Congress, President Approve $107 Million for CDFI Fund

Last week the President and Congress took the last steps in finalizing appropriations for FY2009 (the government spending year that began last October). The $410 billion omnibus bill includes $107 million for the CDFI Fund, including $8.5 million for Native American programs, $14.7 million for administration, and $2 million for a pilot program for housing counseling that was established in last year’s housing bill. This money is in addition to the $100 million provided for the CDFI Fund in the stimulus legislation. Resolution of the FY09 spending clears the way for consideration of the President’s FY2010 budget, which proposes doubling spending for the CDFI Fund. Read more to see the specific legislative language on the CDFI Fund from the omnibus spending bill:

Community Development Financial Institutions Fund Program Account

To carry out the Community Development Banking and Financial Institutions Act of 1994 (Public Law 103325), including services authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for ES-3, $107,000,000, to remain available until September 30, 2010, of which $8,500,000 shall be for financial assistance, technical assistance, training and outreach programs designed to benefit Native American, Native Hawaiian, and Alaskan Native communities and provided primarily through qualified community development lender organizations with experience and expertise in community development banking and lending in Indian country, Native American organizations, tribes and tribal organizations and other suitable providers, $2,000,000 shall be available for the pilot project grant program under section 1132(d) of division A of the Housing and Economic Recovery Act of 2008 (Public Law 110289), up to $14,750,000 may be used for administrative expenses, including administration of the New Markets Tax Credit, up to $7,500,000 may be used for the cost of direct loans, and up to $250,000 may be used for administrative expenses to carry out the direct loan program: Provided, That the cost of direct loans, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $16,000,000.