Recent News
"Reps. Darin LaHood (R-Ill.) and Suzan DelBene (D-Wash.), along with 114 bipartisan cosponsors, have introduced NAHB-supported legislation that will improve the Low-Income Housing Tax Credit (LIHTC) and allow builders to increase production of badly needed affordable rental housing.
The Affordable Housing Credit Improvement Act of 2025 addresses the need to boost housing production to ease the nation's housing affordability crisis. The bill would help finance more than 2 million additional multifamily units over the next decade."
"The US Treasury Department no longer intends to take a backseat in US bank regulation and is moving to the driver's seat instead.
Speaking at the American Bankers Association's Washington Summit on April 9, US Treasury Secretary Scott Bessent laid out a road map for the future of US bank regulation, a task given to him by President Donald Trump. Among those potential changes are tailored regulations for community banks, increased focus on financial risk versus management and governance, modernized capital requirements and reassessed capital buffers for large banks."
CDBA Members and Colleagues,
The past month has brought a wave of policy developments—and growing challenges—for the CDFI industry. Amid it all, your advocacy has made a meaningful impact. Thanks to the collective efforts of CDFIs and allies across the country, we’ve secured several key wins:
- Preserved FY25 funding for the CDFI Fund at FY24 levels, despite broader budget pressures.
- ... Read more
"As the Department of Government Efficiency and other members of the administration continue clear-cutting the federal workforce, organizations that rely on the CDFI Fund to develop affordable housing, support minority-owned businesses and deliver disaster recovery in low-income parts of the country expressed concerns about what the order could mean for those efforts. CDFIs have a track record helping communities across the US, including the rural areas Trump has said he wants to help, so it's confusing for leadership of these organizations to be targeted. Considering current efforts to... Read more
"In celebration of KeyBank's (NYSE: KEY) Bicentennial, the KeyBank Foundation is proud to announce a special grant program designed to strengthen Community Development Financial Institutions (CDFIs) that play a critical role in advancing affordable housing and small business development. This milestone initiative reflects KeyBank's enduring legacy of service, resilience, and commitment to fostering economic opportunity and strengthening communities.
Through this program, the KeyBank Foundation intends to award one $200,000 grant to an exemplary CDFI in each of KeyBank's 27 markets.... Read more
"Community development financial institutions (CDFIs) have emerged as pivotal players in bridging financial gaps in underserved communities. Between 2014 and 2024, CDFIs grew sevenfold, reaching $436 billion in assets by the end of 2024.
This growth has enabled CDFIs to serve a growing number of places, especially residents and business owners in Black and Indigenous communities and communities of color. In particular, CDFIs played a critical role in helping business owners of color access vital Paycheck Protection Program dollars during the pandemic, at a time when conventional... Read more
"Credit insecurity is regionally concentrated, with concentrations in the South and Appalachia. Credit Insecure places have higher shares of the population who live in rural areas, do not have bachelor's degrees, and rent their homes."
"For the past three decades, a little-known fund housed in the U.S. Department of the Treasury has been quietly fueling economic growth in communities across the country. With an astonishing return on investment, the Community Development Financial Institutions, or CDFI, Fund has unlocked billions in private capital in economically distressed urban, rural and Native communities that are often overlooked by mainstream financial institutions. The CDFI Fund has a 30-year track record of providing resources to local CDFIs — loan funds, credit unions and banks — that finance what is important... Read more
"The federal bank regulatory agencies today announced, in light of pending litigation, their intent to issue a proposal to both rescind the Community Reinvestment Act (CRA) final rule issued in October 2023 and reinstate the CRA framework that existed prior to the October 2023 final rule. The agencies will continue to work together to promote a consistent regulatory approach on their implementation of the CRA."
"Yesterday, the United States Senate confirmed Michael Faulkender to be the Deputy Secretary of the United States Department of the Treasury.
