Transcripts For CSPAN2 Housing 20240703 : vimarsana.com

Or anytime, cspanshop. Org. Cspan is your unfiltered view of government funded by these Television Companies and more including media. Com. Com we believe whether you live here or here or way out in the middle of anywhere you should have access to fast reliable internet. That is why we are leading the way. Edia. Com supports cspan as a Public Service with other Television Providers giving you a front row seat to democracy. Next, ceos from community, lending, and develop and organizations testify on the impact organizations have on Economic Opportunity. They discuss needed investment in low income communities and bridging the gap between rental markets and home ownership. This runs an hour and 20 minutes. Good afternoon. I would like to call the subcommittee on housing transportation and community developing committee to order. I want to thank you and your staff for working with us on this hearing which will focus on communities relevant, Financial Institutions, how specifically they can promote Housing Development and Economic Opportunity. We both believe everyone in this country should have the freedom and opportunity to build the lives they want, this is the American Dream. An essential Building Block for fulfilling this dream is people have access to capital, lending, and resources so that they can purchase a home or build a Small Business or get an education. We know that not everyone has access to capital and Financial Services and this inequity drives big gaps or disparities in opportunity and wealth which we see in our country. Communities of color and Indigenous People and rural areas often dont have the same access to capital, and that holds everybody back. According to the federal reserve, atypical black familys net worth is 15 of a typical white family. On average, the net worth of a hispanic family is 19 of a white familys network. Theres less Data Available on the net worth of native families, but a recent analysis found in one sample, a median family had a net worth 32 times lower that of a median white family. That analysis found home equity is a smaller portion of a native familys wealth in part because of the difficulties native families face in getting mortgages. If you think of Rural Communities, the Pew Research Center data shows that Rural Counties are 50 more likely than urban counties to have high rates of concentrated poverty and twice the rate of concentrated poverty compared to suburban counties. It is clear that we have a lot of work to do to address these disparities, these challenges. Today, im very excited. We have the opportunity to hear how cdf is are a powerful tool to expand access to capital and Financial Services to people and places that have been often left out of opportunities. Cdf is work, and they have long had bipartisan support. When the cdfi fund, the federal agency that foresees the programs was established in 1994, there were 80 cdfis. Today there are more than a thousands deploying Innovative Strategies for getting capital and resources to underserved communities in all parts of the country. I have seen this power of this work in my community, helping Small Businesses and building wealth. We know that federal investments in csfis yield a strong result because they Leverage Private capital. By one estimate, csfis generate 10 for new investment on the private side or every one dollar of federal support. Today, we have an opportunity to hear about this work, what is working, what can be improved, from three impressive csfi leaders. Csfis are bringing, your organizations are bringing jobs and Economic Opportunity to helping Small Businesses get started. Csfis have adapted to meet the needs of different communities, showing that theres a lot of flex ability in this model. Im also hearing a lot of feedback, i am also interested in hearing feedback on the bipartisan bills to support csfis. My colleagues and i have been working on it. Senator rounds and i havent plan to update the csfi guarantee program so it works for smaller csfis that are making lowinterest, longterm sources of capital available. Im working with senator rounds on a bill to make permanent a Successful Pilot program that supports mortgage lending on tribal trust land. I would note senator warner and senator haggerty have a bill for the secondary market of csfi loans. Several colleagues have bipartisan bills that fall within the finance committees jurisdiction to support csfis. I am sure this will be an interesting and productive hearing. I am hearing from all of you and continuing our work to support csfis and address the historic inequities we see in our systems that can be remedied by your work. Thank you so much. I have been looking forward to this hearing. Csfis are such an important part of addressing borrowers need to in this country. Im delighted to have experts here today since i dont have much of a voice today, i will submit my Opening Statement for the record, but i am going to highlight a couple paragraphs that i had hoped to bring to peoples attention. Csfis were set up to meet the needs of borrowers who are not well served by traditional banking institutions. In exchange for doing this essential work, csfis are given access to subsidized funds and grant money supplemented with private funds. Im disheartened the Treasury Department in managing the csfi fund has not given csfis the certainty and flex ability they need to do their work as treasury provides the certification process. Many stakeholders raised concerns about the proposed application, the delays and finalizing the application, and the transparency of the process. We need robust standards to protect the csfi designation. I call on treasury and the csfi fund to run a transparent process, and take into account the feedback through the Public Comment process. I also want to comment about csfis needing access to funding, ideally, stable, longterm funding. I know this is challenging, so i would like to hear from the Witnesses Today how we can best expand Public Private partnership that has fueled csfi lending and increased access to capital. One source has been advances from the Federal Home Loan Banks. For those csfis that are members of the system, the system has very few native csfi members. I would like to see what we can do to support access to the system for native csfis. There is a Federal Home Loan Bank system that is really taking a looksee into its mission and its efforts as they look at their 100th anniversary. I want to acknowledge as part of that initiative, hfa held a roundtable, feedback specific to that. I want to thank the native leaders who participated. I hope the report includes careful consideration as feedback from the session and others. With that i want to thank our witnesses so much and i look forward to being here today, and thank you, madam chairman, youve always been so gracious about including topics that are valuable to urban and Rural Communities and tribal communities. We had a lot of interest expressed by our colleagues on this committee. There is s a vote thats currently open which is why we have to expect you have questions from other members of the committee. Delighted that we are welcome and willing to come to help us learn more about this topic. I yelled back, thank you. Thank you and welcome again to our three witnesses