[Federal Register: August 28, 2006 (Volume 71, Number 166)]
[Notices]
[Page 50983-50993]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28au06-102]
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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 2007 Funding Round of the
Community Development Financial Institutions (CDFI) Program.
Announcement Type: Initial announcement of funding opportunity.
Catalog of Federal Domestic Assistance (CFDA) Number: 21.020.
DATES: Applications for the FY 2007 Funding Round of the CDFI Program
must be received by 5 p.m. ET on November 14, 2006.
Executive Summary: On December 21, 2005, the Community Development
Financial Institutions Fund (the Fund) published a NOFA in the Federal
Register (70 FR 75860) in connection with two consecutive funding
rounds of the CDFI Program: (i) The FY 2006 Funding Round and (ii) the
FY 2007 Funding Round. Through this revised NOFA, the Fund announces
revised dates for the FY 2007 Funding Round. Because the FY 2006
Funding Round is now complete, this revised NOFA is being issued for
the FY 2007 Funding Round only. Parties interested in the FY 2007
Funding Round should review and refer to this revised NOFA,
disregarding the December 21, 2005 NOFA, as the FY 2007 Funding Round
dates in the December 21, 2005 NOFA have been changed.
I. Funding Opportunity Description
A. Through the CDFI Program, the Fund provides: (i) Financial
Assistance (FA) awards to 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
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 2007 Funding Round
Through this NOFA, and subject to funding availability, the Fund
expects that it may award approximately $26 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 $22 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 $26 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 $22 million to Category II/Core Applicants) in
the FY 2007 Funding Round, provided that the funds are available and
the Fund deems it appropriate.
2. Availability of Funds for the FY 2007 Funding Round
Funds for the FY 2007 Funding Round have not yet been appropriated.
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
[[Page 50984]]
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 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?
----------------------------------------------------------------------------------------------------------------
Category I/Small and/or Emerging CDFI A Category I/SECA Applicant is a Certified A Category I/SECA Applicant
Assistance (SECA). CDFI or Certifiable CDFI that: may request up to and
Has total assets, as of the end of the including $500,000 in FA
Applicant's most recent fiscal year end funds, and up to and
or September 30, 2006, as follows: including $100,000 in TA
funds.
Insured Depository Institutions
and Depository Institution Holding
Companies: 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 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.
Category II/Core..................... A Category II/Core Applicant is a A Category II/Core Applicant
Certified CDFI or a Certifiable CDFI that may request up to and
meets all other eligibility requirements including $2 million in FA
described in this NOFA. 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
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What can it apply
TA applicants Criteria for?
------------------------------------------------------------------------
All TA Applicants........... A TA Applicant must The Fund anticipates
be a Certified making TA grants up
CDFI, a Certifiable to $100,000 each.
CDFI, or an
Emerging CDFI.
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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 that its
certification has been terminated. Each such Applicant must submit a
``Certification of Material Event Form'' to the Fund not later than
October 11, 2006, 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 October 11, 2006, or such other
dates as the Fund may proscribe, evidencing that the Applicant meets
the requirements to be certified as a CDFI.
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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, 2009 or
such other date selected by the Fund. 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.
4. Contacting the Fund
The Fund will respond to questions and provide support concerning
CDFI certification related to this NOFA between the hours of 9 a.m. and
5 p.m. ET, through October 4, 2006. The Fund will not respond to
questions or provide support concerning CDFI certification, related to
this NOFA, that are received after 5 p.m. ET on October 4, 2006, until
after the deadline for submitting applications under this NOFA. The
CDFI Certification Application and other information regarding CDFI
certification may be obtained from the Fund's Web site at http://www.cdfifund.gov
.
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. In
general, the three-year period extends back three years from the date
that the Fund signs a Notice of Award; for purposes of this revised
NOFA, and for ease of administration, the Fund will count any
assistance documented with a Notice of Award dated between July 31,
2004 and July 31, 2007 (which is the anticipated date that the Fund
will issue Notices of Award for the FY 2007 Funding Round).
