[Federal Register: December 21, 2005 (Volume 70, Number 244)]
[Notices]
[Page 75860-75871]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21de05-115]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Funding Opportunity Title: Revised Notice of Funds Availability
(NOFA) Inviting Applications for the FY 2006 Funding Round and the FY
2007 Funding Round of the Community Development Financial Institutions
Program
Announcement Type: Initial announcement of funding opportunity.
Catalog of Federal Domestic Assistance (CFDA) Number: 21.020.
DATES: Applications for the FY 2006 Funding Round must be received by 5
p.m. ET on February 13, 2006. Applications for the FY 2007 Funding
Round must be received by 5 p.m. ET on January 9, 2007.
Executive Summary: Subject to funding availability, this NOFA is
issued in connection with two consecutive funding rounds of the
Community Development Financial Institutions (CDFI) Program: (i) The FY
2006 Funding Round and (ii) the FY 2007 Funding Round. This NOFA
replaces, in its entirety, the NOFA published in the Federal Register
on December 13, 2005 (70 FR 73866); through this NOFA, the Fund has
revised several of the dates set forth in the December 13, 2005 NOFA.
Interested parties should review and refer to this NOFA, disregarding
the December 13, 2005 NOFA, as the dates in the December 13, 2005 NOFA
are inaccurate.
I. Funding Opportunity Description
A. Through the CDFI Program, the Community Development Financial
Institutions Fund (the Fund) provides: (i) Financial Assistance (FA)
awards to
[[Page 75861]]
CDFIs that have Comprehensive Business Plans for creating demonstrable
community development impact through the deployment of credit, capital,
and financial services within their respective Target Markets or the
expansion into new Investment Areas, Low-Income Targeted Populations,
or Other Targeted Populations, and (ii) Technical Assistance (TA)
grants to CDFIs and entities proposing to become CDFIs in order to
build their capacity to better address the community development and
capital access needs of their particular Target Markets, to expand into
new Investment Areas, Low-Income Targeted Populations, or Other
Targeted Populations, and/or to become certified CDFIs.
B. The regulations governing the CDFI Program are found at 12 CFR
Part 1805 (the Interim Rule) and provide guidance on evaluation
criteria and other requirements of the CDFI Program. The Fund published
the revised Interim Rule in the December 13, 2005 issue of the Federal
Register (70 FR 73887), which contained revisions concerning how
certain Applicants may use retained earnings as matching funds for a FA
award. The Fund encourages Applicants to review the Interim Rule.
Detailed application content requirements are found in the applicable
funding application and related guidance materials. Each capitalized
term in this NOFA is more fully defined in the Interim Rule, the
application or the guidance materials.
C. 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.
The Fund reserves the right to re-allocate funds from the amount that
is anticipated to be available under this NOFA to other Fund programs,
particularly if the Fund determines that the number of awards made
under this NOFA is fewer than projected.
II. Award Information
A. Funding Availability: 1. FY 2006 Funding Round: Through the FY
2006 Funding Round, and subject to funding availability, the Fund
expects that it may award approximately $25 million in appropriated
funds, of which (i) approximately $2 million in appropriated funds may
be awarded to Category I/SECA (defined in Section III.A.1, below)
Applicants in the form of FA awards that may be coupled with TA grants;
(ii) approximately $21 million in appropriated funds may be awarded to
Category II/Core (defined in Section III.A.1, below) Applicants in the
form of FA awards that may be coupled with TA grants; and (iii)
approximately $2 million in appropriated funds may be awarded to
Applicants in the form of TA grants only. The Fund reserves the right
to award in excess of $25 million in appropriated funds to Applicants
(and/or more or less than $2 million to Category I/SECA Applicants,
and/or more or less than $21 million to Category II/Core Applicants) in
the FY 2006 Funding Round, provided that the funds are available and
the Fund deems it appropriate.
2. FY 2007 Funding Round: Through the FY 2007 Funding Round, and
subject to funding availability, the Fund expects that it may award
approximately $25 million in appropriated funds, of which (i)
approximately $2 million in appropriated funds may be awarded to
Category I/SECA Applicants in the form of FA awards that may be coupled
with TA grants; (ii) approximately $21 million in appropriated funds
may be awarded to Category II/Core Applicants in the form of FA awards
that may be coupled with TA grants; and (iii) approximately $2 million
in appropriated funds may be awarded to Applicants in the form of TA
grants only. The Fund reserves the right to award in excess of $25
million in appropriated funds to Applicants (and/or more or less than
$2 million to Category I/SECA Applicants, and/or more or less than $21
million to Category II/Core Applicants) in the FY 2007 Funding Round,
provided that the funds are available and the Fund deems it
appropriate.
3. Availability of Funds for the FY 2007 Funding Round: Because
funds for the FY 2007 Funding Round have not yet been appropriated,
interested parties should be aware that electing to defer the
submission of an application until the FY 2007 Funding Round, rather
than for the FY 2006 Funding Round, entails some risk. If funds are not
appropriated for the FY 2007 Funding Round, there will not be a FY 2007
Funding Round. Further, it is possible that if funds are appropriated
for the FY 2007 Funding Round, the amount of such funds may be less
than the amounts set forth above.
B. Types of Awards: An Applicant may submit an application either
for: (i) A FA award only; (ii) a FA award and a TA grant; or (iii) a TA
grant.
1. FA Awards: The Fund may provide FA awards in the form of equity
investments (including, in the case of certain Insured Credit Unions,
secondary capital accounts), grants, loans, deposits, credit union
shares, or any combination thereof. The Fund reserves the right, in its
sole discretion, to provide a FA award in a form and amount other than
that which is requested by an Applicant; however, the award amount will
not exceed the Applicant's award request as stated in its application.
The Fund reserves the right, in its sole discretion, to provide a FA
award on the condition that the Applicant agrees to use a TA grant for
specified capacity building purposes, even if the Applicant has not
requested a TA grant.
2. TA Grants: (a) The Fund may provide TA awards in the form of
grants. The Fund reserves the right, in its sole discretion, to provide
a TA grant for uses and amounts other than that which are requested by
an Applicant; however, the award amount will not exceed the Applicant's
award request as stated in its application.
(b) TA grants may be used to address a variety of needs including,
but not limited to, development of strategic planning documents (such
as business, strategic or capitalization plans), market analyses or
product feasibility analyses, operational policies and procedures,
curricula for Development Services (such as entrepreneurial training,
home buyer education, financial education or training, borrower credit
repair training), improvement of underwriting and portfolio management,
development of outreach and training strategies to enhance product
delivery, operating support to expand into a new Target Market, and
tools that allow the Applicant to assess the impact of its activities
in its community. Each Applicant for a TA grant through this NOFA is
required to provide information in the application regarding the
expected cost, timing and provider of the TA, and a narrative
description of how the TA grant will enhance its capacity to provide
greater community development impact and/or to become certified as a
CDFI, if applicable.
(c) Eligible TA grant uses include, but are not limited to: (i)
Acquiring consulting services; (ii) acquiring/enhancing technology
items, including computer hardware, software and Internet connectivity;
(iii) acquiring training for staff, management and/or board members;
and (iv) paying recurring expenses, including staff salary and other
key operating expenses, that will enhance the capacity of the Applicant
to serve its Target Market and/or to become certified as a CDFI.