with us today. I will introduce each of you and go down the line. Julian nellmarket is chairman and ceo of the communities of Element Corporation based in detroit lakes, minnesota, northwest central part of the state, she has been in her role since 2018 and shes led the deployment of 544 million in new market tax credit financing. In addition to leading the mm cdc, she leads a native csfi subsidiary, the white earth investment initiative. Yesterday, usda announced that they would be one of 8 native csfis receiving funding through the native american relenting Demonstration Program which i think we will hear more about today. Julia has a cpa certification, holds a masters in management from Northwestern University school of business. Renee document doschman is from st. Paul, minnesota, focusing on helping Small Businesses get off the ground and supporting the growth, provides entrepreneurs a suite of Services Including lending and training, Real Estate Services and assistance with management, consulting and marketing. She joined ndc in 2019 with 18 years of experience leading merchandising Product Developers and design. Shes a member of the africanamerican alliance of csfis, ceos, lots of alphabet there, and earned her management and accounting. Crystal cornelius is with us today, president and ceo of a native national csfi based in longmont, colorado. Miss cornelius had 23 years fix. Working in the native American Economic field. Is an enrolled member of the United Nation of wisconsin and member of the Turtle Mountain band of chippewa indians in north dakota. We will begin with miss nellmark. I will reinforce you each will have five minutes for Opening Statements, theres a clock in front of you to keep track of time and your full written statements will be made a part of the record. Pardon me for interrupting. Thank you. Good afternoon, madam chairwoman, Ranking Member and members of the committee. I am julia nellmark, with the communities Element Corporation, csfi and neighbor works american member in rural minnesota and ceo of our native csfi subsidiary of the white earth investment initiative. Csfi Fund Programs help us promote community revitalization, business developers, Affordable Housing and job creation in economically distressed communities. During the pandemic, csfis utilized 1. 25 billion to make investments totaling 14. 8 billion. In minnesota, 30 one csfis served 851 million of sba ppp loans for minnesota businesses and nonprofits, preserving some 88,000 jobs. Investment in csfis offer an excellent return on taxpayer investment. Csfis leverage federal dollars, on average 10 to one to facilitate growth in businesses, jobs, communities, tax base and more. In fiscal year 2022, csfi made 1. 4 million loans totaling 53 billion, financed 65,000 Affordable Housing units. As individuals become more selfsufficient, their reliance on social welfare programs decreases so this decreases the cost in the long run. Csfis our innovative and flexible. We have a long track record with various Funding Sources, funding multiple ways to use new tools. As an industry, we are collaborating in a few National Groups to access the Greenhouse Gas reduction fund. The proposed csfi tax credit and Scaling Community lenders act are also promising options to add essential liquidity. A growing segment of the csfi industry, native csfis serving largely rural reservations, visit businesses and homeland. With many facing high rates of poverty, access to capital and other Financial Resources is especially difficult, giving rise to predatory lending, now more accessible on the internet. In addressing this, we try to prevent issues like the Small Business customer struggling with cash flow due to covid impacts, took out several internet loans, they came to us asking for more. There loan documents require them to pay nearly all of the service fee equating to nearly 50 interest. They did not understand what they signed, and have very little recourse to change it. If it a few key issues lead to unique challenges facing rural csfis in their communities. One is collateral valuation. A Rural Property is worth 20 less than in an urban area. Put that property on trust land and it drops 20 to 25 . Of tribal business we have financed before covid costs 12 million to build, but appraised at 6. 5 million. A bank could not finance that fully and they could not fill the entire gap. The product used additional land for collateral and three csfis, access tax credit, federal Loan Guarantee and specialpurpose forces. It is now doing well, but only because of those multiple layers of funding. Title issues and improvement mortgages for additional issues, not uncommon with native projects. Many banks do not understand and avoid the complex legal status of trust land. A second challenge in a rural work is census data. Large rural census tracts span multiple towns or entire counties and average out master poverty, making them ineligible for Funding Sources that we use. Recent census changes for 2,020 further narrowed Data Available for many tribal areas. Minor wording changes to allow for the use of census data at the group level or to allow the use of locally collected data sources would greatly improve access in those areas. 1 3 challenge relates to low Income Housing tax credits, the number one tool for developed of affordable rental housing nationwide. The bipartisan Affordable Housing credit improvement act would increase the total available, strength in the program, address challenges in rural and tribal areas. I could list a number of improvements we would support to facilitate greater success in our work, but i will focus on just a few. Increased annual appropriations for csfis and tax credit permanency with native aloe okay, the csfi bond guarantee improvement act to make these less expensive and more accessible, and Housing Support through light tech improvements and consider work for neighbor works america. I greatly appreciate your longterm continuing support for csfis. Are impact numbers show that. We were excited at the formation of the csfi caucus and the increased efforts to bring in this work. To discuss cdfis with you today. Thank you very much. My name is rene and im the the president and ceo of the neighborhood urban center d. C. Entrepreneur focus for over 30 years creating a model of excellence for serving Small Businesses, located in low income neighborhoods and im member, a group of organizations and 50 degrees and a member of the africanamerican lines and opportunity finance member. Four pillars of wraparound support to provide access and opportunity and when it. Assistance in building new innovation focused on businesses in 2024. Thanks to senators smith and klobuchar for securing 1 million grant for the project in chicago destroyed during the murder of george white. During the pandemic, local intermediaries for federal and funds and many were left behind, we were able to ensure 90 of our ppp loan amount. Sometimes more than in the fiscal year. In minnesota we were ground zero two communities across the country responding to racial and economic injustice. Not next get 18000 and. Foxbusiness, zero. We can and must do better. His for 30 years has taught us. Low income communitiesat require unique innovative approaches in the last three years, initiatives tote address entrepreneurs mental wellness, double