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2025 Session

Budget Amendments - HB1600 (Member Request)

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Chief Patron: Willett
Community Development Financial Institutions Fund

Item 103 #8h

Item 103 #8h

First Year - FY2025 Second Year - FY2026
Commerce and Trade
Department of Housing and Community Development FY2025 $0 FY2026 $10,000,000 GF

Language
Page 111, line 49, strike "$81,477,325" and insert "$91,477,325".

Page 118, line 36, after "P." strike the remainder of the line.

Page 118, strike lines 37 through 39, and insert:

"1. Out of this appropriation, $150,000 the first year and $10,150,000 the second year from the general fund is provided for the Community Development Financial Institutions Fund, as established by § 36-140.01, Code of Virginia.

2. The department shall use up to 20 percent, but no less than 10 percent of the Fund to provide low-interest, unforgivable loans to qualifying institutions, as defined by § 36-140.01, Code of Virginia. Interest on loans made from the Fund shall not exceed two percent.

3. The department shall require (a) qualifying institutions receiving a loan from the Fund to finance eligible program projects through loans, and (b) repayment of loan awards no sooner than five years after its execution of a loan contract with the qualifying institution.

4. Of these amounts, the department is authorized to use up to $150,000 to administer these funds."



Explanation

(This amendment provides $10.0 million to recapitalize the Community Development Financial Institutions Fund. It directs the Department of Housing and Community Development to lend a portion of available funds to CDFIs to create a consistent source of revenue for this program and fund.)