Since we were involved in its creation, we at Woodstock Institute have had a front row seat for its growth and impact in our communities.
Since funding from the CDFI Fund is an extremely competitive process, and it is important that resources be directed to those organizations best able to use of funding to meet the financial needs of low-wealth communities, Woodstock proposes that additional criteria be included to ensure that new financial institutions applying for funding have, as their primary purpose, the financial needs of low-wealth people.
These criteria could include:
Keeping families in their homes during and after the foreclosure process mitigates the negative impact of vacant properties on communities, reduces lenders’ costs in securing and maintaining properties, and provides stability for families as they figure out the next stage of their lives. A number of promising public, private, and nonprofit models are being tried throughout the country to stabilize communities by keeping families in their homes.
Community development financial institutions, or CDFIs, play a key role in providing financing to small businesses, particularly those in traditionally underserved communities that have been hit hardest by the crisis.