C. Notice of Award; Assistance Agreement: Each Awardee under this
NOFA must sign a Notice of Award and an Assistance Agreement in order
to receive a disbursement of award proceeds by the Fund. The Notice of
Award and the Assistance Agreement contain the terms and conditions of
the
[[Page 75862]]
award. For further information, see Sections VI.A and VI.B of this
NOFA.
III. Eligibility Information
A. Eligible Applicants: The Interim Rule specifies the eligibility
requirements that each Applicant must meet in order to be eligible to
apply for assistance under this NOFA. The following sets forth
additional detail and dates that relate to the submission of
applications under this NOFA:
1. FA Applicant Categories: All Applicants for FA awards through
this NOFA must meet the criteria for one of the following two
categories of CDFIs:
----------------------------------------------------------------------------------------------------------------
FA applicant category Criteria What can it apply for?
----------------------------------------------------------------------------------------------------------------
FY 2006 Funding Round: Category I/Small A Category I/SECA Applicant is a Certified A Category I/SECA
and/or Emerging CDFI Assistance (SECA). CDFI or a Certifiable CDFI that: Applicant may request up
Has total assets as of December 31, 2005 as to and including
follows: $500,000 in FA funds,
Insured Depository Institutions and and up to and including
Depository Institution Holding Companies: $100,000 in TA funds.
up to $250 million.
Insured Credit Unions: up to $10
million.
Venture capital funds: up to $10
million.
Other CDFIs: up to $5 million.
OR
Began operations on or after January 1,
2002.
AND
Prior to the FY 2006 Funding Round
application deadline, has not been selected
to receive in excess of $500,000 in FA
award(s) in the aggregate from the CDFI
Program or Native Initiatives Funding
Programs.
FY 2007 Funding Round: Category I/Small A Category I/SECA Applicant is a Certified A Category I/SECA
and/or Emerging CDFI Assistance (SECA). CDFI or Certifiable CDFI that: Applicant may request up
Has total assets as of December 31, 2006 as to and including
follows: $500,000 in FA funds,
Insured Depository Institutions and and up to and including
Depository Institution Holding Companies: $100,000 in TA funds.
up to $250 million.
Insured Credit Unions: up to $10
million.
Venture capital funds: up to $10
million.
Other CDFIs: up to $5 million.
OR
Began operations on or after January 1,
2003.
AND
Prior to the FY 2007 Funding Round
application deadline, has not been selected
to receive in excess of $500,000 in FA
award(s) in the aggregate from the CDFI
Program or Native Initiatives Funding
Programs.
FY 2006 and FY 2007 Funding Rounds: A Category II/Core Applicant is a Certified A Category II/Core
Category II/Core. CDFI or a Certifiable CDFI that meets all Applicant may request up
other eligibility requirements described in to and including $2
this NOFA. million in FA funds, and
up to and including
$100,000 in TA funds.
----------------------------------------------------------------------------------------------------------------
Please note: any Applicant, regardless of total assets, years in
operation, or prior Fund awards, that requests FA funding in excess of
$500,000 is classified as a Category II/Core Applicant.
For the purposes of this NOFA, the term ``began operations'' is
defined as the month and year in which the Applicant first incurred
operating expenses of any type. Also, for purposes of this NOFA, the
term ``Native Initiatives Funding Programs'' refers to the following
programs administered by the Fund: The Native American CDFI Technical
Assistance (NACTA) Component of the CDFI Program, the Native American
CDFI Development (NACD) Program, the Native American Technical
Assistance (NATA) Component of the CDFI Program, and the Native
American CDFI Assistance (NACA) Program.
The Fund will evaluate, rank and make awards to Category I/SECA
Applicants separately from Category II/Core Applicants. The Fund, in
its sole discretion, reserves the right to award amounts in excess of
or less than the anticipated maximum award amounts permitted in this
NOFA, if the Fund deems it appropriate.
2. TA Applicants:
------------------------------------------------------------------------
What can it
TA applicants Criteria apply for?
------------------------------------------------------------------------
All TA Applicants............. A TA Applicant must be The Fund
a Certified CDFI, a anticipates
Certifiable CDFI, or making TA
an Emerging CDFI. grants up to
$100,000 each.
------------------------------------------------------------------------
The Fund, in its sole discretion, reserves the right to award
amounts less than the anticipated maximum award amounts permitted in
this NOFA, if the Fund deems it appropriate.
3. CDFI Certification Requirements: For purposes of this NOFA,
eligible FA Applicants include Certified CDFIs and Certifiable CDFIs;
eligible TA Applicants include Certified CDFIs, Certifiable CDFIs and
Emerging CDFIs, defined as follows:
(a) Certified CDFIs: A certified CDFI whose certification has not
expired and that has not been notified by the Fund
[[Page 75863]]
that its certification has been terminated. Each such Applicant must
submit a ``Certification of Material Event Form'' to the Fund not later
than January 20, 2006 (for the FY 2006 Funding Round) or not later than
December 4, 2006 (for the FY 2007 Funding Round), or such other dates
as the Fund may proscribe, in accordance with the instructions on the
Fund's Web site at http://www.cdfifund.gov. Please note: the Fund
provided a number of CDFIs with certifications expiring in 2003 through
2005 written notification that their certifications had been extended.
The Fund will consider the extended certification date (the later date)
to determine whether those CDFIs meet this eligibility requirement.
(b) Certifiable CDFIs: For purposes of this NOFA, a Certifiable
CDFI is an entity from which the Fund receives a complete CDFI
Certification Application no later than January 20, 2006 (for the FY
2006 Funding Round) or December 4, 2006 (for the FY 2007 Funding
Round), or such other dates as the Fund may proscribe, evidencing that
the Applicant meets the requirements to be certified as a CDFI.
Applicants may obtain the CDFI Certification Application through the
Fund's Web site at http://www.cdfifund.gov. Applications for
certification must be submitted as instructed in the application form.
FA Applicants that are Certifiable CDFIs please note: While your
organization may be conditionally selected for funding (as evidenced
through the Notice of Award), the Fund will not enter into an
Assistance Agreement or disburse award funds unless and until the Fund
has certified your organization as a CDFI. If the Fund is unable to
certify your organization as a CDFI based on the CDFI certification
application that your organization submits to the Fund, the Notice of
Award may be terminated and the award commitment may be cancelled, in
the sole discretion of the Fund.
(c) Emerging CDFIs: For purposes of this NOFA, an Emerging CDFI is
an entity that demonstrates to the satisfaction of the Fund that it has
a reasonable plan to be certified as a CDFI by December 31, 2008 or
such other date selected by the Fund (for the FY 2006 Funding Round) or
December 31, 2009 or such other date selected by the Fund (for the FY
2007 Funding Round). Emerging CDFIs may only apply for TA grants; they
are not eligible to apply for FA awards. Each Emerging CDFI that is
selected to receive a TA grant will be required, pursuant to its
Assistance Agreement with the Fund, to become certified as a CDFI by a
date certain.
