highlights from the Darden School report include: </p><ul><li>CDFI banks and credit unions were found to have no more risk of financial failure than mainstream financial institutions, even after controlling for the CDFIs’ degree of involvement in the mortgage market during the financial crisis; and</li><li>Despite serving predominately low-income markets, CDFI banks and credit unions had virtually the same level of performance as mainstream financial institutions.</li></ul><p> Links to Reports:</p><ul><li> <a href="/Documents/CDFIs%20Stepping%20into%20the%20Breach%20Impact%20Evaluation%20Report.pdf" target="_blank">CDFIs Stepping Into the Breach: An Impact Evaluation Summary Report</a></li><li> <a href="/Documents/Risk%20and%20Efficiency%20among%20CDFIs%20Report.pdf" target="_blank">Introduction to Risk and Efficiency among CDFIs: A Statistical Evaluation using Multiple Methods</a></li></ul><p> For more information about the CDFI Fund and its programs, please visit <a href="http://cdfifund.gov/">www.cdfifund.gov</a> or view the CDFI Fund’s <a href="/Documents/CDFI_Brochure.pdf" target="_blank">fact sheet</a>. </p>2015-02-24T05:00:00ZPress Releases101
CDFI Fund Releases Public Data on Capital Magnet Fund Investmentshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=166CDFI Fund Releases Public Data on Capital Magnet Fund Investments<p>The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) released today public data on Capital Magnet Fund investments from fiscal years 2011 through 2013 for the initial $80 million round of awards. </p><p> Capital Magnet Fund awardees reported investing in a total of <strong>8,971 affordable housing units</strong>, including: </p><ul><li> 8,049 rental units; and </li><li>922 homeowner-occupied homes. </li></ul><p> Capital Magnet Fund investments were made in 34 states, the District of Columbia, and Puerto Rico to finance affordable housing activities, as well as related economic development activities and community service facilities. </p><p> The investments were made by 23 Community Development Financial Institutions (CDFIs) and qualified nonprofit housing developers that were awarded $80 million under the inaugural round of the Capital Magnet Fund on October 10, 2010. The awardees included 13 nonprofit housing organizations, nine CDFIs, and one Tribal housing authority. The CDFI Fund received 230 applications requesting more than $1 billion in grants under the fiscal year 2010 round. </p><p> <a href="/Documents/CMF%20data%20release.xlsx">Capital Magnet Fund Investments FY 2011 – FY 2013 Data File</a></p><p>  For more information about the Capital Magnet Fund, please visit <a href="http://www.cdfifund.gov/cmf">www.cdfifund.gov/cmf</a>. Additional CDFI Fund data releases and reports can be found at <a href="http://www.cdfifund.gov/research">www.cdfifund.gov/research</a>. Please note that all data are subject to change based upon subsequent reporting. </p>2015-02-24T05:00:00ZUpdates166
PRESIDENT’S 2016 BUDGET REQUESTS $233.5 MILLION FOR TREASURY’S CDFI FUNDhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=100PRESIDENT’S 2016 BUDGET REQUESTS $233.5 MILLION FOR TREASURY’S CDFI FUND<p> <span><strong>FOR IMMEDIATE RELEASE: February 2, 2015</strong><br> <strong>CONTACT:</strong> Dan Cruz, Treasury Public Affairs, <a href="mailto:daniel.cruz@treasury.gov">daniel.cruz@treasury.gov</a><br>Bill Luecht, CDFI Fund, <a href="mailto:luechtw@cdfi.treas.gov">luechtw@cdfi.treas.gov</a></span></p><center> <em><strong>Funds Would Extend the CDFI Fund’s Economic Development Efforts in Underserved Communities</strong></em></center><p> WASHINGTON – Today, President Obama released the Administration’s Fiscal Year (FY) 2016 Budget proposal, which includes $233.5 million for the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund). This funding would extend the CDFI Fund’s efforts to spur economic development and job growth in underserved communities. </p><p> “The President’s 2016 Budget calls for everyone to share in the prosperity of a growing America, and it makes the critical investments needed to accelerate and sustain economic growth in areas that need it the most,” said CDFI Fund Director Annie Donovan. “This request provides essential support to the important and innovative work of Community Development Financial Institutions, and these organizations have a proven track record of leveraging private sector investments to attract businesses, jobs, and services to low-income urban and rural communities across the country.” </p><p> Highlights of the FY 2016 Budget request for the CDFI Fund include: </p><ul><li>$157.5 million for the Community Development Financial Institutions Program, a $5 million increase from FY 2015;</li><li>$35 million for the Healthy Food Financing Initiative, which is a $13 million and 60 percent increase from FY2015; and</li><li>$16 million for the Native American CDFI Assistance Program, a $1 million increase from FY 2015.</li></ul><p> The Budget proposes permanently extending the New Markets Tax Credit Program at $5 billion per year and extending the CDFI Bond Guarantee Program through FY 2017. The remainder of the request is for funding for administration of the CDFI Fund’s overall programs, including the restoration of the Capital Magnet Fund, which provides affordable housing grants funded from non-appropriated sources. </p><p> For more information about the CDFI Fund and its programs, please visit <a href="http://cdfifund.gov/">www.cdfifund.gov</a> or view the CDFI Fund’s <a href="/Documents/CDFI_Brochure.pdf" target="_blank">fact sheet</a>. </p> <p> <strong>Related Documents:</strong> </p><ul><li> <a href="http://www.treasury.gov/about/budget-performance/budget-in-brief/Documents/11.%20CDFI%20FY%202016%20BiB%20Final.pdf">FY 2016 CDFI Fund Budget-in-Brief</a></li><li> <a href="http://www.treasury.gov/about/budget-performance/budget-in-brief/Documents/FY16FactSheet.pdf">U.S. Treasury Department Budget Fact Sheet</a></li><li> <a href="http://www.whitehouse.gov/omb/budget/" target="_blank">Complete FY 2016 Budget</a></li></ul>2015-02-02T05:00:00Z100

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