down on support, assessment and entrepreneurs for own pathway to wealth. The state of minnesota to play 79 million. An appropriation of 341 in fiscal year 24. The entire program not to forget during the pandemic Equitable Recovery Program for a lifetime to organizations. Some recommendations i have, i would recommend based on cdf i grant for performance impacts an innovative model accountability is important but so is funding the whole system. I want toys recommend changes fr the Bond Guarantee Program by reducing minimum of 100 million and 25 million it will allow more to access longterm financing. Id like to share a story of one of our entrepreneurs. A graduate of our training program, Technical Assistance and loan client, business was good. Then 2020. Salons were closed, life dealt another blow. Just as in our story of tragedy but she did not quit. While staying with her son in the hospital she stuck to her Business Model designing a will give him working with them to require anyone licensed to be doing here licensed in all. For submission to have a curriculum and policy work alongside ityp. Today they are driving, she paid promotion recently graduated from the program. Shes a leader in our community. Thank you for allowing me this opportunity to testify. Good afternoon, promote housing and Television Companies<\/a> and more including media. Com. Com we believe whether you live here or here or way out in the middle of anywhere you should have access to fast reliable internet. That is why we are leading the way. Edia. Com supports cspan as a Public Service<\/a> with other Television Providers<\/a> giving you a front row seat to democracy. Next, ceos from community, lending, and develop and organizations testify on the impact organizations have on Economic Opportunity<\/a>. They discuss needed investment in low income communities and bridging the gap between rental markets and home ownership. This runs an hour and 20 minutes. Good afternoon. I would like to call the subcommittee on housing transportation and community developing committee to order. I want to thank you and your staff for working with us on this hearing which will focus on communities relevant, Financial Institutions<\/a>, how specifically they can promote Housing Development<\/a> and Economic Opportunity<\/a>. We both believe everyone in this country should have the freedom and opportunity to build the lives they want, this is the American Dream<\/a>. An essential Building Block<\/a> for fulfilling this dream is people have access to capital, lending, and resources so that they can purchase a home or build a Small Business<\/a> or get an education. We know that not everyone has access to capital and Financial Services<\/a> and this inequity drives big gaps or disparities in opportunity and wealth which we see in our country. Communities of color and Indigenous People<\/a> and rural areas often dont have the same access to capital, and that holds everybody back. According to the federal reserve, atypical black familys net worth is 15 of a typical white family. On average, the net worth of a hispanic family is 19 of a white familys network. Theres less Data Available<\/a> on the net worth of native families, but a recent analysis found in one sample, a median family had a net worth 32 times lower that of a median white family. That analysis found home equity is a smaller portion of a native familys wealth in part because of the difficulties native families face in getting mortgages. If you think of Rural Communities<\/a>, the Pew Research Center<\/a> data shows that Rural Counties<\/a> are 50 more likely than urban counties to have high rates of concentrated poverty and twice the rate of concentrated poverty compared to suburban counties. It is clear that we have a lot of work to do to address these disparities, these challenges. Today, im very excited. We have the opportunity to hear how cdf is are a powerful tool to expand access to capital and Financial Services<\/a> to people and places that have been often left out of opportunities. Cdf is work, and they have long had bipartisan support. When the cdfi fund, the federal agency that foresees the programs was established in 1994, there were 80 cdfis. Today there are more than a thousands deploying Innovative Strategies<\/a> for getting capital and resources to underserved communities in all parts of the country. I have seen this power of this work in my community, helping Small Business<\/a>es and building wealth. We know that federal investments in csfis yield a strong result because they Leverage Private<\/a> capital. By one estimate, csfis generate 10 for new investment on the private side or every one dollar of federal support. Today, we have an opportunity to hear about this work, what is working, what can be improved, from three impressive csfi leaders. Csfis are bringing, your organizations are bringing jobs and Economic Opportunity<\/a> to helping Small Business<\/a>es get started. Csfis have adapted to meet the needs of different communities, showing that theres a lot of flex ability in this model. Im also hearing a lot of feedback, i am also interested in hearing feedback on the bipartisan bills to support csfis. My colleagues and i have been working on it. Senator rounds and i havent plan to update the csfi guarantee program so it works for smaller csfis that are making lowinterest, longterm sources of capital available. Im working with senator rounds on a bill to make permanent a Successful Pilot<\/a> program that supports mortgage lending on tribal trust land. I would note senator warner and senator haggerty have a bill for the secondary market of csfi loans. Several colleagues have bipartisan bills that fall within the finance committees jurisdiction to support csfis. I am sure this will be an interesting and productive hearing. I am hearing from all of you and continuing our work to support csfis and address the historic inequities we see in our systems that can be remedied by your work. Thank you so much. I have been looking forward to this hearing. Csfis are such an important part of addressing borrowers need to in this country. Im delighted to have experts here today since i dont have much of a voice today, i will submit my Opening Statement<\/a> for the record, but i am going to highlight a couple paragraphs that i had hoped to bring to peoples attention. Csfis were set up to meet the needs of borrowers who are not well served by traditional banking institutions. In exchange for doing this essential work, csfis are given access to subsidized funds and grant money supplemented with private funds. Im disheartened the Treasury Department<\/a> in managing the csfi fund has not given csfis the certainty and flex ability they need to do their work as treasury provides the certification process. Many stakeholders raised concerns about the proposed application, the delays and finalizing the application, and the transparency of the process. We need robust standards to protect the csfi designation. I call on treasury and the csfi fund to run a transparent process, and take into account the feedback through the Public Comment<\/a> process. I also want to comment about csfis needing access to funding, ideally, stable, longterm funding. I know this is challenging, so i would like to hear from the Witnesses Today<\/a> how we can best expand Public Private<\/a> partnership