[Federal Register: December 4, 2003 (Volume 68, Number 233)]
[Notices]               
[Page 67908-67913]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04de03-68]                         

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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund

 
Notice of Funds Availability (NOFA) Inviting Applications for the 
Native American CDFI Assistance Program

AGENCY: Community Development Financial Institutions Fund, Department 
of the Treasury.

ACTION: Notice of funds availability (``NOFA'') inviting applications 
for the Native American CDFI Assistance (``NACA'') Program.

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SUMMARY: This NOFA is issued in connection with two annual funding 
rounds of the NACA Program, one using FY 2003 and FY 2004 appropriated 
funds (``Round One'') and one using FY 2004 and FY 2005 appropriated 
funds (``Round Two''), if appropriated funds are available. Through the 
NACA Program and subject to appropriation of funding for the purposes 
enumerated in this NOFA, the Community Development Financial 
Institutions Fund (the ``Fund'') will provide Financial Assistance 
(``FA'') awards and/or Technical Assistance (``TA'') grants to 
community development financial institutions (``CDFIs'') that primarily 
serve Native American, Alaska Native and/or Native Hawaiian communities 
(hereafter referred to as ``Native American CDFIs,'' serving ``Native 
American Communities''). The NACA Program will also provide TA grants 
to entities proposing to become Native American CDFIs within a 
specified time frame and ``Sponsoring Entities'' (e.g., Native American 
organizations, Tribes and Tribal organizations that propose to create 
entities that will become Native American CDFIs).
    The Fund expects to award approximately $5 million for Round One 
awards, and approximately $3 million for Round Two awards. Interested 
parties should be aware that electing to defer the submission of a NACA 
Program application in Round Two, rather than in Round One, entails 
some risk since Round Two funds have not yet been appropriated. If 
neither FY 2004 funds nor FY 2005 funds are appropriated for the 
purposes set forth in this NOFA, there will not be a Round Two. The 
Fund reserves the right to award in excess of said amounts under this 
NOFA provided that appropriated funds are available and the Fund deems 
it appropriate. The Fund reserves the right to re-allocate funds from 
the amounts that are anticipated to be available under this NOFA to 
other Native American programs administered by the Fund, particularly 
if the Fund determines that the number of awards made under this NOFA 
is fewer than projected.
    Under this NOFA, an applicant may apply for a FA award, a TA grant, 
or a combination of the two (within certain limits, described below). 
The Fund expects that it will award up to $150,000 per awardee 
receiving only TA and up to $500,000 per awardee receiving only FA or a 
combination of FA and TA. The Fund, in its sole discretion, reserves 
the right to award amounts in excess of the anticipated maximum award 
amount if the Fund deems it appropriate; or to provide a TA grant for 
uses other than, or in an amount greater or less than that which is 
requested by an applicant, including to applicants requesting only FA. 
The Fund reserves the right to fund, in whole or in part, any, all, or 
none of the applications submitted in response to this NOFA.
    A certified Native American CDFI may apply for FA through either 
the FA Component or the NACA Program. While an applicant may receive 
only one FA award through either the FA Component or the NACA Program, 
an applicant, its subsidiaries or affiliates may apply for and receive: 
(a) A tax credit allocation through the NMTC Program; (b) a TA award 
through the CDFI Program; (c) an award through the Bank Enterprise 
Award Program (subject to certain limitations); and/or (d) an award 
through the NACD Program. Terms not defined in this NOFA are as defined 
in the interim regulations for the CDFI Program, found at 12 CFR part 
1805.

DATES: The Fund will make available the Round One NACA Program funding 
application on its website at http://www.cdfifund.gov in early January, 
2004. At that time, interested parties may download the application 
form from the Fund's website or request application packages by 
contacting the Fund, as described below.
    Round One applicants may submit applications after February 1, 
2004. Round One applications must be received in the specific Bureau of 
the Public Debt (BPD) office designated below not later than 5:00 p.m. 
ET on March 15, 2004.
    Subject to the availability of appropriated funds, Round Two 
applicants may submit applications after December 1, 2004. Round Two 
applications must be received in the BPD office designated below not 
later than 5:00 p.m. ET on February 1, 2005.
    Late applications received in the specific BPD office designated 
below will be rejected and returned to the sender.
    Applications sent by facsimile or e-mail will not be accepted; 
however, an electronic application may be made available for this NOFA 
at a later date. If so, its availability and related guidance will be 
announced on the Fund's website (http://www.cdfifund.gov).
    Applicants must submit one original and two (2) copies of their 
complete application. Applicants seeking CDFI certification with the 
funding application must submit one additional original and one 
additional copy of Section III (the CDFI certification section) of the 
application. Each copy should be placed in a three-ring binder, without 
staples or other forms of binding and each section should be separated 
by tabs. Each original should not be placed in a binder nor include 
tabs. To facilitate processing, please clearly identify originals and 
copies of applications as ``Funding'' and ``Certification'' 
applications.

