[Federal Register Volume 60, Number 202 (Thursday, October 19, 1995)]
[Notices]
[Pages 54136-54137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25723]




[[Page 54135]]

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Part IV





Department of the Treasury





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Community Development Financial Institutions Fund



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Community Development Financial Institutions Program; Funds 
Availability Inviting Applications; Notice

  Federal Register / Vol. 60, No. 202 / Thursday, October 19, 1995 / 
Notices   

[[Page 54136]]


DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Funds Availability (NOFA) Inviting Applications for the 
Community Development Financial Institutions Program

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

Action: Notice of funds availability inviting applications.

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SUMMARY: The Community Development Banking and Financial Institutions 
Act of 1994 (12 U.S.C. 4701 et seq.) (hereafter referred to as the 
``Act'') authorizes the Community Development Financial Institutions 
Fund (hereafter referred to as ``the Fund'') to select and provide 
financial and technical assistance to eligible applicants under the 
Community Development Financial Institutions (``CDFI'') Program. The 
Fund reserves the right to award assistance under this Notice up to the 
maximum amount authorized by law. As of the date of this Notice and 
subject to funding availability, the Fund intends to award up to $31 
million in CDFI Program funds. The Fund may award in excess of $31 
million if more funds become available. The interim rule (12 CFR part 
1805) published separately in today's Federal Register provides 
guidance on the contents of the necessary application materials and 
program requirements.

DATES: Applications may be submitted at any time after October 19, 
1995. The deadline for receipt of an application is 4 p.m. Eastern 
Standard Time on Friday, December 22, 1995. Applications received after 
that date and time will not be accepted and will be returned to the 
sender.

ADDRESSES: Applications may be obtained from the office of the Fund 
listed below or by telephone at (202) 622-8662. (This is not a toll-
free number.) Applications must be sent to: The Community Development 
Financial Institutions Fund, U.S. Department of the Treasury, 1500 
Pennsylvania Avenue NW., Room 5116, Washington, DC 20220. Applications 
sent by FAX will not be accepted.

FOR FURTHER INFORMATION CONTACT: The Community Development Financial 
Institutions Fund, U.S. Department of the Treasury, 1500 Pennsylvania 
Avenue NW., Room 5116, Washington, DC 20220, (202) 622-8662. (This is 
not a toll-free number.)

SUPPLEMENTARY INFORMATION:

I. Background

    Credit and investment capital are essential ingredients in creating 
and retaining jobs, developing affordable housing, starting or 
expanding businesses, revitalizing neighborhoods, and empowering 
people. As a key urban and rural policy initiative, the CDFI Program 
will facilitate the creation of a national network of financial 
institutions that are specifically dedicated to community development. 
This strategy will build sustainable institutions that make loans and 
investments and provide services to economically distressed investment 
areas and disadvantaged targeted populations. The Act, enacted to 
implement this vision, authorizes the Fund to select entities to 
receive financial and technical assistance. New institutions are 
eligible to receive start-up assistance. Institutions in operation at 
the time of application are eligible to receive assistance to expand 
their activities. This Notice invites applications from eligible 
applicants for the purpose of promoting community development 
activities and revitalization.

II. Eligibility

    The Act specifies the requirements that each applicant must meet in 
order to be considered a CDFI. Entities that meet, or propose to meet, 
these requirements are eligible to apply for assistance. In general, a 
CDFI must have a primary mission of promoting community development, 
provide lending or investments, serve an investment area or a targeted 
population, provide development services, maintain community 
accountability, and be a non-government entity. The details of these 
requirements and other program requirements are described in the 
interim rule governing the CDFI Program (12 CFR part 1805) which is 
published separately in today's Federal Register.

III. Types of Assistance

    The Fund will award up to an estimated $31 million of appropriated 
funds in CDFI Program assistance. Of assistance amounts available, the 
Fund may use up to $4 million to cover the costs of direct loans. The 
funds available to cover the cost of direct loans may be used to 
support loans with a total principal amount not to exceed $31.6 
million. An applicant may submit an application for financial 
assistance, technical assistance, or both. All applicants must submit 
the materials described in 12 CFR 1805.700 and the application packet. 
Applicants for financial assistance shall indicate the dollar amount, 
form, terms, and conditions of assistance requested. Applicants for 
technical assistance shall describe the types of technical assistance 
requested, estimate the cost to obtain such assistance, and provide a 
narrative justification of its needs for such assistance.
    An applicant may seek certification from the Fund that it meets the 
eligibility requirements of a CDFI regardless of whether it is 
submitting an application for assistance. Such an applicant shall 
submit a letter requesting certification and the materials described in 
12 CFR 1805.701 and the application packet.

IV. Matching Funds

    Applicants selected to receive assistance under this Notice must 
have firm commitments for the matching funds required pursuant to 12 
CFR 1805.600 by not later than July 1, 1996. The Fund may recapture and 
reprogram funds if an applicant fails to raise the required match by 
such date.

V. Selection Factors

    Applications will be selected on a competitive basis. The interim 
rule specifies three categories of selection factors: (1) Financial and 
organizational capacity; (2) strength of external resources; and (3) 
community impact. Such categories are based on criteria outlined in the 
Act and will be utilized by the Fund in selecting applications for 
assistance. Each of the categories is discussed in greater detail in 
the interim rule. The Fund may give additional consideration to 
applicants that have secured firm commitments for all of the matching 
funds at the time of submission of an application. The Fund may also 
give additional consideration to applicants that dedicate the greatest 
portion of their total resources to lending, investment, or provision 
of Development Services. The Fund has sole discretion in the selection 
of applications for assistance. The anticipated maximum award per 
applicant under this Notice is $2 million. However, the Fund, in its 
sole discretion, reserves the right to award amounts in excess of $2 
million for applications of exceptional merit.

VI. Workshops

    The CDFI Fund will host two workshops to disseminate information to 
organizations interested in applying for assistance under the CDFI 
Program and the Bank Enterprise Awards Program (12 CFR part 1806). The 

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workshops will be held on Monday, November 13, 1995 in Washington, DC 
and on Friday, November 17, 1995 in Los Angeles, California. To 
register for a workshop call Skip Cooper at (310) 417-5170.

VII. Other Matters

    (a) Paperwork Reduction Act. The reader should refer to the interim 
rule (12 CFR part 1805) published separately in today's Federal 
Register for details on the information collection requirements of the 
rule and this Notice.
    (b) Environmental Impact. Pursuant to Treasury Directive 75-02, the 
Department of the Treasury has determined that implementation of the 
CDFI Program under the interim rule is categorically excluded from the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332) and does not 
require an environmental review. The determination is available for 
public inspection between 9:30 a.m. and 4:30 p.m. weekdays at the 
office of the Fund.

    Authority: 12 U.S.C. 4703, 4717: Chapter X, Pub. L. 104-19, 109 
Stat. 237; 12 CFR 1805.700.

    Dated: October 11, 1995.
John D. Hawke, Jr.,
Under Secretary (Domestic Finance).
[FR Doc. 95-25723 Filed 10-18-95; 8:45 am]
BILLING CODE 4810-70-P