[Federal Register Volume 64, Number 210 (Monday, November 1, 1999)]
[Notices]
[Pages 59094-59096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28282]
Federal Register / Vol. 64, No. 210 / Monday, November 1, 1999 /
Notices
[[Page 59094]]
DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Notice of Funds Availability (NOFA) Inviting Applications for the
Community Development Financial Institutions Program--Core Component
AGENCY: Community Development Financial Institutions Fund, Department
of the Treasury.
ACTION: Notice of Funds Availability (NOFA) inviting applications.
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SUMMARY: The Community Development Banking and Financial Institutions
Act of 1994 (12 U.S.C. 4701 et seq.) (the ``Act'') authorizes the
Community Development Financial Institutions Fund (the ``Fund'') of the
U.S. Department of the Treasury to select and provide financial and
technical assistance to eligible applicants under the Community
Development Financial Institutions (``CDFI'') Program. The interim rule
(12 CFR part 1805), most recently published in the Federal Register on
April 4, 1997 (62 FR 16444), and now revised and published elsewhere in
this issue of the Federal Register, provides guidance on the contents
of the necessary application materials, evaluation criteria and other
program requirements. More detailed application content requirements
are found in the application packet. While the Fund encourages
applicants to review the interim rule, all of the application content
requirements and the evaluation criteria contained in the interim rule
are also contained in the application packet. Subject to funding
availability, the Fund intends to award up to $50 million in
appropriated funds under this NOFA and expects to issue approximately
45 to 65 awards. The Fund reserves the right to award in excess of $50
million in appropriated funds under this NOFA provided that the funds
are available and the Fund deems it appropriate. 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.
This NOFA is issued in connection with the Core Component of the
CDFI Program. The Core Component provides direct assistance to CDFIs
that serve their target markets through loans, investments and other
activities. (These activities generally do not include the financing of
other CDFIs. Elsewhere in this issue of the Federal Register, the Fund
is publishing a separate NOFA for the fourth round of the Intermediary
Component of the CDFI Program. The Intermediary Component provides
financial assistance and technical assistance to CDFIs that provide
financing primarily to other CDFIs and/or to support the formation of
CDFIs.)
DATES: Applications may be submitted at any time following November 1,
1999. The deadline for receipt of an application is 6:00 p.m. EST on
January 20, 2000. Applications received in the offices of the Fund
after that date and time will be rejected and returned to the sender.
ADDRESSES: Applications shall be sent to: Awards Manager, Community
Development Financial Institutions Fund, U.S. Department of the
Treasury, 601 13th Street, NW., Suite 200 South, Washington, DC 20005.
Applications sent electronically or by facsimile will not be accepted.
FOR FURTHER INFORMATION CONTACT: If you have any questions about the
programmatic requirements for this program, contact the CDFI Program
Manager. Should you wish to request an application package or have
questions regarding application procedures, contact the Awards Manager.
The CDFI Program Manager and the Awards Manager may be reached by e-
mail at [email protected], by telephone at (202) 622-8662, 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. Allow at least one to two weeks from the date the Fund
receives a request for receipt of the application package. Applications
and other information regarding the Fund and its programs may be
downloaded from the Fund's web site at http://www.treas.gov/cdfi.
SUPPLEMENTARY INFORMATION:
I. Background
Credit and investment capital are essential ingredients for
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
funds and supports a national network of financial institutions that is
specifically dedicated to funding and supporting community development.
This strategy builds strong institutions that make loans and
investments and provide services to economically distressed investment
areas and disadvantaged targeted populations. The Act authorizes the
Fund to select entities to receive financial and technical assistance.
This NOFA invites applications from eligible organizations for
financial assistance, technical assistance, or both, for the purpose of
promoting community development activities.
The program connected with this NOFA constitutes the Core Component
of the CDFI Program, involving direct financial assistance and
technical assistance (TA) to CDFIs that serve their target markets
through loans, investments and other activities. Under this Core
Component NOFA, the Fund anticipates a maximum award amount of $2.5
million per applicant. However, the Fund, in its sole discretion,
reserves the right to award amounts in excess of the anticipated
maximum award amount if the Fund deems it appropriate.