ADDRESSES: Applications must be sent to: CDFI Fund Grants Management 
and Compliance Manager, Bureau of Public

[[Page 67909]]

Debt, 200 Third Street, Room 210, Parkersburg, WV 26101. The telephone 
number to be used in conjunction with overnight mailings to this 
address is (304) 480-5450. Applications will not be accepted at the 
Fund's offices in Washington, DC. Applications received in the Fund's 
offices will be rejected and returned to the sender.

FOR FURTHER INFORMATION CONTACT: If you wish to request an application 
package or if you have any questions about the programmatic 
requirements for this program, please contact the Fund by e-mail at cdfihelp@cdfi.treas.gov; by telephone at (202) 622-6355; by facsimile 
at (202) 622-7754; or by mail to CDFI Fund, 601 13th Street, NW., Suite 
200 South, Washington, DC 20005.
    If you have questions regarding application submission procedures, 
contact the Fund's Grants Management and Compliance Manager by e-mail at gmc@cdfi.treas.gov; by telephone at (202) 622-8662; by facsimile at 
(202) 622-6453; or by mail to CDFI Fund, 601 13th Street, NW., Suite 
200 South, Washington, DC 20005.
    These are not toll free numbers. Allow at least one to two weeks 
from the date the Fund receives a request for receipt of the 
application package. Applications and other information regarding the 
Fund and its programs may be downloaded from the Fund's website at 
http://www.cdfifund.gov.

SUPPLEMENTARY INFORMATION:

I. Eligibility

    At the time an entity submits its application under this NOFA, it 
must be a duly organized and validly existing legal entity under the 
laws of the jurisdiction, including tribal jurisdiction, as applicable, 
in which it is incorporated or otherwise established. The following 
sets forth additional details and certain additional dates that relate 
to the submission of applications under this NOFA:
    Eligible Applicants; CDFI Certification: Eligible applicants for 
the NACA Program consist of three types of entities:

Type 1: Certified and Certifiable Native American CDFIs

    Certified Native American CDFIs: Native American CDFIs: Any 
certified CDFI that primarily serves a Native American Community and 
whose CDFI certification expires after July 31, 2004 (for Round One 
applicants) or after July 31, 2005 (for Round Two applicants); or
    Certifiable Native American CDFIs: Any entity that primarily serves 
a Native American Community and that submits a complete CDFI 
certification application, received by the Fund prior to or 
simultaneous with its NACA funding application, demonstrating, in the 
judgment of the Fund, that it is certifiable as a CDFI by the date of 
award.
    Any Type 1 applicant whose CDFI certification will expire before 
July 31, 2004 (for Round One applicants) or before July 31, 2005 (for 
Round Two applicants) or that is not yet certified as of the date of 
submission of a NACA Program application must deliver a CDFI 
certification application (obtained through the Fund's website at 
http://www.cdfifund.gov) in advance of the funding application due date for 
the NACA Program round to which the applicant is applying, or the 
applicant must deliver a CDFI certification application as part of the 
NACA Program application.

Type 2: Emerging Native American CDFIs

    Any entity that primarily serves a Native American Community and 
demonstrates in its NACA Program application, in the judgment of the 
Fund, that it is certifiable as a CDFI by the following dates: a Round 
One applicant must deliver a complete CDFI certification application by 
October 1, 2006, evidencing that the applicant can be certified as a 
CDFI, and must be certified as a CDFI by December 31, 2006; a Round Two 
applicant must deliver a complete certification application by October 
1, 2007, evidencing that the applicant can be certified as a CDFI, and 
must be certified as a CDFI by December 31, 2007.

