[Congressional Record Volume 155, Number 90 (Tuesday, June 16, 2009)]
[House]
[Pages H6832-H6833]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       NATIONAL CONSUMER COOPERATIVE BANK ACT AMENDMENTS OF 2009

  Mrs. MALONEY. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1674) to amend the National Consumer Cooperative Bank Act to 
allow for the treatment of the nonprofit corporation affiliate of the 
Bank as a community development financial institution for purposes of 
the Community Development Banking and Financial Institutions Act of 
1994.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1674

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Consumer 
     Cooperative Bank Act Amendments of 2009''.

     SEC. 2. TREATMENT OF NATIONAL COOPERATIVE BANK AFFILIATE AS 
                   COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.

       Section 211 of the National Consumer Cooperative Bank Act 
     (12 U.S.C. 3051) is amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following:
       ``(e) Treatment as Community Development Financial 
     Institution.--Notwithstanding any other provision of law, the 
     nonprofit corporation established under this section shall be 
     deemed to be a community development financial institution 
     for purposes of the Community Development Banking and 
     Financial Institutions Act of 1994, unless, after the date of 
     the enactment of the National Consumer Cooperative Bank Act 
     Amendments of 2009, the Bank, or any affiliate (as defined in 
     section 103(3) of the Community Development Banking and 
     Financial Institutions Act of 1994) of the Bank, participates 
     in depository institution incentives under section 114 of the 
     Community Development Banking and Financial Institutions Act 
     of 1994.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Mrs. Maloney) and the gentlewoman from West Virginia (Mrs. 
Capito) each will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Mrs. MALONEY. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on this particular legislation and to insert additional 
information.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Mrs. MALONEY. Mr. Speaker, I rise in support of H.R. 1674, the 
National Consumer Cooperative Bank Act Amendments of 2009. This 
legislation is necessary to make a technical correction to the statute 
of the National Consumer Cooperative Bank Act.
  The National Consumer Cooperative Bank was created by Congress in 
1978 and 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 National Consumer Cooperative Bank Act of 1978 established a 
nonprofit corporation to reach further into low-income communities and 
to serve disadvantaged populations. NCB Capital Impact is that 
nonprofit, mission-driven subsidiary of NCB that works to provide 
housing, education, health care, cultural centers, small businesses, 
and social services in economically distressed communities.
  In the last 10 years alone, NCB Capital Impact has invested more than 
$600 million in assistance to low- and moderate-income communities. 
These funds helped finance more than 33,000 affordable housing units; 
8,000 affordable assisted living units for seniors and persons with 
disabilities; 137,000

[[Page H6833]]

school seats; 2.9 million square feet of community health center space 
serving 350,000 patients; and helped create 25,000 jobs for low-income 
individuals.
  In my home State of New York, NCB Capital Impact has played a 
significant role in providing housing finance. In fact, NCB has 
participated in 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 nonprofit 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.
  Presently, NCB Capital Impact is working with five community-based 
organizations to help finance 17 projects that will create 558 housing 
units. 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. 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 
twofold. First, it has a track record that is comparable to other 
organizations that receive 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 public and private 
institutions.
  I think that it is important to note that this legislation does not 
guarantee the NCB any assistance, nor does it authorize additional 
amounts for the CDFI program. All it does is allow NCB to better 
fulfill its mission by allowing them to compete for these funds. As 
such, the Congressional Budget Office has determined that this 
legislation will have no significant impact on the Federal budget.
  I urge my colleagues to join me in supporting this technical 
amendment to the NCB statute so that the nonprofit, mission-driven NCB 
Capital Impact may continue to provide services to distressed and 
underserved communities throughout New York and throughout the entire 
country.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. CAPITO. Mr. Speaker, I yield myself such time as I may consume.
  H.R. 1674 makes a small but significant fix to the National Consumer 
Cooperative Bank that will have the effect of expanding financial 
services options to low-income communities.
  The bill would give NCB Capital Impact, the nonprofit subsidiary of 
NCB, the opportunity to compete with hundreds of other institutions for 
grants from the Community Development Financial Institutions Fund 
administered by the Treasury Department. Today, NCB Capital Impact is 
not eligible for the CDFI grants even though it provides housing, 
education, health care, cultural centers, small businesses, and social 
services in distressed areas. The mission of the CDFI Fund is to expand 
the capacity of financial institutions to provide credit, capital and 
financial services to underserved populations.
  So long as the activities of the NCB Capital Impact meet the letter 
and the spirit of the CDFI's eligibility requirements, their 
organizational structure should not preclude them from receiving those 
dollars. This bill would allow NCB Capital Impact to compete for grants 
and continue providing economic development support to low- and 
moderate-income communities.
  In closing, I would like to commend the sponsor of this legislation, 
Mrs. Maloney, for her work on this bill. I am in support of her 
statement and would urge my colleagues also to support that.
  Mr. Speaker, I yield back the balance of my time.
  Mrs. MALONEY. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Mrs. Maloney) that the House suspend the 
rules and pass the bill, H.R. 1674.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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