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) Within the 12-month period prior to the applicable application
deadline of this NOFA, 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
2006. Further, an entity is not eligible to apply for an award pursuant
to this NOFA if: (i) Within the 12-month period prior to the applicable
application deadline, 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 Calendar Year
2006.
6. Undisbursed Balances
The Fund will not consider an application submitted by an Applicant
that is a prior Fund Awardee under any
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Fund program if the Applicant has a balance of undisbursed funds
(defined below) under said prior award(s), as of the 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 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 under this NOFA.
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 November 10,
2006 (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
[[Page 50987]]
peoples of Guam, Samoa or other Pacific Islands.
E. Matching Funds
1. Matching Funds Requirements in General
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 1805.500 et
seq. and matching funds guidance materials on the Fund's Web site 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: 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: 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 5, 2006 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
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.
[[Page 50988]]
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, 2006 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 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 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 14, 2008. 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)
electronically (via an Internet-based application) or (ii) in paper
form. Applications sent by facsimile or other form will not be
accepted.
B. Electronic Applications
Electronic applications must be submitted solely by using the
Fund's Web site and must be sent in accordance with the submission
instructions provided in the electronic application form. Applications
are accessible only through an active myCDFIFund account (see Section
E, below). Applicants must have 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; incomplete applications cannot be submitted. Please note
that each application must include the signature of the Applicant's
Authorized Representative and certain supporting documentation; for an
electronic application, the Applicant must submit such documents
separately, in paper form, to the address and by the deadlines set
forth below. Additional information, including instructions relating to
the submission of signature forms and supporting information, is set
forth in further detail in the electronic application.
C. 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
CDFI Program Paper Application Submission Form, and the request must be
received by 5 p.m. ET on October 11, 2006. 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 electronic application that does not include an EIN
is incomplete and cannot be transmitted to the Fund. 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. An Applicant must be
registered as both a User and an Organization in myCDFIFund as of the
applicable application deadline in order to be considered to have
submitted a
[[Page 50989]]
complete application. 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 https://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
Electronic applications must be received by the Fund via the
Applicant's myCDFIFund account and in accordance with the instructions
provided on the Fund's Web site, by 5 p.m. ET on November 14, 2006. In
addition, Applicants that submit electronic applications must
separately submit (by mail or other courier/delivery service) a
signature page, signed by the Applicant's Authorized Representative,
and all other required paper attachments; said documents must be
received at the address set forth below by 5 p.m. ET on November 17,
2006. Paper applications, including the requisitesigned signature page
and all attachments, must be received at the address set forth below by
5 p.m. ET on November 17, 2006.
2. Address for Paper Submissions
A complete paper application (or, in the case of an electronic
application, 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
electronic application, the required signed signature page, and all
required paper attachments must be received by the applicable time and
date set forth above. A paper application, including the required
signed signature page, 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.
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.
[[Page 50990]]
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, 2009, 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 2006 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 2005 and FY 2006); (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
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 November 10, 2006. The Fund will not
respond to reporting or compliance phone calls or e-mail inquiries that
are received after 5 p.m. on November 10, 2006 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
[[Page 50991]]
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, 2007 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 E-mail 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 Web site. 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 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
[[Page 50992]]
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) within the 12-month period 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 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
2006, the Fund reserves the right, in its sole discretion, to delay
entering into an Assistance Agreement. Further, if (i) within the 12-
month period 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 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 2006, 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 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 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,
[[Page 50993]]
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
November 10, 2006. 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 Web site 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 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 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 Web site is
provided for illustrative purposes only and should not be relied on 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. Applicants must register
through myCDFIFund in order to submit a complete application for
funding. 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
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: August 22, 2006.
Arthur A. Garcia,
Director, Community Development Financial Institutions Fund.
[FR Doc. E6-14253 Filed 8-25-06; 8:45 am]
BILLING CODE 4810-70-P