Type 3: Sponsoring Entities

    Any entity that proposes to create a separate legal entity that 
will become a Native American CDFI and demonstrates in its NACA Program 
application, in the judgment of the Fund, that it is certifiable as a 
CDFI by the following dates: a Round One applicant must deliver a 
complete CDFI certification application by October 1, 2007, evidencing 
that the applicant can be certified as a CDFI, and must be certified as 
a CDFI by December 31, 2007; a Round Two applicant must deliver a 
complete certification application by October 1, 2008, evidencing that 
the applicant can be certified as a CDFI, and must be certified as a 
CDFI by December 31, 2008. For purposes of this NOFA, Sponsoring 
Entities include: (a) Tribes, tribal entities, Alaska Native Villages, 
Village Corporations, Regional Corporations, Non-Profit Regional 
Corporations/Associations, or Inter-Tribal or Inter-Village 
organizations; (b) organizations whose primary mission is to serve a 
Native American Community including but not limited to: Urban Indian 
Centers, Tribally-Controlled Community Colleges, community development 
corporations (CDCs), training or educational organizations, or Chambers 
of Commerce, that serve primarily a Native American Community.
    Prior Awardees: Applicants must be aware that success in a prior 
round of the CDFI Program, including the NACTA and NATA Components, or 
the NACD Program is not indicative of success under this NOFA. Prior 
awardees are eligible to apply under this NOFA, except as follows:
    The Fund is generally prohibited from obligating more than $5 
million in assistance, in the aggregate, to any one organization and 
its Subsidiaries and Affiliates during any three-year period (further 
guidance on the calculation of the $5 million cap is available on the 
Fund's website at http://www.cdfifund.gov);
    The Fund will not consider an application submitted by an applicant 
that is a prior Fund awardee under any Fund program or component of the 
CDFI Program if the applicant has been barred from applying to the Fund 
through the applicable funding round, has outstanding reports due to 
the Fund as of the due date of the application, or is considered to be 
in default of its assistance agreement. Awardees whose assistance 
agreements terminate in default status will only be considered to be in 
default of their assistance agreements for one year from the date the 
final compliance status is determined; and
    The Fund reserves the right to reject an application without 
consideration that has been submitted by an applicant that is a prior 
Fund awardee under any Fund program or component of the CDFI Program 
that has a balance of $5,000 or more in undisbursed funds, under said 
previous award, as of the applicable application deadline of this NOFA.
    Accordingly, applicants that are prior Fund awardees are advised 
to: (a) submit all required reports by the deadlines specified in the 
assistance or award agreements governing said prior awards and to 
comply with all requirements found therein, and (b) contact the Grants 
Management and Compliance Manager to ensure that actions are underway 
for the disbursement of any outstanding balance of $5,000 or more for 
said prior award. All outstanding reports or compliance questions 
should be

[[Page 67910]]

directed to the Grants Management and Compliance Manager by e-mail at gmc@cdfi.treas.gov; by telephone at (202) 622-8662; by facsimile at 
(202) 622-6453; or by mail to CDFI Fund, 601 13th Street, NW., Suite 
200 South, Washington, DC 20005.
    Designation of Targeted Population: For purposes of this NOFA, the 
Fund will use the following definitions for Native American, set forth 
in the Office of Management and Budget (OMB) Notice, Revisions to the 
Standards for the Classification of Federal Data on Race and Ethnicity 
(October 30, 1997): (a) American Indian, Native American or Alaska 
Native: a person having origins in any of the original peoples of North 
and South America (including Central America) and who maintains tribal 
affiliation or community attachment; and (b) Native Hawaiian: a person 
having origins in any of the original peoples of Hawaii.