D. Prior Awardees: Applicants must be aware that success in a prior
round of any of the Fund's programs is not indicative of success under
this NOFA. Prior awardees are eligible to apply under this NOFA, except
as follows:
1. $5 Million Funding Cap. 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. For the purposes of this NOFA, the period extends back
three years from the date that the Fund signs a Notice of Award issued
to an Awardee under this NOFA.
2. 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 applicable application deadline of this NOFA. 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.
3. 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, allocation or award
agreement; and (ii) the Fund has yet to make a final determination as
to whether the entity is in default of its previous assistance,
allocation or award agreement, the Fund will consider the Applicant's
application under this NOFA 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, allocation or award
agreement; and (ii) the Fund has yet to make a final determination as
to whether the entity is in default of its previous assistance,
allocation, or award agreement, the Fund will consider the Applicant's
application under this NOFA pending full resolution, in the sole
determination of the Fund, of the noncompliance.
4. 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 applicable application deadline of
this NOFA, the Fund has made a final determination that such Applicant
is in default of a previously executed assistance, allocation or award
agreement(s). Further, an entity is not eligible to apply for an award
pursuant to this NOFA if, as of the applicable application deadline of
this NOFA, 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 and
has been determined by the Fund to be in default of a previously
executed assistance, allocation or award agreement(s).
5. 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: (i) 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 (ii) the final reporting period end date for
the applicable terminated assistance, allocation or award agreement(s)
falls in Calendar Year 2005 (for the FY 2006 Funding Round) and
Calendar Year 2006 (for the FY 2007 Funding Round). Further, an entity
is not eligible to apply for an award pursuant to this NOFA if: (i) 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 (ii) the final reporting period
end date for the applicable terminated assistance, allocation or award
agreement(s) falls in the Calendar Year 2005 (for the FY 2006 Funding
Round) and Calendar Year 2006 (for the FY 2007 Funding Round).
6. 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
[[Page 75864]]
applicable application deadline of this NOFA. Further, an entity is not
eligible to apply for an award pursuant to this NOFA 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
applicable application deadline of this NOFA. 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
applicable application deadline of this NOFA, 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 Bank Enterprise Award (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 New Market Tax Credit
(NMTC) Program; (ii) any award funds for which the Fund received a full
and complete disbursement request from the Awardee by the applicable
application deadline of this NOFA; (iii) any award funds for an award
that has been terminated, expired, rescinded or deobligated by the
Fund; or (iv) any award funds for an award that does not have a fully
executed assistance or award agreement. The Fund strongly encourages
Applicants requesting disbursements of ``undisbursed funds'' from prior
awards to provide the Fund with a complete disbursement request at
least 10 business days prior to the applicable application deadline of
this NOFA.
7. Exception for Applicants impacted by Hurricanes Katrina and/or
Rita: Please note that the provisions of paragraphs 2 (Failure to meet
reporting requirements) and 6 (Undisbursed balances) of this section do
not apply to any Applicant that has an office located in, or that
provides a significant volume of services or financing to residents of
or businesses located in, a county that is within a ``major disaster
area'' as declared by the Federal Emergency Management Agency (FEMA) as
a result of Hurricanes Katrina and/or Rita. Said requirements are
waived for those Applicants for the FY 2006 Funding Round and the FY
2007 Funding Round.
8. Contact the Fund. Accordingly, Applicants that are prior
Awardees are advised to: (i) Comply with 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 or deobligation of any outstanding balance of said prior
award(s). All outstanding reports, disbursement or compliance questions
should be directed to the Grants Manager by e-mail at
grantsmanagement@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, disbursement or compliance questions between the
hours of 9 a.m. and 5 p.m. ET, starting the date of the publication of
this NOFA through February 9, 2006 (for the FY 2006 Funding Round) and
January 5, 2007 (for the FY 2007 Funding Round) (two business days
before the respective application deadlines). The Fund will not respond
to Applicants' reporting, disbursement or compliance phone calls or e-
mail inquiries that are received after 5 p.m. on said dates, until
after the respective funding application deadlines.
9. Limitation on Awards: An Applicant may receive only one award
through either the CDFI Program or the Native American CDFI Assistance
(NACA) Program in the same funding year. An Applicant may apply under
both the CDFI Program and the NACA Program, but will not be selected
for funding under both. A CDFI Program Applicant, its Subsidiaries or
Affiliates also may apply for and receive: (i) A tax credit allocation
through the NMTC Program, but only to the extent that the activities
approved for CDFI Program awards are different from those activities
for which the Applicant receives a NMTC Program allocation; and (ii) an
award through the BEA Program (subject to certain limitations; refer to
the Interim Rule at 12 CFR 1805.102).
10. Other Targeted Populations as Target Markets: Other Targeted
Populations are defined as identifiable groups of individuals in the
Applicant's service area for which there exists a strong basis in
evidence that they lack access to loans, Equity Investments and/or
Financial Services. The Fund has determined that there is strong basis
in evidence that the following groups of individuals lack access to
loans, Equity Investments and/or Financial Services on a national
level: Blacks or African Americans, Native Americans or American
Indians, and Hispanics or Latinos. In addition, for purposes of this
NOFA, the Fund has determined that there is a strong basis in evidence
that Alaska Natives residing in Alaska, Native Hawaiians residing in
Hawaii, and Other Pacific Islanders residing in other Pacific Islands,
lack adequate access to loans, Equity Investments or Financial
Services. An Applicant designating any of the above-cited Other
Targeted Populations is not required to provide additional narrative
explaining the Other Targeted Population's lack of adequate access to
loans, Equity Investments or Financial Services.
For purposes of this NOFA, the Fund will use the following
definitions, 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), as amended and
supplemented:
(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;
(b) Black or African American: A person having origins in any of
the black racial groups of Africa (terms such as ``Haitian'' or
``Negro'' can be used in addition to ``Black or African American'');
(c) Hispanic or Latino: A person of Cuban, Mexican, or Puerto
Rican, South or Central American or other Spanish culture or origin,
regardless of race (the term ``Spanish origin'' can be used in addition
to ``Hispanic or Latino''); and
(d) Native Hawaiian: A person having origins in any of the original
peoples of Hawaii; and
(e) Other Pacific Islander: A person having origins in any of the
original peoples of Guam, Samoa or other Pacific Islands.
E. Matching Funds: 1. Matching Funds Requirements in General:
[[Page 75865]]
Applicants responding to this NOFA must obtain non-Federal matching
funds from sources other than the Federal government on the basis of
not less than one dollar for each dollar of FA funds 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 award provided
by the Fund (for example, if an Applicant is requesting a FA grant from
the Fund, the Applicant must have evidence that it has obtained
matching funds through grant(s) from non-Federal sources that are at
least equal to the amount requested from the Fund). Funds used by an
Applicant as matching funds for a prior FA award under the CDFI Program
or under another Federal grant or award program cannot be used to
satisfy the matching funds requirement of this NOFA. If an Applicant
seeks to use as matching funds monies received from an organization
that was a prior Awardee under the CDFI Program, 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
consist, in whole or in part, of CDFI Program funds or other Federal
funds. For the purposes of this NOFA, BEA Program awards are not deemed
to be Federal funds and are eligible as matching funds. The Fund
encourages Applicants to review the Interim Rule at 12 CFR Sec.
