§ 16-o. The community development financial institutions program. 1.
Legislative intent. The legislature hereby finds that credit, banking
services, and investment capital are vital to the revitalization of
communities and neighborhoods throughout the state. The legislature
further finds that many communities with the greatest potential for
growth and the greatest need for jobs and investment lack access to the
services and capital of traditional banking and lending institutions.
The legislature further finds that access to banking services and
capital can be improved through a growing network of alternative
financial service providers known as community development financial
institutions, hereafter referred to as CDFIs. The legislature finds that
CDFIs are currently providing effective lending and financial services
and fulfill a vital role in meeting the needs of New York state's low
and moderate income communities.

The legislature finds that the continued growth of CDFIs requires an
established support structure in order to build capacity in these
institutions. The legislature further finds that creation of a statewide
CDFI fund will strengthen these institutions, allowing them to expand
their mission of addressing the credit and banking needs of low and
moderate income communities in New York state.

2. Definitions. As used in this section, the following terms shall
have the meanings indicated:

(a) "Community Development Financial Institution" or "CDFI" means an
organization located in this state which has been certified as a
community development financial institution by the federal community
development financial institutions fund, as established pursuant to 12
U.S.C. 4701 et seq.

(b) "Fund" means the community development financial institutions fund
as established by subdivision three of this section.

(c) "Investment area" means a geographic area that:

(i) is economically distressed as defined in section sixteen-d of this
act; and

(ii) has significant unmet needs for loans or encompasses or is
located in a federally designated empowerment zone or enterprise
community as established pursuant to title XIII of the federal Omnibus
Budget Reconciliation Act of 1993 (Pub.L. 103-66) or a designated empire
zone as defined pursuant to article eighteen-B of the general municipal
law.

(d) "Low income" means having an income, adjusted for family size, of
not more than:

(i) for metropolitan areas, eighty percent of the area median income;
and

(ii) for non-metropolitan areas, the greater of eighty percent of the
area median income or eighty percent of the statewide non-metropolitan
area median income.

(e) "Targeted population" means individuals or an identifiable group
of individuals who are low income persons or otherwise lack adequate
access to loans.

3. Establishment and purposes. The corporation shall establish a fund
to be known as the "community development financial institutions fund"
and shall pay into such fund any monies made available to the
corporation for such fund from any source. The monies held in or
credited to the fund shall be expended solely for the purposes set forth
in this section. The corporation shall not transfer the monies of such
fund to any other fund or monies of the corporation or any monies held
in trust by the corporation. The corporation is authorized, subject to
available funding, including, but not limited to, available
appropriations, to provide financial and technical assistance to
community development financial institutions that make loans and provide
development services to specific investment areas or targeted
populations.

4. Applications for assistance. An application for assistance shall be
submitted in such form and in accordance with such procedures as the
corporation shall establish. Applications submitted to the fund may
include but not be limited to:

(a) A business plan;

(b) An analysis of the needs of the investment area or targeted
population and a strategy for addressing those needs;

(c) An explanation of proposed activities, and information on how they
are consistent with any existing economic, community, and housing
development plans adopted by or applicable to an investment area or
targeted population;

(d) A description of how the applicant will coordinate with community
organizations and financial institutions and leverage private sector
investments, including, but not limited to, loans, secondary markets, or
other services to the investment area or targeted populations;

(e) In the case of an applicant with a prior history of serving
investment areas or targeted populations, a demonstration that the
applicant:

(i) has a record of success in serving investment areas or targeted
populations; and

(ii) will expand its operations into a new investment area or to serve
a new targeted population, offer more products or services, or increase
the volume of its current business;

(f) A description of how the applicant will provide financial services
for community businesses that employ or will create jobs for low income
persons or to businesses that are owned by low income persons, or
enhance the availability of products and services to low income persons;
and

(g) Any additional information that the corporation shall require.

5. Selection of CDFIs. In the awarding of assistance, the corporation
shall select from eligible CDFI applicants based on criteria that may
include:

(a) The likelihood of success of the applicant in meeting the goals of
its strategic plan;

(b) The experience and background of the CDFI's board of directors or
management team;

(c) The extent of need for loans and development services within the
investment areas or targeted populations;

(d) The extent of economic distress within the investment areas or the
extent of need within the targeted populations;

(e) The extent to which the proposed activities will expand economic
opportunities within the investment areas or targeted populations;

(f) The extent of support from the investment areas or targeted
populations;

(g) The extent of the applicant's current and planned community
involvement;

(h) The extent to which the applicant will increase its resources
through coordination with other institutions or participation in a
secondary market;

(i) In the case of an applicant with a prior history of serving
investment areas or targeted populations, the extent of success in
serving such areas or populations; and

(j) Other factors deemed to be appropriate by the corporation.

6. Assistance provided by the corporation. The corporation may
provide:

(a) Financial assistance through deposits, credit union shares, loans,
and grants.

(b) Technical assistance and training to any CDFI regardless of
whether or not it receives or has received financial assistance from the
fund. Monies from the fund may be used for activities that enhance the
capacity of a CDFI, such as training of management and other personnel,
and development of programs, investment, or loan products. Such
technical assistance and training may be provided:

(i) directly;

(ii) through grants; or

(iii) by contracting with organizations that possess expertise in
community development finance, without regard to whether or not the
organizations receive or are eligible to receive assistance under this
section.

7. Uses of financial assistance. A CDFI which files an application and
is approved by the corporation for financial assistance may use such
assistance for the following purposes:

(a) the development of commercial facilities that promote
revitalization, community stability, and the creation or retention of
jobs;

(b) the development or improvement of community facilities;

(c) the provision of basic financial services;

(d) housing that is principally affordable to low income people,
except that assistance used to facilitate home ownership shall only be
used for services and lending products that serve low income people and
are not provided by other lenders in the area or that complement the
services and lending products provided by other lenders in the area;

(e) the development or support of businesses that:

(i) provide jobs for low income people or are owned by low income
people, women, or minority entrepreneurs; or

(ii) enhance the availability of products and services to low income
people; or

(f) the development or support of other businesses and activities
deemed appropriate by the corporation.

8. Advisory committee. The corporation may create an advisory
committee, consisting of at least five members, to advise the
corporation in the promotion, implementation and administration of the
community development financial institutions program. Such members shall
have experience with CDFIs and shall, to the extent practical, reflect
diversity in geographic location and communities served.

9. Reporting requirements. The corporation shall submit a report to
the governor, the speaker of the assembly and the temporary president of
the senate on or before the first of October, and annually thereafter,
describing the financial and technical assistance provided pursuant to
this article, including: the number of CDFI applications filed and
accepted; the amount and type of assistance provided; a description of
projects financed or assisted by fund monies; the number of jobs created
or retained through the investment of fund monies; the amount and source
of funds leveraged; and such other information as the corporation may
deem appropriate.

10. Rules and regulations. The corporation is hereby authorized to
promulgate rules and regulations in accordance with the state
administrative procedure act that are necessary to fulfill the purposes
of this section.