June 7, 2007
HP-443

  Treasury’s CDFI Fund Lends a Hand to Gulf Coast
Fund Director, Advisory Board Visit Area Developments Made Possible by CDFI

Washington, DC- The Treasury Department's Community Development Financial Institutions Fund visits the Gulf Coast this week to discuss the area's recovery after Hurricane Katrina, break ground for a housing development made possible through the CDFI Fund's New Markets Tax Credit Program and learn how the Fund can provide further assistance to attract private sector investment.

CDFI Fund Director Kimberly A. Reed also requested that the Community Development Advisory Board, which advises the director on policy matters, hold its annual meeting in New Orleans, La. today, the first time that the board has met outside of Washington, D.C.

"I am committed to helping those affected by Hurricane Katrina, and I want the Community Development Advisory Board to see firsthand how the CDFI Fund's programs, including $1 billion in New Markets Tax Credits for the Gulf Opportunity Zone, can attract private sector capital investment and provide critically needed financial education and services. More importantly, we are learning what else the CDFI Fund can do to help these communities become better and stronger," said Director Reed.

The Congressionally-created Community Development Advisory Board today will receive a presentation by President George W. Bush's Office of Federal Support for Gulf Coast Recovery and Rebuilding, a bus tour of revitalization projects financed in-part through CDFI Fund awards and presentations by CDFI Fund staff and experts on key community development topics.

The advisory board consists of 15 members, including the Secretary of the Departments of Agriculture, Commerce, Housing and Urban Development, Interior and Treasury and the Administrator of the Small Business Administration, or his or her designee; and nine private citizens appointed by the President.

"Secretary Paulson and Director Reed have reinvigorated the CDFI Fund's commitment to restoring the Gulf Coast," said Don Powell, the President's Federal Coordinator for Gulf Coast Rebuilding. "We appreciate all the Treasury has done so far for this region and the Department's continued commitment to helping us rebuild."

The Director met earlier this week with families who received assistance from organizations supported by the CDFI Fund and she visited a financial counseling center that is helping Mississippi families as they rebuild their homes. Advisory Board Chairman Bill Bynum and Director Reed also visited Jackson, Gulfport, and Biloxi, Miss. to meet with U.S. and local official offices and area businesses.

In the aftermath of Hurricane Katrina, the CDFI Fund has been focused on revitalizing Gulf Coast communities. The U.S. Treasury Department announced changes to the NMTC application materials as a first step to be helpful on September 9, 2005, in Mobile, Ala. President Bush signed the Gulf Opportunity Zone (GO Zone) Act in December 2005 to help create jobs and spur development by providing tax relief for businesses and entrepreneurs in Louisiana, Mississippi, and Alabama. As part of this legislation, the CDFI Fund is providing $1 billion in federal tax incentives through its NMTC Program. $600 million in tax credits were awarded in June 2006, less than six months after the GO Zone legislation was enacted, and the final $400 million will be awarded in the fall of 2007 as part of the $3.9 billion 2007 NMTC application round.

For more information on the CDFI Fund and its program please visit www.cdfifund.gov.