1805.500 et seq. and matching funds guidance materials on the Fund's
website for further information.
2. Matching Funds Requirements Per Applicant Category: Due to
funding constraints and the desire to quickly deploy Fund dollars, the
Fund will not consider for a FA award any Applicant that has no
matching funds in-hand or firmly committed as of the application
deadline under this NOFA. Specifically, FA Applicants must meet the
following matching funds requirements:
(a) Category I/SECA Applicants:
(i) FY 2006 Funding Round: A Category I/SECA Applicant must
demonstrate that it has eligible matching funds equal to no less than
25 percent of the amount of the FA award requested in-hand or firmly
committed, on or after January 1, 2004 and on or before the application
deadline. The Fund reserves the right to rescind all or a portion of a
FA award and re-allocate the rescinded award amount to other qualified
Applicant(s), if an Applicant fails to obtain in-hand 100 percent of
the required matching funds by March 15, 2007 (with required
documentation of such receipt received by the Fund not later than March
30, 2007), or to grant an extension of such matching funds deadline for
specific Applicants selected to receive FA, if the Fund deems it
appropriate. For any Applicant that has less than 100 percent of
matching funds in-hand or firmly committed as of the application
deadline, the Fund will evaluate the Applicant's ability to raise the
remaining matching funds by March 15, 2007.
(ii) FY 2007 Funding Round: A Category I/SECA Applicant must
demonstrate that it has eligible matching funds equal to no less than
25 percent of the amount of the FA award requested in-hand or firmly
committed, on or after January 1, 2005 and on or before the application
deadline. The Fund reserves the right to rescind all or a portion of a
FA award and re-allocate the rescinded award amount to other qualified
Applicant(s), if an Applicant fails to obtain in-hand 100 percent of
the required matching funds by March 14, 2008 (with required
documentation of such receipt received by the Fund not later than March
31, 2008), or to grant an extension of such matching funds deadline for
specific Applicants selected to receive FA, if the Fund deems it
appropriate. For any Applicant that demonstrates that it has less than
100 percent of matching funds in-hand or firmly committed as of the
application deadline, the Fund will evaluate the Applicant's ability to
raise the remaining matching funds by March 14, 2008.
(b) Category II/Core Applicants:
(i) FY 2006 Funding Round: A Category II/Core Applicant must
demonstrate that it has eligible matching funds equal to no less than
100 percent of the amount of the FA award requested in-hand or firmly
committed, on or after January 1, 2004 and on or before the application
deadline. The Fund reserves the right to rescind all or a portion of a
FA award and re-allocate the rescinded award amount to other qualified
Applicant(s), if an Applicant fails to obtain in-hand 100 percent of
the required matching funds by March 15, 2007 (with required
documentation of such receipt received by the Fund not later than March
30, 2007), or to grant an extension of such matching funds deadline for
specific Applicants selected to receive FA, if the Fund deems it
appropriate.
(ii) FY 2007 Funding Round: A Category II/Core Applicant must
demonstrate that it has eligible matching funds equal to no less than
100 percent of the amount of the FA award requested in-hand or firmly
committed, on or after January 1, 2005 and on or before the application
deadline. The Fund reserves the right to rescind all or a portion of a
FA award and re-allocate the rescinded award amount to other qualified
Applicant(s), if an Applicant fails to obtain in-hand 100 percent of
the required matching funds by March 14, 2008 (with required
documentation of such receipt received by the Fund not later than March
31, 2008), or to grant an extension of such matching funds deadline for
specific Applicants selected to receive FA, if the Fund deems it
appropriate.
3. Matching Funds Terms Defined; Required Documentation.
(a) ``Matching funds in-hand'' means that the Applicant has
actually received the matching funds. If the matching funds are ``in-
hand,'' the Applicant must provide the Fund with acceptable written
documentation of the source, form and amount of the Matching Funds
(i.e., grant, loan, and equity investment). For a loan, the Applicant
must provide the Fund with a copy of the loan agreement and promissory
note. For a grant, the Applicant must provide the Fund with a copy of
the grant letter or agreement. For an equity investment, the Applicant
must provide the Fund with a copy of the stock certificate and any
related shareholder agreement. Further, if the matching funds are ``in-
hand,'' the Applicant must provide the Fund with acceptable
documentation that evidences its receipt of the matching funds
proceeds, such as a copy of a check or a wire transfer statement.
(b) ``Firmly committed matching funds'' means that the Applicant
has entered into or received a legally binding commitment from the
matching funds source that the matching funds will be disbursed to the
Applicant. If the matching funds are ``firmly committed,'' the
Applicant must provide the Fund with acceptable written documentation
to evidence the source, form, and amount of the firm commitment (and,
in the case of a loan, the terms thereof), as well as the anticipated
date of disbursement of the committed funds.
(c) The Fund may contact the matching funds source to discuss the
matching funds and the documentation provided by the Awardee. If the
Fund determines that any portion of the Applicant's matching funds is
ineligible under this NOFA, the Fund, in its sole discretion, may
permit the Applicant to offer alternative matching funds as substitute
for the ineligible matching funds; provided, however, that (i) the
Applicant must provide acceptable alternative matching funds
documentation within 2 business days of the Fund's request and (ii) the
alternative matching funds documentation cannot increase the total
[[Page 75866]]
amount of Financial Assistance requested by the Applicant.
4. Special Rule for Insured Credit Unions. Please note that the
Interim Rule allows an Insured Credit Union to use retained earnings to
serve as matching funds for a FA grant in an amount equal to: (i) The
increase in retained earnings that have occurred over the Applicant's
most recent fiscal year; (ii) the annual average of such increases that
have occurred over the Applicant's three most recent fiscal years; or
(iii) the entire retained earnings that have been accumulated since the
inception of the Applicant or such other financial measure as may be
specified by the Fund. For purposes of this NOFA, if option (iii) is
used, the Applicant must increase its member and/or non-member shares
or total loans outstanding by an amount that is equal to the amount of
retained earnings that is committed as matching funds. This amount must
be raised by the end of the Awardee's second performance period, as set
forth in its Assistance Agreement, and will be based on amounts
reported in the Applicant's Audited or Reviewed Financial Statements or
NCUA Form 5300 Call Report.
5. Severe Constraints Exception to Matching Funds Requirement;
Applicability to Applicants Located in FEMA-Designated Major Disaster
Areas Created by Hurricanes Katrina and/or Rita: In the case of any
Applicant that has an office that is located in, or that provides a
significant volume of services or financing to residents of or
businesses located in, any county that is within a ``major disaster
area'' as declared by the Federal Emergency Management Agency (FEMA) as
a result of Hurricanes Katrina and/or Rita, and that has severe
constraints on available sources of matching funds, such Applicant may
be eligible for a ``severe constraints waiver'' (see section 1805.203
of the Interim Rule) if (i) it can demonstrate to the satisfaction of
the Fund that an Investment Area(s) or Targeted Population(s) would not
be adequately served without such a waiver and (ii) it projects to use
the assistance to address issues resulting from Hurricanes Katrina and/
or Rita (such as a significant volume of loan defaults) or to provide
financial products, financial services, or Development Services to
residents of or businesses located in any county that is within a
``major disaster area'' as declared by FEMA as a result of Hurricanes
Katrina and/or Rita. If eligible for such a waiver, the Applicant may
comply with the matching funds requirements of this NOFA as follows:
(i) The matching funds requirement for such Applicant would be reduced
to 50 percent (meaning, the Applicant must match 50 percent of the
Fund's FA award rather than 100 percent), or (ii) such an Applicant may
provide matching funds in alternative (meaning, non-monetary) forms if
the Applicant has total assets of less than $100,000 at the time of the
application deadline, serves non-metropolitan or rural areas, and is
not requesting more than $25,000 in financial assistance from the Fund.
