[Federal Register: August 31, 2007 (Volume 72, Number 169)]
[Notice]
[Page 50446-50457]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31au07-166]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund; Funding
Opportunity Title: Notice of Funds Availability (NOFA) Inviting
Applications for the FY 2008 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 2008 funding round of the CDFI Program
must be received by 5 p.m. ET on Wednesday, October 31, 2007.
EXECUTIVE SUMMARY: Subject to funding availability, this NOFA is issued
in connection with the FY 2008 funding round of the CDFI Program.
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 existing or
proposed Target Markets 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 2008 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 and TA grants; (ii) approximately $22 million in
appropriated funds may be awarded to Category II/Core Applicants in the
form of FA awards and TA; and (iii)
[[Page 50447]]
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,
and/or more or less than $2 million to TA-only Applicants) in the FY
2008 Funding Round, provided that the funds are available and the Fund
deems it appropriate.
2. Availability of Funds for the FY 2008 Funding Round of the CDFI
Program: Funds for the FY 2008 funding round of the CDFI Program (the
FY 2008 Funding Round) have not yet been appropriated. If funds are not
appropriated for the FY 2008 Funding Round, there will not be a FY 2008
Funding Round. Further, it is possible that if funds are appropriated
for the FY 2008 Funding Round, the amount of such funds may be greater
than or less than the amounts set forth above. Further, if funds for
the FY 2008 funding round of the Native American CDFI Assistance (NACA)
Program are not appropriated, entities that are eligible to apply for
CDFI Program funds and that might otherwise have applied for NACA
Program funds, are encouraged to apply for CDFI Program funds through
the FY 2008 Funding Round.
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 only.
1. FA Awards: FA is intended to provide flexible financial support
to CDFIs so that they may achieve the strategies outlined in their
Comprehensive Business Plans. A FA award can be requested by an
Applicant for use in the following four categories of activity:
Financial Products, Loan Loss Reserves, Capital Reserves, and/or
Operations. For purposes of this NOFA, Financial Products means: loans,
grants, equity investments and similar financing activities, including
the purchase of loans originated by certified CDFIs and the provision
of loan guarantees, in its Target Market, or for related purposes that
the Fund deems appropriate. Loan Loss Reserves means: funds that the
Applicant will set aside in the form of cash, or through accounting-
based accrual, reserves to cover losses on loans, accounts and notes
receivable made in its Target Market. Capital Reserves means: funds
that the Applicant will set aside in the form of reserves to support
the Applicant's ability to leverage other capital, such as by
increasing its net assets, to serve the financing needs of its Target
Market, or for related purposes that the Fund deems appropriate.
Operations means: funds that the Applicant will use to undertake
Development Services, Financial Services, and/or for related purposes
that the Fund deems appropriate. The most common use of FA is for the
Applicant's Financial Products: A FA award can be a critical source of
funding to support the Applicant's community development lending
activities. 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 to a Category I/SECA Applicant 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 and the applicable budget chart.
(b) TA grants may be used to address a variety of needs including,
but not limited to, development of strategic planning documents (such
as 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 a scope of work, to include
information regarding the expected cost, the likely provider of the TA,
a description of the anticipated timing of the expenditures, 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. TA
funds must be used to support the Applicant's activities; TA funds
cannot be used to support the creation of a new entity or activities of
an entity.
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:
[[Page 50448]]
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FA applicant category Criteria What can it apply for?
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Category I/Small and/or Emerging CDFI A Category I/SECA Applicant is a A Category I/SECA Applicant
Assistance (SECA) Certified CDFI that: Has total assets, may request up to and
as of the end of the Applicant's most including $500,000 in FA
recent fiscal year end or September 30, funds, and up to $100,000 in
2007, as follows: 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,
2004 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 that meets all other may request up to and
eligibility requirements described in including $2 million in FA
this. funds, and up to $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
financing activity start date indicated in the Applicant's myCDFIFund
account. Also, for purposes of this NOFA, the term ``Native Initiatives
Funding Programs'' refers to the Native American CDFI Assistance (NACA)
Program and all prior funding programs, through which funds are no
longer available, including the Native American CDFI Technical
Assistance (NACTA) Component of the CDFI Program, the Native American
CDFI Development (NACD) Program, and the Native American Technical
Assistance (NATA) Component of the CDFI 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:
----------------------------------------------------------------------------------------------------------------
TA applicants Criteria What can it apply for?