that has fueled csfi lending and increased access to capital. One source has been advances from the Federal Home Loan Bank<\/a>s. For those csfis that are members of the system, the system has very few native csfi members. I would like to see what we can do to support access to the system for native csfis. There is a Federal Home Loan Bank<\/a> system that is really taking a looksee into its mission and its efforts as they look at their 100th anniversary. I want to acknowledge as part of that initiative, hfa held a roundtable, feedback specific to that. I want to thank the native leaders who participated. I hope the report includes careful consideration as feedback from the session and others. With that i want to thank our witnesses so much and i look forward to being here today, and thank you, madam chairman, youve always been so gracious about including topics that are valuable to urban and Rural Communities<\/a> and tribal communities. We had a lot of interest expressed by our colleagues on this committee. There is s a vote thats currently open which is why we have to expect you have questions from other members of the committee. Delighted that we are welcome and willing to come to help us learn more about this topic. I yelled back, thank you. Thank you and welcome again to our three witnesses with us today. I will introduce each of you and go down the line. Julian nellmarket is chairman and ceo of the communities of Element Corporation<\/a> based in detroit lakes, minnesota, northwest central part of the state, she has been in her role since 2018 and shes led the deployment of 544 million in new market tax credit financing. In addition to leading the mm cdc, she leads a native csfi subsidiary, the white earth investment initiative. Yesterday, usda announced that they would be one of 8 native csfis receiving funding through the native american relenting Demonstration Program<\/a> which i think we will hear more about today. Julia has a cpa certification, holds a masters in management from Northwestern University<\/a> school of business. Renee document doschman is from st. Paul, minnesota, focusing on helping Small Business<\/a>es get off the ground and supporting the growth, provides entrepreneurs a suite of Services Including<\/a> lending and training, Real Estate Services<\/a> and assistance with management, consulting and marketing. She joined ndc in 2019 with 18 years of experience leading merchandising Product Developers<\/a> and design. Shes a member of the africanamerican alliance of csfis, ceos, lots of alphabet there, and earned her management and accounting. Crystal cornelius is with us today, president and ceo of a native national csfi based in longmont, colorado. Miss cornelius had 23 years fix. Working in the native American Economic<\/a> field. Is an enrolled member of the United Nation<\/a> of wisconsin and member of the Turtle Mountain<\/a> band of chippewa indians in north dakota. We will begin with miss nellmark. I will reinforce you each will have five minutes for Opening Statement<\/a>s, theres a clock in front of you to keep track of time and your full written statements will be made a part of the record. Pardon me for interrupting. Thank you. Good afternoon, madam chairwoman, Ranking Member<\/a> and members of the committee. I am julia nellmark, with the communities Element Corporation<\/a>, csfi and neighbor works american member in rural minnesota and ceo of our native csfi subsidiary of the white earth investment initiative. Csfi Fund Programs<\/a> help us promote community revitalization, business developers, Affordable Housing<\/a> and job creation in economically distressed communities. During the pandemic, csfis utilized 1. 25 billion to make investments totaling 14. 8 billion. In minnesota, 30 one csfis served 851 million of sba ppp loans for minnesota businesses and nonprofits, preserving some 88,000 jobs. Investment in csfis offer an excellent return on taxpayer investment. Csfis leverage federal dollars, on average 10 to one to facilitate growth in businesses, jobs, communities, tax base and more. In fiscal year 2022, csfi made 1. 4 million loans totaling 53 billion, financed 65,000 Affordable Housing<\/a> units. As individuals become more selfsufficient, their reliance on social welfare programs decreases so this decreases the cost in the long run. Csfis our innovative and flexible. We have a long track record with various Funding Sources<\/a>, funding multiple ways to use new tools. As an industry, we are collaborating in a few National Groups<\/a> to access the Greenhouse Gas<\/a> reduction fund. The proposed csfi tax credit and Scaling Community<\/a> lenders act are also promising options to add essential liquidity. A growing segment of the csfi industry, native csfis serving largely rural reservations, visit businesses and homeland. With many facing high rates of poverty, access to capital and other Financial Resources<\/a> is especially difficult, giving rise to predatory lending, now more accessible on the internet. In addressing this, we try to prevent issues like the Small Business<\/a> customer struggling with cash flow due to covid impacts, took out several internet loans, they came to us asking for more. There loan documents require them to pay nearly all of the service fee equating to nearly 50 interest. They did not understand what they signed, and have very little recourse to change it. If it a few key issues lead to unique challenges facing rural csfis in their communities. One is collateral valuation. A Rural Property<\/a> is worth 20 less than in an urban area. Put that property on trust land and it drops 20 to 25 . Of tribal business we have financed before covid costs 12 million to build, but appraised at 6. 5 million. A bank could not finance that fully and they could not fill the entire gap. The product used additional land for collateral and three csfis, access tax credit, federal Loan Guarantee<\/a> and specialpurpose forces. It is now doing well, but only because of those multiple layers of funding. Title issues and improvement mortgages for additional issues, not uncommon with native projects. Many banks do not understand and avoid the complex legal status of trust land. A second challenge in a rural work is census data. Large rural census tracts span multiple towns or entire counties and average out master poverty, making them ineligible for Funding Sources<\/a> that we use. Recent census changes for 2,020 further narrowed Data Available<\/a> for many tribal areas. Minor wording changes to allow for the use of census data at the group level or to allow the use of locally collected data sources would greatly improve access in those areas. 