Important CDFI Updates for Credit Unions
A 90-day blackout period on new certifications, the CDFI’s funding outlook, and good news for another Northwest CU attaining CDFI certification.
The U.S. Treasury’s Community Development Financial Institutions Fund (CDFI Fund) will pause accepting new applications for CDFI certification from August 1-November 1, 2018. This 90-day black out will allow Treasury to make critical system updates. CDFI certification has helped many Northwest credit unions to obtain grants and awards to foster growth, achieve sustainability, and revitalize communities.
If your credit union is in the process of applying for certification as a Community Development Financial Institution (CDFI), you’ll need to use an interim submissions process by July 31. The process is outlined on the CDFI’s website.
Budget Wins for CDFI Credit Unions
CDFI credit unions and your Association’s advocacy team successfully rallied Congress to protect CDFI’s budget this month. Both the Senate Appropriations Subcommittee on Financial Services and General Government, and the House Appropriations Committee approved full funding packages.
Against that backdrop, there was also concern about H.R. 3, The Spending Cuts to Expired and Unnecessary Programs Act, which had potential to slash $141 million from CDFI’s budget.
“Our understanding is that the process on this bill is now closed, and credit unions should not be concerned that this bill will move forward,” Trull said. “We will continue to monitor the budgeting process and keep our member credit unions informed.”
Portland-Based Consolidated Community Credit Union Joins the Ranks of CDFI Credit Unions
Good news arrived June 19 for CCCU. The 14,400-member, $221 million asset-sized credit union’s application for CDFI Certification was approved. CCCU has big plans.
“We process mortgage loans for 27 credit unions across the Pacific Northwest, so real estate loans are our niche,” said Larry Ellifritz, President/CEO. “With affordable housing and home buyer education being such a need in Portland, applying to become a CDFI was a natural fit. Real estate lending is the area we can make the most significant impact on our community. Our goals are to assist 135 families that would normally be displaced by the traditional lending markets to obtain over $24 million in loans.”
Editor’s note: Interested in leveraging CDFI certification at your credit union? Your Association’s John Trull is a resource for you to learn more about your options. firstname.lastname@example.org