Specialized community development banks and financial institutions with the mission of providing financial services and credit to lower-income communities and families emerged and grew. Policy developments bolstered the infrastructure and funding of community development lending organizations. Notably, the passage of the Community Development Financial Institutions (CDFI) Act of 1994 created the CDFI Fund at the Department of Treasury.
The expansion of CDFIs provided banks with access to new opportunities to finance community economic development. Other initiatives, such as the federal Low Income Housing Tax Credit and New Markets Tax Credit programs provided vehicles for investing in affordable housing development and economic revitalization in distressed communities.