[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