WASHINGTON—As the House Ways and Means Committee begins to mark up the tax reform bill this week, one report suggests credit unions may be spending money that may come back to hurt them.
As America’s Credit Unions announced during this year’s Governmental Affairs Conference, the organization is investing $2 million to modernize Credit Union House in the Capitol Hill neighborhood of Washington.
“The modernization project is intended to re-establish the well-known entity as a gathering place for the credit union industry, constituents, and members of Congress and support advocacy efforts,” ACU said.
More than $5 million has been invested to date by credit unions, leagues, and other industry partners, according to Credit Union House Board Chair and GoWest Credit Union League President/CEO Troy Stang.
But a Punchbowl News report suggests the actual investment is more than $12 million.
“The $12.1 million investment, which hasn’t been previously reported, could be seen in the background of a photo posted to LinkedIn last week by advocates leading the renovation of Credit Union House,” Punchbowl News stated.
“For credit union advocates, the renovation project is long overdue, a sign of the industry’s maturity and lobbying chops in the nation’s capital. But for banks, who have long chafed at large credit unions’ tax exemptions, the project is a sign of largess. It may also be a political liability at a fraught moment for credit unions,” the news outlet said.
“The optics just aren’t great for a nonprofit sector that has prided itself on community lending and small business acumen. A $12-million makeover isn’t chump change, even for Capitol Hill, though the cost is being split by several different credit union organizations and associations,” Punchbowl News added.
One person familiar with the effort said the $12-million figure is not exorbitant, given the building’s size, age and the costs of redevelopment in D.C. A quarter of the cost is going towards making the building fully ADA compliant, with additional significant costs for historic preservation fees, Punchbowl News said.
ACU Chief Communications and Marketing Officer Meghan Burris Small noted that "for almost a quarter century, the Credit Union House has been a critical space for state leagues, credit unions and industry partners to connect with members of Congress, a standard in almost every industry. Modernizing makes good business sense and shows the heart of the credit union movement - collaboration. Every credit union across the country, and the more than 140 million members they serve, should have direct access to policymakers to advocate for their business needs. This modernization project is past due, not only to meet accessibility standards and welcome all to this space, but also to preserve a historic part of an important city and US history."