[Federal Register: August 12, 2004 (Volume 69, Number 155)]
[Notices]
[Page 49947-49956]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12au04-113]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Funding Opportunity Title: Notice of Allocation Availability
(NOAA) Inviting Applications for the CY 2005 Allocation Round of the
New Markets Tax Credit Program
Announcement Type: Initial announcement of tax credit allocation
availability.
Dates: Electronic applications must be received by 5 p.m. ET on
October 6, 2004. Paper applications must be postmarked on or before
October 6, 2004 and received by 5 p.m. ET on October 14, 2004 (see
Section IV.D. of this NOAA for more details). Applications must meet
all eligibility and other requirements and deadlines, as applicable,
set forth in this NOAA. Allocation applicants that are not yet
certified as community development entities (CDEs) must submit an
application for certification as a CDE that is postmarked on or before
September 8, 2004 and received by 5 p.m. ET on September 15, 2004 (see
Section III. of this NOAA for more details).
Executive Summary: This NOAA is issued in connection with the
calendar year 2005 tax credit allocation round of the New Markets Tax
Credit (NMTC) Program, as authorized by Title I, subtitle C, section
121 of the Community Renewal Tax Relief Act of 2000 (the Act). Through
the NMTC Program, the Community Development Financial Institutions Fund
(the Fund) provides authority to CDEs to offer an incentive to
investors in the form of a tax credit over seven years, which is
expected to stimulate the provision of $15 billion in private
investment capital that, in turn, will facilitate economic and
community development in Low-Income Communities. In this NOAA, the Fund
addresses specifically how an entity may apply to receive an allocation
of NMTCs, the competitive procedure through which NMTC Allocations will
be made, and the actions that will be taken to ensure that proper
allocations are made to appropriate entities.
I. Allocation Availability Description
A. Programmatic Improvements
In the first two allocation rounds of the NMTC Program, the Fund
received total allocation requests in excess of $56 billion when the
total allocation authority available was $6 billion. In this NOAA, the
Fund intends to target its resources by providing allocations first to
those highly qualified applicants that have demonstrated the most
compelling and innovative business strategies and/or have committed to
achieving the most challenging impacts in Low-Income Communities. As
further described in Section V. B of this NOAA, applicants must
demonstrate that they are minimally qualified under each of the four
review criteria (Business Strategy; Capitalization Strategy; Management
Capacity and Community Impact) in order to be considered for an
allocation. In addition, in prioritizing awards, the Fund will give
greater weight to the elements contained in each applicant's Business
Strategy and Community Impact sections. The Fund believes that this
programmatic focus is warranted because it helps direct resources to
CDEs that are pursuing innovative business strategies that are likely
to result in significant and demonstrable community impact.
The Fund also has determined that, given the historical level of
interest in the NMTC Program and the lower level of tax credit
authority the Fund can allocate in 2005, it is prudent to set general
limitations on the size of individual allocation amounts. As stated in
Section II. A. of this NOAA, the Fund generally will not provide more
than $150 million of allocation authority to any single applicant in
this application round.
Finally, the Fund has modified certain eligibility requirements
relating to prior Allocatees wishing to apply for an additional
allocation in this CY 2005 allocation round. In the CY 2003-2004
allocation round, prior Allocatees had to demonstrate that at least 50
percent of their Qualified Equity Investments had been issued. In this
CY 2005 allocation round, under certain circumstances, a prior
Allocatee wishing to apply for an additional allocation will be
permitted to use legally binding investor commitments as well as
Qualified Equity Investments in order to meet the eligibility
requirements. These requirements are more fully described in Section
III. 2 of this NOAA.
B. Program Guidance and Regulations
This NOAA provides guidance for the application and allocation of
NMTCs for the third round of the NMTC Program and should be read in
conjunction with: (i) Guidance published by the Fund on how an entity
may apply to become certified as a CDE (66 FR 65806, December 20,
2001); (ii) the temporary regulations issued by the Internal Revenue
Service (26 CFR 1.45D-1T, published on December 26, 2001, and amended
on March 11, 2004) and related guidance; and (iii) the application and
related materials for this third NMTC Program allocation round. All
such materials may be found on the Fund's Web site at http://www.cdfifund.gov.
The Fund encourages applicants to review these
documents. Capitalized terms used but not defined in this NOAA shall
have the respective meanings assigned to them in the allocation
application, the Act or the IRS temporary regulations.
II. Allocation Information
A. Allocation Amounts
The Fund expects that it may allocate to CDEs the authority to
issue to their investors up to the aggregate amount of $2.0 billion in
equity as to which NMTCs may be claimed, as permitted under IRC Sec.
45D(f)(1)(C). The Fund anticipates that, under this NOAA, it will not
issue more than $150 million in tax credit allocation authority per
applicant. The Fund, in its sole discretion, reserves the right to
allocate amounts in excess of or less than the anticipated maximum
allocation amount if the Fund deems it appropriate. In order to receive
an allocation in excess of $150 million, an applicant will likely need
to demonstrate, for example, that: (i) No part of its strategy can be
successfully implemented without an allocation in excess of $150
million; or (ii) its strategy will produce extraordinary community
impact. The Fund reserves the right to allocate tax credit authority to
any, all or none of the entities that submit an application in response
to this NOAA, and in any amount it deems appropriate.
[[Page 49948]]
B. Types of Awards
NMTC Program awards are made in the form of tax credit authority.
C. Notice of Allocation and Allocation Agreement
Each Allocatee under this NOAA must sign a Notice of Allocation and
an Allocation Agreement before the NMTC Allocation is effective. The
Notice of Allocation and the Allocation Agreement contain the terms and
conditions of the allocation. For further information, see Section VI.
of this NOAA.
III. Eligibility
A. Eligible Applicants
IRC Sec. 45D specifies certain eligibility requirements that each
applicant must meet to be eligible to apply for an allocation of NMTCs.
The following sets forth additional detail and certain additional dates
that relate to the submission of applications under this NOAA:
1. CDE certification: For purposes of this NOAA, the Fund will not
consider an application for an allocation of NMTCs unless: (a) The
applicant is certified as a CDE at the time the Fund receives its NMTC
Program allocation application; or (b) the applicant submits an
application for certification as a CDE that is postmarked on or before
September 8, 2004, and received by 5 p.m. ET on September 15, 2004.
Applicants for certification may obtain a CDE certification application
through the Fund's Web site at http://www.cdfifund.gov. Applications
for CDE certification must be submitted as instructed in the
application form. An applicant that is a community development
financial institution (CDFI) or a specialized small business investment
company (SSBIC) does not need to submit a CDE certification
application, but must register as a CDE on the Fund's Web site on or
before 5 p.m. ET on September 8, 2004. The Fund will not provide
allocations of NMTCs to applicants that are not certified as CDEs. See
Section IV.D.1.c. of this NOAA for further requirements relating to
postmarks.
