[Congressional Record Volume 155, Number 49 (Monday, March 23, 2009)]
[Extensions of Remarks]
[Pages E741-E742]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       NATIONAL CONSUMER COOPERATIVE BANK ACT AMENDMENTS OF 2009

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                         Monday, March 23, 2009

  Mrs. MALONEY. Madam Speaker, I rise to offer the National Consumer 
Cooperative Bank Act Amendments of 2009. This legislation makes a 
technical correction to the National Consumer Cooperative Bank Act of 
1978.
  The National Consumer Cooperative Bank Act of 1978 created the 
National Consumer Cooperative Bank, NCB, which is dedicated to 
strengthening communities nationwide through the delivery of banking 
and financial services, complemented by a special focus on cooperative 
expansion and economic development. The same Act established a non-
profit corporation to reach further into low income communities and to 
serve disadvantaged populations. NCB Capital Impact is that non-profit, 
mission-driven subsidiary of NCB that works to provide housing, 
education, health care, cultural centers, small businesses and social 
services in economically distressed communities.
  NCB Capital Impact has an impressive track record providing 
assistance to low- and moderate-income communities. Over time, NCB has 
invested $250 million for education facilities; helped finance 137,396 
school seats; 33,132 units of multifamily homeownership or

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other affordable housing and 8,900 affordable assisted living units for 
seniors and persons with disabilities; 2.9 million square feet of 
community health center space serving 350,300 patients annually, and 
helped created 25,000 jobs for low-income individuals.
  Back in my district--the 14th district of New York--NCB Capital 
Impact has played a significant role in providing financing for much 
needed housing and community development projects. NCB has facilitated 
more than 600 loans in my district alone. Most of these loans are for 
housing, including affordable housing, as well as loans for community 
facilities and loans to non-profit organizations like the Council of 
New York Cooperatives and Condominiums. Together, these groups are able 
to provide assisted living, affordable housing and services to the 
frail and elderly.
  Despite their good work in serving low-income communities and 
disadvantaged populations, NCB Capital Impact is not eligible for 
assistance authorized under the Community Development Banking and 
Financial Institutions Act of 1994, which is administered by the CDFI 
Fund. NCB Capital Impact meets all of the eligibility criteria on its 
own and without exception; however the Fund has ruled it cannot certify 
NCB Capital Impact as a CDFI because of the corporate structure of its 
parent NCB. In short, NCB Capital Impact is shut off from critical 
sources of financial awards that are needed to maintain their housing 
and community development efforts.
  The interest of NCB Capital Impact in gaining CDFI certification is 
two-fold. First, it has a track record that is comparable to other 
organizations that received CDFI status; its mission is dedicated to 
working with low income populations and communities. Second, 
increasingly in the community development finance field, CDFI 
certification is viewed as a `good housekeeping seal' of approval in 
working with other federal agencies and other private and public 
institutions.
  I urge my colleagues to join me in supporting this technical 
amendment to the NCB statute so that the non-profit, mission-driven NCB 
Capital Impact may continue to provide services to distressed and 
underserved communities throughout New York and the country at-large.

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