The Credit Union National Association (CUNA) has joined the American Association of Credit Union Leagues and state leagues in calling on the U.S. Congress to help resolve certification issues related to the Community Development Financial Institutions Fund (CDFI).
The groups sent a letter Sept. 23 to leaders of the U.S. Senate Banking, Housing, and Urban Affairs Committee and the U.S. House Financial Services Committee following the fact that credit unions CDFI received general treatment notices and that their CDFI designation was terminated without notice or information. tips.
The organizations encourage Congress to urge the CDFI Fund to offer interim certification to any CDFI credit union that maintained certification during the previous recertification year and submitted an application for recertification by Sept. 30, noted officials.
“Effective October 1, 2022, the Community Development Financial Institutions (CDFI) Fund will stop accepting new CDFI certification applications and target market change applications for a period of six months,” the organizations wrote.
“In the context of this time constraint, CDFI credit unions soliciting their
The certification or modification of the target market of the CDFI Fund signals significant challenges regarding the process of applying for or modifying the target market. As we approach this September 30 deadline, we are writing to continue to seek your help and assistance to help the many CDFI credit unions that will lose or become ineligible for Emergency Investment Program (ECIP) funds. .
The temporary interim status should allow credit unions to continue to serve their previously approved target markets and collect grants and awards until the moratorium on applications is completed, the letter said.
“Credit unions are the exact type of community-based financial institutions perfectly suited to use these funds to reach America’s most needy communities,” the organizations concluded. “We believe this is consistent with the intent of Congress. We again implore you to help your community credit unions provide the relief Congress intended.