----------------------------------------------------------------------------------------------------------------
All TA Applicants..................... A TA Applicant must be a Certified CDFI, The Fund anticipates making TA
a Certifiable CDFI, or an Emerging grants up to $100,000 each.
CDFI.
----------------------------------------------------------------------------------------------------------------
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
Wednesday, October 17, 2007, 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 2008 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 Wednesday, October 17, 2007, 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, 2010 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 certain date.
4. Limitation on Awards: An Applicant may receive only one award
through the CDFI Program in the funding round. 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;
[[Page 50449]]
refer to the Interim Rule at 12 CFR 1805.102).
5. Contacting the Fund. The Fund will respond to questions and
provide support concerning CDFI certification related to the FY 2008
Funding Round between the hours of 9 a.m. and 5 p.m. ET, through
Monday, October 15, 2007. The Fund will not respond to questions or
provide support concerning CDFI certification, related to the FY 2008
Funding Round, that are received after 5 p.m. ET on Monday, October 15,
2007. 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 NOFA, and for ease of administration, the Fund will consider any
assistance documented with a Notice of Award dated between July 31,
2005 and July 31, 2008 (which is the anticipated date that the Fund
will issue Notices of Award for the FY 2008 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 within the 12-month period prior to the application
deadline of this NOFA. 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 within the 12-month period prior to the application deadline of
this NOFA.
6. Undisbursed award funds: 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
award 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 award 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 award 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 award funds.
For purposes of the calculation of undisbursed award funds for the
BEA Program, only awards made to the Applicant (and any Affiliates)
three to five calendar years prior to the end of the calendar year of
the application deadline of this NOFA are included (``includable BEA
awards''). Thus, for purposes of this NOFA, undisbursed BEA Program
award funds are the amount of FYs 2002, 2003 and 2004 awards that
remain undisbursed as of the application deadline of this NOFA.
For purposes of the calculation of undisbursed award funds for the
CDFI Program and the Native Initiatives
[[Page 50450]]
Funding Programs, only awards made to the Applicant (and any
Affiliates) two to five calendar years prior to the end of the calendar
year of this NOFA are included (``includable CDFI/NI awards''). Thus,
for purposes of this NOFA, undisbursed CDFI Program and NI awards are
the amount of FYs 2002, 2003, 2004 and 2005 awards that remain
undisbursed as of the application deadline of this NOFA.
To calculate total includable BEA/CDFI/NI awards: amounts that are
undisbursed as of the application deadline of this NOFA cannot exceed
five percent (5%) of the total includable awards. Please refer to an
example of this calculation on the Fund's Web site, found in the Q&A
document for the FY 2008 Funding Round.
The ``undisbursed award funds'' calculation 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 in writing by the Fund 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. An Applicant that is unsure about
the disbursement status of any prior award should contact the Fund's
Financial Manager via e-mail at CDFI.disburseinquiries@cdfi.treas.gov
for more information, no less than thirty (30) calendar days prior to
the application deadline of this NOFA. Requests submitted less than
thirty calendar days prior to the application deadline may not receive
a response before the application deadline.
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 award funds) 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 was 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). Disbursement questions should be directed to Grants
Management via e-mail to grantsmanagement@cdfi.treas.gov. Reporting and
compliance questions should be directed to Compliance, Monitoring and
Evaluation (CME) by e-mail to cme@cdfi.treas.gov. Telephone calls to
Grants Management and CME should be directed to (202) 622-8226;
facsimiles to (202) 622-7754; and 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 Monday, October 29, 2007 (two business days before
the application deadline). The Fund will not respond to Applicants'
reporting, disbursement or compliance phone calls or e-mail inquiries
that are received after 5 p.m. ET on said date, until after the funding
application deadline.
