What is a “community development credit union,” or CDCU?
A CDCU is a credit union which serves “predominantly low-income” members or communities. Q: What does “low-income” mean? A: The National Credit Union Administration (NCUA) defines low-income as having “annual household income … at or below 80% of the median household income for the nation as established by the Census Bureau.” When the final 2000 census figures are released, median U.S. household income will be about $42,000, which means about $33,000 for a “low-income” household. All these figures can be adjusted upward if you’re located in a high-cost area. Adjustments range as high as 40% (for Hawaii). Different standards apply for employee credit unions. State regulators may also issue low-income designations. Please click here for more information about obtaining low-income designation. Q: Do all of our members have to be “low-income” in order to qualify for membership in the Federation? A: No, only a simple majority, or 51%. Q: Must we have a low-income designation from NCUA in
