[Congressional Record (Bound Edition), Volume 154 (2008), Part 12]
[Extensions of Remarks]
[Pages 17394-17395]
[From the U.S. Government Publishing Office, www.gpo.gov]




 INTRODUCTION OF NATIONAL CONSUMER COOPERATIVE BANK ACT AMENDMENTS OF 
                                  2008

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                         Tuesday, July 29, 2008

  Mrs. MALONEY of New York. Madam Speaker, I rise to offer the National 
Consumer Cooperative Bank Act Amendments of 2008. This legislation is 
necessary to make a technical correction to the statute of the National 
Consumer Cooperative Bank Act.
  The National Consumer Cooperative Bank, NCB, was created by Congress 
in 1978 and is

[[Page 17395]]

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 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, healthcare, 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. 
Cumulatively, these funds helped finance 32,000 affordable housing 
units, 8,700 affordable assisted living units for seniors and persons 
with disabilities, 94,000 school seats, 2.4 million square feet of 
community health center space serving 350,000 patients, and helped 
created 15,000 jobs for low-income individuals.
  In my home city of New York, NCB Capital Impact has played a 
significant role in providing housing finance to much of New York's 
14th District. 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 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. 
Presently, NCB Capital Impact is working with 5 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 
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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