II. Types of Assistance

    Through this NACA Program NOFA, the Fund offers two types of 
awards: FA and TA. A Type 1 (Certified and Certifiable Native American 
CDFIs) applicant may submit an application under this NOFA for an FA 
and/or a TA award. A Type 2 (Emerging Native American CDFIs) or a Type 
3 (Sponsoring Entities) applicant may submit an application for a TA 
grant only. In no event will the Fund disburse FA to an awardee until 
the awardee is certified as a CDFI.
    Financial Assistance: FA may be provided by the Fund in the form of 
an equity investment (including, in the case of certain insured credit 
unions, secondary capital accounts), a grant, loan, deposit, credit 
union shares, or any combination thereof. The Fund reserves the right, 
in its sole discretion, to provide FA in an amount, form and/or for 
uses other than that which is requested by an applicant.
    Technical Assistance: A TA award is provided in the form of a grant 
for the purpose of enhancing the capacity of the entity to serve its 
target market. The Fund reserves the right, in its sole discretion, to 
provide TA in an amount and/or for uses other than that which is 
requested by an applicant. Eligible TA grant uses are limited to the 
following:
    Grants to Purchase Technology and/or Services, which will enhance 
the capacity of the Native American CDFI or proposed Native American 
CDFI to serve its target market, including the following: (a) Acquiring 
consulting services; (b) paying staff salary for the limited purposes 
of completing tasks and/or fulfilling functions that are otherwise 
eligible TA uses under this NOFA; (c) acquiring/enhancing technology 
items; and (d) acquiring training for staff, management, or board 
members. Grants to purchase technology and/or services are capped at 
$50,000 per application. The Fund will not consider requests for grants 
to purchase technology and/or services under this NOFA for expenses 
that, in the determination of the Fund, are deemed to be ongoing 
operating expenses rather than non-recurring expenses (other than as 
provided below). The Fund will consider requests for TA to pay staff 
salary, other than as provided below for Operating Grants, only when 
the applicant demonstrates and represents to the satisfaction of the 
Fund that: (i) The staff salary relates directly to building the 
applicant's capacity to serve its target market; or (ii) the proposed 
staff time to be paid for by the TA grant will be used for a non-
recurring activity that will build the applicant's capacity to achieve 
its objectives as set forth in its Application; (iii) the proposed 
capacity-building activity would otherwise be contracted to a 
consultant or not be undertaken; and (iv) the staff person assigned to 
the proposed task has the competence to successfully complete the 
activity.
    Grants to Cover Operating Expenses, to cover recurring expenses 
including staff salary, rent, utilities and other key operating 
expenses, that will enhance the capacity of the entity to serve its 
target market. Grants to cover operating expenses are capped at 
$100,000 per application. An applicant applying for a grant to cover 
operating expenses, including staff salary, may not also request TA for 
staff salary (described above). Type 1 (Certified and Certifiable 
Native American CDFIs) and Type 2 (Emerging Native American CDFIs) 
applicants are eligible for grants to cover operating expenses only if 
they began incurring operating expenses less than five years prior to 
the date of application.
    Further guidance on the limited uses of TA grants for staff salary 
expenditures is available on the Fund's website at http://www.cdfifund.gov.

III. Application

    An applicant under this NOFA must submit all materials described in 
the application. An application must include a valid and current 
Employer Identification Number, issued by the Internal Revenue Service, 
or the application will be rejected as incomplete and returned to the 
sender.

IV. Matching Funds

    Applicants requesting FA under this NOFA must obtain matching funds 
from sources other than the Federal government on the basis of not less 
than one dollar for each dollar of FA provided by the Fund. Matching 
funds are not required for TA grants. Matching funds must be at least 
comparable in form and value to the FA provided by the Fund (for 
example, if an applicant seeks an FA grant from the Fund, the applicant 
must obtain matching funds through grant(s) from non-Federal sources 
that are at least equal to the amount provided by the Fund).
    For Round One applicants, 25 percent of the matching funds must be 
in-hand or firmly committed on or after January 1, 2002, and before the 
date of application, in order to be considered by the Fund. Any 
applicant seeking an FA award that does not meet these matching funds 
requirements will not be considered for an FA award. The Fund reserves 
the right to recapture and reprogram any Round One award if the awardee 
fails to have the remaining matching funds firmly committed by May 15, 
2005 (with documentation of such received by the Fund not later than 
May 31, 2005), or to grant an extension of said matching funds 
deadline, if the Fund deems it appropriate.
    For Round Two applicants, 25 percent of the matching funds must be 
in-hand or firmly committed on or after January 1, 2003 and before the 
date of application, in order to be considered by the Fund. Any 
applicant seeking an FA award that does not meet these matching funds 
requirements will not be considered for an FA award. The Fund reserves 
the right to recapture and reprogram any Round Two award if the awardee 
fails to have the remaining matching funds firmly committed by May 15, 
2006 (with documentation of such received by the Fund not later than 
May 31, 2006), or to grant an extension of said matching funds 
deadline, if the Fund deems it appropriate.
    For purposes of this NOFA, ``in-hand'' means that the applicant has 
actually received the matching funds and has documentation (such as a 
copy of a check) to evidence such receipt; ``firmly committed'' means 
that the applicant has entered into or received a legally binding 
commitment from the matching funds source that the matching funds have 
been committed to be disbursed to the applicant and the applicant has 
documentation (such as a copy of a loan agreement, promissory note or 
grant agreement) to evidence such firm commitment.
    Funds used by an applicant as matching funds for a prior Fund award 
or under another Federal grant or award program cannot be used to 
satisfy the matching funds requirement. If an

