FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced today an $807,000 community development grant to Alternatives Federal Credit Union in Ithaca, NY to be used for expanding affordable housing, microenterprise lending and savings incentives programs.

John Carlisi, program manager for Treasury's Community Development Financial Institutions (CDFI) Fund presented the award to Alternatives Manager Bill Myers and Assistant Manager Leni Hochman. Congressman Maurice Hinchey participated in the award ceremony. Alternatives is one of 46 community development organizations recently selected to receive more than $38 million from the Community Development Financial Institutions Fund.

"The CDFI Fund is a sound investment for the Federal government," said Treasury Secretary Robert E. Rubin. "The Fund is helping to bring hope and foster growth in economically distressed communities across America, communities that have long been left behind," said Secretary Rubin. "Specialized community-based financial institutions, that receive funding from the CDFI Fund are revitalizing these communities by, for example, helping people buy a home or start a small business, with the goal of moving all Americans into the economic mainstream."

This assistance to Alternatives will dramatically strengthen the credit union. "The CDFI award will enable Alternatives to further its mission of serving low-income individuals in Tompkins County," said CDFI Fund Director, Ellen Lazar. "By expanding existing programs and developing new innovative programs, the Fund's investment will help Alternatives meet its ultimate goal of building a stronger local economic base."

Alternatives, which has received $480,289 of its award, will use the funds to expand its Affordable Mortgage Outreach Program and microenterprise services, in addition to its Dollars for Dreams Youth Credit Union and Individual Development Accounts programs. The CDFI Fund will be sending Alternatives the balance of its award once the credit union has raised required matching funds.

The CDFI Fund's mission is to expand access to critically needed capital and financial services in low income urban, rural and Native American communities, areas where one of the biggest obstacles to economic development is a lack of access to mainstream sources of private sector capital. The Fund's programs pursue strategies designed to meet the unique needs of each community by allowing the community to respond to its particular circumstances.

Established by Congress in 1994, the CDFI Fund has made 79 awards totaling over $75 million through its CDFI Program. As required by law, these dollars are matched one-to-one with non-Federal dollars by the award recipient resulting in a federal investment which will be leveraged, at a minimum, two-fold and often many times over.

The press conference took place at Alternatives' new Loan Center located at 109 South Albany Street. In addition to Mr. Carlisi, other officials who participated in the event were U.S. Congressman Maurice Hinchey (NY-26), Alternatives' Manager, Bill Myers and Assistant Manager, Leni Hochman. The following Alternatives' borrowers and partners made brief remarks: Ineke Soto, a borrower under the Affordable Mortgage program; Ceil Blumenstock, an Individual Development Account holder who is saving to expand her mail order catalog business for people with disabilities; Sonya Hicks, a microentrepreneur and owner of Christian Visions Bookstore Plus; and Ariel Nereson, a youth participant in the Dollars for Dreams Youth Credit Union who is a sixth grade student attending Boynton Middle School.