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CDFI Fund Awards $4.15 Million to Organizations Through the FY 2010 Financial Education Counseling Pilot Programhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=64CDFI Fund Awards $4.15 Million to Organizations Through the FY 2010 Financial Education Counseling Pilot Program<p> <em>Four Organizations to Receive Grants for Financial Education and Counseling Programs</em></p><p><strong>Washington, DC</strong>–The Community Development Financial Institutions Fund (CDFI Fund) announced today the four award recipients of the fiscal year 2010 (FY 2010) round of the Financial Education and Counseling Pilot Program (FEC Pilot Program).<br></p><p>The awardees, serving low- and moderate-income communities in Florida, Hawaii, New Mexico and Pennsylvania, all share the common goal of increasing the financial knowledge and decision-making capabilities of prospective homebuyers in order to improve their financial stability and to effectively prepare for and sustain homeownership. The FEC Pilot Program awards grants to eligible organizations that provide innovative financial education and counseling services to prospective first-time homebuyers.<br></p><p>"I am very proud to announce the recipients of the second award round of the FEC Pilot Program," said CDFI Fund Director Donna J. Gambrell. "Time and time again we have seen how vital financial education and counseling is to all facets of community development, and it is especially important when assisting people with the important step of buying a home for the first time. The organizations receiving these awards will now be better able to provide these services in communities across the country."<br></p><p>The Department of the Treasury's Office of Financial Education and Financial Access collaborated with the CDFI Fund to implement the program and to select the awardees. "Financial literacy and counseling activities will empower prospective homebuyers to be better prepared for homeownership and make sound financial decisions," said Assistant Secretary for Financial Institutions Michael S. Barr. "The FEC Pilot Program addresses one of the core causes of the foreclosure crisis. Too many homebuyers were steered into mortgage products that they could not afford or understand. The pilot is intended to ensure that working families have the financial knowledge to effectively prepare for and evaluate housing choices."</p><p>The FEC Pilot Program was appropriated $4.15 million by Congress for FY 2010, $3.15 million of which was designated for an eligible organization in the state of Hawaii.</p><p>The ultimate purposes of the FEC Pilot Program are to identify effective training methods for promoting financial empowerment and producing positive behavioral changes and to develop successful program models for delivering financial education and counseling services to prospective homebuyers.<br></p><p>The FEC Pilot Program was appropriated $4.15 million by Congress for FY 2010, $3.15 million of which was designated for an eligible organization in the state of Hawaii.</p><p><strong>Profiles of Awardees</strong></p><p><strong>Council for Native Hawaiian Advancement </strong><br> Honolulu, HI<br>Award: $3.15 Million<br>Contact: Lilia Kapuniai, (808) 596-8155 </p><p>Based in Honolulu, the Council for Native Hawaiian Advancement (CNHA) was founded in 2001 to enhance the well-being of Hawaii through the cultural, economic and community development of Native Hawaiians and low-income populations throughout the state. A CDFI Fund-certified CDFI and a HUD-certified Housing Counseling Agency, CNHA will use its FY 2010 FEC Pilot Program award to fund the newly developed Hawaii Family Finance Project (HFFP). Designed to serve low income families wherever they live in Hawaii, HFFP unites capable partner organizations with the common goal of reaching low- to moderate-income prospective homebuyers. Through financial education counseling and group training and individual development accounts, HFFP will educate prospective homebuyers and assist with developing financial stability and saving for both short and long term goals. The project is estimated to serve over 3,000 individuals over the course of its 3-year program term. </p> <br><strong>Greater Erie Community Action Committee </strong><br>Erie, PA<br>Award: $400,000<br>Contact: Stephanie Long, (814) 459-4581 x 595 <br><br> <p>The Greater Erie Community Action Committee (GECAC) was established to reduce poverty in Erie County, Pennsylvania. GECAC will use their FY 2010 FEC Pilot Program award to create a financial education and counseling program to provide potential homebuyers the financial