[[Page 67911]]

applicant seeks to use as matching fund monies received from an 
organization that was a prior Fund awardee, the Fund will deem such 
funds to be Federal funds, unless the funding entity establishes to the 
reasonable satisfaction of the Fund, that such funds do not originate 
from other Fund or Federal sources, in part or in whole.

V. Evaluation

    The Fund will determine whether an application is complete and the 
applicant meets the eligibility requirements set forth above. Any 
application that is incomplete or any applicant that does not meet the 
eligibility requirements will be rejected.
    Following these determinations, the Fund will conduct the 
substantive review of each application in accordance with the criteria 
and procedures described in this NOFA and the application. The Fund 
will evaluate each application on a 100-point scale, comprising the 
four criteria categories set forth below, and assign numeric scores. 
Applicants whose applications are assigned 50 points or more in the 
aggregate, will receive additional consideration for an award under the 
NACA Program. The Fund does not anticipate making an award to an 
applicant whose score in any of the four criteria categories falls 
significantly short of the total points allowable in that category, 
defined here as less than 40 percent of the total points allowable.
    Market Analysis/Program Design and Implementation. For FA-Only or 
FA/TA: A review of the applicant's (a) understanding of its market 
context, its current and prospective customers, the extent of economic 
distress within the designated Investment Area(s) and/or the extent of 
need within the designated Targeted Population(s), the extent of need 
for Equity Investments, loans, Development Services, and Financial 
Services within the designated Target Market, and the extent of demand 
within the Target Market for the applicant's current or proposed 
products and services, and (b) product design and implementation plan, 
including an assessment of its products and services, marketing and 
outreach efforts, and delivery strategy. For TA-Only: A review of the 
applicant's understanding of its market context (including a 
description of the nature of economic distress in the Target Market), 
its current and prospective customers, the extent of need for the 
Native American CDFI, the level of support for a CDFI in the Target 
Market, and the appropriateness of the proposed products, services, and 
delivery strategy to meet the needs in the market. To the extent the 
applicant lacks one of the elements, the Fund will assess its plan to 
address the deficiencies including requesting TA. (Maximum 25 points);
     Management. For FA-Only or FA/TA Applicants: A review of the 
applicant's current and proposed management team, governing board, and 
key staff, its policies and procedures for financial management, and 
its track record in underwriting and portfolio management, if 
applicable, and ability to achieve the objectives set forth in its 
application (including use of TA, as appropriate). For TA-Only 
Applicants: to the extent the applicant lacks one of the elements, the 
Fund will assess its plan to address the deficiencies including 
requesting TA. (Maximum 25 points);
    Financial Health and Resources. For FA-Only or FA/TA Applicants: A 
review of the applicant's financial track record and financial 
projections and the strength and likelihood of obtaining resources to 
sustain projected levels of financing and operations, and a clear 
indication that the CDFI will not be fiscally dependent on the Fund. 
For TA-Only Applicants: to the extent the applicant lacks one of the 
elements, the Fund will assess its plan to address the deficiencies 
including requesting TA. (FA-Only and FA/TA applicants: maximum 20 
points; TA-Only applicants: maximum 10 points); and
    Community Development Performance/Effective Use of Award. For FA-
Only or FA/TA Applicants: A review of the applicant's projected level 
of activity within the Target Market (in terms of Development Services, 
Financial Services, and financial products); the extent to which the 
proposed activities are expected to promote homeownership, affordable 
housing development, economic development, provision of affordable 
financial services, and other community development objectives; the 
extent to which the applicant needs the Fund's financial and/or 
technical assistance to achieve the objectives set forth in its 
application; and the likelihood that the Fund's assistance will enhance 
the applicant's capacity to effectively serve its Target Market and 
achieve community development impact. If requesting TA, the applicant 
should describe how improving the organization would translate to 
community development impact within its Target Market. For TA-Only 
Applicants: A review of the description of how improving the 
organization would translate to community development impact within its 
Target Market; the extent to which the applicant needs the Fund's 
technical assistance to achieve the objectives set forth in its 
application and the likelihood that the Fund's assistance will enhance 
the applicant's capacity to effectively serve its Target Market and 
achieve community development impact. To the extent the applicant lacks 
one of the elements, the Fund will assess its plan to address the 
deficiencies including requesting TA. Prior Awardees (under CDFI or 
NACD Programs), must show how activities, new market served, and/or 
additional activities are over and above those previously funded by the 
Fund. (FA-Only and FA/TA applicants: maximum 30 points; TA-Only 
applicants: maximum 40 points).
    Technical Assistance Proposal: Any applicant seeking a TA grant, 
either alone or in conjunction with a request for a FA award, must 
complete a Technical Assistance Proposal (TAP) as part of its 
application. The TAP consists of a summary of the organizational 
improvements needed to achieve the objectives of its application, a 
budget, and a description of the requested goods and/or services 
comprising the TA award request. The budget and accompanying narrative 
will be evaluated for the eligibility and appropriateness of proposed 
uses of the TA award (described above). The TAP is not scored.
    Fund reviewers will evaluate and score each application and make 
recommendations for funding. As part of the substantive review process, 
applicants may receive a telephone interview or an on-site visit by 
Fund reviewers for the purpose of obtaining, clarifying, or confirming 
information. During the review process, the applicant may be required 
to submit additional information about its application in order to 
assist the Fund in its final evaluation process. Such requests must be 
responded to within the time parameters set by the Fund.
    In the case of an applicant that has previously received funding 
from the Fund under the CDFI Program, including the Native American 
CDFI Technical Assistance (NACTA) Component, or the NACD Program, the 
Fund will consider, as appropriate: (a) the applicant's level of 
success and extent of compliance in meeting its performance goals, 
financial soundness covenants (if applicable) and other requirements 
contained in the assistance or award agreement(s) with the Fund 
(including timeliness of reporting); (b) the benefits that will be 
created with new Fund assistance over and above benefits created by 
previous Fund assistance; and (c) the extent and

