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Community Development Investment Enhancements Act of 2006

Date: Sept. 28, 2006
Location: Washington, DC
Issues: Finance and Banking


COMMUNITY DEVELOPMENT INVESTMENT ENHANCEMENTS ACT OF 2006 -- (Extensions of Remarks - September 28, 2006)

SPEECH OF
HON. MAXINE WATERS
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
WEDNESDAY, SEPTEMBER 27, 2006

* Ms. WATERS. Madam Speaker, I rise in support of H.R. 6062, ``the Community Development Enhancements Act of 2006.'' I want to thank Mr. Frank for sponsoring this bill, and our distinguished Chairman Mr. Oxley, who is an original sponsor of the bill. The bill will enhance the community development investments made by financial institutions.

* The bill has two major provisions. One provision would increase the amount of investments that a financial institution can make for community development from 10 percent to 15 percent. This increase in the amount that banks can invest in such activities will enable the banks to invest more of its resources in investments that will directly benefit communities and low and moderate income persons.

* Another provision directs portions of the investments made by the financial institutions to promote the public welfare. Citing the actual legislation, the financial institutions ``may make investments designed primarily to promote the public welfare, including the welfare of low and moderate income communities and families through housing, services and jobs.''

* The changes mandated by this bill send a clear message to financial institutions that the needs of low and moderate income communities and families are important. More often than not, these groups are overlooked or their needs underestimated. In addition, the bill enables our financial institutions to look at investments on an investment by investment basis rather than in the aggregate.

* Madam Speaker, I urge my colleagues to support H.R. 6062, because it will strengthen investment in low and moderate income communities across this Nation. Financial institutions must continue to play a role in strengthening and stabilizing our communities and this bill will facilitate both.

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