I
103D CONGRESS
1ST SESSION
H. R. 2666
To facilitate the establishment of community development financial
institutions.
IN THE HOUSE OF REPRESENTATIVES
JULY 19, 1993
Mr. GONZALEZ (by request) (for himself, Mr. NEAL of North Carolina, Mr.
LAFALCE, Mr. VENTO, Mr. SCHUMER, Mr. FRANK of Massachusetts, Mr.
KANJORSKI, Mr. KENNEDY, Ms. WATERS, Mr. LAROCCO, Mr. BACCHUS
of Florida, Mr. KLEIN, Mrs. MALONEY, Mr. DEUTSCH, Mr. GUTIERREZ,
Mr. RUSH, Ms. ROYBAL-ALLARD, Ms. VELA´ZQUEZ, Mr. WYNN, Mr.
FIELDS of Louisiana, Mr. WATT, Mr. HINCHEY, and Mr. KLINK) intro-
duced the following bill; which was referred to the Committee on Bank-
ing, Finance and Urban Affairs
A BILL
To facilitate the establishment of community development
financial institutions.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Community Develop-
ment Banking and Financial Institutions Act of 1993’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) many of the Nation’s urban and rural com-
munities and Indian reservations face critical social
and economic problems arising in part from the lack
of economic growth, people living in poverty, and the
lack of employment and other opportunities;
(2) the restoration and maintenance of the
economies of these communities will require coordi-
nated development strategies, intensive supportive
services, and increased access to capital and credit
for development activities, including investment in
businesses, housing, commercial real estate, human
development, and other activities that promote the
long-term economic and social viability of the com-
munity;
(3) in many urban and rural communities, low-
and moderate-income neighborhoods, and Indian res-
ervations, there is a shortage of capital and credit
for business and affordable housing;
(4) access to capital and credit is essential to
unleash the untapped entrepreneurial energy of
America’s poorest communities and to empower indi-
viduals and communities to become self-sufficient;
and
(5) community development financial institu-
tions have proven their ability to identify and re-
spond to community needs for capital, credit, and
development services in the absence of, or as a com-
plement to, services provided by other lenders.
(b) PURPOSE.—The purpose of this Act is to create
a Community Development Banking and Financial Insti-
tutions Fund that will support a program of investment
in and assistance to community development financial in-
stitutions. The Community Development Banking and Fi-
nancial Institutions Fund will provide financial and tech-
nical assistance, including training, to community develop-
ment financial institutions, serve as a national information
clearinghouse, and be an institutional voice for community
development. The community development financial insti-
tutions that the Community Development Banking and
Financial Institutions Fund supports will provide capital,
credit, and development services to targeted investment
areas or populations, and will promote economic revitaliza-
tion and community development.
SEC. 3. DEFINITIONS.
(a) APPROPRIATE FEDERAL BANKING AGENCY.—
The term ‘‘appropriate Federal banking agency’’ has the
same meaning given such term in section 3(q) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1813(q)).
(b) COMMUNITY DEVELOPMENT FINANCIAL INSTI-
TUTION.—The term ‘‘community development financial in-
stitution’’ means any bank, savings association, depository
institution holding company, credit union, micro-enter-
prise loan fund, community development corporation, com-
munity development revolving loan fund, minority-owned
or other insured depository institution, or non-depository
organization that—
(1) has as its primary mission the promotion of
community development through the provision of
capital, credit, or development services in its invest-
ment areas or to targeted populations; and
(2) encourages, through representation on its
governing board or otherwise, the input of residents
in the investment area or the targeted populations.
A depository institution holding company may qualify as
a community development financial institution only if the
holding company and its subsidiaries collectively satisfy
the requirements of paragraphs (1) and (2). No subsidiary
of a depository institution holding company may qualify
as a community development financial institution if the
holding company and its subsidiaries collectively do not
meet the requirements of paragraphs (1) and (2). The
term ‘‘community development financial institution’’ does
not include an agency or instrumentality of the United
States or an agency or instrumentality of any State or
political subdivision thereof.
(c) DEPOSITORY
INSTITUTION
HOLDING
COM-
PANY.—The term ‘‘depository institution holding com-
pany’’ has the same meaning given such term in section
3(w) of the Federal Deposit Insurance Act (12 U.S.C.
1813(w)).
(d) DEVELOPMENT SERVICES.—The term ‘‘develop-
ment services’’ means activities conducted by a community
development financial institution that promote community
development by developing, supporting, and strengthening
the lending, investment, and capacity-building activities
undertaken by institutions, including, but not limited to—
(1) business planning services;
(2) financial and credit counseling services;
(3) marketing and management assistance; and
(4) administrative activities associated with
lending or investment.
(e) INSURED COMMUNITY DEVELOPMENT FINANCIAL
INSTITUTION.—The term ‘‘insured community develop-
ment financial institution’’ means any community develop-
ment financial institution that is an insured depository in-
stitution. The term also includes an insured credit union
which has been designated as low-income by the National
Credit Union Administration.
(f) INSURED CREDIT UNION.—The term ‘‘insured
credit union’’ has the same meaning given such term in