In the case of item (i) of this paragraph, the Applicant must
demonstrate that it has eligible matching funds equal to no less than
25 percent of the amount of the FA award requested in-hand or firmly
committed, on or after January 1, 2005 (for the FY 2006 Funding Round)
or January 1, 2006 (for the FY 2007 Funding Round) and on or before the
application deadline. The Fund reserves the right to rescind all or a
portion of a FA award and re-allocate the rescinded award amount to
other qualified Applicant(s), if an Applicant fails to obtain in-hand
50 percent of the required matching funds by March 15, 2007 (for the FY
2006 Funding Round) and March 14, 2008 (for the FY 2007 Funding Round)
(with required documentation of such receipt received by the Fund not
later than March 31, 2007 (for the FY 2006 Funding Round) and March 30,
2008 (for the FY 2007 Funding Round)), or to grant an extension of such
matching funds deadline for specific Applicants selected to receive FA,
if the Fund deems it appropriate. For any such Applicant that
demonstrates that it has less than 50 percent of matching funds in-hand
or firmly committed as of the application deadline, the Fund will
evaluate the Applicant's ability to raise the remaining matching funds
by March 15, 2007 (for the FY 2006 Funding Round) and March 14, 2008
(for the FY 2007 Funding Round). In the case of item (ii) of this
paragraph, the CDFI Program funding application contains further
instructions on the type of documentation that the Applicant must
provide as evidence that such match was received and its valuation. The
Fund reserves the right, in its sole discretion, to disallow any such
match for which adequate documentation or valuation is not provided.
IV. Application and Submission Information
A. Form of Application Submission: Applicants may submit
applications under this NOFA either (i) through Grants.gov or (ii) in
paper form. Applications sent by facsimile or other form will not be
accepted.
B. Grants.gov: For the FY 2006 Funding Round, in compliance with
Public Law 106-107 and Section 5(a) of the Federal Financial Assistance
Management Improvement Act, the Fund is required to accept applications
submitted through the Grants.gov electronic system. The Fund will post
to its Web site at http://www.cdfifund.gov instructions for accessing
and submitting an application through Grants.gov. The application
instructions will be posted as soon as they are available and once the
application materials are accessible through Grants.gov. The
anticipated release date for the application instructions is January 6,
2006. Applicants are encouraged to start the registration process now
at http://www.Grants.gov as the process may take several weeks to fully
complete. See the following link for information on getting started on
Grants.gov: http://grants.gov/assets/GrantsgovCoBrandBrochure8X11.pdf.
C. Paper Applications: If an applicant is unable to submit an
application through Grants.gov, it must submit to the Fund a request
for a paper application using the CDFI Program Paper Application
Submission Form, and the request must be received by 5 p.m. ET on
January 6, 2006 (for the FY 2006 Funding Round) or December 8, 2006
(for the FY 2007 Funding Round). The CDFI 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
CDFI Program Paper Application Submission Form should be directed to
the attention of the Fund's Chief Information Officer and must be sent
by facsimile to (202) 622-7754. These are not toll free numbers. Paper
applications must be submitted in the format and with the number of
copies specified in the application instructions.
D. Application Content Requirements: Detailed application content
requirements are found in the application and guidance. Please note
that, pursuant to OMB guidance (68 FR 38402), each Applicant must
provide, as part of its application submission, a Dun and Bradstreet
Data Universal Numbering System (DUNS) number. In addition, each
application must include a valid and current Employer Identification
Number (EIN), with a letter or other documentation from the Internal
Revenue Service (IRS) confirming the Applicant's EIN. An application
submitted through Grants.gov that does not include an EIN is incomplete
and will be deemed
[[Page 75867]]
ineligible. A paper application that does not include a valid EIN is
incomplete and will be rejected and returned to the sender. Applicants
should allow sufficient time for the IRS and/or Dun and Bradstreet to
respond to inquiries and/or requests for identification numbers. Once
an application is submitted, the Applicant will not be allowed to
change any element of the application. The preceding sentence does not
limit the Fund's ability to contact an Applicant for the purpose of
obtaining clarifying or confirming application information (such as a
DUNS number or EIN information).
E. MyCDFIFund Accounts: All Applicants must register User and
Organization accounts in myCDFIFund, the Fund's Internet-based
interface. As myCDFIFund is the Fund's primary means of communication
with Applicants and Awardees, organizations must make sure that they
update the contact information in their myCDFIFund accounts. For more
information on myCDFIFund, please see the ``Frequently Asked
Questions'' link posted at http://www.cdfifund.gov/myCDFI/Help/Help.asp
.
F. Application Deadlines; Address for Paper Submissions; Late
Delivery: Applicants must submit all materials described in and
required by the application by the applicable deadline.
1. Application Deadlines:
(a) FY 2006 Funding Round: Applications submitted via Grants.gov
must be received in accordance with the instructions provided by the
Fund, by 5 p.m. ET on February 13, 2006. In addition, Applicants must
separately submit (by mail or other courier/delivery service) any
required paper attachments at the address set forth below by 5 p.m. ET
on February 16, 2006. For applicants that have previously received
permission from the Fund to submit all application materials in paper,
said paper applications and all required attachments must be received
at the address set forth below by 5 p.m. ET on February 13, 2006.
(b) FY 2007 Funding Round: Applications submitted via Grants.gov
must be received in accordance with the instructions provided by the
Fund, by 5 p.m. ET on January 9, 2007. In addition, Applicants must
separately submit (by mail or other courier/delivery service) all
required paper attachments at the address set forth below by 5 p.m. ET
on January 12, 2007. For applicants that have previously received
permission from the Fund to submit all application materials in paper;
said paper applications and all required attachments must be received
at the address set forth below by 5 p.m. ET on January 9, 2007.
2. Address for Paper Submissions: A complete paper application (or,
in the case of an application submitted via Grants.gov, the required
paper submissions) must be received at the following address, within
the applicable deadline: CDFI Fund Grants Manager, CDFI Program, Bureau
of Public Debt, 200 Third Street, Parkersburg, WV 26101. The telephone
number to be used in conjunction with overnight delivery or mailings to
this address is (304) 480-6088 (this is not a toll free number). Any
documents received in any other office, including the Fund's
Washington, DC office, will be rejected and returned to the sender.
3. Late Delivery: The Fund will neither accept a late application
nor any portion of an application that is late; an application that is
late, or for which any portion is late, will be rejected and returned
to the sender. An application submitted via Grants.gov and all required
paper attachments must be received by the applicable time and date set
forth above. A paper application and all required paper attachments
must be received by the applicable time and date set forth above. The
Fund will not grant exceptions or waivers for late delivery of
documents including, but not limited to, late delivery that is caused
by third parties such as the United States Postal Service, couriers or
overnight delivery services.