1 3 challenge relates to low Income Housing<\/a> tax credits, the number one tool for developed of affordable rental housing nationwide. The bipartisan Affordable Housing<\/a> credit improvement act would increase the total available, strength in the program, address challenges in rural and tribal areas. I could list a number of improvements we would support to facilitate greater success in our work, but i will focus on just a few. Increased annual appropriations for csfis and tax credit permanency with native aloe okay, the csfi bond guarantee improvement act to make these less expensive and more accessible, and Housing Support<\/a> through light tech improvements and consider work for neighbor works america. I greatly appreciate your longterm continuing support for csfis. Are impact numbers show that. We were excited at the formation of the csfi caucus and the increased efforts to bring in this work. To discuss cdfis with you today. Thank you very much. My name is rene and im the the president and ceo of the neighborhood urban center d. C. Entrepreneur focus for over 30 years creating a model of excellence for serving Small Business<\/a>es, located in low income neighborhoods and im member, a group of organizations and 50 degrees and a member of the africanamerican lines and opportunity finance member. Four pillars of wraparound support to provide access and opportunity and when it. Assistance in building new innovation focused on businesses in 2024. Thanks to senators smith and klobuchar for securing 1 million grant for the project in chicago destroyed during the murder of george white. During the pandemic, local intermediaries for federal and funds and many were left behind, we were able to ensure 90 of our ppp loan amount. Sometimes more than in the fiscal year. In minnesota we were ground zero two communities across the country responding to racial and economic injustice. Not next get 18000 and. Foxbusiness, zero. We can and must do better. His for 30 years has taught us. Low income communitiesat require unique innovative approaches in the last three years, initiatives tote address entrepreneurs mental wellness, double down on support, assessment and entrepreneurs for own pathway to wealth. The state of minnesota to play 79 million. An appropriation of 341 in fiscal year 24. The entire program not to forget during the pandemic Equitable Recovery Program<\/a> for a lifetime to organizations. Some recommendations i have, i would recommend based on cdf i grant for performance impacts an innovative model accountability is important but so is funding the whole system. I want toys recommend changes fr the Bond Guarantee Program<\/a> by reducing minimum of 100 million and 25 million it will allow more to access longterm financing. Id like to share a story of one of our entrepreneurs. A graduate of our training program, Technical Assistance<\/a> and loan client, business was good. Then 2020. Salons were closed, life dealt another blow. Just as in our story of tragedy but she did not quit. While staying with her son in the hospital she stuck to her Business Model<\/a> designing a will give him working with them to require anyone licensed to be doing here licensed in all. For submission to have a curriculum and policy work alongside ityp. Today they are driving, she paid promotion recently graduated from the program. Shes a leader in our community. Thank you for allowing me this opportunity to testify. Good afternoon, promote housing and Economic Opportunity<\/a>. It is a great honor, a great measure of gratitude and strength so appreciate this opportunity. The market demand, a direct financing and Small Business<\/a> development and homeownership opportunity for individuals across the United States<\/a> and most left axis to Capital Resources<\/a> and many back the private sector economy. Its more serious when it comes to Financial Institutions<\/a> according to the native american studies conducted by the fund in 2001 a single Financial Institution<\/a> within our borders and this identifies the communities of underserved by Financial Institutions<\/a> and specific strategy can increase availability of Financial Resources<\/a> and the lack of Financial Institutions<\/a> posing a problem accessing basicas tenets but perhaps more seriously homeownership, business financing and Consumer Lending<\/a> products almost impossible to obtain. Native american and native hawaiian or authorities for the gap. The justice need for strong financialan institution help native communities aid in growth and sustainability. These are communitybased financing an accessible, affordable moment Financial Products<\/a> price for Technical Assistance<\/a> in these institutions former foundation to develop homeownership and private sector opportunity for tribal communities and the emergence of homeownership and private sector across the United States<\/a>. The success of this approach and it is paramount. Today we have over 56 entering effective areas. Especially in row communities from a tribal communities for Financial Institution<\/a> offering within our communities and tend to be permeated for finance. One ofhe the major over the past 25 years, our institutions are the financial tribal communities, they are a beacon of hope and what makes that organizations are different is the needed development, the xuppercaseletter needed building businesses but it is so exciting. They are from buyer ready and find a better opportunity. Homeownership is one of the Building Block<\/a>s for generational wealth. We can funding in 2002 and today direct financing has made an incredible impact lending, 16652 jobs. 3885 Small Business<\/a>es and to 17 Affordable Housing<\/a> units. When you look at availability of capital, we use f22 within our portfolio. 579 millionev and thats leveraging individuals. 349, 109 million in lending. Thank you for taking the time and how important removal of the American Dream<\/a> communities left behind 1100. Individual speech anddu everyday living facility within families and generational wealth and within native communities creating community while and the strength it builds, thats what true change looks like and equity. They are tied to their communities, we live, work and breathe in our communities and received one business apart work in the community and if they did it, why cant i . We have over 16000 jobs and we have 56 and change soo looking t this, continues championship how the fund and native appropriations. Its pretty much the same level of 21 million, now we get to the competitive nature but we need to make avenues and measures which we can increase our communities and every one of our communities. Thank you all for your testimony. Our first line of questioning will come from senator tester joining us remotely. They determined y smith and thank you, im going to ask first, have you heard of boseman montana . Ns yes. Thats good. I was up there friday and housing is one of the highest growth areas in the country, housing reflects house prices its created an affordability mind with higher Interest Rates<\/a> and the question the heights area can be summer barrels. For housing whether its housing or ownership. Cdf i can play a number of roles, Housing Department<\/a> both multifamily and singlefamily and rental housing and financing for all kinds including manufacturing. The issues dealing with the rental housing homeownership and for people to work their way up toward what they would like to end up in is the home. It revolved around i didntt have huge solutions for them were Game Changers<\/a> because honestly its a big followup. How does the Community Get<\/a> involved . Do they have to have a cdf i or do you work with businesses or banks, how to do it this is how you work on it from a single . Recently released research indicating that adding housing will fill in the gaps because people who moving to the housing along the chain and rhea houses for others to move into so that can be felt by cdf i Affordable Housing<\/a> and Market Developers<\/a> and other housing. The