The Credit Union National Association (CUNA) has joined the American Association of Credit Union Leagues and state Leagues in advocating for U.S. Congress to assist with certification issues related to the Community Development Financial Institutions (CDFI) Fund.
The groups sent a letter on Sept. 23 to the leaders of the U.S. Senate Banking, Housing, and Urban Affairs Committee and the U.S. House Financial Services Committee in the wake of CDFI credit unions receiving blanket cure notices and their CDFI designation terminated without information or guidance.
The organizations are encouraging Congress to urge the CDFI Fund to offer a provisional certification to any CDFI credit union which retained certification during the previous recertification year and has an application for recertification submitted by Sept. 30, officials noted.
“Beginning on October 1, 2022, the Community Development Financial Institutions (CDFI) Fund will stop accepting new CDFI certification applications and requests for target market modifications for a period of six months,” the organizations wrote.
“Against the backdrop of this time constraint, CDFI credit unions seeking their Annual
Certification or a Target Market Modification from the CDFI Fund are reporting significant challenges regarding the application or target market modification process. With this September 30th deadline quickly approaching, we write to continue seeking your help and assistance in aiding the many CDFI credit unions that will lose or become ineligible for Emergency Capital Investment Program (ECIP) funds.”
The temporary provisional status should allow credit unions to continue serving their previously approved target markets and collect grants and awards through the completion of the application moratorium, the letter said.
“Credit unions are the exact types of community financial institutions perfectly suited to use these funds to reach the neediest communities in America,” the organizations concluded. “We believe that this is in line with Congressional intent. We again implore you to help your community credit unions bring the relief that Congress intended.”