tools that they need to successfully transition from renting to homeownership. The program combines traditional financial education elements, such as group education, intensive one-on-one counseling, and match savings accounts, with a hard-and-fast time table for completion—an innovative approach that can be easily replicated by other providers. </p> <br><strong>Homewise, Inc. </strong><br>Sante Fe, NM<br>Award: $400,000<br>Contact: Elizabeth C. Derringer, (505) 955-7020 <br><br> <p>The mission of Homewise is to help working New Mexicans become successful homeowners in order to achieve financial security, strengthen families and increase the economic and social vitality of our communities. Homewise is a full-service agency promoting homeownership through financial education and consultation, home selection and financing services, and post-purchase support. The Homewise business model is to make financial education and counseling serve as the entry point to the entire home purchase process. These services include: one-on-one financial counseling, homebuyer education classes, classes designed to combat financial problems, and classes designed to encourage good savings habits. Through this model, Homewise has helped 2,100 low- and moderate-income New Mexicans to become first-time homeowners. Homewise will use its FY 2010 FEC Pilot Program award to pilot an expansion of its successful business model at three sites across the country. </p> <br><strong>Solita's House, Inc</strong>. <br>Tampa, FL<br>Award: $200,000<br>Contact: Aidza Antonio, (813) 425-4847 x 301 <br><br> <p>Solita's House, Inc. (SHI) is a non-profit organization in Tampa, Florida, dedicated to providing free financial education and credit counseling services to low- and moderate-income individuals and families that seek to become homebuyers. SHI's current financial education and counseling program includes homebuyer education, pre-purchase counseling, financial literacy, credit counseling, post-purchase counseling and foreclosure prevention. SHI will use their FY 2010 FEC Pilot Program award to expand their program with the addition of new services, educational workshops, matched savings, and a new education and counseling module called the “Learn It $ Practice It $$ Grow It $$$ Program."</p><p> <strong>About the CDFI Fund</strong><br><br> <em>Since its creation in 1994, the CDFI Fund has awarded almost $1.2 billion to CDFIs, community development organizations and financial institutions through CDFI Program, the Bank Enterprise Award Program, and the Native Initiatives. In addition, the CDFI Fund has allocated $26 billion in tax credit authority to Community Development Entities through the New Markets Tax Credit Program.</em></p><p>For more information about the CDFI Fund and its programs, visit <a target="_blank" href="http://www.cdfifund.gov/">http://www.cdfifund.gov</a>.</p> 2010-10-22T04:00:00ZPress Releases64
Treasury Officials, Congresswoman Lee Announce $80 Million in Awards for Affordable Housinghttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=63Treasury Officials, Congresswoman Lee Announce $80 Million in Awards for Affordable Housing<p> <em>Inaugural Round of Capital Magnet Fund Awards Provides Critical Financing to Meet Affordable Housing Need</em></p><p>Oakland, CA–Speaking today alongside Congresswoman Barbara Lee, the Director of the US Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund), Donna J. Gambrell, and the Deputy Assistant Secretary for Small Business, Community Development and Housing Policy, Don Graves, Jr., announced $80 million in awards for the development of affordable housing in low-income communities at an event today in Oakland, California. Held at St. Joseph's Senior and Family Housing, a historic landmark currently undergoing rehabilitation as an expanded affordable housing development, the event celebrated the 23 Community Development Financial Institutions (CDFIs) and nonprofit organizations that received awards.</p><p> <br>"I am thrilled to be announcing these awards under the first-ever round of the Capital Magnet Fund with Congresswoman Lee in California, where CDFIs continue to have a tremendous positive impact on the development of affordable housing,” said Director Gambrell. “The Capital Magnet Fund awards will enable our partners to leverage up to $1.6 billion for the financing of affordable housing within underserved communities and help put under-served neighborhoods on the path to recovery and revitalization."</p><p>The $80 million in grants awarded in the inaugural funding round of the Capital Magnet Fund will support financing for the preservation, rehabilitation, or purchase of affordable housing for low-income communities and community service facilities such as day care centers, workforce development centers and health care clinics.