La. Admin. Code tit. 13 § I-3705

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-3705 - Eligibility Requirements for Certification

A. Community Development Corporation (CDC). An applicant must meet all of the following requirements:

1. is chartered pursuant to Chapter 2 of Title 12 of the Louisiana Revised Statues of 1950;

2. is tax exempt pursuant to Section 501(C)(3) of the Internal revenue Code of 1986, as amended;

3. has a primary mission of developing and improving low-income communities and neighborhoods through economic and related development;

4. has activities and decisions initiated, managed, and controlled by the constituents of the community served;

5. does not provide credit, capital, or other assistance from public funds in an mount greater than twenty-five thousand dollars at one time or in one transaction;

6. is not a non-profit organization with the sole purpose of providing housing to neighborhoods or technical assistance to other nonprofit organizations;

7. has been certified or recertified as a community development corporation as provided in this Subpart; and

8. meets the LANO standard of excellence.

B. Community Development Financial Institute (CDFI). An applicant must meet all of the following requirements:

1. has a primary purpose of promoting community development by providing credit, capital, or development services to small business or home mortgage assistance to individuals, including, but not limited to, capital access programs, micro-lending, franchise financing, and guaranty performance bonds;

2. maintains, through representation on its governing board, accountability to persons in need of the institution's services;

3. is not an agent or instrumentality of the United States, or of a state political subdivision of a state, nor maintains an affiliate relationship with any of these entities;

4. maintains a goal of providing a majority of its services to low-income individuals, minorities, or females or in rural areas;

5. provides capital and technical assistance to small or micro-business or mortgage assistance to individuals;

6. does not provide credit, capital, or other assistance in an mount greater than two hundred fifty thousand dollars at one time or in one transaction;

7. has been certified or recertified as a community development financial institution as provided for in this Subpart; and

8. may be a federally or state-chartered financial institution holding company which qualifies as a community development financial institution only if the holding company and the subsidiaries and affiliates of the holding company collectively satisfy the requirements of this Subpart.

La. Admin. Code tit. 13, § I-3705

Promulgated by the Department of Economic Development, Office of Business Development, LR 36:750 (April 2010).

AUTHORITY NOTE: Promulgated in accordance with R.S. 33:130.751 et seq., and 47:6031.