Previous awardees under the CDFI Program are eligible to apply
under this NOFA, but such applicants must be aware that success in a
previous round should not be considered indicative of success under
this NOFA. In addition, organizations will not be penalized for having
received awards in previous funding rounds, except to the extent that:
(1) 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; and
(2) An applicant that is a previous awardee has failed to meet its
performance goals, financial soundness covenants (if applicable) and/or
other requirements contained in the previously executed assistance
agreement(s).
This NOFA is not intended to support Intermediary CDFIs (those
CDFIs that primarily fund other CDFIs). Elsewhere in this issue of the
Federal Register, the Fund is publishing a separate NOFA for the fourth
round of the Intermediary Component of the CDFI Program. The
Intermediary Component NOFA is issued in recognition of the fact that
Intermediary CDFIs can reach specialized niches in their financing of
CDFIs that the Fund itself cannot reach as effectively under the Core
Component.
II. Eligibility
The Act and the interim rule, as revised, specify the eligibility
requirements that each applicant must meet in order to be eligible to
apply for assistance under this Core Component NOFA. At the time an
entity submits its application, the entity must be a duly organized and
validly existing legal entity under the laws of the jurisdiction in
which it is incorporated or otherwise established. An entity must meet,
or propose to meet, CDFI eligibility
[[Page 59095]]
requirements. In general, a CDFI and its affiliates must collectively
have a primary mission of promoting community development. In addition,
the applicant organization must: provide lending or equity investments,
serve an investment area or a targeted population, provide development
services, maintain community accountability, and be a non-government
entity. If an applicant is an insured depository institution holding
company or an affiliate of an insured depository holding company, the
applicant and its affiliates must collectively meet all of the
aforementioned requirements. If an applicant is a subsidiary of an
insured depository institution, the insured depository institution and
all of its subsidiaries must collectively meet all of the
aforementioned requirements.
If the applicant does not meet the CDFI eligibility requirements,
the application shall include a realistic plan for the applicant to
meet the criteria by September 30, 2002 (which period may be extended
at the sole discretion of the Fund). In no event will the Fund disburse
financial assistance to the applicant until the applicant can be
certified as a CDFI. Further details regarding eligibility and other
program requirements are found in the application packet.
III. Types of Assistance
An applicant may submit an application for financial assistance,
TA, or both, under this Core Component NOFA. Financial assistance may
be provided through an equity investment (including, in the case of
certain insured credit unions, secondary capital accounts), a grant,
loan, deposit, credit union shares, or any combination thereof.
Applicants for financial assistance shall indicate the dollar amount,
form, and terms and conditions of the assistance requested. Applicants
for TA under this NOFA shall describe the type(s) of TA requested, the
provider(s) of the TA, the cost of the TA, and a narrative
justification for their TA request.
IV. Application Packet
An applicant under this NOFA, whether applying for financial
assistance, TA, or both, must submit the materials described in the
application packet.
V. Matching Funds
Applicants responding to this NOFA must obtain matching funds from
sources other than the Federal government on the basis of not less than
one dollar for each dollar of financial assistance provided by the Fund
(matching funds are not required for TA). Matching funds must be at
least comparable in form and value to the financial assistance provided
by the Fund. Non-Federal funds obtained or legally committed on or
after January 1, 1998, and before August 31, 2001, may be considered
when determining matching funds availability. The Fund reserves the
right to recapture and reprogram funds if an applicant fails to raise
the required matching funds by August 31, 2001, or to grant an
extension of such matching funds deadline for specific applicants
selected for assistance, if the Fund deems it appropriate. Funds used
by an applicant as matching funds for a previous award under the CDFI
Program or under another Federal grant or award program cannot be used
to satisfy the matching funds requirement.
VI. Evaluation
All applications will be reviewed for eligibility and completeness.
