Congress Update
This week, the U.S. Senate is in recess and returns next week. The U.S. House of Representatives will begin the process to find the next Speaker of the House. Both chambers are not expecting to resume their work on bills to fully fund the federal government until later this month.
ACTION Campaign Releases Video Series Explaining the Affordable Credit Improvement Act (shared on behalf of ACTION Campaign’s October Update)
The ACTION Campaign recently released a videos series that examines the provisions of the Affordable Housing Credit Improvement Act (AHCIA; S. 1557 / H.R. 3238). The ACTION Campaign has a number of advocacy materials to help support your outreach, including National, State, and Congressional District Fact Sheets, statewide ACTION Campaign member lists, an in-district advocacy guide, sample emails for outreach, as well as detailed information about the AHCIA in our Advocacy Toolkit. We also have a complete list of cosponsors from last Congress, where you can check if your Senator or Representative has cosponsored in the past, as well as the most up-to-date list of current cosponsors. The advocacy resources are great for meetings with your lawmakers, when visiting Washington, D.C. later this month during the NAHMA Conference.
Treasury Guarantees $300 Million in Bond Financing for Projects in Low-Income and Distressed Communities; Senators Reintroduce the Community Development Investment Tax Credit Act
In late Sept, the U.S. Dept. of the Treasury’s (Treasury Dept.) Community Development Financial Institutions Fund (CDFI Fund) announced the Treasury Dept. agreed to issue three guarantees totaling $300 million under the Community Development Financial Institution (CDFI) Bond Guarantee Program. The CDFI Bond Guarantee Program provides long-term, low-cost, fixed-rate capital for projects in low-income and distressed urban, rural, and Native communities. The FY 2023 program participants include:
- Community Reinvestment Fund, USA will issue a $100 million bond on behalf of B.S.D. Capital, Inc. dba Lendistry (LDST). LDST, based in Brea, California, plans to use the bond proceeds to fund small businesses, charter schools, rental housing, commercial real estate, daycare centers, and other eligible uses nationwide, with emphasis on the states of California, Florida, New York, and Washington.
- Bank of America CDFI Funding Corporation will issue a $100 million bond on behalf of Self-Help Ventures Fund (SHVF). SHVF, based in Durham, North Carolina, plans to use bond proceeds to fund new originations, loan acquisitions, and refinancing of existing loans under five asset classes that include Commercial Real Estate, Rental Housing, Charter Schools, Not-For-Profit Organizations, and Healthcare Facilities, primarily in five states that cover the East Coast, West Coast, and Mid-West region.
- Bank of America CDFI Funding Corporation will also issue a $100 million bond on behalf of California Community Reinvestment Corporation (CCRC). CCRC, based in Glendale, California, plans to use bond proceeds to exclusively fund rental housing in the state of California with 100% of the proposed Secondary Loans being aimed at serving low-income households with most being in low or moderate income and underserved areas.
In keeping with the CDFIs, last week, a bipartisan group of Senators re-introduced the Community Development Investment Tax Credit Act of 2023 (S.2963) to promote lasting economic prosperity in low-income, minority, and rural communities. According to the legislation’s press release on the bill, “this bill will help direct support to lenders that focus on underserved communities by creating a CDFI Tax Credit for private sector investors that make equity, equity-equivalent investments, or long-term patient capital available to CDFIs. The bill would benefit CDFIs of all types including banks, credit unions, venture capital CDFIs, and loan funds, while providing institutions with the maximum flexibility and financial support they need to increase wealth in low- and moderate-income communities.” Senator Mark R. Warner (D-VA) joined Senators Roger Wicker (R-MS), Chris Van Hollen (D-MD), Cindy Hyde-Smith (R-MS), Gary Peters (D-MI), and Jerry Moran (R-KS) to sponsor this legislation, similar to a bill they introduced during the last Congress.