2024 Policy Priorities
Community Reinvestment ActThe Community Reinvestment Act (CRA) shapes how financial institutions behave in low- and moderate-income communities and how they deploy resources through the community development industry. Federal regulators finalized a significant modernization of CRA rules in early 2024. The new regulation presents community development organizations with new opportunities and challenges. Our goal is to support community development organizations in navigating these changes to achieve equitable development. HOME Investment Partnerships Program — CHDO Set-Aside The HOME Investment Partnerships Program (HOME) is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. Communities — often in partnership with local nonprofit groups — use HOME funding to build, buy, and rehabilitate affordable housing for rent or homeownership, and also to provide direct rental assistance.. At least 15 percent of HOME funds must be set aside for specific activities undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO). These private, nonprofit, community-based organizations develop affordable housing for the communities they serve. As the Department of Housing & Community Development and Congress consider changes to the HOME Program, the Alliance is leading efforts to ensure that the CHDO set-aside is not only preserved but also modernized to meet current community needs. Environmental Justice Grants The Environmental and Climate Justice Block Grant program will inject $3 billion into disadvantaged communities to fund community-led plans for reducing the impacts of climate change through infrastructure investments and community capacity building. We advocate for the equitable distribution of this critical funding from the U.S. Environmental Protection Agency. Our goal is to ensure these vital resources reach grassroots community-based organizations directly impacting communities affected by environmental injustice. We emphasize the critical role of member and community input in shaping these programs to effectively meet local needs. Federal Home Loan Banks’ Mission Implementation Act The Alliance supports the Federal Home Loan Banks’ Mission Implementation Act, which is currently being considered by Congress. The act would double the Affordable Housing Program Fund and introduce a new, flexible Community Economic Development grant program, to be implemented by the Home Loan Bank System. We believe these enhancements will bolster affordable housing and community development efforts, especially in areas that have been historically underserved. We encourage our members and partners to advocate to secure the bill's successful passage. Neighborhood Homes Investment Act Congress is currently considering the Neighborhood Homes Investment Act. The bill would create a new federal tax credit to produce new equity-investment dollars for the development and renovation of one- to-four unit housing properties in distressed urban, suburban, and rural neighborhoods. We champion the Neighborhood Homes Investment Act as an instrument for revitalizing distressed communities through a novel federal tax credit mechanism. This act is designed to address appraisal gaps that often stall development in these areas. By advocating for a ten percent nonprofit set-aside, we aim to ensure that nonprofit organizations play a substantial role in these revitalization efforts. Community Economic Development Program Appropriations The Community Economic Development (CED) program is a federal grant program that expands employment for individuals with low incomes in communities facing persistent poverty and high unemployment. It’s the only federal grant program that only exclusively funds to community development corporations — private, nonprofit organizations that create and expand businesses and job opportunities. These direct funds are vitally important to our field. We call on Congress to increase funding for the program in order to reach more organizations, communities, businesses and working families. |