HENDERSON, Ky. (WEHT) – The Vanderburgh County Commissioners have awarded American Rescue Plan Act (ARPA) funds to Alliance Initiatives Fund, Inc. The funds will go towards the creation of a Community Development Financial Institution, or CDFI, dedicated to affordable housing.
CDFIs are designed to encourage economic opportunities for individuals and small businesses, facilitate the development of affordable housing and provide essential community services. One cornerstone of a CDFI’s mission is to ensure access to reasonably priced financial products and services in underserved communities, especially in low-income areas.
To qualify for CDFI certification, an organization must:
- Have a primary focus on advancing community development
- Offer a combination of financial and educational services
- Serve & uphold accountability to one or more specific target markets
- Maintain adherence to a defined marker
- Be a legal, non-government entity during the time of application (exceptions are made for Tribal government entitites)
The ARPA funds will be dedicated to creating an organization that aligns with these criteria, and in turn, the criteria will play a crucial role in supporting approved goals related to affordable housing, small businesses and non-profit ventures.