National Consumer Cooperative Bank Act Amendments of 2009

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1674) to amend the National Consumer Cooperative Bank Act to allow for the treatment of the nonprofit corporation affiliate of the Bank as a community development financial institution for purposes of the Community Development Banking and Financial Institutions Act of 1994.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this particular legislation and to insert additional information.

Mr. Speaker, I rise in support of H.R. 1674, the National Consumer Cooperative Bank Act Amendments of 2009. This legislation is necessary to make a technical correction to the statute of the National Consumer Cooperative Bank Act.

The National Consumer Cooperative Bank was created by Congress in 1978 and 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 National Consumer Cooperative Bank Act of 1978 established a nonprofit corporation to reach further into low-income communities and to serve disadvantaged populations. NCB Capital Impact is that nonprofit, mission-driven subsidiary of NCB that works to provide housing, education, health care, cultural centers, small businesses, and social services in economically distressed communities.

In the last 10 years alone, NCB Capital Impact has invested more than $600 million in assistance to low- and moderate-income communities. These funds helped finance more than 33,000 affordable housing units; 8,000 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; and helped create 25,000 jobs for low-income individuals.

In my home State 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. Most of these loans are for housing, including affordable housing, as well as loans for community facilities and loans to nonprofit organizations like the Council of New York Cooperatives and Condominiums. Together, these groups are able to provide assisted living, affordable housing and services to the frail and elderly.

Presently, NCB Capital Impact is working with five community-based organizations to help finance 17 projects that will create 558 housing units. Despite their good work in serving low-income communities and disadvantaged populations, NCB Capital Impact is not eligible for assistance authorized under the Community Development Banking and Financial Institutions Act of 1994, which is administered by the CDFI Fund. The fund has ruled it cannot certify NCB Capital Impact as a CDFI because of the corporate structure of its parent, NCB. In short, NCB Capital Impact is shut off from critical sources of financial awards that are needed to maintain their housing and community development efforts.

The interest of NCB Capital Impact in gaining CDFI certification is twofold. First, it has a track record that is comparable to other organizations that receive CDFI status; its mission is dedicated to working with low-income populations and communities. Second, increasingly in the community development finance field, CDFI certification is viewed as a Good Housekeeping Seal of Approval in working with other Federal agencies and other public and private institutions.

I think that it is important to note that this legislation does not guarantee the NCB any assistance, nor does it authorize additional amounts for the CDFI program. All it does is allow NCB to better fulfill its mission by allowing them to compete for these funds. As such, the Congressional Budget Office has determined that this legislation will have no significant impact on the Federal budget.

I urge my colleagues to join me in supporting this technical amendment to the NCB statute so that the nonprofit, mission-driven NCB Capital Impact may continue to provide services to distressed and underserved communities throughout New York and throughout the entire country.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

H.R. 1674 makes a small but significant fix to the National Consumer Cooperative Bank that will have the effect of expanding financial services options to low-income communities.

The bill would give NCB Capital Impact, the nonprofit subsidiary of NCB, the opportunity to compete with hundreds of other institutions for grants from the Community Development Financial Institutions Fund administered by the Treasury Department. Today, NCB Capital Impact is not eligible for the CDFI grants even though it provides housing, education, health care, cultural centers, small businesses, and social services in distressed areas. The mission of the CDFI Fund is to expand the capacity of financial institutions to provide credit, capital and financial services to underserved populations.

So long as the activities of the NCB Capital Impact meet the letter and the spirit of the CDFI's eligibility requirements, their organizational structure should not preclude them from receiving those dollars. This bill would allow NCB Capital Impact to compete for grants and continue providing economic development support to low- and moderate-income communities.

In closing, I would like to commend the sponsor of this legislation, Mrs. Maloney, for her work on this bill. I am in support of her statement and would urge my colleagues also to support that.

Mr. Speaker, I yield back the balance of my time.