CUNA Comment Letter
Community Development Financial Institutions (CDFI) Revised Interim Rule (12 CFR Part 1805)
VIA FACSIMILE (202) 622-7754
January 14, 2000
Deputy Director for Policy and Programs
Community Development Financial Institutions Fund
Department of the Treasury
601 13th Street, NW
Suite 200 South
Washington, DC 20005
RE: Community Development Financial Institutions (CDFI) Revised Interim Rule (12 CFR Part 1805)
Dear Sir or Madam:
The Credit Union National Association (CUNA) appreciates the opportunity to comment on the CDFI revised interim rule, which was published in the Federal Register on November 1, 1999. CUNA represents more than 90 percent of our nations 11,000 state and federal credit unions.
Credit unions have been active participants in the CDFI program. As of this past September, 66 community development credit unions have received CDFI funding. Although the revised interim rule is not expected to affect participation by credit unions in any material way, there is one issue we would like to bring to your attention.
Section 1805.103 of the revised interim rule states that "[n]o Awardee . . . shall be deemed to be an agency, department, or instrumentality of the United States." However, case law in the Ninth Circuit Federal Court of Appeals suggests that credit unions are considered to be instrumentalities or agencies of the United States.
Although, we do not believe this is a settled issue among all jurisdictions, we wanted to bring this to your attention because it may, at the least, create some ambiguity as to whether credit unions may be eligible to receive CDFI funding. We would appreciate clarification either in the regulation or in the supplementary information that credit unions will not be excluded from the CDFI program because of Section 1805.103.
Thank you for the opportunity to comment on the CDFI revised interim rule. If you or agency staff have questions about our comments, please give me a call at 202-218-7795.
Assistant General Counsel