[[Page 67912]]

effectiveness to which the applicant has used previous assistance from 
the Fund.
    The Fund will make a final funding determination based on the 
applicant's file, reviewer score and recommendation, and the amount of 
funds available. In the case of regulated CDFIs and applicants 
proposing to create a regulated institution, the Fund will also take 
into consideration the views of the appropriate Federal Regulatory 
agencies. If the applicant's CAMEL rating is a ``4'' or ``5'' or the 
regulator otherwise indicates safety and soundness concerns, the Fund, 
in its sole discretion, will not make an award. The Fund's award 
decisions are final.
    Each applicant will be informed of the Fund's award decision either 
through a Notice of Award if selected for an award (see Notice of Award 
section, below) or a declination letter, if not selected for an award, 
which may be for reasons of application incompleteness, ineligibility 
or substantive issues. Any applicant that is not selected for an award 
due to application incompleteness or ineligibility, and that believes 
that such decision was made in error, may appeal said decision by 
notifying the Fund's Grants Management and Compliance (GMC) Manager in writing or by e-mail (if by e-mail, send to appeals@cdfi.treas.gov, 
with the subject line stating ``Eligibility Appeal'' and the award 
control number assigned by the Fund to the particular award). Such 
appeals must be received by the Fund within five business days of the 
date of the declination letter.
    All applicants that are not selected for awards based on 
substantive issues, will be given the opportunity to request feedback 
on the strengths and weaknesses of their applications. This feedback 
will be provided in a format and within a timeframe to be determined by 
the Fund, based on available resources.
    The Fund reserves the right to change these evaluation procedures 
if the Fund deems it appropriate; if said procedural changes materially 
affect the Fund's award decisions, the Fund will provide information 
regarding the procedural changes through the Fund's website.

