PEMBROKE PINES, Fla.–Power Financial Credit Union here said it is making a commitment to affordable housing by becoming the first and only credit union in the country to invest in the Community Development Fund.
Although not covered by the Community Reinvestment Act (CRA) the credit union said it is doing so in response to a growing economic crisis in South Florida.
"Power Financial Credit Union is committed to affordable housing through our mission to give back to the communities we serve," said CEO Allan Prindle in a statement. "This is an opportunity to truly help support a critical local community development initiative."
The Community Development Fund is a market-rate bond fund that invests in high-credit-quality, fixed-income securities whose proceeds are designed to positively impact community development throughout the U.S.
"This is a progressive move for Power Financial Credit Union," said Kenneth H. Thomas, president of the Community Development Fund Advisors, in a statement. Thomas referred to South Florida as "ground zero" for affordable housing and credits Prindle for the credit union's investment to help tackle the issue.
How it Works
According to the organizations, as an institution investing in the fund, PFCU is responsible for designating its targeted Assessment Area(s). CRA qualified-community development investments are then purchased and earmarked in those targeted areas, dollar for dollar, to the investing institution. To date, the Community Development Fund reported it has successfully garnered over $50 million in support of single-family and multifamily affordable housing.
The $650-million Power Financial has more than 32,000 members.