'It is an honor to be confirmed as the Deputy Secretary of the United States Department of the Treasury. Thank you, President Trump, for the trust and confidence you have placed in me, and I thank Secretary Scott Bessent for his unwavering support,' said Michael Faulkender. 'I look forward to working with Secretary Bessent in delivering prosperity for the American people, the reprivatization of our economy, national security through economic... Read more
"Community Development Financial Institutions (CDFIs) play a crucial role in providing financial services to low-income communities—areas often overlooked by traditional banks. These mission-driven lenders offer affordable loans to small businesses, schools, grocery stores, daycare centers, and homebuyers who would otherwise struggle to access capital, helping to spur economic growth and stability across the country. Shrinking or defunding CDFIs threatens to dismantle this vital system, cutting off financial access for those who need it most. Without CDFI funding, many will face an even... Read more
"We're so excited to announce that New York State Comptroller Thomas P. DiNapoli and Department of Financial Services Superintendent Adrienne A. Harris have approved our Red Hook Branch as a Banking Development District (BDD) and deposited $10 million in public funds to our bank!
As a community bank in New York, opening our Red Hook branch was a major win for us and the Red Hook community. We're committed to offering affordable and inclusive NY banking solutions to every New Yorker, and as the first bank in Red Hook in over 10 years, we're doing just that. Receiving the BDD... Read more
"The U.S. Department of the Treasury plans to lay off a 'substantial' number of employees as part of the Department of Government Efficiency's effort to shrink the size of the federal government, a department official said in a declaration included in a court filing.
The department is finalizing its plans in response to President Donald Trump's February 11 executive order that directed agency heads to 'undertake preparations to initiate large-scale reductions in force,' according to the declaration from Trevor Norris, the deputy assistant secretary for human resources for the... Read more
"In a series of posts to his account on social media platform X, Federal Housing Finance Agency (FHFA) Director Bill Pulte published housing orders that terminate special purpose credit programs (SPCPs) and rescinds a 2024 advisory bulletin detailing the agency's enforcement against unfair or deceptive acts or practices (UDAP)."
"Two Mississippi banks on Friday announced plans to merge in a deal that would enable the acquirer to bolster its presence in the southern part of the state, where a larger competitor is also bulking up.
BankFirst Capital Corp. said it will acquire The Magnolia State Corp. in a transaction that would create a $3.2 billion-asset company. The deal's financial terms were not disclosed."
"BankPlus and FHLB Dallas awarded Gulf Coast Housing Partnership a $499,000 Affordable Housing Program (AHP) grant toward the construction of 27 affordable apartments, 60 percent of which are specifically set aside for special-needs residents, including people with disabilities and people who are 55 years old and older. The development is a partnership between GCHP and Midtown Partners Inc., the neighborhood-based non-profit that serves the Midtown community."
"The Federal Reserve Board on Friday announced its approval of the application by Renasant Corporation, of Tupelo, Mississippi, to merge with The First Bancshares, and thereby indirectly acquire The First Bank, both of Hattiesburg, Mississippi."
"As we gear up for the 2025 Federal Reserve CDFI Survey, this post paints a picture of the current state of CDFIs and seeks to understand why the industry may look different than it did in 2023, our last survey year. There are several key takeaways:
- The number of CDFIs certified by the CDFI Fund has grown significantly over the last 15 years but decreased slightly since the last iteration of the CDFI Survey in 2023.
- Loan funds and credit unions make up the majority of certified CDFIs, both nationally and within the Fifth District.
- The types of financial... Read more
"At a time when diversity, equity and inclusion (DEI) are under assault, there is an opportunity to find common ground with community development financial institutions (CDFIs). These institutions—spanning banks, credit unions, loan funds and venture capital providers—serve as crucial lifelines for both urban and rural underserved communities, ensuring that economic opportunities are not just reserved for the privileged few. From financing first-time homeowners and fueling small businesses to investing in vital community infrastructure like health centers and schools, CDFIs are an... Read more
"Over the past five years, Carver Federal Savings Bank — the largest publicly-traded, Black-owned bank in the country — has provided $225 million in loans to disadvantaged communities, representing 183 companies.
The bank has created a growing network of businesses and provided a solid stream of institutional and retail deposits. Now, as it heads into its 77th year, Carver is betting a new two-year microloan program will help the iconic Black-owned bank draw more deposits and grants to invest in New York's African American and Caribbean entrepreneurs.
'When we launched it, it... Read more