senators in today, is there more congress can do or the administration can do to break down barriers to allow their work even better . Yes, theres a whole list. Specificth for housing to provie more base funding would be extremely a helpful in planning. Longterm housing is by far the best tool we have to provide for affordable rental housing and that is difficult to access in rural areas but they tend to go to urban areas going anywhere else. Only got 19 seconds. Ds 221 million appropriated to cdf i, how much that leverage . What is the real value . Roughly ten times that on average. Thank you very much. Thank you, senator tester. Thanks, madame chairman. Thanks for your enthusiasm, it really shows you have feedback on the proposal to revise the certification application . Yes and forgive me i went over. Your enthusiasm is infectious, thank you. Very critical changes that could be detrimental in how we continue to operate specifically. One, prohibit interestonly Mortgage Loans<\/a> and terms longer than 40 years. Cdf i will have to write mortgage that includes no negative payments. When we look at the majority of Better Health<\/a> within portfolio some of the majority are blue permits. If we look a at number one you t able to access outside of section 184, mortgage is holding implementing change 20 see homeownership across the communities. Also, the predominant restricting cdf i staffed development of services as an efficient is the marriage of them development of the loan it willon create area, we are going to minimize coming through the athlete and native communities. My next question i would love to hear from you, can we do to ensure they have better access for stable forms of capital . Particularly interested in what you might say about the membership. A federal, bank h membership hasnt been accessible for a number of reasons but those who do it are financing with religion of Home Mortgage<\/a> assets, those who dont do mortgage lending dont have access. Even more, limit a lot of Mortgage Loans<\/a> such as conforming in what ways . Collateral, Mortgage Loans<\/a> have a higher value than prescribed. Those in certain areas from cost of construction. I think as well Bond Guarantee Program<\/a> we talked about the fact that go from the only 0225 now 25 million. Collaborate and Work Together<\/a> is more accessible for us at that level. I think it gives us six grade long return, thats what we need with entrepreneurs fully supports that now want to do this and you think about developers in the program we are creating, and stripping everybody up but to be able to provide longterm financing, patient capital, really grateful for that. Do you agree it is the sweet spot . It would be very helpful and to be able to collaborate we could use that a lot more. I would also say the cost which leads to the higher Interest Rates<\/a> make it not as useful for secondary are many types of loans and there was a look at the bill proposing 10 million to provide for the loan reserve that would reduce Interest Rate<\/a> costs, access the bond fund and make it more affordable for customers. My time is up but i will havh more questions in a minute. Thank you so much. Senator menendez. Thank you, madam chair. Republicans in the house event the last few months debating cuts to cdf i funds. In july he Appropriations Committee<\/a> funding by 45 million in 15 cut can each of you briefly describe how the what impact the work you and others do for disadvantaged communities . I would say highlevel to cut 45 million nearly half a billion Committee Lending<\/a> and investment are geared specifically to reach us, about a lot of activity within our Community Impact<\/a> can be devastating for areas we serve. I completely agree. If you think about what we were able to do as a result of covid and additional funding we received for those in [response as well as equitable recovery, the funding we received made it easier for those we need to reserve, not having cdf i, having a basis for a smaller cdf life but make it hard to get in we need to get into to provide Technical Assistance<\/a> and training and low interest loans we provide. If anything especially now, with Interest Rates<\/a>, more funding would be needed. But in the limited funding volume in which we are able to earlier this year when six bipartisan matters joined to the Appropriations Committee<\/a> requesting robust funding for undead will continue bipartisan support. The bond guaranteent program created in the wake of the 2007 financial crisis allows cdf i to access longterm lowcost capital to jumpstart Economic Growth<\/a> and Community Development<\/a> at no cost to the taxpayer. Supporting over 1. 3 billion in affordable financing for facilities, nonprofits, commercial real estate and other development projects, can you explain how the Bond Guarantee Program<\/a> helps the project come to life . The Bond Guarantee Program<\/a> provides longterm lowcost capital so to access money we cannot get in the regular Banking System<\/a>. The cost to us is rather high useful for other than longterm investment such as housing, rental housing, properties for example, we would greatly appreciate the guarantee improvement act g to decrease tt cost, even 10 milliondollar investment can make that much more accessible to many more Community Development<\/a>s. Which is why im proud to be a cosponsor of the cdf i Bond Guarantee Program<\/a> to further strengthen. Finally, can you talk about how it can help alleviate lack of a portable housing and low income communities . Working on many avenues to increase housing both parental and for sale Single Housing<\/a> and pretty much any option can come up with. Manufactured housing, renovating, existing homes, providing for meek construction financing, developers of communities such as the walls and things on those lines, we are working withh others to help them help our community. You, senator menendez. Senator fetterman. Hi, thank you, everybody. I just want to open with any of you questions, do you believe there is an issue in Rural Counties<\/a> across america or pennsylvania . Yes, its hidden though very much so, a lot of people couch surf if you will. They dont appear to be homeless because they have a place to live for the night but its precarious and they could be on the street any. Anyone else agree . I dont agree, i would say perspective native communitys we more look at severe overcrowding of housing. We can have 16 individuals in a two bedroom house and theres not enough housing individuals to be homeless and constitutes within how we care for our community. Super majority of counties in my state is rural and i have heard again and again there is a real housing crisis that i have always thought about the problem and the different options as well. I want to bring to you the idea of manufactured housing units, mobile homes and i think that would be a very affordable option but is it fair to say there is a stigma attached to it where its like trailers or things that i wont say out loud but i think it is a shame because strange to me, there was a time where tiny houses were all the rage and other think that and others think this, too. If we do have a crisis of housing in Rural Counties<\/a>, really support that . Are they expanding Financing Options<\/a> for people who want manufactured housing or it never has a path