If an applicant that has already been certified as a CDE wishes to
change its designated CDE service area, it must submit its request for
such a change to the Fund; and said request must be received by the
Fund by 5 p.m. ET on October 6, 2004. The CDE service area change
request must be sent from the applicant's authorized representative and
include the applicable CDE control number, the revised service area
designation, and an updated accountability chart that reflects
representation from Low-Income Communities in the revised service area.
The service area change request must be sent by e-mail to
cdfihelp@cdfi.treas.gov or by facsimile to (202) 622-7754.
2. Prior awardees or Allocatees: Applicants must be aware that
success in a prior round of any of the Fund's programs is not
indicative of success under this NOAA. Prior awardees of any component
of the Fund's Community Development Financial Institutions (CDFI)
Program, Bank Enterprise Award (BEA) Program, or any other Fund program
and prior Allocatees under the NMTC Program are eligible to apply under
this NOAA, except as follows:
(a) Prior Allocatees and Qualified Equity Investment issuance
requirements: A prior Allocatee in the first round of the NMTC Program
(CY 2001-2002) is not eligible to receive a NMTC Allocation pursuant to
this NOAA unless the Allocatee can demonstrate that, as of 11:59 p.m.
e.t. on January 21, 2005, it has: (i) Issued and received cash from its
investors for at least 50 percent of its Qualified Equity Investments
relating to its prior NMTC Allocation; or (ii) issued and received cash
from its investors for at least 40 percent of its Qualified Equity
Investments and that at least 80 percent of its total NMTC Allocation
has been exchanged for cash from or has been committed by its
investors. A prior Allocatee in the second round of the NMTC Program
(CY 2003-2004) is not eligible to receive a NMTC Allocation pursuant to
this NOAA unless the Allocatee can demonstrate that, as of 11:59 p.m.
e.t. on January 21, 2005, it has: (i) Issued and received cash from its
investors for at least 50 percent of its Qualified Equity Investments
relating to its prior NMTC Allocation; or (ii) issued and received cash
from its investors for at least 20 percent of its Qualified Equity
Investments and that at least 60 percent of its total NMTC Allocation
has been exchanged for cash from or has been committed by its
investors. Further, an entity is not eligible to receive a NMTC
Allocation pursuant to this NOAA if another entity that Controls the
applicant, is Controlled by the applicant or shares common management
officials with the applicant (as determined by the Fund) is a prior
Allocatee and has not, as of 11:59 p.m. e.t. on January 21, 2005, met
the requirements for the issuance and/or commitment of Qualified Equity
Investments as set forth above for the Allocatees in the first and
second allocation rounds of the NMTC Program.
For purposes of this section of the NOAA, the Fund will only count
as ``issued'' those Qualified Equity Investments that have been
recorded in the Fund's Allocation Tracking System (ATS) by 11:59 p.m.
e.t. on January 21, 2005. Allocatees and their Subsidiary transferees,
if any, are advised to access ATS to record each Qualified Equity
Investment that they issue to an investor in exchange for cash. For
purposes of this section of the NOAA, ``committed'' Qualified Equity
Investments are only those Equity Investments that are evidenced by a
written, signed document in which an investor: (i) Commits to make an
investment in the Allocatee in a specified amount and on specified
terms; (ii) has made an initial disbursement of the investment proceeds
to the Allocatee, and such initial disbursement has been recorded in
ATS as a Qualified Equity Investment; (iii) commits to disburse the
remaining investment proceeds to the Allocatee based on specified
amounts and payment dates; and (iv) commits to make the final
disbursement to the Allocatee no later than January 21, 2008. The
applicant will be required, upon notification from the Fund, to submit
adequate documentation to substantiate the required issuances of and
commitments for Quality Equity Investments.
(b) Failure to meet reporting requirements: The Fund will not
consider an application submitted by an applicant if the applicant, or
an entity that Controls the applicant, is Controlled by the applicant
or shares common management officials with the applicant (as determined
by the Fund) is a prior Fund awardee or Allocatee under any Fund
program and is not current on the reporting requirements set forth in a
previously executed assistance, allocation or award agreement(s), as of
the application deadline of this NOAA. Please note that the Fund only
acknowledges the receipt of reports that are complete. As such,
incomplete reports or reports that are deficient of required elements
will not be recognized as having been received.
(c) Pending resolution of noncompliance: If an applicant is a prior
awardee or Allocatee under any Fund program and if: (i) It has
submitted complete and timely reports to the Fund that demonstrate
noncompliance with a previous assistance, award or Allocation
Agreement; and (ii) the Fund has yet to make a final determination as
to whether the entity is in default of its previous assistance, award
or Allocation Agreement, the Fund will consider the applicant's
application under this NOAA pending full resolution, in the sole
determination of the Fund, of the
[[Page 49949]]
noncompliance. Further, if another entity that Controls the applicant,
is Controlled by the applicant or shares common management officials
with the applicant (as determined by the Fund), is a prior Fund awardee
or Allocatee and if such entity: (i) Has submitted complete and timely
reports to the Fund that demonstrate noncompliance with a previous
assistance, award or Allocation Agreement; and (ii) the Fund has yet to
make a final determination as to whether the entity is in default of
its previous assistance, award or Allocation Agreement, the Fund will
consider the applicant's application under this NOAA pending full
resolution, in the sole determination of the Fund, of the
noncompliance.
(d) Default status: The Fund will not consider an application
submitted by an applicant that is a prior Fund awardee or Allocatee
under any Fund program if, as of the application deadline of this NOAA,
the Fund has made a final determination that such applicant is in
default of a previously executed assistance, allocation or award
agreement(s) and the Fund has provided written notification of such
determination to such applicant. Further, an entity is not eligible to
apply for an allocation pursuant to this NOAA if, as of the application
deadline of this NOAA, the Fund has made a final determination that
another entity that Controls the applicant, is Controlled by the
applicant or shares common management officials with the applicant (as
determined by the Fund): (i) Is a prior Fund awardee or Allocatee under
any Fund program; (ii) has been determined by the Fund to be in default
of a previously executed assistance, allocation or award agreement(s);
and (iii) the Fund has provided written notification of such
determination to the defaulting entity.
(e) Termination in default: The Fund will not consider an
application submitted by an applicant that is a prior Fund awardee or
Allocatee under any Fund program if, within the 12-month period prior
to the application deadline of this NOAA, the Fund has made a final
determination that such applicant's prior award or allocation
terminated in default of a previously executed assistance, allocation
or award agreement(s) and the Fund has provided written notification of
such determination to such applicant. Further, an entity is not
eligible to apply for an allocation pursuant to this NOAA if, within
the 12-month period prior to the application deadline of this NOAA, the
Fund has made a final determination that another entity that Controls
the applicant, is Controlled by the applicant or shares common
management officials with the applicant (as determined by the Fund), is
a prior Fund awardee or Allocatee under any Fund program whose award or
allocation terminated in default of a previously executed assistance,
allocation or award agreement(s), and the Fund has provided written
notification of such determination to the defaulting entity.