9. 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: 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
[[Page 50451]]
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 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 of 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,
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, 2009 (with required documentation of such receipt received by
the Fund not later than March 31, 2009), 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, 2009.
(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 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 100 percent of
the required matching funds by March 14, 2009 (with required
documentation of such receipt received by the Fund not later than March
31, 2009), 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, deposit, 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. The Fund will assess the likelihood of this
increase during the application review process. An award will not be
made to any Applicant that has not demonstrated that it has increased
shares or loans by at least 25 percent of the requested FA award amount
between December 31, 2006 and December 31, 2007, as demonstrated by the
corresponding NCUA 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 was 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 was 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
[[Page 50452]]
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 the required
matching funds by December 31, 2008 (with required documentation of
such receipt received by the Fund not later than December 15, 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 the
required 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 December 31, 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 only electronically, through Grants.gov.
Applications sent by mail, facsimile or other form will not be
accepted. The Fund will not accept applications in paper form, other
than the assigned signature page and certain paper attachments, as
specified below and in the application.
B. Grants.gov: For the FY 2008 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 Thursday,
August 30, 2007. 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. Application Content Requirements: Detailed application content
requirements are found in the application and guidance. Please note
that, pursuant to OMB guidance (68 Federal Register 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. 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).
D. 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 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.
E. Application Deadlines: Applicants must submit all materials
described in and required by the application by the applicable
deadline.
1. Application Deadlines: Applications submitted via Grants.gov
must be received in accordance with the instructions provided by the
Fund, by 5 p.m. ET on Wednesday, October 31, 2007. 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 Friday, November 2, 2007.
2. 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. An
application submitted via Grants.gov 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. Any application that is deemed ineligible
will not be returned to the Applicant.
F. INTERGOVERNMENTAL REVIEW: Not applicable.
G. FUNDING RESTRICTIONS: For allowable uses of FA proceeds, please
see the Interim Rule at 12 C.F.R. 1805.301.
V. Application Review Information
A. Criteria: The Fund will evaluate each application on a 100-point
scale 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.
[[Page 50453]]
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); (ii) it will offer more
Financial Products or Development Services and/or increase the volume
of its current activities in the Target Market; and/or (iii) it will
expand its operations into a larger Target Market.
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 by
March 14, 2009.
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 Comprehensive
Business Plan, 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, 2010, 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
does not meet eligibility requirements and will be rejected. Any
application that does not meet eligibility requirements will not be
returned to the Applicant.
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, e-mail, mail, or through
an on-site visit for the sole purpose of obtaining clarifying or
confirming application information (such as statements of work,
r[eacute]sum[eacute]s, EINs, Duns numbers, for example). After
submitting its application, the Applicant will not be permitted to
revise or modify its application in any way nor attempt to negotiate
the terms
[[Page 50454]]
of an award. If contacted for clarifying or confirming information, the
Applicant must respond 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 2007 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; (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 2004, FY 2005 or FY 2006 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 Compliance, Monitoring and Evaluation by e-mail to
cme@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 Monday, October 29, 2007.
(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, Business Strategy, and Community Development Performance and
Effective Use 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, 2008 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 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 through its myCDFIFund account. 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
[[Page 50455]]
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 any 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 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
within the 12-month period prior to the application deadline of this
NOFA, 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 within the 12-month period prior
to the application deadline of this NOFA, 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 the NOFA for another CDFI Fund 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
[[Page 50456]]
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, 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
Monday, October 29, 2007. 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 Management
unit by e-mail at grantsmanagement@cdfi.treas.gov, by telephone at
(202) 622-8226, 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.
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) 622-7754, 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
[[Page 50457]]
for funding. Awardees must use myCDFIFund to submit required reports.
The Fund will notify Awardees by email 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, email 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.
Kimberly A. Reed,
Director, Community Development Financial Institutions Fund.
[FR Doc. E7-17324 Filed 8-30-07; 8:45 am]
BILLING CODE 4810-70-P