Faircloth holds hearing on CDFI program

WASHINGTON, D.C.-Several witnesses testified at an oversight and
reauthorization hearing May 12 on the Community Development
Financial Institutions Fund (CDFI) program.

The hearing was called by Chairman of the Senate Banking
Committee's Subcommittee on Financial Institutions, Sen. Lauch
Faircloth (R-N.C.) to assess the program's expenditure of $80
million in fiscal year 1998 and evaluate its ability to handle
future increases.

CDFI was authorized by the Community Development and Regulatory
Improvement Act of 1994 to revitalize urban and rural areas
through the Bank Enterprise Award (BEA) and the CDFI program.

The Clinton Administration is seeking an appropriation increase
to $125 million for CDFI for FY 1999, which represents nearly a
50% increase over the 1998 appropriation.

Witnesses included: Rev. Floyd Flake, a former member of
Congress from New York; Martin Eakes, CEO, Self Help CU, Durham,
N.C.; and Mark Pensky, director, National Community Capital
Association, Philadelphia.

Other witnesses included the Honorable John D. Hawke,
Undersecretary of the Treasury; Ellen Lazar, director, CDFI; and
Judy England-Joseph, General Accounting Office (GAO).

In a prepared statement at the outset of the hearing, Sen.
Alfonse D'Amato (R.-N.Y.), chairman of the Senate Banking
Committee recognized the services CFDI has provided. He added
that he was interested in hearing GAO's recommendations for
management reforms and specifically how Lazar "plans to address
the deficiencies surrounding the Fund...the Committee's job is to
ensure that the taxpayers dollars are spent properly."

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Copyright 1998 by C.U. Times, Inc. (http://www.cutimes.com)


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