(f) Undisbursed balances: The Fund will not consider an application
submitted by an applicant that is a prior Fund awardee under any Fund
program if the applicant has a balance of undisbursed funds (defined
below) under said prior award(s), as of the application deadline of
this NOAA. Further, an entity is not eligible to apply for an award
pursuant to this NOAA if another entity that Controls the applicant, is
Controlled by the applicant or shares common management officials with
the applicant (as determined by the Fund), is a prior Fund awardee
under any Fund program, and has a balance of undisbursed funds under
said prior award(s), as of the application deadline of this NOAA. In a
case where another entity that Controls the applicant, is Controlled by
the applicant or shares common management officials with the applicant
(as determined by the Fund), is a prior Fund awardee under any Fund
program, and has a balance of undisbursed funds under said prior
award(s), as of the application deadline of this NOAA, the Fund will
include the combined awards of the applicant and such affiliated
entities when calculating the amount of undisbursed funds.
For purposes of this section, ``undisbursed funds'' is defined as:
(i) In the case of a prior BEA Program award(s), any balance of award
funds equal to or greater than five (5) percent of the total prior BEA
Program award(s) that remains undisbursed more than three (3) years
after the end of the calendar year in which the Fund signed an award
agreement with the awardee; and (ii) in the case of a prior CDFI
Program or other Fund program award(s), any balance of award funds
equal to or greater than five (5) percent of the total prior award(s)
that remains undisbursed more than two (2) years after the end of the
calendar year in which the Fund signed an assistance agreement with the
awardee.
``Undisbursed funds'' does not include (i) tax credit allocation
authority made available through the NMTC Program; (ii) any award funds
for which the Fund received a full and complete disbursement request
from the awardee by the application deadline of this NOAA; and (iii)
any award funds for an award that has been terminated, expired,
rescinded or deobligated by the Fund.
(g) Contact the Fund: Accordingly, applicants that are prior
awardees and/or Allocatees under any other Fund program are advised to:
(i) Comply with the requirements specified in assistance, allocation
and/or award agreement(s), and (ii) contact the Fund to ensure that all
necessary actions are underway for the disbursement of any outstanding
balance of a prior award(s). All outstanding reports, compliance or
disbursement questions should be directed to the Grants Management and
Compliance Manager by e-mail at gmc@cdfi.treas.gov; by telephone at
(202) 622-8226; by facsimile at (202) 622-6453; or by mail to CDFI
Fund, 601 13th Street, NW., Suite 200 South, Washington, DC 20005. The
Fund will respond to applicants' reporting, compliance or disbursement
questions between the hours of 9 a.m. and 5 p.m. e.t., starting the
date of publication of this NOAA through October 4, 2004 (2 days before
the application deadline). The Fund will not respond to applicants'
reporting, compliance or disbursement phone calls or e-mail inquiries
that are received after 5 p.m. e.t. on October 4, 2004, until after the
funding application deadline of October 6, 2004.
3. Entities that propose to transfer NMTCs to Subsidiaries: Both
for-profit and non-profit CDEs may apply to the Fund for allocations of
NMTCs, but only a for-profit CDE is permitted to provide NMTCs to its
investors. A non-profit applicant wishing to apply for a NMTC
Allocation must demonstrate, prior to entering into an Allocation
Agreement with the Fund, that: (i) it controls one or more Subsidiaries
that are for-profit entities; and (ii) it intends to transfer the full
amount of any NMTC Allocation it receives to said Subsidiary. The
Subsidiary transferee should: (i) Submit a CDE certification
application to the Fund within 30 days after the non-profit applicant
receives a Notice of Allocation from the Fund; and (ii) must be
certified as a CDE prior to entering into an Allocation Agreement with
the Fund. The NMTC Allocation transfer must be pre-approved by the
Fund, in its sole discretion, and will be a condition of the Allocation
Agreement. A for-profit applicant that receives a NMTC Allocation may
transfer such NMTC Allocation to its for-profit Subsidiary or
Subsidiaries, provided that said Subsidiary transferees have been
certified as CDEs and such transfer is pre-approved by the Fund, in its
sole discretion, which transfer will be a condition of the Allocation
Agreement.
[[Page 49950]]
An applicant wishing to transfer all or a portion of its NMTC
Allocation to a Subsidiary is not required to create the Subsidiary
prior to submitting a NMTC allocation application to the Fund. Rather,
the Fund will require each applicant to indicate, in its NMTC
allocation application, whether it intends to transfer all or a portion
of its NMTC Allocation to a Subsidiary and its timeline for doing so.
As stated above, in no circumstance will the Fund authorize such a
transfer until the Fund has certified the Subsidiary transferee as a
CDE.
4. Entities that submit applications together with Affiliates;
applications from common enterprises: As part of the allocation
application review process, the Fund considers whether applicants are
Affiliates, as such term is defined in the allocation application. If
an applicant and its Affiliates wish to submit allocation applications,
they must do so collectively, in one application; an applicant and its
Affiliates may not submit separate allocation applications. If
Affiliated entities submit multiple applications, the Fund reserves the
right either to reject all such applications received or to select a
single application as the only one that will be considered for an
allocation.
For purposes of this NOAA, in addition to assessing whether
applicants meet the definition of the term ``Affiliate'' found in the
allocation application, the Fund will consider: (i) Whether the
activities described in applications submitted by separate entities
are, or will be, operated or managed as a common enterprise that, in
fact or effect, could be viewed as a single entity; and (ii) whether
the business strategies and/or activities described in applications
submitted by separate entities are so closely related that, in fact or
effect, they could be viewed as substantially identical applications.
In such cases, the Fund reserves the right either to reject all
applications received from all such entities or to select a single
application as the only one that will be considered for an allocation.
5. Entities created as a series of funds: An applicant whose
business structure consists of an entity with a series of funds may
apply for CDE certification as a single entity, or as multiple
entities. If such an applicant represents that it is properly
classified for Federal tax purposes as a single partnership or
corporation, it may apply for CDE certification as a single entity. If
an applicant represents that it is properly classified for Federal tax
purposes as multiple partnerships or corporations, then it may submit a
single CDE certification application on behalf of the entire series of
funds, and each fund must be separately certified as a CDE. Applicants
should note, however, that receipt of CDE certification as a single
entity or as multiple entities is not a determination that an applicant
and its related funds are properly classified as a single entity or as
multiple entities for Federal tax purposes. Regardless of whether the
series of funds is classified as a single partnership or corporation or
as multiple partnerships or corporations, an applicant may not transfer
any NMTC Allocations it receives to one or more of its funds unless the
transfer is pre-approved by the Fund, in its sole discretion, which
will be a condition of the Allocation Agreement.
