Obama Proposes Doubling of CDFI Fund Appropriations
We are delighted to report that prominently features an increase in CDFI Fund appropriations. If the budget passes, it would mean that more than $200 million would be available in 2009 – 2010 for the CDFI Fund. In addition to the current appropriation of $100 million and the “stimulus” special appropriation of $100 million; a total of $400 million could flow to the CDFI industry in the next two years.
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Federation Board Addresses Key Policy Issues
Meeting in Washington, DC, the Federation’s Board of Directors have adopted resolutions supporting measures to sustain the credit union system; enhance the viability and capacity of low-income credit unions; and aid low- and moderate-income
families hard hit by the economic crisis.
To mitigate those effects, the Federation supports the following legislative and other proposals that have been advanced.
* Corporate credit unions should gain direct access to the Central Liquidity Facility for liquidity and capital.
* TARP funds should be made available to the credit union movement.
* Share insurance premiums should be spread out over as long as eight years, on parity with other financial institutions.
* The Federation board also endorsed the “Helping Families Save Their Homes in Bankruptcy Act of 2009” (S. 61/H.R. 200).
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Federation Sends Comment Letter to NCUA on Proposed Corporate CU Stabilization
The Federation’s member CDCUs have expressed widespread dismay and distress at NCUA’s proposal for averting the threat to the corporate credit union system.
The Federation recently submitted a comment Letter to the NCUA Board of Directors informing them of the potential danger this proposal could have on CDCUs across the nation.
While the economic impact of the NCUA proposal is not unique to CDCUs, damage that would be sustainable for other credit unions could prove irreparable or fatal for many of our member CDCUs.
To read our comment letter and to learn more about the potential impact to CDCUs from NCUA’s proposal, go to: http://www.cdcu.coop/i4a/pages/Index.cfm?pageID=1440
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Federation has Record Year Raising Capital, Investing in Low-Income Communities
The economic environment in 2008 proved challenging for communities across the nation, especially those in areas hard-hit by foreclosures. Despite these adverse times, the Federation had an exceptionally strong year, breaking records
raising and renewing capital, and increasing its investments in CDCUs.
2008 Campaign Highlights: By the Numbers
* Total assets under management rose 27.2%, from $36.3 million to $46.2 million.
* $9.6 million in capital was raised from eight investors, four of them new to the Federation.
* Total Federation investments in CDCUs grew by 24% to $36.2 million.
* A Record $17.8 million invested in CDCUs in 2008 including:
* $7.8 million in new investments
* $5.3 million in renewed investments
* 43 mortgages totaling $4.7 million purchased, increasing mortgage portfolio to $6.1 million.
* Fully disbursed the Federation’s Community Development Relief and Rebuilding (“Hurricanes Katrina and Rita”) Fund, a total of $926,000, which provided supplemental grants to CDCUs in the Gulf Region.
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UNFCU Financial Advisors Bring Services to CDCUs Builds Strategic Alliance with Federation
Low- and moderate-income consumers in underserved communities across the country will soon be gaining access to a full suite of financial programs at CDCUs thanks to a newly formed alliance between UNFCU Financial Advisors (UNFCU FA)
and the Federation.
The alliance enables UNFCU FA to gain deeper insight into the needs of low-income consumers to best tailor innovative programs, products and services for them, as well as individuals of moderate incomes. Among the planned offerings are insurance services, investment and mortgage-related products and real estate buying and selling assistance.
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CU Coalition Offers Free Tax Prep to Low-Income People
Federation Members and Partners Host VITA Sites Across America The first of sixteen Volunteer Income Tax Assistance (VITA) sites participating in the National Federation of Community Development Credit Unions’ (Federation’s) VITA Coalition are now open for business, thanks to a $125,000 grant made to the Federation by the Internal Revenue Service (IRS). The Federation was the only national coalition exclusively representing credit unions that was awarded an IRS
VITA grant.
Through the grant, the Federation is helping credit unions host new and expand existing VITA sites to help low-income individuals and communities across the nation retain their hard-earned tax dollars. Collectively the coalition plans to file
over 5,000 tax returns and return millions of dollars to local communities. As part of the grant, the Federation will provide technical assistance and financial support to credit union VITA sites across the nation.
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CDCU Job Openings
Bi-Lingual(English/Spanish) Credit Union CEO – Georgia Family FCU
(Atlanta, GA)
President/CEO – Neighborhood Trust FCU (New York, NY)
Carlos Mencia: No Strings Attached divx
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35th Annual Conference on Serving the Underserved
June 11-13, 2009 | Phoenix, Arizona
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