D. Intergovernmental Review: Not applicable.
E. Funding Restrictions: For allowable uses of FA proceeds, please
see the Interim Rule at 12 CFR 1805.301.
V. Application Review Information
A. Criteria: The Fund will evaluate each application using numeric
scores with respect to the following five sections:
1. Market Analysis (TA-only Applicants: 25 points; Category I/SECA:
25 points; Category II/Core: 20 points:) The Fund will evaluate: (i)
The extent and nature of the economic distress within the designated
Target Market including the Applicant's understanding of its current
and prospective customers; and (ii) the extent of demand for the
Applicant's Financial Products, Development Services, and Financial
Services within the designated Target Market. The Fund will give
special consideration to any Applicant that has an office that is
located in, or that provides a significant volume of services or
financing to residents of or businesses located in, (i) any county that
is within the area declared to be a ``major disaster'' by FEMA as a
result of Hurricanes Katrina and/or Rita; and/or (ii) any state that
has been declared a ``reception state'' by FEMA. The form and content
of such special consideration will be further clarified in the CDFI
Program application.
2. Business Strategy (TA-only Applicants: 25 points; Category I/
SECA: 25 points; Category II/Core: 20 points): The Fund will evaluate
the Applicant's business strategy for addressing market demand and
creating community development impact through: (i) Its Financial
Products, Development Services, and/or Financial Services; (ii) its
marketing, outreach, and delivery strategy; and (iii) the extent,
quality and nature of coordination with other similar providers of
Financial Products and Financial Services, government agencies, and
other key community development entities within the Target Market. The
Fund will take into consideration whether the Applicant is proposing to
expand into a new Target Market.
3. Community Development Performance and Effective Use (TA-only
Applicants: 20 points; Category I/SECA: 20 points; Category II/Core: 20
points): The Fund will evaluate (i) the Applicant's vision for its
Target Market, specific outcomes or impacts for measuring progress
towards achieving this vision, and the extent to which this award will
allow it to achieve them; (ii) the Applicant's track record in
providing Financial Products, Financial Services, and Development
Services to the Target Market; (iii) the extent to which proposed
activities will benefit the Target Market; (iv) the likelihood of
achieving the impact projections, including the extent to which the
activities proposed in the Comprehensive Business Plan will expand
economic opportunities or promote community development within the
designated Target Market by promoting homeownership, affordable housing
development, job creation or retention, the provision of affordable
financial services, and other community development objectives; and (v)
the extent to which the Applicant will maximize the effective use of
the Fund's resources. If an Applicant has a prior track record of
serving Investment Areas(s) or Targeted Population(s), it must
demonstrate that (i) it has a record of success in serving said
Investment Area(s) or Targeted Population(s) and (ii) it will expand
its operations into a new Investment Area or to serve a new Targeted
Population, offer more products or services, or increase the volume of
its current business.
[[Page 75868]]
4. Management (TA-only Applicants: 20 points; Category I/SECA: 20
points; Category II/Core: 20 points): The Fund will evaluate the
Applicant's organizational capacity to achieve the objectives set forth
in its Comprehensive Business Plan as well as its ability to use its
award successfully and maintain compliance with its Assistance
Agreement through an evaluation of: (i) The capacity, skills, size and
experience of the Applicant's current and proposed Governing Board,
management team, and key staff; and (ii) the Applicant's management
controls and risk mitigation strategies including policies and
procedures for portfolio underwriting and review, financial management,
risk management, management information systems.
5. Financial Health and Viability (TA-only Applicants: 10 points;
Category I/SECA: 10 points; Category II/Core: 20 points): The Fund will
evaluate the Applicant's: (i) Audited or otherwise prepared Financial
Statements; (ii) safety and soundness, including an analysis of the
Applicant's financial services industry ratios (capital, liquidity,
deployment and self-sufficiency) and ability to sustain positive net
revenue; (iii) projected financial health, including its ability to
raise operating support from sources other than the Fund and its
capitalization strategy; and (iv) portfolio performance including loan
delinquency, loan losses, and loan loss reserves. If an Applicant does
not have 100 percent of the required matching funds in-hand (versus
committed), the Applicant must demonstrate to the satisfaction of the
Fund that it will raise the outstanding balance of matching funds
within the time table set forth above.
6. Technical Assistance Proposal: Any Applicant applying for 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 the 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 the
proposed uses of the TA award (described above). In addition, if the
Applicant identifies a capacity-building need related to any of the
evaluation criteria above (for example, if the Applicant requires a
market need analysis or a community development impact tracking/
reporting system), the Fund will assess its plan to use the TA grant to
address said needs. An Applicant that is not a Certified CDFI and that
requests TA to address certification requirements, must explain how the
requested TA grant will assist the Applicant in meeting the
certification requirement. The Fund will assess the reasonableness of
the plan to become certified by December 31, 2008 (for the FY 2006
Funding Round) or December 31, 2009 (for the FY 2007 Funding Round),
taking into account the requested TA. For example, if the Applicant
does not currently make loans and therefore does not meet the Financing
Entity requirement, it might describe how the TA funds will be used to
hire a consultant to develop underwriting policies and procedures to
support the Applicant's ability to start its lending activity. An
Applicant that requests a TA grant for recurring activities must
clearly describe the benefit that would accrue to its capacity or to
its Target Market(s) (such as plans for expansion of staff, market, or
products) as a result of the TA award. If the Applicant is a prior Fund
Awardee, it must describe how it has used the prior assistance and
explain the need for additional Fund dollars over and above such prior
assistance. Such an Applicant also must describe the additional
benefits that would accrue to its capacity or to the Target Market(s)
if the Applicant receives another award from the Fund, such as plans
for expansion of staff, market, or products. The Fund will not provide
funding for the same activities funded in prior awards.
B. Review and Selection Process: 1. Eligibility and Completeness
Review: The Fund will review each application to determine whether it
is complete and the Applicant meets the eligibility requirements set
forth above. An incomplete application will be rejected as incomplete
and returned to the sender. If an Applicant does not meet eligibility
requirements, its application will be rejected and returned to the
sender.
2. Substantive Review: If an application is determined to be
complete and the Applicant is determined to be eligible, the Fund will
conduct the substantive review of the application in accordance with
the criteria and procedures described in the Interim Rule, this NOFA
and the application and guidance. Each FA application will be reviewed
and scored by multiple readers. Each TA application will be read and
scored by one reader. Readers may include Fund staff and other experts
in community development finance. As part of the review process, the
Fund may contact the Applicant by telephone or through an on-site visit
for the purpose of obtaining clarifying or confirming application
information. The Applicant may be required to submit additional
information to assist the Fund in its evaluation process. Such requests
must be responded to within the time parameters set by the Fund.