6. Entities that are BEA Program awardees: An insured depository
institution investor (and its Affiliates and Subsidiaries) may not
receive a NMTC Allocation in addition to a BEA Program award for the
same investment in a CDE. Likewise, an insured depository institution
investor (and its Affiliates and Subsidiaries) may not receive a BEA
Program award in addition to a NMTC Allocation for the same investment
in a CDE.
IV. Application and Submission Information
A. Address To Request Application Package
Applicants may submit applications under this NOAA either
electronically or in paper form. Shortly following the publication of
this NOAA, the Fund will make available the electronic allocation
application on its Web site at http://www.cdfifund.gov. The Fund will
send application materials to applicants that are unable to download
them from the Web site. To have application materials sent to you,
contact the Fund by telephone at (202) 622-6355; by e-mail at
cdfihelp@cdfi.treas.gov; or by facsimile at (202) 622-7754. These are
not toll free numbers.
B. Application Content Requirements
Detailed application content requirements are found in the
application related to this NOAA. Applicants must submit all materials
described in and required by the application by the applicable
deadlines. Applicants will not be afforded an opportunity to provide
any missing materials or documentation. Electronic applications must be
submitted solely by using the format made available at the Fund's Web
site. Additional information, including instructions relating to the
submission of signature forms and supporting information, is set forth
in further detail in the electronic application. An application must
include a valid and current Employer Identification Number (EIN) issued
by the Internal Revenue Service and assigned to the applicant and, if
applicable, its Controlling Entity; electronic applications without a
valid EIN are incomplete and cannot be transmitted to the Fund; paper
applications submitted without a valid EIN will be rejected as
incomplete and returned to the sender. For more information on
obtaining an EIN, please contact the Internal Revenue Service at (800)
829-4933 or http://www.irs.gov. An applicant may not submit more than
one application in response to this NOAA. In addition, as stated in
Section III.A.4 of this NOAA, an applicant and its Affiliates must
collectively submit only one allocation application; an applicant and
its Affiliates may not submit separate allocation applications.
C. Form of Application Submission
Applicants may submit applications under this NOAA either
electronically or in paper form. Applications sent by facsimile or by
e-mail will not be accepted. In order to expedite application review,
the Fund expects applicants to submit applications electronically (via
an Internet-based application) in accordance with the instructions
provided on the Fund's website. Submission of an electronic application
will facilitate the processing and review of applications and the
selection of Allocatees; further it will assist the Fund in the
implementation of electronic reporting requirements.
1. Electronic applications: Electronic applications must be
submitted solely by using the Fund's website and must be sent in
accordance with the submission instructions provided in the electronic
application form. Applicants need access to Internet Explorer 5.5 or
higher or Netscape Navigator 6.0 or higher, Windows 98 or higher (or
other system compatible with the above Explorer and Netscape software)
and optimally at least a 56Kbps Internet connection in order to meet
the electronic application submission requirements. The Fund's
electronic application system will only permit the submission of
applications in which all required questions and tables are fully
completed. Additional information, including instructions relating to
the submission of signature forms and supporting information, is set
forth in further detail in the electronic application.
[[Page 49951]]
2. Paper applications: If an applicant is unable to submit an
electronic application, it must submit to the Fund a request for a
paper application using the NMTC Program Paper Application Submission
Form, and the request must be received by 5 p.m. e.t. on September 22,
2004. The NMTC Program Paper Application Submission Form may be
obtained from the Fund's Web site at http://www.cdfifund.gov or the form may be requested by e-mail to paper--request@cdfi.treas.gov or by
facsimile to (202) 622-7754. The completed NMTC Program Paper
Application Submission Form should be directed to the Fund's Chief
Information Officer and must be sent by facsimile to (202) 622-7754.
D. Application Submission Dates and Times
1. Application deadlines: a. Electronic applications must be
received by 5 p.m. e.t. on October 6, 2004. Electronic applications
cannot be transmitted or received after 5 p.m. e.t. on October 6, 2004.
In addition, applicants that submit electronic applications must
separately submit (by mail or other courier delivery service) an
original signature page, and all other required paper attachments. The
original signature page and additional documents must be postmarked on
or before October 12, 2004, and received by 5 p.m. e.t. on October 19,
2004. See application instructions, provided in the electronic
application, for further detail. Applications and other required
documents and other attachments postmarked or received after these
dates and times will be rejected and returned to the sender. If the
original signature page is not postmarked and received by the deadlines
specified above, the application will be rejected and returned to the
sender. See Section IV.D.1.c. of this NOAA for further requirements
relating to postmarks. Additional deadlines (if any) relating to the
submission of general supporting documentation will be further detailed
in the electronic application. Please note that the document submission
deadlines in this NOAA and/or the allocation application are strictly
enforced.
b. Paper applications, including the requisite original signature
page, and all other required paper attachments must be postmarked on or
before October 6, 2004, and received by 5 p.m. e.t. on October 14,
2004. Paper applications postmarked or received after these deadlines
will not be accepted for consideration and will be returned to the
sender.
c. For purposes of this NOAA, the term ``postmark'' is defined by
26 CFR 301.7502-1. In general, the Fund will require that the
postmarked document bear a postmark date that is on or before the
applicable deadline. The document must be in an envelope or other
appropriate wrapper, properly addressed as set forth in this NOAA and
delivered by the United States Postal Service or any other private
delivery service designated by the Secretary of the Treasury. For more
information on designated delivery services, please see IRS Notice
2002-62, 2002-2 C.B. 574.
E. Intergovernmental Review
Not applicable.
F. Funding Restrictions
For allowable uses of investment proceeds related to an NMTC
Allocation, please see 26 U.S.C. 45D and the temporary regulations
issued by the Internal Revenue Service (26 CFR 1.45D-1T, published on
December 26, 2001, and amended on March 11, 2004) and related guidance.
Please see Section I., above, for the Programmatic Improvements of this
NOAA.
G. Other Submission Requirements
Addresses: Paper applications and the signature page and
attachments for electronic applications must be sent to: CDFI Fund
Grants Management and Compliance Manager, NMTC Program, Bureau of
Public Debt, 200 Third Street, Room 10, Parkersburg, WV 26101. The
telephone number to be used in conjunction with overnight delivery or
mailings to this address is (304) 480-5450. Paper applications and the
signature page or attachments will not be accepted at the Fund's
offices in Washington, DC. Paper applications and signature pages or
attachments received in the Fund's offices will be rejected and
returned to the sender. Except for the signature page and attachments,
electronic applications must be submitted solely by using the Fund's
website and must be sent in accordance with the submission instructions
provided in the electronic application form.
V. Application Review Information
There are two parts to the substantive review process for each
allocation application--Phase 1 and Phase 2. In Phase 1, the Fund will
evaluate each application, assigning points and numeric scores with
respect to the criteria described below. In Phase 2, the Fund will rank
applicants in accordance with the procedures set forth in Section V.B.
of this NOAA.