If determined to be eligible and complete, applications will be
evaluated by the Fund on a competitive basis in accordance with the
criteria described in this NOFA. In conducting its substantive review,
the Fund will evaluate the following criteria:
(1) The applicant's ability to carry out its Comprehensive Business
Plan and create community development impact (the Ability criterion);
(2) The quality of the applicant's strategy for carrying out its
Comprehensive Business Plan and for creating community development
impact (the Strategy criterion); and
(3) the extent to which an award to the applicant will maximize the
effective use of the Fund's resources (the Effective Use criterion).
In addition, the Fund will consider the institutional and
geographic diversity of applicants in making its funding
determinations.
Phase One
In Phase One of the substantive review, each Fund reader(s) will
evaluate applications using a 100-point scale, as follows:
(a) Ability to Carry Out the Comprehensive Business Plan and Create
Community Development Impact: 50-point maximum, with a minimum score of
25 points required to be passed on for Phase Two review. The score of
the Ability criterion is based on a composite assessment of an
applicant's organizational strengths and weaknesses under the four sub-
criteria listed below. Such scoring reflects different weighting of the
sub-criteria depending on whether an applicant is a start-up
organization or an established organization. The Fund defines a start-
up organization as an entity that has been in operation two years or
less, as of the date of this NOFA (meaning, for purposes of this NOFA,
having incurred initial operating expenses on or after November 1,
1997). For purposes of this NOFA, start-up organizations will not be
evaluated under the Ability criterion on their previous community
development and financial track records. Instead, start-up
organizations will be scored entirely on operational and management
capacity.
Under the Ability section of the application, the Fund will
evaluate the following four sub-criteria:
(1) Community development track record: 12-point maximum
(established organizations only);
(2) Operational capacity and risk mitigation strategies: 12-point
maximum (established organizations), 20-point maximum (start-ups);
(3) Financial track record and strength: 12-point maximum
(established organizations only); and
(4) Capacity, skills and experience of the management team: 14-
point maximum (established organizations), 30-point maximum (start-
ups).
Quality of the Strategy for Carrying out the Comprehensive Business
Plan and for Creating Impact: 40-point maximum with a minimum of 20
points required to be passed on for Phase Two review. Under the
Strategy section of the application, the Fund will evaluate the
following four sub-criteria:
(1) The applicant's understanding of its market: 10-point maximum;
(2) Program design and implementation plan: 10-point maximum;
(3) Projections for financial performance and raising needed
resources: 10-point maximum; and
(4) Projections for generating, measuring and evaluating community
development impact: 10-point maximum.
In the case of an applicant that has previously received assistance
from the Fund under the CDFI Program, the Fund will consider whether
the applicant will expand its operations into a new target market,
offer more products or services, and/or increase the volume of its
activities.
Maximizing Effective Use of Fund Resources: 10-point maximum, with
no minimum score required to be passed on for Phase Two review. The
Fund will consider:
(1) The extent to which the applicant needs the Fund's assistance
to carry out its Comprehensive Business Plan; and
[[Page 59096]]
(2) The extent of economic distress in the applicant's target
market.
In addition, in the case of an applicant that has previously
received assistance from the Fund under the CDFI Program, the Fund will
consider the applicant's level of success in meeting its performance
goals, financial soundness covenants (if applicable) and other
requirements contained in the assistance agreement(s) with the Fund,
and the benefits that will be created with new Fund assistance over and
above benefits created by previous Fund assistance.
Phase Two
Once the initial evaluation is completed, the Fund will determine
which applications will receive further consideration for funding based
on application scores (standardized if deemed appropriate),
recommendations of individuals performing initial reviews and the
amount of funds available. Applicants that advance to Phase Two may
receive a site visit and/or telephone interview(s) conducted by a Fund
reviewer for the purpose of obtaining clarifying or confirming
information. At this point in the process, applicants will be required
to submit additional information, as set forth in detail in the
application packet. After conducting such site visits/telephone
interview(s), the Fund reviewer will evaluate applications in
accordance with the evaluation criteria outlined above and prepare a
recommendation memorandum containing recommendations on the type and
amount of assistance that should be provided to the applicant.
