SUPPORT FOR COMMUNITY DEVELOPMENT LENDERS
Between February 2007 and July 2008 there was a flurry of activity on legislation to support community development lenders: 25 CDFI-related bills were introduced in 12 state legislatures. Legislation was enacted in four states – Louisiana, New York, South Dakota, and Virginia – with bills still pending in two states as of July 1, 2008. The most noteworthy of the policy victories came in New York, where the state legislature enacted a bill to create a state CDFI fund.
The table below provides details on CDFI-related bills that were enacted or introduced between February 1, 2007 and July 1, 2008, as well as those that were still pending as of July 1, 2008.
| State | Policy
Action since Feb. 2007 |
Description | |
| Alabama |  |
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Alabama introduced legislation (HB 8) that would have established an IDA program in the Office of the Commissioner of the Department of Agriculture and Industries, and would have authorized CDFIs to serve as fiduciary organizations for IDAs. The bill died in committee. |
| Alaska | |
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| Arizona | |
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| Arkansas | |
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| California |  |
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California introduced several bills related to CDFIs, economic development, microenterprise, and housing. As of July 1, 2008, two bills had passed the Assembly and had been referred to the Senate Appropriations Committee: AB 1418, would authorize the Community Development Administration to make and undertake commitments for residential mortgages for limited-income families; and AB 1910, would require California Organized Insurance Network (COIN) insurers to have a community development plan, and would make investments in CDFIs eligible toward satisfying the community development investment policy. A bill (AB 1606) that would have established a California Economic Policy panel, defining CDFIs as key investment partners for that panel, passed both houses but was vetoed by the governor. A bill (SB 934) that would have provided financing for high-density residential development and a bill (SB 446) related to microenterprise development both died in committee. |
| Colorado | |
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| Connecticut | |
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| Delaware | |
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| District of Columbia | |
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| Florida | |
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Florida introduced two bills in the 2008 legislative session to support CDFIs. SB 1362, introduced in January, would have established CDFIs as eligible recipients of funding for preservation of affordable housing. The bill died in committee. HB 293, introduced in March 2008, would have created a statewide New Markets Tax Credit program, which would permit taxpayers to receive a tax credit for making qualified equity investments in designated CDFIs. Nearly all of the qualified equity investment must in turn be used by the CDFI to make investments in low-income communities. The bill passed the House but was not taken up in the Senate before the end of session. |
| Georgia | |
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| Hawaii | |
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Hawaii introduced two CDFI-related bills in January 2008. HB 2561 would have created a CDFI to support Charter School financing, and HB 2794 would have allowed the state to issue special purpose revenue bonds to assist charter schools, not-for-profit corporations that support charter schools, and CDFIs that support charter schools. Both bills died in committee. |
| Idaho | |
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| Illinois | |
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In February 2008, Illinois introduced the New Markets Development Program Act (HB 4793). The bill would have specified statewide new markets tax credits. It passed in the House, but failed to pass in the Senate. |
| Indiana | |
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| Iowa | |
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| Kansas | |
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| Kentucky | |
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| Louisiana | |
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Louisiana enacted two pieces of legislation related to CDFI requirements and tax credits in 2007. SB 124, passed in April, promotes the use of venture capital financing to help small businesses, alleviate poverty and create jobs in low-income areas. The bill changes the certification requirements to become a CDFI in Louisiana and have access to the tax credits. HB 795, passed in July, amends the Louisiana CDFI Act to include more tax credits for many investments and loans related to low-income and underserved communities and local businesses. |
| Maine | |
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| Maryland | |
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| Massachusetts | |
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| Michigan | |
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Michigan introduced the Michigan Business Tax Act (HB 5893) in March 2008. The bill would provide a Michigan Business Tax deduction for affordable housing projects, and identifies CDFIs as eligible to receive the tax deduction. As of June 2008, it had passed both houses and was awaiting the governor's signature. |
| Minnesota | |
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| Mississippi | |
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Mississippi introduced five bills (HB 643, HB 1259, HB 1354, HB 1355, and HB 1368) related to the state's loan guarantees and Emerging Crops Fund. All died in House committees. HB 643 and HB 1259 would have increased loan guarantees for CDFIs in the state by $2 million. The remaining three bills concerned the Emerging Crops Fund, and included CDFI language for loan guarantees. |
| Missouri | |
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| Montana | |
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| Nebraska | |
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| Nevada | |
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| New Hampshire | |
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| New Jersey | |
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| New Mexico | |
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| New York | |
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In July 2007, New York enacted legislation (SB 3575) to create a state CDFI Fund, although the legislature did not appropriate money for the fund. Another CDFI-related bill (HB 2329), which would have created a minority- and women-owned business enterprise advisory board - with a recommendation that at least two members be drawn from CDFIs - passed the Assembly twice but died in the Senate both times. |
| North Carolina | |
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North Carolina introduced legislation (SB 623) in 2007 that would have given funds to the North Carolina Minority Support Center to further the state program of bringing financial services and products to underserved communities. The Center and the credit unions it supports are all certified CDFIs. The legislature also introduced legislation (HB 1922) in March 2007 that would have created a state New Markets Tax Credit to supplement the federal NMTC program that allocates the credits. The tax credits would be available for qualified equity investments in CDFIs in the state. Both bills died in committee. |
| North Dakota | |
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| Ohio | |
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| Oklahoma | |
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| Oregon | |
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| Pennsylvania | |
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| Rhode Island | |
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| South Carolina | |
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| South Dakota | |
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In February 2008, South Dakota enacted legislation (HB 1290) that exempts certain entities in the business of mortgage lending - including CDFIs - from initial license fees, renewal fees, criminal background checks and other requirements. |
| Tennessee | |
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| Texas | |
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| Utah | |
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| Vermont | |
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| Virginia | |
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In April 2007, Virginia enacted a budget bill (HB 1650) that includes a line item increase in the appropriation available for Community Development Services. The bill requires that out of the amounts available, $400,000 from the general fund will be provided over two years to support CDFIs that make business and housing loans in distressed communities and to distressed populations. The Director of the Department of Housing and Community Development and another appointee of the Governor will serve as members of the board of directors of the CDFI. |
| Washington | |
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| West Virginia | |
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| Wisconsin | |
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| Wyoming | |
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Source: Opportunity Finance Network