A. Criteria
1. Business Strategy (25-point maximum). (a) In assessing an
applicant's business strategy, reviewers will consider, among other
things: the applicant's products, services and investment criteria; the
prior performance of the applicant or its Controlling Entity,
particularly as it relates to making similar kinds of investments as
those it proposes to make with the proceeds of Qualified Equity
Investments; the applicant's prior performance in providing capital or
technical assistance to disadvantaged businesses or communities; the
projected level of the applicant's pipeline of potential investments;
and the extent to which the applicant intends to make Qualified Low-
Income Community Investments in one or more businesses in which persons
unrelated to the entity hold a majority equity interest.
Under the Business Strategy criterion, an applicant will generally
score well to the extent that it will deploy debt or investment capital
in products or services which: (i) Are designed to meet the needs of
underserved markets; (ii) are flexible or non-traditional in form; and
(iii) focus on customers or partners that typically lack access to
conventional sources of capital. An applicant will also score well to
the extent that it: (i) Has a track record of successfully providing
products and services similar to those it intends to use with the
proceeds of Qualified Equity Investments; (ii) has identified, or has a
process for identifying, potential transactions; (iii) demonstrates a
likelihood of issuing Qualified Equity Investments and making the
related Qualified Low-Income Community Investments in a time period
that is significantly shorter than the 5-year period permitted under
IRC Sec. 45D(b)(1); and (iv) in the case of an applicant proposing to
purchase loans from CDEs, the applicant will require the CDE selling
such loans to re-invest the proceeds of the loan sale to provide
additional products and services to Low-Income Communities.
(b) Priority Points: In addition, as provided by IRC Sec.
45D(f)(2), the Fund will ascribe additional points to entities that
meet either or both of the statutory priorities. First, the Fund will
give up to five (5) additional points to any applicant that has a
record of having successfully provided capital or technical assistance
to disadvantaged businesses or communities. Second, the Fund will give
five (5) additional points to any applicant that intends to satisfy the
requirement of IRC Sec. 45D(b)(1)(B) by
[[Page 49952]]
making Qualified Low-Income Community Investments in one or more
businesses in which persons unrelated to an applicant (within the
meaning of IRC Sec. 267(b) or IRC Sec. 707(b)(1)) hold the majority
equity interest. Applicants may earn points for either or both
statutory priorities. Thus, applicants that meet the requirements of
both priority categories can receive up to a total of ten (10)
additional points. A record of having successfully provided capital or
technical assistance to disadvantaged businesses or communities may be
demonstrated either by the past actions of an applicant itself or by
its Controlling Entity (e.g., where a new CDE is established by a
nonprofit corporation with a history of providing assistance to
disadvantaged communities). An applicant that receives additional
points for intending to make investments in unrelated businesses and is
awarded a NMTC Allocation must meet the requirements of IRC Sec.
45D(b)(1)(B) by investing substantially all of the proceeds from the
aggregate amount of its Qualified Equity Investments in unrelated
businesses. The Fund will factor in an applicant's priority points when
ranking applicants during Phase 2 of the review process, as described
below.
2. Capitalization Strategy (25-point maximum). In assessing an
applicant's capitalization strategy, reviewers will consider, among
other things: the extent to which the applicant has secured
investments, commitments to invest, or indications of interest in
investments from investors, commensurate with its requested amount of
tax credit allocations; the applicant's strategy for identifying
additional investors, if necessary, including the applicant's (or its
Controlling Entity's) prior performance with raising equity from
investors, particularly for-profit investors; the extent to which the
applicant identifies how existing investors will leverage their
investments in Low-Income Communities or how new investors will be
brought into such investments; the distribution of the economic
benefits of the tax credit; the extent to which the applicant intends
to invest the proceeds from the aggregate amount of its Qualified
Equity Investments at a level that exceeds the requirements of IRC
Sec. 45D(b)(1)(B), including the extent to which the applicant has
identified the financial resources outside of the NMTC investments
necessary to support its operations or finance its activities; and the
applicant's timeline for utilizing an NMTC Allocation.
An applicant will generally score well under this section to the
extent that: (a) It has secured investor commitments, or has a
reasonable strategy for obtaining such commitments; (b) its request for
allocations is commensurate with both the level of Qualified Equity
Investments it is likely to raise and its expected investment strategy
to deploy funds raised with NMTCs; (c) it generally demonstrates that
the economic benefits of the tax credit will be passed through to end
users; (d) it is likely to leverage other sources of funding in
addition to NMTC investor dollars; and (e) it intends to invest the
proceeds from the aggregate amount of its Qualified Equity Investments
at a level that exceeds the requirements of IRC Sec. 45D(b)(1)(B). In
the case of an applicant proposing to raise investor funds from
organizations that also will identify or originate transactions for the
applicant or from affiliated entities, said applicant will score well
to the extent that it will offer products with more favorable rates or
terms than those currently offered by the investor and/or will target
its activities to areas of greater economic distress than those
currently targeted by the investor.
3. Management Capacity (25-point maximum). In assessing an
applicant's management capacity, reviewers will consider, among other
things, the qualifications of the applicant's principals, its board
members, its management team, and other essential staff or contractors,
with specific focus on: experience in deploying capital or technical
assistance, including activities similar to those described in the
applicant's business strategy; experience in raising capital; asset
management and risk management experience; experience with fulfilling
compliance requirements of other governmental programs, including other
tax programs; and the applicant's (or its Controlling Entity's)
financial health. Reviewers will also consider the extent to which an
applicant has protocols in place to ensure ongoing compliance with NMTC
Program requirements, and the level of involvement of community
representatives and other stakeholders in the design, implementation or
monitoring of an applicant's business plan and strategy. In the case of
an applicant (or any entity that Controls the applicant, is Controlled
by the applicant or shares common management officials with the
applicant (as determined by the Fund)) that has received a NMTC
Allocation from the Fund under a prior allocation round, reviewers will
consider the activities that have occurred to date with respect to the
prior allocation(s).
An applicant will generally score well under this section to the
extent that its management team or other essential personnel have
experience in: (a) Deploying capital or technical assistance in Low-
Income Communities, particularly those likely to be served by the
applicant with the proceeds of Qualified Equity Investments; (b)
raising capital, particularly from for-profit investors; (c) asset and
risk management; and (d) fulfilling government compliance requirements,
particularly tax program compliance. An applicant will also score well
to the extent it has policies and systems in place to ensure ongoing
compliance with NMTC Program requirements, and to the extent that Low-
Income Community stakeholders play an active role in designing or
implementing its business plan. In the case of an applicant (or any
entity that Controls the applicant, is Controlled by the applicant or
shares common management officials with the applicant (as determined by
the Fund)) that has received a NMTC Allocation from the Fund under a
prior allocation round, the applicant will score well to the extent it
can: (a) Demonstrate that substantial activities have occurred through
its prior allocation(s); and (b) substantiate a need for additional
allocation authority.