</p><p>Treasury chose St. Joseph's Senior and Family Housing as the venue of today's national award announcement to highlight how financing provided by CDFIs plays a crucial role in the development of affordable housing for low- and very low-income families. With funding provided through the Lower San Antonio Community Development Fund, the site's current developer, BRIDGE Housing Corporation, is converting the Oakland landmark into affordable housing units while preserving its historic designation. The Lower San Antonio Community Development Fund is an impressive collaborative effort managed by the Northern California Community Loan Fund in partnership with the Annie E. Casey Foundation, the Evelyn and Walter Haas, Jr. Fund, the San Francisco Foundation and two CDFIs serving the Bay Area, the Low Income Investment Fund and the Local Initiatives Support Corporation. Designed to provide much-needed capital to spur the development of affordable housing in the extremely low-income Lower San Antonio neighborhood of Oakland, California, the Lower San Antonio Community Development Fund provided the project with funding of over $3 million to rehabilitate St. Joseph's and create 80 units of affordable senior housing and 58 units of affordable family rental apartments. The Low Income Investment Fund and the Local Initiatives Support Corporation are among the 23 Capital Magnet Fund award recipients. The CDFI Fund provided the Low Income Investment Fund with a $6 million award and the Local Initiatives Support Corporation with a $5 million award under the Capital Magnet Fund.</p><p>The CDFI Fund provided the Low Income Investment Fund with a $6 million award under the Capital Magnet Fund out of 23 awards made to organizations serving 38 states. The CDFI Fund received 230 applications from organizations serving 49 states, the District of Columbia, and Puerto Rico requesting over $1 billion in grants under the FY 2010 round of the Capital Magnet Fund. On average, applicants proposed leveraging their awards by a factor of over 20 times their award request, far exceeding the target set by Congress of leveraging by a factor of 10.</p><p><strong>About the Capital Magnet Fund</strong></p><p>Through the Capital Magnet Fund, the CDFI Fund will provide competitively awarded grants to CDFIs and qualified nonprofit housing organizations. Capital Magnet Fund awards can be used to finance affordable housing activities as well as related economic development activities and community service facilities. Awardees will be able to utilize financing tools such as loan loss reserves, loan funds, risk-sharing loans, and loan guarantees to produce eligible activities whose aggregate costs are at least ten times the size of the award amount.<br><br><strong>2010 Capital Magnet Fund Awards</strong></p> <ul><li> <a target="_blank" href="/Documents/2010%20Capital%20Magnet%20Fund%20Award%20List.pdf">2010 Capital Magnet Fund Award List</a></li><li> <a target="_blank" href="/Documents/2010%20Capital%20Magnet%20Fund%20Awardee%20Highlights.pdf">2010 Capital Magnet Fund Highlights</a></li><li> <a target="_blank" href="/Documents/2010%20Capital%20Magnet%20Fund%20Awardee%20Profiles.pdf">2010 Capital Magnet Fund Awardee Profiles</a></li><li> <a target="_blank" href="/Documents/2010%20Capital%20Magnet%20Fund%20Award%20Booklet.pdf">2010 Capital Magnet Fund Award Booklet</a></li></ul><p>For more information on the Capital Magnet Fund, or the CDFI Fund's programs, please visit the CDFI Fund's website at: <a target="_blank" href="http://www.cdfifund.gov/">http://www.cdfifund.gov</a>. </p>2010-10-14T04:00:00ZPress Releases63
CDFI Fund Announces Providers Under New Capacity-Building Initiativehttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=62CDFI Fund Announces Providers Under New Capacity-Building Initiative<p> <em>Expanded Technical Assistance and Training Resources to Strengthen Capacity of Community Development Financial Institutions Across the Nation</em></p><p><strong>Washington, DC</strong>–The CDFI Fund announced today the initial successful providers named under the Request for Proposals for its new Capacity-Building Initiative, designed to greatly expand technical assistance and training opportunities for Community Development Financial Institutions (CDFIs) nationwide. Through the Capacity-Building Initiative, these firms will provide specialized training and technical assistance designed to significantly increase the ability of CDFIs to deliver financial products and services to underserved communities.