S.Amdt. 3640

This amendment seeks to update and expand the Community Development Banking and Financial Institutions Act of 1994 and the Housing Act of 1949. Its overall purpose is to increase economic opportunity, improve liquidity for community development financial institutions (CDFIs), and expand homeownership for Native communities.

Key Changes and Additions:

• Accountability and Reporting: It requires the Secretary of the Treasury to testify annually before specific Senate and House committees regarding the operations of the Fund. It also mandates reports on the effectiveness of the CDFI bond guarantee program and the use of funds for enhancing liquidity.

• CDFI Bond Guarantee Program Improvement: It establishes the CDFI Bond Guarantee Program Improvement Act of 2025. This includes:

  • Setting a minimum guarantee amount of $25,000,000.
  • Setting a total annual guarantee limit of $1,000,000,000.
  • Extending the program's expiration date to 4 years after the Act is enacted.

• Liquidity and Capitalization Assistance: It expands how the Fund can provide assistance to organizations to enhance CDFI liquidity, such as purchasing non-conforming loans or providing credit enhancements. It increases the assistance limit to $20,000,000 and prioritizes organizations with relevant experience and the capacity to leverage private capital.

• Native CDFI Relending Program: It creates a specific set-aside of up to $50,000,000 per fiscal year for direct loans to Native community development financial institutions. The goals are to:

  • Increase homeownership in rural areas for Indian Tribes, Alaska Native, and Native Hawaiian communities.
  • Provide grants for operational support equal to 20 percent of the direct loan amount.
  • Appropriate $1,000,000 for fiscal years 2025, 2026, and 2027 for technical assistance and outreach.