4. Community Impact (25-point maximum). In assessing the impact on
communities expected to result from the applicant's proposed
investments, reviewers will consider, among other things, the degree to
which the applicant is likely to achieve significant and measurable
community development and economic impacts in its Low-Income
Communities, and whether the applicant is working in particularly
economically distressed markets and/or in concert with Federal, state
or local government or community economic development initiatives
(e.g., Empowerment Zones, Enterprise Communities, and Renewal
Communities). An applicant will generally score well under this section
to the extent that: (a) it articulates how its strategy is likely to
produce significant and measurable community development and economic
impacts that would not be achieved without NMTCs; and (b) it is working
in particularly economically distressed or otherwise underserved
communities and/or in concert with other Federal, state or local
government or community economic development initiatives.
B. Review and Selection Process
All allocation applications will be reviewed for eligibility and
completeness. The Fund may consult with the IRS on the eligibility
requirements under IRC Sec. 45D. To be
[[Page 49953]]
complete, the application must contain, at a minimum, all information
described as required in the application form. An incomplete
application will be rejected and returned to the sender. Once the
application has been determined to be eligible and complete, the Fund
will conduct the substantive review of each application in two parts
(Phase 1 and Phase 2) in accordance with the criteria and procedures
generally described in this NOAA and the allocation application.
Phase 1: Fund reviewers will evaluate and score each application in
the first part of the review process. An applicant must exceed a
minimum overall aggregate base score threshold and exceed a minimum
aggregate section score threshold in each of the four application
sections (Business Strategy, Capitalization Strategy, Management
Capacity, and Community Impact) in order to advance from the first part
of the substantive review process. If, in the case of a particular
application, a reviewer's total base score or section score(s) (in one
or more of the four application sections), varies significantly from
the median of the reviewers' total base scores or section scores for
such application, the Fund may, in its sole discretion, obtain the
comments and recommendations of an additional reviewer to determine
whether the anomalous score should be replaced with the score of the
additional reviewer.
Phase 2: Once the Fund has determined which applicants have met the
required minimum overall aggregate base score and aggregate section
score thresholds, the Fund will rank applicants on the basis of their
combined scores in the Business Strategy and Community Impact sections
of the application and will make adjustments to each applicant's
priority points so that these points maintain the same relative weight
in the ranking of applicant scores as in the first two allocation
rounds. The Fund will award allocations in the order of this ranking,
subject to applicants' meeting all other eligibility requirements;
provided, however, that the Fund, in its sole discretion, reserves the
right to reject an application and/or adjust award amounts as
appropriate based on information obtained during the review process.
In the case of an applicant (or any entity that Controls the
applicant, is Controlled by the applicant or shares common management
officials with the applicant (as determined by the Fund)) that has
previously received an award or allocation from the Fund through any
Fund program, the Fund will consider and will deduct points for the
applicant's (or any entity that Controls the applicant, is Controlled
by the applicant or shares common management officials with the
applicant (as determined by the Fund)) failure to meet the reporting
deadlines set forth in any assistance, award or Allocation Agreement(s)
with the Fund during the applicant's two complete fiscal years prior to
the application deadline of this NOAA (generally FY 2002 and 2003). All
outstanding reports or compliance questions should be directed to the
Grants Management and Compliance Manager by e-mail at
gmc@cdfi.treas.gov; by telephone at (202) 622-8226; by facsimile at
(202) 622-6453; or by mail to CDFI Fund, 601 13th Street, NW, Suite 200
South, Washington, DC 20005. The Fund will respond to reporting or
compliance questions between the hours of 9 a.m. and 5 p.m. e.t.,
starting the date of the publication of this NOAA through October 4,
2004. The Fund will not respond to reporting or compliance phone calls
or e-mail inquiries that are received after 5 p.m. e.t. on October 4,
2004, until after the funding application deadline of October 6, 2004.
The Fund reserves the right to reject any NMTC allocation
application in the case of a prior Fund awardee, if such applicant has
failed to comply with the terms, conditions, and other requirements of
the prior or existing assistance or award agreement(s) with the Fund.
The Fund reserves the right to reject any NMTC allocation application
in the case of a prior Fund Allocatee, if such applicant has failed to
comply with the terms, conditions, and other requirements of its prior
or existing Allocation Agreement(s) with the Fund. The Fund also
reserves the right to reject any NMTC allocation application in the
case of any applicant, if an entity that Controls the applicant, is
Controlled by the applicant or shares common management officials with
the applicant (as determined by the Fund), has failed to meet the
terms, conditions and other requirements of any prior or existing
assistance agreement, award agreement or Allocation Agreement with the
Fund.
As a part of the substantive review process, the Fund may permit
reviewer(s) to make telephone calls to applicants for the sole purpose
of obtaining, clarifying or confirming application information. In no
event shall such contact be construed to permit an applicant to change
any element of its application. Reviewers will not contact applicants
without the prior approval of the Fund. At this point in the process,
an applicant may be required to submit additional information about its
application in order to assist the Fund with its final evaluation
process. Such requests must be responded to within the time parameters
set by the Fund. The selecting official(s) will make a final allocation
determination based on an applicant's file, including without
limitation, eligibility under IRC Sec. 45D, the reviewers' scores and
the amount of allocation authority available. In the case of applicants
(or any entity that Controls the applicant, is Controlled by the
applicant or shares common management officials with the applicant (as
determined by the Fund)) that are regulated by the Federal government
or a State agency (or comparable entity), the Fund's selecting
official(s) reserve(s) the right to consult with and take into
consideration the views of the appropriate Federal or State banking and
other regulatory agencies. In the case of applicants (or any entity
that Controls the applicant, is Controlled by the applicant or shares
common management officials with the applicant (as determined by the
Fund)) that are also Small Business Investment Companies, Specialized
Small Business Investment Companies or New Markets Venture Capital
Companies, the Fund reserves the right to consult with and take into
consideration the views of the Small Business Administration.
The Fund reserves the right to conduct additional due diligence, as
determined reasonable and appropriate by the Fund, in its sole
discretion, related to the applicant and its officers, directors,
owners, partners and key employees.
Each applicant will be informed of the Fund's award decision either
through a Notice of Allocation if selected for an allocation (see
Section VI.A. of this NOAA) or a declination letter, if not selected
for an allocation, which may be for reasons of application
incompleteness, ineligibility or substantive issues. All applicants
that are not selected for an allocation based on substantive issues
will likely be given the opportunity to obtain 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 further reserves the right to change its eligibility and
evaluation criteria and procedures, if the Fund deems it appropriate;
if said changes materially affect the Fund's award decisions, the Fund
will provide information regarding the changes through the Fund's Web
site.