</p><p>"This exciting, new initiative marks another key success in the CDFI Fund's efforts to deliver additional resources, funding, and specialized technical assistance to the entire CDFI sector. I would especially like to thank the Community Development Advisory Board for their inspiration and hard work to make this initiative possible," said CDFI Fund Director Donna J. Gambrell. "The CDFI Fund will be working closely with the providers announced today to offer high quality training resources, on-site technical assistance and individualized capacity-building assistance to help CDFIs extend and expand their coverage."</p><p>Training will cover areas like affordable housing and business lending, portfolio management, risk assessment, foreclosure prevention, training in CDFI business processes, and assistance with liquidity and capitalization challenges.</p><p>The providers selected for the initial Capacity-Building Task Orders are:</p><ul><li>CDFI Solutions for Foreclosure Prevention: NeighborWorks America<br><br>NeighborWorks will provide training and/or technical assistance services to help CDFIs respond to the nation's foreclosure crisis. Participants will learn how to effectively implement foreclosure prevention programs or to strengthen existing programs. This initiative will focus particularly on CDFIs serving communities that are most affected by the current housing crisis.<br><br></li><li>CDFI Expansion: Deloitte Financial Advisory Services<br><br>Deloitte will undertake market research to help determine if and how training and/or technical assistance services should be provided to communities hardest hit by the recession. This will help lay the foundation for a training and technical assistance strategy by: 1) identifying which communities have been the hardest hit by the recession; 2) if a CDFI serves those areas hardest hit; 3) if a CDFI does serve such areas, what kind of capacity building would be most appropriate if at all; and 4) if a CDFI does not substantially serve the hardest hit areas, what is the extent of the need for such an entity.<br><br></li><li>Portfolio Management and Risk Assessment: NeighborWorks America<br><br>NeighborWorks will provide training and/or technical assistance services to help participants effectively assess the risks in their loan portfolios and manage these risks. NeighborWorks will identify best practices in risk assessment and portfolio management that are being used by the CDFI industry, CDFI partners or other community development lending institutions.<br><br></li><li>Liquidity and Capitalization: NeighborWorks America<br><br>NeighborWorks will conduct market research on: 1) current avenues for capacity and liquidity for CDFIs; 2) barriers to achieving greater capitalization and liquidity; and 3) best prospects for achieving capitalization and liquidity. It will take the results of this research and implement a program of training and technical assistance to support the capital structure of CDFIs.</li></ul><p>In addition to the providers mentioned above, the CDFI Fund is pleased to announce that the National Federation of Community Development Credit Unions, the Opportunity Finance Network and Reznick Group, P.C. have also been selected as providers under the Request for Proposals for the Capacity-Building Initiative and will be able to compete on additional task orders which will be issued in the future.</p><p>Selections were made based on the providers overall expertise and ability to serve the full range of CDFIs. Training will be directed to nonprofit loan funds, banks, credit unions and venture capital funds, in both rural and urban settings.</p><p>The CDFI Fund is coordinating with the providers to begin delivery of the technical assistance and training in the coming months. These opportunities will be posted on the CDFI Fund's website. The CDFI Fund anticipates announcing the provider selected to conduct training and technical assistance for CDFIs to successfully finance the full continuum of access to healthy food options in underserved markets later this month.</p><p><strong>About NeighborWorks America</strong> –  Neighborworks America (NeighborWorks) is a national nonprofit organization chartered by Congress in 1978. Its mission is to create opportunities for Americans to live in affordable homes, improve their lives, and strengthen their communities. NeighborWorks has over 22 years of experience providing training and is recognized as the premier provider of training in the affordable housing and community development industry. NeighborWorks supports over 4,000 affordable housing and community development nonprofit organizations and municipalities across America each year by providing training, technical assistance, access and capital. In fiscal year 2009, NeighborWorks awarded more than 20,000 training certificates to affordable housing and community development professionals from 3,500 nonprofit organizations and municipalities from all 50 states and Puerto Rico.