A final review panel comprised of Fund staff will consider the Fund
reviewer's recommendation memorandum and make a final recommendation to
the Fund's selecting official. In making its recommendations, the final
review panel also may consider the institutional diversity and
geographic diversity of applicants (e.g., recommending a CDFI from a
State in which the Fund has not previously made an award over a CDFI in
a State in which the Fund has already made numerous awards).
The Fund's selecting official will make a final funding
determination based on the applicant's file, including, without
limitation, reader(s)/reviewer(s) recommendations and the panel's
recommendation, and the amount of funds available. In the case of
regulated CDFIs, the selecting official will also take into
consideration the views of the appropriate Federal banking agencies.
The Fund reserves the right to change these evaluation procedures
if the Fund deems it appropriate.
VII. Information Sessions
In connection with this NOFA and the NOFA for the Intermediary
Component, the Fund will conduct Information Sessions to disseminate
information to organizations contemplating applying for, and other
organizations interested in learning about, the CDFI Program.
Registration is required and registration in advance is preferred. The
Fund will conduct 12 in-person Information Sessions, beginning November
8, 1999, as follows:
Atlanta, GA, November 9, 1999;
Boston, MA, November 15, 1999;
Chicago, IL, November 8, 1999;
Cleveland, OH, November 9, 1999;
Dallas, TX, November 9, 1999;
Memphis, TN, November 8, 1999;
Miami, FL, November 8, 1999;
New York, NY, November 16, 1999;
Salt Lake City, UT, November 16, 1999
San Diego, CA, November 19, 1999;
San Francisco, CA, November 22, 1999; and
Seattle, WA, November 15, 1999.
In addition to the in-person sessions listed above, the Fund will
broadcast an Information Session using interactive video-
teleconferencing technology on November 16, 1999, from 1:00 p.m. to
4:00 p.m EST. Registration is required and registration in advance is
preferred. This Information Session will be produced in Washington, DC,
and will be downlinked via satellite to the local Department of Housing
and Urban Development (HUD) offices located in the following 73 cities:
Albany, NY: Albuquerque, NM; Anchorage, AK; Atlanta, GA; Baltimore, MD;
Bangor, ME; Beaumont, TX; Birmingham, AL; Boise, ID; Buffalo, NY;
Burlington, VT; Casper, WY; Charleston, WV; Chicago, IL; Cincinnati,
OH; Columbia, SC; Columbus, OH; Denver, CO; Des Moines, IA; Detroit,
MI; Fargo, ND; Flint, MI; Fresno, CA; Grand Rapids, MI; Greensboro, NC;
Hartford, CT; Helena, MT; Honolulu, HI; Houston, TX; Indianapolis, IN;
Jackson, MS; Jacksonville, FL; Kansas City, KS; Knoxville, TN; Lanham,
MD; Las Vegas, NV; Little Rock, AR; Los Angeles, CA; Louisville, KY;
Lubbock, TX; Manchester, NH; Miami, FL; Milwaukee, WI; Minneapolis/St.
Paul, MN; Nashville, TN; New Orleans, LA; Newark, NJ; Oklahoma City,
OK; Omaha, NE; Orlando, FL; Philadelphia, PA; Phoenix, AZ; Pittsburgh,
PA; Portland, OR; Providence, RI; Reno, NV; Richmond, VA; Sacramento,
CA; St. Louis, MO; San Antonio, TX; San Francisco, CA; San Juan, PR;
Santa Ana, CA; Shreveport, LA; Sioux Falls, SD; Spokane, WA;
Springfield, IL; Syracuse, NY; Tampa, FL; Tucson, AZ; Tulsa, OK;
Washington, DC; and Wilmington, DE.
For more information, or to register for an Information Session,
please contact the Fund at (202) 622-8662 or visit the Fund's web site
at www.treas.gov/cdfi.
Authority: 12 U.S.C. 4703, 4703 note, 4704, 4706, 4707, and
4717; 12 CFR part 1805.
Dated: October 25, 1999.
Maurice A. Jones,
Deputy Director for Policy and Programs, Community Development
Financial Institutions Fund.
[FR Doc. 99-28282 Filed 10-29-99; 8:45 am]
BILLING CODE 4810-70-P