[[Page 49954]]
There is no right to appeal the Fund's allocation decisions. The
Fund's allocation decisions are final.
VI. Award Administration Information
A. Notice of Allocation
The Fund will signify its selection of an applicant as an Allocatee
by delivering a signed Notice of Allocation to the applicant. The
Notice of Allocation will contain the general terms and conditions
underlying the Fund's provision of an NMTC Allocation including, but
not limited to, the requirement that an Allocatee and the Fund enter
into an Allocation Agreement. The applicant must execute the Notice of
Allocation and return it to the Fund. By executing a Notice of
Allocation, the Allocatee agrees that, if prior to entering into an
Allocation Agreement with the Fund, information (including
administrative errors) comes to the attention of the Fund that either
adversely affects the Allocatee's eligibility for an award, or
adversely affects the Fund's evaluation or scoring of the Allocatee's
application, or indicates fraud or mismanagement on the part of the
Allocatee, the Fund may, in its discretion and without advance notice
to the Allocatee, terminate the Notice of Allocation or take such other
actions as it deems appropriate. Moreover, by executing a Notice of
Allocation, an Allocatee agrees that, if prior to entering into an
Allocation Agreement with the Fund, the Fund determines that the
Allocatee is not in compliance with the terms of any prior assistance
agreement, award agreement, and/or Allocation Agreement entered into
with the Fund, the Fund may, in its discretion and without advance
notice to the Allocatee, either terminate the Notice of Allocation or
take such other actions as it deems appropriate. The Fund reserves the
right, in its sole discretion, to rescind the allocation and the Notice
of Allocation if the Allocatee fails to return the Notice of
Allocation, signed by the authorized representative of the Allocatee,
along with any other requested documentation, by the deadline set by
the Fund.
1. Failure to meet reporting requirements: If an Allocatee, or an
entity that Controls the Allocatee, is Controlled by the Allocatee or
shares common management officials with the Allocatee (as determined by
the Fund) is a prior Fund awardee or Allocatee under any Fund program
and is not current on the reporting requirements set forth in the
previously executed assistance, allocation or award agreement(s), as of
the date of the Notice of Allocation, the Fund reserves the right, in
its sole discretion, to delay entering into an Allocation Agreement
and/or to impose limitations on an Allocatee's ability to issue
Qualified Equity Investments to investors until said prior awardee or
Allocatee is current on the reporting requirements in the previously
executed assistance, allocation or award agreement(s). Please note that
the Fund only acknowledges the receipt of reports that are complete. As
such, incomplete reports or reports that are deficient of required
elements will not be recognized as having been received. If said prior
awardee or Allocatee is unable to meet this requirement within the
timeframe set by the Fund, the Fund reserves the right, in its sole
discretion, to terminate and rescind the Notice of Allocation and the
allocation made under this NOAA.
2. Pending resolution of noncompliance: If an applicant is a prior
awardee or Allocatee under any Fund program and if: (i) It has
submitted complete and timely reports to the Fund that demonstrate
noncompliance with a previous assistance, award or Allocation
Agreement; and (ii) the Fund has yet to make a final determination as
to whether the entity is in default of its previous assistance, award
or Allocation Agreement, the Fund reserves the right, in its sole
discretion, to delay entering into an Allocation Agreement and/or to
impose limitations on the Allocatee's ability to issue Qualified Equity
Investments to investors, pending full resolution, in the sole
determination of the Fund, of the noncompliance. Further, if another
entity that Controls the applicant, is Controlled by the applicant or
shares common management officials with the applicant (as determined by
the Fund), is a prior Fund awardee or Allocatee and if such entity: (i)
Has submitted complete and timely reports to the Fund that demonstrate
noncompliance with a previous assistance, award or Allocation
Agreement; and (ii) the Fund has yet to make a final determination as
to whether the entity is in default of its previous assistance, award
or Allocation Agreement, the Fund reserves the right, in its sole
discretion, to delay entering into an Allocation Agreement and/or to
impose limitations on the Allocatee's ability to issue Qualified Equity
Investments to investors, pending full resolution, in the sole
determination of the Fund, of the noncompliance. If the prior awardee
or Allocatee in question is unable to satisfactorily resolve the issues
of noncompliance, in the sole determination of the Fund, the Fund
reserves the right, in its sole discretion, to terminate and rescind
the Notice of Allocation and the allocation made under this NOAA.
3. Default status: If, at any time prior to entering into an
Allocation Agreement through this NOAA, the Fund has made a final
determination that an Allocatee that is a prior Fund awardee or
Allocatee under any Fund program is in default of a previously executed
assistance, allocation or award agreement(s) and has provided written
notification of such determination to the Allocatee, the Fund reserves
the right, in its sole discretion, to delay entering into an Allocation
Agreement and/or to impose limitations on the Allocatee's ability to
issue Qualified Equity Investments to investors, until said prior
awardee or Allocatee has submitted a complete and timely report
demonstrating full compliance with said agreement within a timeframe
set by the Fund. Further, if at any time prior to entering into an
Allocation Agreement through this NOAA, the Fund has made a final
determination that another entity that Controls the Allocatee, is
Controlled by the applicant or shares common management officials with
the Allocatee (as determined by the Fund), is a prior Fund awardee or
Allocatee under any Fund program, and is in default of a previously
executed assistance, allocation or award agreement(s) and has provided
written notification of such determination to the defaulting entity,
the Fund reserves the right, in its sole discretion, to delay entering
into an Allocation Agreement and/or to impose limitations on the
Allocatee's ability to issue Qualified Equity Investments to investors,
until said prior awardee or Allocatee has submitted a complete and
timely report demonstrating full compliance with said agreement within
a timeframe set by the Fund. If said prior awardee or Allocatee is
unable to meet this requirement, the Fund reserves the right, in its
sole discretion, to terminate and rescind the Notice of Allocation and
the allocation made under this NOAA.
4. Termination in default: If, within the 12-month period prior to
entering into an Allocation Agreement through this NOAA, the Fund has
made a final determination that an Allocatee that is a prior Fund
awardee or Allocatee under any Fund program whose award or allocation
was terminated in default of such prior agreement and the Fund has
provided written notification of such determination to such
organization, the Fund reserves the right, in its sole discretion, to
delay entering into an Allocation Agreement and/or to impose
limitations on the Allocatee's ability to issue Qualified
[[Page 49955]]
Equity Investments to investors. Further, if within the 12-month period
prior to entering into an Allocation Agreement through this NOAA, the
Fund has made a final determination that another entity that Controls
the Allocatee, is Controlled by the Allocatee or shares common
management officials with the Allocatee (as determined by the Fund), is
a prior Fund awardee or Allocatee under any Fund program whose award or
allocation was terminated in default of such prior agreement, and the
Fund has provided written notification of such determination to the
defaulting entity, the Fund reserves the right, in its sole discretion,
to delay entering into an Allocation Agreement and/or to impose
limitations on the Allocatee's ability to issue Qualified Equity
Investments to investors.