</p><p><strong>About Deloitte</strong> –  Deloitte is a global organization devoted to excellence in providing professional services and advice. With access to the deep intellectual capital of more than 160,000 people worldwide, its member firms deliver services in areas of consulting, assurance & enterprise risk, tax, and financial advisory services. Deloitte Financial Advisory Services brings strong industry experience in financial transaction work – restructuring impaired assets, and developing business models that can attract new capital, and providing technical assistance to troubled institutions. Deloitte's Financial Services Industry practice is a far-reaching network of practitioners who offer their experience to the world's leading federal and commercial financial services enterprises. This practice serves 83 percent of the financial services companies listed on the Fortune Global 500, operates in more than 40 countries and encompasses a network of more than 1,000 partners and 17,000 professionals.</p><p><strong>About the National Federation of Community Development Credit Unions</strong> –  The National Federation of Community Development Credit Unions (the Federation) was established in 1974 by a national coalition of credit unions dedicated to the financial empowerment of low-income, underserved communities. The Federation is a certified CDFI, a national CDFI intermediary, and a HUD Approved National Housing Counseling Intermediary. The Federation has developed a deep menu of capacity-building services and capital products, a continuum of services that begins with the earliest stages of organizing new community development credit unions and runs through each stage of development on the path to maturity as full-service CDFIs. The Federation is the only national CDFI intermediary with the exclusive mission of expanding the reach and increasing the impact of credit union CDFIs.</p><p><strong>About Opportunity Finance Network</strong> –  Opportunity Finance Network (OFN) possesses 25 years of experience as a community development finance industry leader. OFN's mission is to lead the community development finance system to scale through capital formation, policy and capacity development. OFN has managed numerous national capacity building initiatives and worked successfully with CDFIs on a daily basis. OFN's team is recognized across the CDFI industry as experts in CDFI capacity building, risk management, institutional growth and development, and strategy.</p><p><strong>About Reznick Group P.C.</strong> –  Reznick Group P.C. (Reznick) is a national leader in accounting, tax and business advisory services. It has more than 32 years experience supporting community development and affordable housing clients. Reznick has helped CDFIs organize themselves, complete competitive applications for funding, and comply with Federal program requirements. It has provided services for CDFIs and nonprofits ranging from structuring and implementing compliance and monitoring programs to asset management, to designing and evaluating capitalization and business strategies, financing structures, and equity solicitations. Reznick will apply its proven project management approach to serve the diverse and complex needs of this initiative.</p><p><strong>CDFI Fund Background</strong></p><p>The CDFI Fund invests in and builds the capacity of community-based, private, for-profit and non-profit financial institutions with a primary mission of community development in economically distressed communities. These institutions – certified by the CDFI Fund as Community Development Financial Institutions or CDFIs – are able to respond to gaps in local markets that traditional financial institutions are not adequately serving. CDFIs provide critically needed capital, credit and other financial products in addition to technical assistance to community residents and businesses, service providers, and developers working to meet community needs. The CDFI Fund's vision is an America in which all people have adequate access to affordable capital, credit and financial services.</p><p>For more information on the CDFI Fund and its programs, please visit the Fund's website at: <a href="http://www.cdfifund.gov/">http://www.cdfifund.gov</a>.</p>2010-10-07T04:00:00ZPress Releases62

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