§4703 Establishment of National Fund for Community Development Banking

Summary

Creates a corporation called the Community Development Financial Institutions Fund. The Fund will be based in Washington, D.C., be independent from other federal agencies, and be a wholly owned government corporation in the executive branch. The President must appoint an Administrator to run the Fund, who cannot hold any other job while serving. The Administrator must hire a chief financial officer who will act as the Administrator if the Administrator is absent or the job is vacant. The Administrator can hire other staff, make rules, sign contracts, spend money, use staff from other federal agencies with their permission, and delegate tasks. For a 2-year period starting on September 23, 1994, the Administrator may hire and fire certain staff without following normal civil service rules and set their pay up to the level V Executive Schedule limit. The Fund will have a 15-member advisory board called the Community Development Advisory Board. Six members are specified federal officials or their designees (Agriculture, Commerce, Housing and Urban Development, Interior, Treasury, and Small Business Administration). Nine members are private citizens appointed by the President to give geographic and demographic balance and include specified types of experience (community development financial institution officers, insured bank officers, consumer/public interest leaders, community development experts, and one person with experience on Indian reservations). Private members serve four-year terms; they pick a chair for a two-year term. The Board must advise the Administrator on Fund policy but not on specific grant decisions, meet at least once a year, and be provided staff and facilities by the Fund. The Fund’s liability for investments is limited to the amount invested, it cannot issue securities, certain deposit rules do not apply, assisted institutions are not federal agencies, and Treasury may help set up the Fund and hire up to six employees during the transition period that began on September 23, 1994 and ends when the Administrator is appointed.