B. Allocation Agreement
Each applicant that is selected to receive a NMTC Allocation
(including the applicant's Subsidiary transferees) must enter into an
Allocation Agreement with the Fund. The Allocation Agreement will set
forth certain required terms and conditions of the NMTC Allocation
which may include, but not be limited to, the following: (i) The amount
of the awarded NMTC Allocation; (ii) the approved uses of the awarded
NMTC Allocation (e.g., loans to or equity investments in Qualified
Active Low-Income Businesses or loans to or equity investments in other
CDEs); (iii) the approved service area(s) in which the proceeds of
Qualified Equity Investments may be used; (iv) the time period by which
the applicant may obtain Qualified Equity Investments from investors;
and (v) reporting requirements for all applicants receiving NMTC
Allocations. If an applicant has represented in its NMTC allocation
application that it intends to invest substantially all of the proceeds
from its investors in businesses in which persons unrelated to the
applicant hold a majority equity interest, the Allocation Agreement
will contain a covenant whereby said applicant agrees that it will
invest substantially all of said proceeds in businesses in which
persons unrelated to the applicant hold a majority equity interest.
In addition to entering into an Allocation Agreement, each
applicant selected to receive a NMTC Allocation must furnish to the
Fund an opinion from its legal counsel, the content of which will be
further specified in the Allocation Agreement, to include, among other
matters, an opinion that an applicant (and its Subsidiary transferees,
if any): (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 Allocation Agreement and undertake the activities that are
specified therein; (iii) has no pending or threatened litigation that
would materially affect its ability to enter into and carry out the
activities specified in the Allocation Agreement; and (iv) is not in
default of its articles of incorporation, bylaws or other
organizational documents, or any agreements with the Federal
government.
If an Allocatee identifies Subsidiary transferees, the Fund
reserves the right to require an Allocatee to provide supporting
documentation evidencing that it Controls such entities prior to
entering into an Allocation Agreement with the Allocatee and its
Subsidiary transferees. The Fund reserves the right, in its sole
discretion, to rescind its Notice of Allocation if the Allocatee fails
to return the Allocation Agreement, signed by the authorized
representative of the Allocatee, and/or provide the Fund with any other
requested documentation, within the deadlines set by the Fund.
C. Fees
The Fund reserves the right, in accordance with applicable Federal
law and if authorized, to charge allocation reservation and/or
compliance monitoring fees to all entities receiving NMTC Allocations.
Prior to imposing any such fee, the Fund will publish additional
information concerning the nature and amount of the fee.
D. Reporting
The Fund will collect information, on at least an annual basis,
from all applicants that are awarded NMTC Allocations and/or are
recipients of Qualified Low-Income Community Investments, including
such audited financial statements and opinions of counsel as the Fund
deems necessary or desirable, in its sole discretion. The Fund will use
such information to monitor each Allocatee's compliance with the
provisions of its Allocation Agreement and to assess the impact of the
NMTC Program in Low-Income Communities. The Fund may also provide such
information to the IRS in a manner consistent with IRC Sec. 6103 so
that the IRS may determine, among other things, whether the Allocatee
has used substantially all of the proceeds of each Qualified Equity
Investment raised through its NMTC Allocation to make Qualified Low-
Income Community Investments. The Allocation Agreement shall further
describe the Allocatee's reporting requirements.
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 Allocatees.
VII. Agency Contacts
The Fund will provide programmatic and information technology
support related to the allocation application between the hours of 9
a.m. and 5 p.m. e.t. through October 4, 2004. The Fund will not respond
to phone calls or e-mails concerning the application that are received
after 5 p.m. e.t. on October 4, 2004, until after the allocation
application deadline of October 6, 2004. Applications and other
information regarding the Fund and its programs may be obtained from
the Fund's Web site at http://www.cdfifund.gov. The Fund will post on
its website responses to questions of general applicability regarding
the NMTC Program.
A. Information Technology Support
Technical support can be obtained by calling (202) 622-2455 or by
e-mail at ithelpdesk@cdfi.treas.gov. People who have visual or mobility
impairments that prevent them from accessing the Low-Income Community
maps using the Fund's Web site should call (202) 622-2455 for
assistance. These are not toll free numbers.
B. Programmatic Support
If you have any questions about the programmatic requirements of
this NOAA, contact the Fund's NMTC Program Manager by e-mail at
cdfihelp@cdfi.treas.gov, by telephone at (202) 622-6355, by facsimile
at (202) 622-7754, or by mail at CDFI Fund, 601 13th Street, NW., Suite
200 South, Washington, DC 20005. These are not toll-free numbers.
C. Administrative Support
If you have any questions regarding the administrative requirements
of this NOAA, contact the Fund's Grants Management and Compliance
Manager by e-mail at cdfihelp@cdfi.treas.gov, by telephone at (202)
622-8226, by facsimile at (202) 622-6453, or by mail at CDFI Fund, 601
13th Street, NW., Suite 200 South, Washington, DC 20005. These are not
toll free numbers.
D. IRS Support
For questions regarding the tax aspects of the NMTC Program,
contact Branch Five, Office of the Associate Chief Counsel
(Passthroughs and
[[Page 49956]]
Special Industries), IRS, by telephone at (202) 622-3040, by facsimile
at (202) 622-4753, or by mail at 1111 Constitution Avenue, NW., Attn:
CC:PSI:5, Washington, DC 20224. These are not toll free numbers.
E. Legal Counsel Support
If you have any questions or matters that you believe require
response by the Fund's Office of Legal Counsel, please refer to the
document titled ``How to Request a Legal Review'', found on the Fund's
Web site at http://www.cdfifund.gov. Requests for legal reviews must be
received by the Fund no later than September 7, 2004, or by such
alternative date as may be agreed to by the Fund.
VIII. Information Sessions
In connection with this NOAA, the Fund intends to broadcast a no
fee, interactive video teleconference information session on August 24,
2004, from 1 p.m. to 5 p.m. e.t. Registration is required, as the video
teleconference information session will be broadcast to secured federal
facilities. The video teleconference information session will be
produced in Washington, DC, and will be downlinked via satellite to
local Department of Housing and Urban Development offices in certain
cities. For further information on the video teleconference information
session, locations, or to register, please visit the Fund's Web site at
http://www.cdfifund.gov or call the Fund at (202) 622-9046.
Authority: 26 U.S.C. 45D; 31 U.S.C. 321; 26 CFR 1.45D-1T.
Dated: August 4, 2004.
Arthur A. Garcia,
Director, Community Development Financial Institutions Fund.
[FR Doc. 04-18448 Filed 8-11-04; 8:45 am]
BILLING CODE 4810-70-P