Donald Riegle: “I would be pleased to clarify for my colleague the roles that State, local, regional or quasi-governmental agencies can…”

“I would be pleased to clarify for my colleague the roles that State, local, regional or quasi-governmental agencies can play in this initiative. While governmental entities may not apply directly for assistance as CDFI's, they may participate in several other ways. First, a governmental entity--or a bank--can submit a joint application for assistance with a CDFI called a community partnership. A community partnership is an agreement between a CDFI and a community partner to provide development services and loans or equity investments to an investment area or a targeted population. An agreement will specify the functions that the CDFI and the community partner will each perform to achieve the partnership's goals. For example, a CDFI and a local government could agree to rehabilitate several apartment buildings for low-income families. The CDFI could provide renovation and mortgage financing, while the city could acquire the property, make site improvements, or offer afterschool programs for children who are residents. A community partnership is intended to marry the resources of a CDFI with government and other community organizations. Second, a governmental entity could invest in a CDFI or provide grants to assist in meeting Federal matching requirements.”