News Release
Contact: Public Relations Coordinator
(800) 342-9835, ext. 8130Spitzer Signs CDFI Bill Into Law
(July 10 - Latham, NY) – In a move being lauded by the New York State Credit Union League and the National Federation of Community Development Credit Unions, Governor Eliot Spitzer signed legislation July 3 that would create the first-ever State Community Development Financial Institutions (CDFI) Program.
The CDFI legislation (Chapter 186 of the laws 2007), a League legislative agenda item for years, amends the Urban Development Corporation (UDC) Act to provide for the creation of a state CDFI program, which will provide access to banking services and capital to low- and moderate-income communities through community development credit unions and a growing network of alternative financial service providers.
CDFIs are community-based private sector financial institutions that make loans and investments, and provide other financial services, to persons and businesses not being served by traditional lenders.
The creation of the State CDFI program will supplement the federal program, resulting in expanded services and economic growth, and authorizing loans and deposits with CDFIs.
The League and the National Federation of Community Development Credit Unions advocated for CDFI legislation during their respective lobby days in May. The League also lent its assistance during the New York Coalition of Community Development Financial Institutions’ lobby day in April.
CDFI legislation was introduced this year by Assembly Banks Committee Chair Darryl Towns (D-Metropolitan) and Senate Banks Committee Chair Hugh Farley (R-Adirondack/Capital). The bill passed both houses of the legislature and was delivered to the governor on June 22.
"We applaud Governor Spitzer for recognizing the importance of this legislation by signing it into law," said William J. Mellin, president/CEO, New York State Credit Union League. "The signing of this bill enables our community development credit unions to expand essential services to low- and middle-income New Yorkers. We also thank the bill’s sponsors, "Senator Hugh Farley, Assemblyman Darryl Towns, and the legislature for helping New York’s not-for-profit credit unions take an important step forward in community development finance."
"This legislation is a recognition of the effectiveness of CDFIs in providing much-needed financing for a wide range of projects that meet the financial needs of low-income persons and families," said Federation Executive Director Clifford N. Rosenthal. "This new fund will bring much-needed resources to promote economic development strategies that target individuals, small-businesses, and low-income communities across the state, and it’s very exciting to finally see our efforts pay off after all these years," he added.
Although there is no funding allocated in the bill for the program, passage of this legislation sets up the framework for the CDFI program to be funded in next year’s budget.
The League will continue to work with the Federation and the Coalition to secure funding for the program in 2008.
The National Federation of Community Development Credit Unions represents 220 community development credit unions serving urban and rural low-income communities across the United States. The Federation also represents nearly 40 Community Development Partners, some of the nation’s largest credit unions with a special commitment to serving low-income communities. Founded in 1974, the Federation is headquartered in Lower Manhattan and offers a wide range of advocacy, educational, training, capital, marketing, and outreach programs to support and assist credit unions. For more information about the Federation and its programs, please visit www.cdcu.coop.
The New York State Credit Union League (NYSCUL) has served as the trade association for the state’s credit unions for 90 years. It is the fifth largest league in the country. New York credit unions have assets of more than $37 billion and more than 4.1 million members. To learn more about the League, visit www.nyscul.org.
New York State Credit Union
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