The waiting game for community development financial institution (CDFI) funds continues, with credit union officials concerned about delays in the application process…
The waiting game for community development financial institution (CDFI) funds continues, with credit union officials concerned that delays in the application process are hurting already struggling communities across the country. .
The CDFI Fund announced a grandfathered period for applications in October 2022, while the U.S. Department of the Treasury determined an updated application and recertification process. His new CDFI certification application process was scheduled to begin on his April 3rd date, but due to untold delays, the blackout period became an “undetermined” period.
As the credit union calendar approaches November, CUNA officials on Tuesday petitioned the Senate Banking Committee to somehow clear the logjam and urge the Treasury Department to lift the moratorium on application processing.
“The longer the Treasury Department delays finalizing these requirements, the more communities across the country will suffer housing and economic challenges,” CUNA President and CEO Jim Nussle said in a letter to the Senate committee. “The period of missed opportunities will be longer.”
He added that this waiting game “creates a difficult environment for CDFI-certified credit unions to promote housing and economic opportunity.” Currently, his CDFI-certified credit unions seeking recertification from the Treasury Department and credit unions seeking accreditation are waiting for the Fund to announce updated application requirements. Additionally, credit unions have expressed concerns about maintaining CDFI certification or accepting subsidies related to unannounced reporting requirements. ”
CUNA states that if the new requirements are “set outside the credit union board’s risk tolerance,” they will result in fewer credit unions participating in CDFI funds and will lead to “underserved and low-income “This could be a huge loss for income groups.” income community. ”
“We urge the subcommittee to use this hearing to highlight what is at stake as CDFIs await completion of the Fund’s updated certification process,” Nussul said. ” he wrote.
As of May, credit unions accounted for 531 of the nation’s 1,432 CDFIs.
Read more: Nussuru’s letter to the Senate Banking Committee.