3. Application Scoring; Ranking:
(a) Application Scoring: The Fund will evaluate each application on
a 100-point scale, comprising the five criteria categories described
above, and assign numeric scores. An Applicant must receive a minimum
score in each evaluation criteria in order to be considered for an
award. In the case of an Applicant that has previously received funding
from the Fund through any Fund program, the Fund will consider and will
deduct points for: (i) The Applicant's noncompliance with any active
award or award that terminated in calendar year 2005 (for FY 2006
Funding Round Applicants) and calendar year 2006 (for FY 2007 Funding
Round Applicants), in meeting its performance goals, financial
soundness covenants (if applicable), reporting deadlines and other
requirements set forth in the assistance or award agreement(s) with the
Fund during the Applicant's two complete fiscal years prior to the
application deadline of this NOFA (generally FY 2004 and FY 2005 for FY
2006 Funding Round Applicants and FY 2005 and FY 2006 for FY 2007
Funding Round Applicants); (ii) the Applicant's failure to make timely
loan payments to the Fund during the Applicant's two complete fiscal
years prior to the application deadline of this NOFA (if applicable);
(iii) performance on any prior Assistance Agreement as part of the
overall assessment of the Applicant's ability to carry out its
Comprehensive Business Plan; and (iv) funds deobligated from a FY 2003,
FY 2004 or FY 2005 FA award (if the Applicant is applying for a FA
award under this NOFA) if (A) the amount of deobligated funds is at
least $200,000 and (B) the deobligation occurred subsequent to the
expiration of the period of award funds availability (generally, any
funds deobligated after the September 30th following the year in which
the award was made). Any award deobligations that result in a point
deduction under an application submitted pursuant to either funding
round of this NOFA will not be counted against any future application
for FA through the CDFI Program. All questions regarding outstanding
reports or compliance should be directed to the Grants Manager by e-
mail at
[[Page 75869]]
grantsmanagement@cdfi.treas.gov; by telephone at (202) 622-8226; by
facsimile at (202) 622-7754; or by mail to CDFI Fund, 601 13th Street,
NW., Suite 200 South, Washington, DC 20005. These are not toll free
numbers. The Fund will respond to reporting or compliance questions
between the hours of 9 a.m. and 5 p.m. ET, starting the date of the
publication of this NOFA through February 9, 2006 (for the FY 2006
Funding Round) and January 5, 2007 (for the FY 2007 Funding Round). The
Fund will not respond to reporting or compliance phone calls or e-mail
inquiries that are received after 5 p.m. on February 9, 2006 (for the
FY 2006 Funding Round) and January 5, 2007 (for the FY 2007 Funding
Round) until after the applicable funding application deadline.
(b) Ranking: The Fund then will rank the applications by their
scores, from highest to lowest, as follows:
(i) TA-only Applicants and Category I/SECA Applicants will be
ranked from highest to lowest, based on each Applicant's scores for all
five criteria categories added together.
(ii) Category II/Core Applicants must receive scores in both the
Management category and the Financial Health and Viability category
that each equal at least 50 percent of the available points in each of
those sections. For Category II/Core Applicants that exceed this
threshold, the Fund will use the combined scores of the Market
Analysis, Product Design and Implementation Strategy, and Community
Development Performance categories to rank such Applicants, highest to
lowest.
4. Award Selection: The Fund will make its final award selections
based on the rank order of Applicants by their scores and the amount of
funds available. Subject to the availability of funding, the Fund will
award funding in the order of the ranking. TA-only Applicants, Category
I/SECA and Category II/Core Applicants will be ranked separately. In
addition, the Fund may consider the institutional and geographic
diversity of Applicants when making its funding decisions.
5. Insured CDFIs: In the case of Insured Depository Institutions
and Insured Credit Unions, the Fund will take into consideration the
views of the Appropriate Federal Banking Agencies; in the case of
State-Insured Credit Unions, the Fund may consult with the appropriate
State banking agencies (or comparable entity). The Fund will not
approve a FA award or a TA grant to any Insured Credit Union (other
than a State-Insured Credit Union) or Insured Depository Institution
Applicant that has a CAMEL rating that is higher than a ``3'' or for
which its Appropriate Federal Banking Agency indicates it has safety
and soundness concerns, unless the Appropriate Federal Banking Agency
asserts, in writing, that: (i) An upgrade to a CAMEL 3 rating or better
(or other improvement in status) is imminent and such upgrade is
expected to occur not later than September 30, 2006 (for the FY 2006
Funding Round) or September 30, 2007 (for the FY 2007 Funding Round) or
within such other time frame deemed acceptable by the Fund, or (ii) the
safety and soundness condition of the Applicant is adequate to
undertake the activities for which the Applicant has requested a FA
award and the obligations of an Assistance Agreement related to such a
FA award.
6. Award Notification: 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 written declination if
not selected for an award. Each Applicant that is not selected for an
award based on reasons other than completeness or eligibility issues
will be provided a written debriefing on the strengths and weaknesses
of its application. This feedback will be provided in a format and
within a timeframe to be determined by the Fund, based on available
resources. The Fund will notify Awardees by email using the addresses
maintained in the Awardee's myCDFIFund account (postal mailings will be
used only in rare cases).
7. The Fund reserves the right to reject an application if
information (including administrative errors) comes to the attention of
the Fund that either adversely affects an applicant's eligibility for
an award, or adversely affects the Fund's evaluation or scoring of an
application, or indicates fraud or mismanagement on the part of an
Applicant. If the Fund determines that any portion of the application
is incorrect in any material respect, the Fund reserves the right, in
its sole discretion, to reject the application. The Fund 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 website. There is no right to appeal the
Fund's award decisions. The Fund's award decisions are final.
VI. Award Administration Information
A. Notice of Award: The Fund will signify its conditional 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 the Awardee and the Fund enter
into an Assistance Agreement. The Applicant must execute the Notice of
Award and return it to the Fund. By executing a Notice of Award, the
Awardee agrees, among other things, that, if prior to entering into an
Assistance Agreement with the Fund, information (including
administrative error) 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, the Awardee
agrees that, if prior to entering into an Assistance Agreement with the
Fund, the Fund determines that the Awardee is in default of any
Assistance Agreement previously 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.
1. Failure to meet reporting requirements: If an Awardee, or an
entity that Controls the Awardee, is Controlled by the Awardee or
shares common management officials with the Awardee (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 Award, the Fund reserves the right, in its
sole discretion, to delay entering into an Assistance Agreement 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
[[Page 75870]]
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
Award and the award made under this NOFA.
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 Assistance Agreement, 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
Assistance Agreement, 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 Award and the award made under this NOFA.
3. Default status: If, at any time prior to entering into an
Assistance Agreement through this NOFA, the Fund has made a final
determination that an Awardee 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), the Fund reserves the
right, in its sole discretion, to delay entering into an Assistance
Agreement, 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 Assistance Agreement through this NOFA, the
Fund has made a final determination that another entity that Controls
the Awardee, is Controlled by the applicant or shares common management
officials with the Awardee (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), the
Fund reserves the right, in its sole discretion, to delay entering into
an Assistance Agreement, 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 Award and the award made under this NOFA.
