GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
S 1
SENATE BILL 623
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Short Title: NC Minority Support Center Funds. |
(Public) |
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Sponsors: |
Senator Jones. |
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Referred to: |
Appropriations/Base Budget. |
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March 12, 2007
A BILL TO BE ENTITLED
AN ACT to appropriate funds for the north carolina minority Support Center to further a statewide program of lending for homeownership and wealth creation in disadvantaged communities.
Whereas, since 1992, the State has appropriated funds to the North Carolina Minority Support Center, Inc., to provide financial and technical assistance to North Carolina's community development credit unions to build capacity and deliver affordable consumer financial products and services, including mortgage loans, small business loans, low minimum balance savings and checking accounts, low‑fee transaction services, consumer credit, Individual Development Accounts, foreclosure prevention, financial education, and credit counseling; and
Whereas, the North Carolina Minority Support Center has successfully used these funds to the benefit of the underserved low‑wealth, low‑income, and minority consumers served by community development credit unions, most of whom earn between 50% and 80% of the area median income in their region; and
Whereas, the North Carolina Minority Support Center has been certified a Community Development Financial Institution by the United States Department of the Treasury and has been recognized as a national and international model for creating affordable banking opportunities for low‑income, low‑wealth, and unbanked individuals and families; and
Whereas, in the past 10 years, the North Carolina Minority Support Center has used funds appropriated by the General Assembly to leverage more than $21,000,000 in private and federal support directly and indirectly for community development credit unions, resulting in expanded fair lending, innovative consumer financial services, foreclosure prevention, and better‑educated consumers in underserved communities; and
Whereas, the North Carolina Minority Support Center now provides intensive capital support, capacity grants, training, and technical assistance to three community development credit unions: Generations Community Credit Union, Latino Community Credit Union, and First Legacy Federal Credit Union; and
Whereas, these community development credit unions are federally insured and designated by the National Credit Union Administration as Low‑Income Credit Unions and as Community Development Financial Institutions by the United States Department of the Treasury; and
Whereas, these community development credit unions deliver services through 19 branches to a combined statewide membership of over 78,000 people with high membership concentrations in 39 counties in Eastern North Carolina, the greater Triangle region, the Charlotte‑Mecklenburg area, and the Western Piedmont; and
Whereas, in the past three years, demand for credit from these community development credit unions has increased 16% annually; and
Whereas, these community development credit unions have responded by delivering $43,000,000 in fair and affordable mortgage financing, more than $6,000,000 to small businesses and sole proprietors, creating or preserving more than 1,200 jobs, and $61,000,000 in fair and affordable consumer credit to more than 6,568 low‑income credit applicants; and they have attracted savings accounts and other deposit resources totaling $63,000,000; and
Whereas, the North Carolina Minority Support Center annually receives numerous requests for new branch locations from citizens in counties with high concentrations of high‑interest subprime lenders and fringe financial services, and where low‑income low‑wealth citizens lack branch or technological access to the affordable products, services, and financial counseling offered by a federally regulated community development credit union; and
Whereas, the State values and supports the diverse minority communities served by the North Carolina Minority Support Center and community development credit unions, particularly the communities' significant contributions to the economy as represented by their combined buying power of $47,000,000,000 and a workforce exceeding 1,000,000; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.(a) There is appropriated from the General Fund to the Department of Commerce the sum of one million dollars ($1,000,000) for the 2007‑2008 fiscal year and the sum of one million dollars ($1,000,000) for the 2008‑2009 fiscal year in recurring funds to the North Carolina Minority Support Center, Inc., to be used as follows:
(1) $600,000 in the 2007‑2008 fiscal year and $600,000 in the 2008‑2009 fiscal year for program administration and technical assistance to community development credit unions and their communities.
(2) $400,000 in the 2007‑2008 fiscal year and $400,000 in the 2008‑2009 fiscal year for direct grants to Generations Community Credit Union, Latino Community Credit Union, and First Legacy Federal Credit Union to support operations related to service and membership expansion.
SECTION 1.(b) There is appropriated from the General Fund to the Department of Commerce the sum of five million dollars ($5,000,000) for the 2007‑2008 fiscal year and the sum of five million dollars ($5,000,000) for the 2008‑2009 fiscal year to be allocated to the North Carolina Minority Support Center, Inc., for the purpose of making direct grants through a request for proposals process in each fiscal year to Generations Community Credit Union, Latino Community Credit Union, and First Legacy Federal Credit Union to increase consumer access to affordable financial services through branch location, expansion, and technological innovation.
SECTION 2. This act becomes effective July 1, 2007.