Press Release: Banks Strongly Support the CDFI Fund as Essential to Boosting Housing Supply and Economic Opportunity

The National Association of Affordable Housing Lenders and other banking trades voice strong support for the CDFI Fund

Since Congress created the Community Development Financial Institutions (CDFI) Fund over 30 years ago, it has played an essential role in channeling and scaling private investments in rural, Tribal, and other underserved parts of the country through CDFIs. Through partnerships between banks and CDFIs, hundreds of billions of dollars have been invested into communities nationwide – creating new affordable housing, growing small businesses, and supporting local economies.

The National Association of Affordable Housing Lenders (NAAHL) is the national alliance of the leading investors and lenders in affordable housing and community development - bringing together banks, CDFIs, and other public, private, and nonprofit lenders. As practitioners involved in every part of the housing and community development pipeline, from assessing community needs to constructing and investing in funds to meet those needs, NAAHL members know what it takes to support economic opportunity in America’s underserved communities.

“Banks rely on CDFIs to reach low- and moderate-income communities, other hard-to-reach communities such as rural and Tribal communities, and frankly communities that lack other financial institutions and options for their residents and businesses,” said Sarah Brundage, President and CEO of NAAHL. “It’s a business model that channels private investments into what communities need – whether that be rebuilding from a natural disaster, health care facilities, a robust small business economy, or more affordable homes for seniors, families, veterans, and hard-working community members. It’s a partnership that works.”

In response to the recent reduction in force, NAAHL reiterated its strong support for the CDFI Fund and fully reinstating its employees, who are essential to scaling economic development work and driving financial opportunity in underserved markets through private investment. Today, NAAHL sent a letter to Treasury Secretary Bessent and the Office of Management and Budget Director Russell Vought calling for the reinstatement of CDFI Fund staff. NAAHL also joined other leading banking trades – the American Bankers Association, the Community Development Bankers Association, the Independent Community Bankers of America, the Mortgage Bankers Association, and the National Bankers Association – in a joint letter urging that the CDFI Fund maintain necessary staff and funding to effectively carry out its mission. NAAHL applauds the bipartisan Congressional champions of the CDFI Fund who continue to advocate for CDFIs serving their home states and districts.