Maloney hails passage of bill which will increase capital for development in under-served communities

June 16, 2009

by New York RealEstateRama

Category: News || Housing & Development | No Comments

WASHINGTON, DC – June 16, 2009 – (RealEstateRama) – Rep. Carolyn B. Maloney (D-NY) hailed House passage of H.R.1647, which provides the nonprofit subsidiary of the National Cooperative Bank, NCB Capital Impact, with the designation as a Community Development Financial Institution. This designation will allow NCB Capital Impact to compete for grants administered under the CDFI Fund. st1\:*{behavior:url(#ieooui) }

“In the last 10 years alone, NCB Capital Impact has invested more than $600 million in assistance to low- and moderate-income communities,” Rep. Maloney said. “Overall, these funds helped finance more than 33,000 affordable housing units, 8,900 affordable assisted living units for seniors and persons with disabilities, 137,000 school seats, 2.9 million square feet of community health center space serving 350,000 patients annually, and helped created 25,000 jobs for low-income individuals.

“In my home city of New York, NCB Capital Impact has played a significant role in providing housing finance. In fact, NCB has participated in more than 600 loans in my district alone. So I’m proud to have helped NCB Capital Impact gain the CDFI designation through this legislation,” Maloney concluded.

Terry Simonette, President of NCB Capital Impact, said, “We’re grateful for House passage of this bill today, which recognizes NCB Capital Impact’s successful track record of investment in financially underserved communities. We continue to provide innovative financing and expert technical assistance to build and maintain health and educational facilities, long term assisted care facilities, affordable housing and access to affordable, healthy food through local food cooperatives. We look forward to working with our CDFI friends and partners to continue to build economic security in communities that need it most.”

Sen. Sherrod Brown (D-OH) sponsored the companion bill in the Senate.

# # #

Background. NCB was established by the National Consumer Cooperative Bank Act of 1978. NCB is dedicated to strengthening communities nationwide through the delivery of banking and financial services, complemented by a special focus on cooperative expansion and economic development. The legislation that created NCB also established a non-profit corporation (NCB Capital Impact) to reach further into low income communities and to serve disadvantaged populations.

Despite their good record, NCB Capital Impact cannot qualify for CDFI certification. The CDFI Fund authorizing statute — Community Development Banking and Financial Institutions Act of 1994 — requires that all the elements of a corporate tree meet the ‘principal mission test’ of serving low income communities and individuals. While NCB devotes a substantial amount of its resources to economic distressed communities and individuals, its mission is to assist cooperatives. The CDFI Fund has ruled that it does not meet the requirements of the law.

NCB Capital Impact meets all of the eligibility criteria on its own and without exception.

Contact: Jon Houston, 202-225-7944