4. Termination in default: If (i) the Fund has made a final
determination that an Awardee 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 (ii) the final reporting period
end date for the applicable terminated agreement falls in Calendar Year
2005 (for the FY 2006 Funding Round) or Calendar Year 2006 (for the FY
2007 Funding Round), the Fund reserves the right, in its sole
discretion, to delay entering into an Assistance Agreement. Further, if
(i) the Fund has made a final determination that another entity that
Controls the Awardee, is Controlled by the Awardee or shares common
management officials with the Awardee (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 (ii)
the final reporting period end date for the applicable terminated
agreement falls in Calendar Year 2005 (for the FY 2006 Funding Round)
or Calendar Year 2006 (for the FY 2007 Funding Round), the Fund
reserves the right, in its sole discretion, to delay entering into an
Assistance Agreement.
5. Deobligated awards: An Awardee that receives a FA award pursuant
to this NOFA for which an amount over $200,000 is deobligated by the
Fund subsequent to the expiration of the period of award funds
availability (generally, any funds deobligated after the September 30th
following the year in which the award was made) but within the 12
months prior to the applicable application deadline, may not apply for
a new award through another NOFA for one CDFI or NACA Program funding
round after the date of said deobligation.
B. Assistance Agreement: Each Applicant that is selected to receive
an award under this NOFA must enter into an Assistance Agreement with
the Fund in order to receive disbursement of award proceeds. The
Assistance Agreement will set forth certain required terms and
conditions of the award, which will include, but not be limited to: (i)
The amount of the award; (ii) the type of award; (iii) the approved
uses of the award; (iv) the approved Target Market to which the funded
activity must be targeted; (v) performance goals and measures; and (vi)
reporting requirements for all Awardees. FA and FA/TA Assistance
Agreements under this NOFA generally will have three-year performance
periods; TA-only Assistance Agreements generally will have two-year
performance periods.
The Fund reserves the right, in its sole discretion, to terminate
the Notice of Award and rescind an award if the Awardee fails to return
the Assistance Agreement, signed by the authorized representative of
the Awardee, and/or provide the Fund with any other requested
documentation, within the deadlines set by the Fund.
In addition to entering into an Assistance Agreement, each Awardee
that receives an award either (i) in the form of a loan, equity
investment, credit union shares/deposits, or secondary capital, in any
amount, or (ii) 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: (A) Is duly formed and in
good standing in the jurisdiction in which it was formed and/or
operates; (B) has the authority to enter into the Assistance Agreement
and undertake the activities that are specified therein; and (C) 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. Each other Awardee must provide the Fund with a
good standing certificate (or equivalent documentation) from its state
(or jurisdiction) of incorporation.
C. Reporting: 1. Reporting requirements: The Fund will collect
information, on at least an annual basis, from each Awardee including,
but not limited to, an Annual Report that comprises the following
components: (i) Financial Report; (ii) Institution Level Report; (iii)
Transaction Level Report (for Awardees receiving FA); (iv) Financial
Status Report (for Awardees receiving TA); (v) Uses of Financial
[[Page 75871]]
Assistance and Matching Funds Report (for Awardees receiving Financial
Assistance); (vi) Explanation of Noncompliance (as applicable); and
(vii) such other information as the Fund may require. Each Awardee is
responsible for the timely and complete submission of the Annual
Report, even if all or a portion of the documents actually is completed
by another entity or signatory to the Assistance Agreement. If such
other entities or signatories are required to provide Institution Level
Reports, Transaction Level Reports, Financial Reports, or other
documentation that the Fund may require, the Awardee is responsible for
ensuring that the information is submitted timely and complete. The
Fund reserves the right to contact such additional signatories to the
Assistance Agreement and require that additional information and
documentation be provided. The Fund will use such information to
monitor each Awardee's compliance with the requirements set forth in
the Assistance Agreement and to assess the impact of the CDFI Program.
The Institution Level Report and the Transaction Level Report must be
submitted through the Fund's web-based data collection system, the
Community Investment Impact System (CIIS). The Financial Report may be
submitted through CIIS, or by fax or mail to the Fund. All other
components of the Annual Report may be submitted to the Fund in paper
form or other form to be determined by the Fund. 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 notice to Awardees.
2. Accounting: The Fund will require each Awardee that receives FA
and TA awards through this NOFA to account for and track the use of
said FA and TA awards. This means that for every dollar of FA and TA
awards received from the Fund, the Awardee will be required to inform
the Fund of its uses. This will require Awardees to establish separate
administrative and accounting controls, subject to the applicable OMB
Circulars. The Fund will provide guidance to Awardees outlining the
format and content of the information to be provided on an annual
basis, outlining and describing how the funds were used. Each Awardee
that receives an award must provide the Fund with the required complete
and accurate Automated Clearinghouse (ACH) form for its bank account
prior to award closing and disbursement.
VII. Agency Contacts
The Fund will respond to questions and provide support concerning
this NOFA and the funding application between the hours of 9 a.m. and 5
p.m. ET, starting the date of the publication of this NOFA through
February 9, 2006 (for the FY 2006 Funding Round) and January 5, 2007
(for the FY 2007 Funding Round). The Fund will not respond to questions
or provide support concerning the application that are received after 5
p.m. ET on said dates, until after the respective funding application
deadline. 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 CDFI 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 creating an Investment Area map
using the Fund's website 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 NOFA, contact the Fund's Program
office 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. Grants Management Support: If you have any questions regarding
the administrative requirements of this NOFA, including questions
regarding submission requirements, contact the Fund's Grants Manager by
e-mail at grantsmanagement@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. Compliance and Monitoring Support: If you have any questions
regarding the compliance requirements of this NOFA, including questions
regarding performance on prior awards, contact the Fund's Compliance
Manager by e-mail at cme@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.
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. Further, if
you wish to review the Assistance Agreement form document from a prior
funding round, you may find it posted on the Fund's Web site (please
note that there may be revisions to the Assistance Agreement that will
be used for Awardees under this NOFA and thus the sample document on
the Fund's website should not be relied upon for purposes of this
NOFA).
F. Communication with the CDFI Fund: The Fund will use its
myCDFIFund Internet interface to communicate with Applicants and
Awardees under this NOFA. Awardees must use myCDFIFund to submit
required reports. The Fund will notify Awardees by e-mail using the
addresses maintained in each Awardee's myCDFIFund account. Therefore,
the Awardee and any Subsidiaries, signatories, and Affiliates must
maintain accurate contact information (including contact person and
authorized representative, e-mail addresses, fax numbers, phone
numbers, and office addresses) in their myCDFIFund account(s). For more
information about myCDFIFund, please see the Help documents posted at
https://www.cdfifund.gov/myCDFI/Help/Help.asp.
VIII. Information Sessions and Outreach
In connection with the Fiscal Year 2006 and FY 2007 Funding Round,
the Fund may conduct Information Sessions to disseminate information to
organizations contemplating applying to, and other organizations
interested in learning about, the Fund's programs. For further
information on the Fund's Information Sessions, dates and locations, or
to register to attend an Information Session, please visit the Fund's
Web site at http://www.cdfifund.gov or call the Fund at (202) 622-9046.
Authority: 12 U.S.C. 4703, 4703 note, 4704, 4706, 4707, 4717;
12 CFR part 1805.
Dated: December 15, 2005.
Arthur A. Garcia,
Director, Community Development Financial Institutions Fund.
[FR Doc. E5-7629 Filed 12-20-05; 8:45 am]
BILLING CODE 4810-70-P