VI. Notice of Award

    The Fund will signify its selection of an applicant as an awardee 
by delivering a signed Notice of Award to the applicant. The Notice of 
Award will contain the general terms and conditions underlying the 
Fund's provision of assistance including, but not limited to, the 
requirement that an awardee and the Fund enter into an Assistance 
Agreement. The applicant shall execute the Notice of Award and return 
it to the Fund. By executing a Notice of Award, the awardee agrees 
that, if prior to entering into an Assistance Agreement with the Fund, 
information comes to the attention of the Fund that either adversely 
affects the awardee's eligibility for an award, or adversely affects 
the Fund's evaluation of the awardee's application, or indicates fraud 
or mismanagement on the part of the awardee, the Fund may, in its 
discretion and without advance notice to the awardee, terminate the 
Notice of Award or take such other actions as it deems appropriate. 
Moreover, by executing a Notice of Award, an awardee agrees that, if 
prior to entering into an Assistance Agreement with the Fund, the Fund 
determines that the awardee or its Affiliates are not in compliance 
with the terms of any previous Assistance Agreement or award agreement 
entered into with the Fund, the Fund may, in its discretion and without 
advance notice to the awardee, either terminate the Notice of Award or 
take such other actions as it deems appropriate. The Fund reserves the 
right, in its sole discretion, to rescind its award if the awardee 
fails to return the Notice of Award, signed by the authorized 
representative of the awardee, along with any other requested 
documentation, within the deadline set by the Fund.

VII. Assistance Agreement

    Each applicant that is selected to receive an award under this NOFA 
must enter into an Assistance Agreement with the Fund. The Assistance 
Agreement will set forth certain required terms and conditions of the 
award, which may include, but not be limited to, (a) the amount of the 
award; (b) the approved uses of the award; (c) the approved Target 
Market to which the award must be targeted; (d) performance goals and 
measures; and (e) reporting requirements for all awardees. Assistance 
Agreements under this NOFA will have two-year terms. The Fund reserves 
the right, in its sole discretion, to rescind its award if the awardee 
fails to return the Assistance Agreement, signed by the authorized 
representative of the awardee, along with any other requested 
documentation, within the deadline set by the Fund.
    In addition to entering into an Assistance Agreement, each awardee 
that receives an award either (a) in the form of a loan, equity 
investment, credit union shares/deposits, or secondary capital, in any 
amount, or (b) a FA grant in an amount greater than $500,000, must 
furnish to the Fund an opinion from its legal counsel, the content of 
which will be specified in the Assistance Agreement, to include, among 
other matters, an opinion that the awardee: (i) Is duly formed and in 
good standing in the jurisdiction in which it was formed and/or 
operates; (ii) has the authority to enter into the Assistance Agreement 
and undertake the activities that are specified therein; and (iii) has 
no pending or threatened litigation that would materially affect its 
ability to enter into and carry out the activities specified in the 
Assistance Agreement.

VIII. Reporting and Monitoring

    The Fund will collect information, on at least an annual basis, 
from all NACA awardees, including: (a) Annual reports related to, among 
other matters, awardee compliance with the performance goals and 
measures and financial soundness covenants and CAMEL ratings (as 
applicable) as set forth in the Assistance Agreement; (b) audited 
financial statements; (c) annual surveys; and (d) such other 
information as the Fund may require, including loan level data. The 
Fund reserves the right, in its sole discretion, to modify these 
reporting requirements if it determines it to be appropriate and 
necessary; however, such reporting requirements will be modified only 
after due notice to the awardee.
    The Fund reserves the right, in accordance with applicable Federal 
law and if authorized, to charge award reservation and/or compliance 
monitoring fees to all entities receiving CDFI Program awards. Prior to 
imposing any such fee, the Fund will publish additional information 
concerning the nature and amount of the fee.

IX. Information Sessions

    In connection with this NOFA, the Fund may conduct Information 
Sessions to disseminate information to organizations contemplating 
applying to, and other organizations interested in learning about, the 
NACA Program as well as the NATA Component and the NACD Program. For 
further information on the Fund's Information Sessions, dates and 
locations, or to register online to attend an Information Session, 
please visit the Fund's website at http://www.cdfifund.gov. If you do not have 
Internet access, you may register by calling the Fund at (202) 622-
8401.
    Catalog of Federal Domestic Assistance: 21.020

    Authority: 12 U.S.C. 4703, 4703 note, 4704, 4706, 4707, 4717; 12 
CFR part 1805, Pub. L. 108-7.


[[Page 67913]]


    Dated: November 25, 2003.
Tony T. Brown,
Director, Community Development Financial Institutions Fund.
[FR Doc. 03-30175 Filed 12-3-03; 8:45 am]

BILLING CODE 4810-70-P