to pursue because of stigma for that kind of thing . People generally dont go looking for manufactured housing and weve been working on educating people, even our staff to understand the difference between mobile homes and post 76 and 94 hud compliance manufactured homes much more Energy Efficient<\/a> think of them as a steppingstone to a portability. They can also be improved with all dissections, carports, garage or porches or things like that tooth not look like a mobile home. I think millions of americans live in manufactured housing and theres nothing wrong with that and in affordable option for people that provides a roof over their head and obviously thats not as easily put in an urban area but its a shame to say it is that stigma for t people liki dont want to live in a trailer because ive seen a lot of mobile homes, they are beautiful. They would have no problem. Putting them into a Community Model<\/a> uses stigma, increases the Community Spirit<\/a> and desire to be part of it when they got ownership on the land in which the houses are located and helps them. People are rather have an address with their housing or kind of a tradeoff because ive heard for years and years and have seen housing problems here in rural pennsylvania. Thank you. Our community in pennsylvania are doing amazing work to create longterm Affordable Housing<\/a> but Community Land<\/a> trusts struggles move quickly to they out private equity and market rate fires. Have you seen these issues . Yes. Not just with land trust but all pdf i profits buying homes rent affordably to maintain the, it will save status with kids growing up there they dont have to worry about a hole in the ceiling or leaking and things like that but yes, to have that liquidity available to be able to jump on those right away, thats within discussion mark North Country<\/a> foundation in minnesota to look to buy mobile home parks. Thank you very much. I want to say thank you for your testimony and im not going to go back to the cdf i Bond Guarantee Program<\/a> and provisions we have proposed because we have talked about that, i just appreciate the feedback and every move forward, above to continue to speak with all o of you and make sure we have it set upav in the right way. Let me ask a question specifically about the native pdf i private program. This is department of Agriculture Program<\/a> to make mortgages and travel man and a chance to hear that is, you have an had experience, your institution doesnt have experience making it on travel trust land, it can be difficult to resolve so im wondering if you could share your views on this program, what are unique issues when making loans on travel planned . Get ready, i have a question for you next. Complexities and travel trust land beingue able to mortgage or half mortgages created many barriers for generations upon generations. I think with this Program Number<\/a> one is very innovative looking to an address an issue to great homeownership within our communities to measure the understands and allows for future mortgages so i would say its a Wonderful Program<\/a> and i am excited to see it coalesced of government interest, loan products typically within tribal communities. It seems as if its successful in my we hope to expandnd and see the steps take. It is helpful when we are able to use those. Some tribes dont have the codes in their regulations that allow for federal direct loans to be used there so if there is a way in terms of flexibility with regulations required, that could be very helpful and already sample closey after two consider but its their option to implement the roles. I want to diving on the work youve been doing and Neighborhood Development<\/a> center and as you know, i am millions with your work. Its been a long time. Sometimes its difficult for people to understand, one of these barriers and how does an organization break down the barriersri . You are wanting to start a Small Business<\/a> for example, discuss what the barriers are and how you break them down. Like the Global Market<\/a> or other places you aren . Involve in. We look at our data and noticed this for black and latino women, we notice they start now programs, they might not get Technical Assistance<\/a> so we got curious about what was happening instead of making up stories we did research and a talked to them and find out it was lack of support, the entities and being able to get more training and support so we started a program which is black bettina opportunity to connect and restarted it and didnt have funding and then people came along with them and now were into our second and they get focused and dedicated, training and resources and if we think about it, its not if you think about marla, a graduate it is not but the entrepreneurs dont want to, they dont care or any of, its just giving them access to the opportunity. When they talk about development service, thats what youre getting at . Yes, Technical Assistance<\/a> for these entrepreneurs, they have a coach and assist Development Quarterly<\/a> can work with each other because it is important to build community thats what we found and now they are completing their Business Plan<\/a> going for a loan to Access Capital<\/a> and then it works and we have seen great successes the first round and now we are startingec a second. I had a chance to discuss this in their work to enter or use, detector specifically the challenges of getting access to capital, going to a bank and the going look at your residences what wouldt you use with not noncompliance but nontraditional but once you break that down, she now owns several buildings, a successful business. She is able to build wealth for her family and its a great example what you are talking about. Its that access and ability between the capital and why they are important because the work we give is not about how much collateral you bring, its truly about commitment to community thats what makes the difference. They believe in the spirit of sonos or working alongside you need to do the. Center, thank you soo much thank you so much and thank you for your line of questioning. This was one area we worked diligently on the thank you for answering directly. Access to capital and making sure box for success for people who want to start their own business and being entrepreneurs either so commend you for your continued work. I continue to be a strong advocate for the Banking System<\/a> which gives the many hardworking families access to their American Dream<\/a>. From the largest regional down to the smallest local Community Banks<\/a> and credit unions, Financial Institution<\/a> of all sizes prevent service to customers, members and committees. Cdf i certainly plays an important and Critical Role<\/a> in this ecosystem. Thanks to strength and effort and alabama, the number of under banked individuals a considerable and many black access typical Financial Services<\/a>. Provide a host of services help reach underserved individuals and reinvest to global communities expanding Economic Opportunities<\/a> for all alabamians and americans and sent Economic Conditions<\/a> and many recommendations we have seen the last given the will continued Financial Inclusion<\/a> and access to great Capital Market<\/a> and thats why congress wanted grane programs and taxax credit. The united bank in alabama