2025 Policy Priorities
Community Economic Development Program Appropriations The Community Economic Development (CED) program is the only federal grant program that is exclusively for community development corporations. It is administered by the Department of Health and Human Services. We are advocating for Congress to increase funding for the CED program in order to expand job opportunities and support businesses in communities facing persistent poverty and high unemployment. We emphasize the program's critical role in driving economic growth and stability for low-income individuals and low- and moderate-income areas. Community Reinvestment Act The Community Reinvestment Act (CRA), enacted in 1977, requires banks to meet the credit needs of low- and moderate-income communities and ensure fair lending. Many nonprofits rely on CRA-driven investments. We supported the 2023 rule, the first major update since 1995, which reflected the advancement of online banking and the decline of brick-and-mortar lending access. In March 2025, federal bank regulators announced plans to rescind the 2023 rule. We urge regulators and lawmakers to uphold the CRA’s statutory intent: expanding fair credit access and sustaining investment in underserved communities. Rolling back this progress risks weakening a cornerstone of community development. Read our statement on the rollback of the 2023 rule. Follow us on social media for future updates on the CRA. Federal Home Loan Banks’ Mission Implementation Act We are advocating for the following changes to the FHLBank System and its Affordable Housing Program (AHP): increased AHP contributions from 10% to 30% of annual net income, improved transparency through standardized reporting, expanded membership access for CDFIs, making AHP and voluntary programs more effective by aligning them with fair housing goals and LMI housing needs, and clarifying the FHLBanks’ mission to ensure they effectively support housing and community development. These reforms are essential to guaranteeing the FHLBanks effectively support affordable housing and lower-income communities.HOME Investment Partnerships Program The HOME Investment Partnerships Program (HOME) is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. Governments often in partnership with local nonprofit groups — use HOME funding to build, buy, and rehabilitate affordable housing for rent or homeownership, and also to provide direct rental assistance. HOME is one of the most common federal resources used by community development organizations. We advocate for the highest funding level possible in the appropriations process. CHDO Set Aside: At least 15 percent of HOME funds must be set aside for specific activities undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO). These private, nonprofit, community-based organizations develop affordable housing for the communities they serve. HUD updated the program’s regulations in early 2025. The Alliance endorsed many of the changes and we look forward to partnering with HUD to implement them across the community development field. Insurance With nonprofit community developers confronting insurance rate increases of up to 432% for property and casualty coverage and 100% for organizational policies, we advocate for fair solutions to stabilize these organizations. Rising costs threaten financial viability, forcing many to raise rents, cut programs, or reconsider new development projects. We focus on the insurance barriers that nonprofit community developers face that can prevent them from providing affordable homes, economic development, and services. Neighborhood Homes Investment Act We are advocating for Congress to pass the bipartisan Neighborhood Homes Investment Act (NHIA) with a 20 percent set-aside for community development organizations. This legislation would create a new federal tax credit which would incentivize new equity investment dollars for one- to four-unit housing in distressed urban, suburban, rural, and tribal neighborhoods. These investments would support the development, rehabilitation, and revitalization of 500,000 housing units over 10 years. |