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Community Development Finance

The New York Fed's work in Community Development Finance supports the transformation of low- and moderate-income communities in our region by working to increase the impact of community investments and supporting inclusive economic development strategies.

Survey

COVID-19 CDFI Survey

The Federal Reserve will conduct a national survey of Community Development Financial Institutions (CDFIs) from July 20-August 14. CDFIs are specialized financial institutions operating in underserved communities, and they have been at the forefront of the economic response to the COVID-19 pandemic. Take the survey today.
ENGLISH | SPANISH SURVEY
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Focus on Puerto Rico

As Puerto Rico rebuilds and improves its economic resiliency after Hurricane Maria, the New York Fed's work there is designed to identify community development opportunities, attract investments to the Island, and leverage the federal government's support of CRA-eligible investments in the region. The New York Fed is implementing the community development finance progression model, as described here on Medium.

More on the CoDeFi Progression Model in Puerto Rico English | Spanish

Investment Connection in Puerto Rico

Investment Connection matches financial institutions and other capital providers, called "funders," with nonprofit and community development organizations, or "applicants," whose needs may qualify for credit under the CRA. The New York Fed is launching Investment Connection to support recovery and resiliency in Puerto Rico.

Next Up: On January 27-28, the New York Fed is hosting a Pitch Program in San Juan, Puerto Rico, for investors to hear proposals from some of the leading economic and community development organizations on the Island.

Puerto Rico Non-profit Leadership Development Initiative

In support of the 2020 Puerto Rico Nonprofit Leadership Development Initiative to build the capacity of the Island’s nonprofit community, the New York Fed will develop technical assistance workshops and peer learning for participating organizations. This initiative was created by the Puerto Rico Nonprofit Capacity Building Network, led by Enterprise Community Partners, NeighborWorks America, and the Puerto Rico Community Foundation.
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webinar

This webinar, co-hosted by the New York Fed and CDFI Friendly America, discussed a new and evolving model of CDFI Friendly strategies pioneered by Bloomington, adapted by South Bend, and now in process in other communities. The panelists discussed insights and best practices on how CDFI are created, how they can be effective and how they can make a difference on a national scale.

The New York Fed hosted a community dialogue to discuss the impact of COVID-19 on communities, including pre-existing financial and economic disparities faced by low-income communities, particularly communities of color.

Resource Guidebooks

Resource Guidebooks are data-driven and accessible tools developed to help guide investment in a community and understand its needs. Next in this ongoing series will focus on Puerto Rico and is expected to be released in the fall of 2019.

Download the New Brunswick & Perth Amboy (N.J.) Resource Guidebook

Download the Elmira (N.Y.) Resource Guidebook

Opportunity Zones

Opportunity Zones Reporting Framework

The Framework is a voluntary guideline designed to define best practices for investors and fund managers looking to invest in Opportunity Zones, or designated low-income-census tracts. It includes a set of first principles and a detailed impact measurement framework.

Moving Toward a Shared Impact Framework

Based on a 2018 roundtable of community development investors, researchers, and practitioners, the New York Fed, the U.S. Impact Investing Alliance at the Ford Foundation, and the Beeck Center at Georgetown University share their findings on the application of the Opportunity Zones benefit and the development of an impact reporting framework.

Community Reinvestment Act

The Community Reinvestment Act (CRA) was enacted by Congress in 1977, against a backdrop of urban decay and a lack of investment in communities. Congress found that banks have a continuing and affirmative obligation to help meet the credit needs of their local communities, including low- and moderate-income neighborhoods where they are chartered, consistent with the safe and sound operations of the institutions.

This finding was based on chartering laws that require banks to demonstrate that their deposit-taking facilities serve the convenience and needs of their communities, which include credit and deposit services. To learn more about CRA, please visit the Federal Reserve Board of Governors website.

Other Resources

Encouraging Economic Development in High-Poverty Rural Communities

Chair Jerome H. Powell delivered the keynote address for the “Rural place, Rural space: Closing Financial Services Gaps in Persistent Poverty America” at Mississippi Valley State University. His remarks provided an overview of current economic challenges and opportunities in poor rural communities with a focus on education and workforce development; entrepreneurship and small business; and access to financial services.

Banks as Vital Infrastructure for Rural Communities of the West

Vice Chairman for Supervision Randal K. Quarles delivered the keynote address at the Stanford Institute for Economic Policy Research at Stanford University. Vice Chairman Quarles’ remarks gave an overview on the economy of the western United States and linked the recent and future performance of the western economy to the central and supportive role banks play as in their communities.

About Community Development Finance

The Community Development Finance Initiative (CoDeFi) supports the transformation of underserved communities in the Second District by working closely with local organizations and helping to increase the impact of community investments.