recently received a tax credit allocation and award from the fund and we are very proud of this. The federal investments will continue to accident remote more Affordable Housing<\/a>. Ined addition, we need to ensure promote policies that allow attract private capital as well. My question is, can you tell us the important thing we need to do to ensure this continued access to private capital. I think one of the things i am excited about our proposed changes when we look historically, theres only one within the w cfi or within round. You have equity and partnerships among what we are finding is a footprint so Foundation Footprint<\/a> and an organization outside ofin making institutiono its a whole new stream of capital that is excitingnk and s we work, we have been successful capital and Corporate Partnerships<\/a> will be intrinsic and how we Work Together<\/a> with our programs to benefit communities and leverage opportunity and programs with each other. Scaled up, absolutely. Would be helpful if we could have funds from cedia, we are not created equal. Ability to know as you do your Strategic Planning<\/a> and budget have this money and you dont have to the lengthy applications and you have to go through within your base, it would make it easier for us to do the work we need to do. Similar to prior comments getting to predictable funding in addition to base funding, and onramp for new and emerging access bonding before joining the broader pool would be helpful. L. Its created a barrier to entry for organizations who have not targeted new markets, tax credit programs successful applicants are within four or five points maximum so someone answers a bonus question and loses those five points, they are out of the runningim so a few different was to make it more predictable would be most helpful. You mind if i asked one mention . You have to attitude, go ahead. As we look at this, which federal programming has been the most successful providing assistance cedia fisa they can reinvest in our community . You dont think about off the bat, is there an existing gap or shortfall we need to look at and address . Its for everybody if she will let me. Give. One thing i keep seeing when we think about this and we talk about the left cap inequities and one of the pathways for entrepreneurs to own their own commercial real estate and there is still entrepreneurs getting financing they need to do that and we have programs we are trying to that five or 10 entrepreneurs we support is really difficult for them to achieve. I would also say the ability to get new markets, i am grateful for julia and her team because they have provided cfi with to do real we didnt have the amount needed we get more capital to mark cfis doing work to get further and deeper. Thank you. Would like to echo tax credits are incredibly important to the development of the communities and the cdf i fund has really looked at onramp and for what that looks like so that is incredibly important and our partnerships talking about federal programs that are beneficial, we work quite a bit with a lot of programs in services and or initiatives that help propel further development in these areas. Thank you so much. I would add again that predictable capital is most importantor and for america for those fortunate enough to be members to provide Grant Funding<\/a> everyo year and is spread across capital and operating and the most flexible capital we have been able to access in recent years so along those lines supportinges their appropriation would be helpful as well as funding to that. Appreciate you all being here and thank you for your indulgence. The chairman has grown to about as i understand it. There are no new democrats. I believe we are about to conclude as well. I have a couple more questions and then im going to ask each of you to conclude by responding to this question. Is there anything you wish you would have been and want . How would you respond . But before you respond to that, i have a couple of extra questions. Your testimony talked about financing needs of a project and the value. Its a problem that plagues Affordable Housing<\/a> projects, can you talk about the need to think creatively about financing and the types of projects you work on . Thats a great question, thank you, senator. Weve been in homes in rural minnesota, we have seen value no caps with new construction to appraised value of 1,580,000 and that gives us funding for about two homes at a time for committees so it doesnt give us the volume needed to address the issue on a broad basis we worked on additional sources to fund thought. New market tax credits used by a handful of organizations to finance developers of the home and reduce the cost by 20 or so of those homes, 54 home developers. In what way Small Business<\/a>es for partnering with pdf ifex. It. They receive training, might know how to do her beautifully or start a restaurant but you dont have a plan or know how to run a business to provide a Business Plan<\/a>, training and then once you start a business,s, thats great but as you go along you might need additional supportna warm help with accounting and thus the biggest thing for entrepreneurs who might need help with accounting and marketing and then as we have already talked about the Capital Place<\/a> to put your business so you got a great economic you need a face we believe in the power of the ingenuity of entrepreneurs and we dont stop, its complete Wraparound Services<\/a> and as a Business Owner<\/a> myself, a restaurant of the businesses and still have businesses, to have someone walk alongside you and no they will not give up on you no matter what is a beautiful thing. I am so pleased may view positive remarks about them. What you wisho you would have been asked what do you want to leave this hearing knowing we heard . Im looking at what could be passed and presenting native communities throughout the United States<\/a>, what can we do more to support and enhance the availability and pressure because search and the opportunity to engage in larger programs i think would be imperative, its imperative looking at the differences, its different than alaska but when you look at encompassing 574, i think we are doing great work and there is so much more. My daughter and myy husband are both part of the subsidiary cfi on the wind river Investigation Called<\/a> pain and pony and it took oral history and converted them into storybooks every fourth grader in wyoming brought a copy of the book so i am very familiar with what they are capable of and its truly impressive thank you for your work. I want to end with gratitude for the ability to be here, if i think about the 1500 cfi i feel around the table with you, organization, 15 organizations across the country. We are in this together and it heartwarming for me to understand and get to know you better and no we are not fighting alone and we have a vehicle where we have concerns we can have a conversation about and come together and i want you to know i am grateful for that and its important to understand when people find out i was testifying, all i received were go get it, this is great, telling our story. Its a collaborative effort and we are in together. I am eternally grateful for this opportunity. Thank you. Thank you for your testimony today. 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